| Schedule of Pro Forma Statements of Operations |
The unaudited pro forma statements
of operations for the three and nine months ended September 30, 2019 and 2018 give effect to the transaction to the merger as if
it had occurred on January 1, 2018.
| |
|
Statement of Operations |
|
| |
|
(Unaudited) |
|
| |
|
Three Months Ended
September 30, 2019
|
|
|
Three Months Ended
September 30, 2018
|
|
|
Nine Months Ended
September 30, 2019
|
|
|
Nine Months Ended
September 30, 2018
|
|
| |
|
(Actual) |
|
|
(Proforma) |
|
|
(Proforma) |
|
|
(Proforma) |
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital |
|
$ |
1,438,000 |
|
|
$ |
1,120,000 |
|
|
$ |
3,951,000 |
|
|
$ |
2,970,000 |
|
| Welcome kits & fulfillment |
|
|
1,164,000 |
|
|
|
1,868,000 |
|
|
|
5,213,000 |
|
|
|
5,242,000 |
|
| Shipping |
|
|
271,000 |
|
|
|
479,000 |
|
|
|
1,443,000 |
|
|
|
1,128,000 |
|
| |
|
|
2,873,000 |
|
|
|
3,467,000 |
|
|
|
10,607,000 |
|
|
|
9,340,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Digital |
|
|
221,000 |
|
|
|
113,000 |
|
|
|
564,000 |
|
|
|
376,000 |
|
| Welcome kits & fulfillment |
|
|
990,000 |
|
|
|
1,494,000 |
|
|
|
3,850,000 |
|
|
|
3,554,000 |
|
| Shipping |
|
|
280,000 |
|
|
|
493,000 |
|
|
|
1,367,000 |
|
|
|
1,137,000 |
|
| |
|
|
1,491,000 |
|
|
|
2,100,000 |
|
|
|
5,781,000 |
|
|
|
5,067,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross margin |
|
|
1,382,000 |
|
|
|
1,367,000 |
|
|
|
4,826,000 |
|
|
|
4,273,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Research & development |
|
|
1,214,000 |
|
|
|
758,000 |
|
|
|
3,804,000 |
|
|
|
2,005,000 |
|
| Depreciation & amortization |
|
|
518,000 |
|
|
|
510,000 |
|
|
|
1,530,000 |
|
|
|
1,528,000 |
|
| General & administrative |
|
|
3,293,000 |
|
|
|
1,055,000 |
|
|
|
9,823,000 |
|
|
|
7,285,000 |
|
| Total operating expenses |
|
|
5,025,000 |
|
|
|
2,323,000 |
|
|
|
15,157,000 |
|
|
|
10,818,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from operations |
|
|
(3,643,000 |
) |
|
|
(956,000 |
) |
|
|
(10,331,000 |
) |
|
|
(6,545,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other expense |
|
|
(10,000 |
) |
|
|
(24,000 |
) |
|
|
(27,000 |
) |
|
|
(16,000 |
) |
| Financing costs |
|
|
(1,486,000 |
) |
|
|
- |
|
|
|
(1,625,000 |
) |
|
|
(172,000 |
) |
| Interest expense - amortization of debt discount |
|
|
(21,000 |
) |
|
|
- |
|
|
|
(1,647,000 |
) |
|
|
(748,000 |
) |
| Change in fair value of derivative liability |
|
|
2,802,000 |
|
|
|
341,000 |
|
|
|
3,320,000 |
|
|
|
(840,000 |
) |
| Gain on extinguishment of debt, net |
|
|
(691,000 |
) |
|
|
(1,075,000 |
) |
|
|
1,536,000 |
|
|
|
(423,000 |
) |
| Interest expense |
|
|
(68,000 |
) |
|
|
(59,000 |
) |
|
|
(151,000 |
) |
|
|
(322,000 |
) |
| Total other income/ (expense), net |
|
|
526,000 |
|
|
|
(817,000 |
) |
|
|
1,406,000 |
|
|
|
(2,521,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net loss |
|
$ |
(3,117,000 |
) |
|
$ |
(1,773,000 |
) |
|
$ |
(8,925,000 |
) |
|
$ |
(9,066,000 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Loss per share |
|
$ |
(0.13 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.44 |
) |
|
$ |
(0.69 |
) |
| Weighted average number of common shares outstanding - basic and diluted |
|
|
23,155,801 |
|
|
|
13,549,270 |
|
|
|
20,300,163 |
|
|
|
13,072,089 |
|
|