| Schedule of Pro Forma Statements of Operations |
The unaudited
pro forma statements of operations for the three and six months ended June 30, 2019 and 2018 give effect to the transaction to
the merger as if it had occurred on January 1, 2018.
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|
Statement of Operations
(Unaudited)
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|
Three
Months Ended
June 30, 2019 |
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Three
Months Ended
June 30, 2018 |
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|
Six
Months Ended
June 30, 2019 |
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|
Six
Months Ended
June 30, 2018 |
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| |
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|
(Proforma) |
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|
(Proforma) |
|
|
(Proforma) |
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| Digital |
|
$ |
1,454,000 |
|
|
$ |
928,000 |
|
|
$ |
2,513,000 |
|
|
$ |
1,850,000 |
|
| Welcome Kits & Fulfillment |
|
|
1,784,000 |
|
|
|
1,814,000 |
|
|
|
4,049,000 |
|
|
|
3,373,000 |
|
| Shipping |
|
|
495,000 |
|
|
|
367,000 |
|
|
|
1,172,000 |
|
|
|
649,000 |
|
| Revenue |
|
|
3,733,000 |
|
|
|
3,109,000 |
|
|
|
7,734,000 |
|
|
|
5,872,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Digital Cost of Revenue |
|
|
176,000 |
|
|
|
160,000 |
|
|
|
343,000 |
|
|
|
263,000 |
|
| Welcome Kits & Fulfillment
Cost of Revenue |
|
|
1,385,000 |
|
|
|
995,000 |
|
|
|
2,860,000 |
|
|
|
2,060,000 |
|
| Shipping
cost of Revenue |
|
|
481,000 |
|
|
|
351,000 |
|
|
|
1,087,000 |
|
|
|
644,000 |
|
| Cost of revenue |
|
|
2,042,000 |
|
|
|
1,506,000 |
|
|
|
4,290,000 |
|
|
|
2,967,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Digital Gross Margin |
|
|
1,278,000 |
|
|
|
768,000 |
|
|
|
2,170,000 |
|
|
|
1,587,000 |
|
| Welcome Kits & Fulfillment
Gross Margin |
|
|
399,000 |
|
|
|
819,000 |
|
|
|
1,189,000 |
|
|
|
1,313,000 |
|
| Shipping
Gross Margin |
|
|
14,000 |
|
|
|
16,000 |
|
|
|
85,000 |
|
|
|
5,000 |
|
| Gross margin |
|
|
1,691,000 |
|
|
|
1,603,000 |
|
|
|
3,444,000 |
|
|
|
2,905,000 |
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| |
|
|
|
|
|
|
|
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|
|
|
|
|
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| Operating Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Research and development |
|
|
1,335,000 |
|
|
|
605,000 |
|
|
|
2,590,000 |
|
|
|
1,247,000 |
|
| Depreciation and amortization |
|
|
567,000 |
|
|
|
508,000 |
|
|
|
1,003,000 |
|
|
|
1,018,000 |
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| General
and administrative |
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|
3,262,000 |
|
|
|
281,000 |
|
|
|
6,525,000 |
|
|
|
6,230,000 |
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| Total operating expenses |
|
|
5,164,000 |
|
|
|
1,394,000 |
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|
|
10,118,000 |
|
|
|
8,495,000 |
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| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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| Income / (Loss) from operations |
|
|
(3,473,000 |
) |
|
|
209,000 |
|
|
|
(6,674,000 |
) |
|
|
(5,590,000 |
) |
| |
|
|
|
|
|
|
|
|
|
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|
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| Other income (expense) |
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|
|
|
|
|
|
|
|
|
|
|
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| Other income / (expense) |
|
|
(1,000 |
) |
|
|
19,000 |
|
|
|
(17,000 |
) |
|
|
8,000 |
|
| Financing costs |
|
|
(55,000 |
) |
|
|
- |
|
|
|
(139,000 |
) |
|
|
(172,000 |
) |
| Interest expense - amortization
of debt discount |
|
|
(572,000 |
) |
|
|
- |
|
|
|
(1,626,000 |
) |
|
|
(748,000 |
) |
| Change in fair value of derivative
liability |
|
|
(426,000 |
) |
|
|
1,444,000 |
|
|
|
518,000 |
|
|
|
(1,181,000 |
) |
| Gain on extinguishment of derivative
liability, net |
|
|
2,227,000 |
|
|
|
- |
|
|
|
2,227,000 |
|
|
|
652,000 |
|
| Interest
expense |
|
|
(43,000 |
) |
|
|
(59,000 |
) |
|
|
(83,000 |
) |
|
|
(263,000 |
) |
| Total other income (expense) |
|
|
1,130,000 |
|
|
|
1,404,000 |
|
|
|
880,000 |
|
|
|
(1,704,000 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
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|
| Net Income / (Loss) |
|
$ |
(2,343,000 |
) |
|
$ |
1,613,000 |
|
|
$ |
(5,794,000 |
) |
|
$ |
(7,294,000 |
) |
| Income per share |
|
|
(0.11 |
) |
|
|
0.12 |
|
|
|
(0.34 |
) |
|
|
(0.57 |
) |
| Weighted average number of common shares outstanding
- basic and diluted |
|
|
21,624,240 |
|
|
|
13,497,123 |
|
|
|
16,946,065 |
|
|
|
12,816,808 |
|
|