Pro Forma Statement of Income Nine Months Ended September 30, 2015	Company Historical	Titan Agencies Historical Six Months Ended June 30, 2015	Pro Forma Adjustments		Pro Forma Combined
Revenues:
Premiums earned	$ 197,423	$ —	$ —		$ 197,423
Commission and fee income	42,252	14,547	—		56,799
Investment income	3,695	—	—		3,695
Net realized losses on investments, available-for-sale	(13)	—	—		(13)
	243,357	14,547	—		257,904
Costs and expenses:
Losses and loss adjustment expenses	160,304	—	—		160,304
Insurance operating expenses	78,039	14,555	—		92,594
Other operating expenses	881	—	—		881
Litigation settlement	3,645	—	—		3,645
Stock-based compensation	109	—	—		109
Depreciation	1,224	—	50	(a)	1,274
Amortization of identifiable intangibles assets	261	—	455	(b)	716
Interest expense	1,924	—	1,190	(c)	3,114
	246,387	14,555	1,695		262,637
Loss before income taxes	(3,030)	(8)	(1,695)		(4,733)
Benefit for income taxes	(813)	(3)	(678)	(d)	(1,494)
Net loss	$ (2,217)	$ (5)	$ (1,017)		$ (3,239)
Net loss per share:
Basic	$ (0.05)				$ (0.08)
Diluted	$ (0.05)				$ (0.08)
Number of shares used to calculate net loss per share:
Basic	41,026				41,026
Diluted	41,026				41,026

Pro forma adjustments

The following adjustments have been reflected in the unaudited pro forma combined financial information.

(a)	Depreciation expense related to acquired tangible asset

(b)	Amortization expense related to acquired identifiable intangible asset

(c)	Interest expense related to acquisition financing

(d)	Calculated income tax effect of pro forma adjustments at the estimated combined federal and state statutory rate of 40%