Delaware | 000-51840 | 20-3881465 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
525 Washington Blvd
Suite 2620
Jersey City, New Jersey
|
07310 | |
(Address of Principal Executive Offices) | (Zip Code) |
Exhibit | Description | |
99.1
|
The audited consolidated balance sheets of Kitara Media, LLC. at December 31, 2011 and 2012 and the audited consolidated statements of operations, changes in member’s equity and cash flows for the years ended December 31, 2011 and 2012 and the condensed consolidated balance sheet at June 30, 2013 (unaudited) and condensed consolidated statements of operations and cash flows for the six months ended June 30, 2012 and 2013 (unaudited), respectively.
|
|
99.2
|
The audited balance sheets of New York Publishing Group, Inc. at December 31, 2011 and 2012 and the audited statements of operations, changes in stockholder’s' equity and cash flows for the years ended December 31, 2011 and 2012 and the condensed balance sheet at June 30, 2013 (unaudited) and condensed statements of operations and cash flows for the six months ended June 30, 2012 and 2013 (unaudited), respectively.
|
|
99.3
|
The unaudited pro forma condensed combining balance sheet of the Company, Kitara Media, LLC and New York Publishing Group, Inc. at June 30, 2013 and the unaudited pro forma condensed combining statements of operations of the Company, Kitara Media, LLC and New York Publishing Group, Inc. for the six months ended June 30, 2013 and the year ended December 31, 2012.
|
KITARA MEDIA CORP. | ||
Dated: September 16, 2013
|
By:
|
/s/ Robert Regular |
Robert Regular | ||
Chief Executive Officer |
Report of Independent Registered Public Accounting Firm
|
F-1
|
Consolidated Financial Statements
|
|
Consolidated Balance Sheets
|
F-2
|
Consolidated Statements of Operations
|
F-3
|
Consolidated Statements of Changes in Member’s Equity
|
F-4
|
Consolidated Statements of Cash Flows
|
F-5
|
Notes to the Consolidated Financial Statements
|
F-6 to F-11
|
December 31,
2011
|
December 31,
2012
|
June 30,
2013
|
||||||||||
(Unaudited)
|
||||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash
|
$ | - | $ | - | $ | 37 | ||||||
Accounts receivable, net
|
5,266 | 7,595 | 4,647 | |||||||||
Prepaid expenses
|
227 | 115 | 146 | |||||||||
Other receivables
|
54 | 5 | 4 | |||||||||
TOTAL CURRENT ASSETS
|
5,547 | 7,715 | 4,834 | |||||||||
Property and equipment, net
|
547 | 129 | 337 | |||||||||
Restricted cash
|
124 | 124 | 124 | |||||||||
Intangible assets
|
772 | 386 | 193 | |||||||||
TOTAL ASSETS
|
$ | 6,990 | $ | 8,354 | $ | 5,488 | ||||||
CURRENT LIABILITIES
|
||||||||||||
Cash overdraft
|
$ | 355 | $ | 670 | $ | - | ||||||
Accounts payable and accrued liabilities (related party accounts payable includes, $0, $343, $44 as of December 31, 2011, December 31, 2012, and June 30, 2013, respectively)
|
2,183 | 2,992 | 1,381 | |||||||||
TOTAL CURRENT LIABILITIES
|
2,538 | 3,662 | 1,381 | |||||||||
Deferred rent
|
29 | 20 | 14 | |||||||||
TOTAL LIABILITIES
|
2,567 | 3,682 | 1,395 | |||||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||||||
MEMBER'S EQUITY
|
4,423 | 4,672 | 4,093 | |||||||||
TOTAL LIABILITIES AND MEMBER'S EQUITY
|
$ | 6,990 | $ | 8,354 | $ | 5,488 | ||||||
Year Ended
|
Year Ended
|
Six-months ended
|
Six-months ended
|
|||||||||||||
December 31,
2011
|
December 31,
2012
|
June 30,
2012
|
June 30,
2013
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenue (includes related party revenue of $997 and $2 for the years ended December 31, 2011 and 2012 and $1 and $0 for the six month periods ended June 30, 2012 and 2013 (unaudited), respectively)
|
$ | 34,024 | $ | 23,557 | $ | 9,713 | $ | 10,428 | ||||||||
Cost of Revenue
|
24,346 | 18,598 | 8,007 | 7,382 | ||||||||||||
Gross Profit
|
9,678 | 4,959 | 1,706 | 3,046 | ||||||||||||
Operating Expenses
|
||||||||||||||||
Compensation
|
4,283 | 5,101 | 2,651 | 2,261 | ||||||||||||
Impairment of property and equipment
|
0 | 649 | 0 | 0 | ||||||||||||
Other Operating Expenses (includes related party expense of $686 and $399 for the years ended December 31, 2011 and 2012 and $232 and $154 for the six month periods ended June 30, 2012 and 2013 (unaudited), respectively)
|
2,264 | 2,034 | 1,025 | 665 | ||||||||||||
Total Operating Expense
|
6,547 | 7,784 | 3,676 | 2,926 | ||||||||||||
Operating Income(Loss)
|
3,131 | (2,825 | ) | (1,970 | ) | 120 | ||||||||||
Other Expense, net
|
(1 | ) | (5 | ) | (6 | ) | 0 | |||||||||
Net Income(Loss)
|
$ | 3,130 | $ | (2,830 | ) | $ | (1,976 | ) | $ | 120 |
Total Member's Equity
|
||||
Balance - January 1, 2011
|
$ | 4,052 | ||
Capital Distribution
|
(2,759 | ) | ||
Net Income
|
3,130 | |||
Balance - December 31, 2011
|
4,423 | |||
Capital Contribution
|
3,079 | |||
Net Loss
|
(2,830 | ) | ||
Balance - December 31, 2012
|
$ | 4,672 |
Year Ended
|
Year Ended
|
Six-months ended
|
Six-months ended
|
|||||||||||||
December 31,
2011
|
December 31,
2012
|
June 30,
2012
|
June 30,
2013
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||
Net income (loss)
|
$ | 3,130 | $ | (2,830 | ) | $ | (1,976 | ) | $ | 120 | ||||||
Adjustments to reconcile net income/(loss) to net cash provided by/(used in) | ||||||||||||||||
operating activiites
|
||||||||||||||||
Depreciation and amortization
|
498 | 748 | 330 | 230 | ||||||||||||
Asset Impairment
|
- | 649 | - | - | ||||||||||||
Deferred rent amortization
|
(4 | ) | (9 | ) | (3 | ) | (6 | ) | ||||||||
Provisions for bad debt
|
138 | 8 | (74 | ) | (37 | ) | ||||||||||
Changes in Assets and Liabilities
|
||||||||||||||||
Accounts receivable, net
|
(286 | ) | (2,337 | ) | 957 | 2,987 | ||||||||||
Prepaid expenses
|
94 | 111 | 117 | (31 | ) | |||||||||||
Other receivables
|
(65 | ) | 50 | 55 | 0 | |||||||||||
Accounts payable and accrued liabilities
|
(861 | ) | 810 | 39 | (1,612 | ) | ||||||||||
Net cash provided by/(used in) operating activities
|
2,644 | (2,800 | ) | (555 | ) | 1,651 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||
Purchase of fixed assets
|
(504 | ) | (593 | ) | (331 | ) | (245 | ) | ||||||||
Net cash provided by/(used in) investing activities
|
(504 | ) | (593 | ) | (331 | ) | (245 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||
Capital (distributions) contributions from members
|
(2,759 | ) | 3,079 | 1,002 | (699 | ) | ||||||||||
Changes in cash overdraft from financial institution, net
|
(56 | ) | 314 | (116 | ) | (670 | ) | |||||||||
Net cash (used in)/provided by financing activities
|
(2,815 | ) | 3,393 | 886 | (1,369 | ) | ||||||||||
Net (decrease)/increase in cash
|
(675 | ) | (0 | ) | (0 | ) | 37 | |||||||||
Cash at beginning of period
|
675 | - | - | - | ||||||||||||
Cash at end of period
|
$ | - | $ | - | $ | - | $ | 37 | ||||||||
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
As of
December 31,
2011
|
As of
December 31,
2012
|
As of
June 30,
2013
|
||||||||||
(Unaudited)
|
||||||||||||
Leasehold improvements
|
$ | 25 | $ | 25 | $ | 25 | ||||||
Furniture & Fixtures
|
13 | 13 | 13 | |||||||||
Computer Equipment
|
45 | 46 | 46 | |||||||||
Software
|
584 | 189 | 372 | |||||||||
Other equipment
|
25 | 25 | 25 | |||||||||
Construction in progress
|
0 | 58 | 120 | |||||||||
Less: Accumulated Depreciation
|
(145 | ) | (227 | ) | (264 | ) | ||||||
$ | 547 | $ | 129 | $ | 337 |
As of
December 31,
2011
|
As of
December 31,
2012
|
As of
June 30,
2013
|
||||||||||
(Unaudited)
|
||||||||||||
Publisher intangible asset
|
$ | 695 | $ | 695 | $ | 695 | ||||||
Advertiser intangible asset
|
463 | 463 | 463 | |||||||||
Total Intangible asset
|
1,158 | 1,158 | 1,158 | |||||||||
Less: accumulated amortization
|
(386 | ) | (772 | ) | (965 | ) | ||||||
Net
|
$ | 772 | $ | 386 | $ | 193 |
Report of Independent Registered Public Accounting Firm
|
F-1
|
Financial Statements
|
|
Balance Sheets
|
F-2
|
Statements of Operations
|
F-3
|
Statement of Changes in Stockholder’s (Deficiency) Equity
|
F-4
|
Statements of Cash Flows
|
F-5
|
Notes to the Financial Statements
|
F-6 to F-9
|
December 31,
2011
|
December 31,
2012
|
June 30,
2013
|
||||||||||
(Unaudited)
|
||||||||||||
ASSETS
|
||||||||||||
CURRENT ASSETS
|
||||||||||||
Cash
|
$ | 13 | $ | 99 | $ | 6 | ||||||
Accounts receivable, net
|
48 | 106 | 44 | |||||||||
Other receivables
|
2 | 0 | 0 | |||||||||
TOTAL CURRENT ASSETS
|
63 | 205 | 50 | |||||||||
Property and equipment, net
|
0 | 302 | 2 | |||||||||
Security deposit
|
0 | 3 | 3 | |||||||||
TOTAL ASSETS
|
$ | 63 | $ | 510 | $ | 55 | ||||||
CURRENT LIABILITIES
|
||||||||||||
Accounts payable and accrued liabilities
|
$ | 2 | $ | 106 | $ | - | ||||||
Advances from stockholder, current
|
0 | 0 | 100 | |||||||||
Due to related parties
|
0 | 24 | 0 | |||||||||
TOTAL CURRENT LIABILITIES
|
2 | 130 | 100 | |||||||||
Advances from stockholder, non-current
|
119 | 294 | 200 | |||||||||
TOTAL LIABILITIES
|
121 | 424 | 300 | |||||||||
COMMITMENTS AND CONTINGENCIES
|
||||||||||||
STOCKHOLDER'S (DEFICIENCY) EQUITY
|
||||||||||||
Common Stock (no par value, 1,500 shares authorized, issued and outstanding)
|
25 | 25 | 25 | |||||||||
Additional paid-in capital
|
0 | 0 | 53 | |||||||||
(Accumulated Deficit) Retained Earnings
|
(83 | ) | 61 | (323 | ) | |||||||
TOTAL STOCKHOLDER'S (DEFICIENCY) EQUITY
|
(58 | ) | 86 | (245 | ) | |||||||
TOTAL LIABILITIES AND STOCKHOLDER'S (DEFICIENCY) EQUITY
|
$ | 63 | $ | 510 | $ | 55 |
Year Ended
|
Year Ended
|
Six-months ended
|
Six-months ended
|
|||||||||||||
December 31,
2011
|
December 31,
2012
|
June 30,
2012
|
June 30,
2013
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Revenue
|
$ | 249 | $ | 553 | $ | 169 | $ | 215 | ||||||||
Operating Expenses
|
||||||||||||||||
Compensation
|
178 | 185 | 95 | 44 | ||||||||||||
Impairment of property and equipment
|
0 | 0 | 0 | 300 | ||||||||||||
Other operating expenses
|
112 | 224 | 82 | 255 | ||||||||||||
Total Operating Expense
|
290 | 409 | 177 | 599 | ||||||||||||
Net (Loss) Income
|
$ | (41 | ) | $ | 144 | $ | (8 | ) | $ | (384 | ) |
Common Stock Shares
|
Common Stock
|
(Accumulated Deficit) Retained Earnings
|
Total Stockholders (Deficiency) Equity
|
|||||||||||||
Balance - January 1, 2011
|
1,500 | $ | 25 | $ | (42 | ) | $ | (17 | ) | |||||||
Net loss
|
0 | 0 | (41 | ) | (41 | ) | ||||||||||
Balance - December 31, 2011
|
1,500 | 25 | (83 | ) | (58 | ) | ||||||||||
Net income
|
0 | 0 | 144 | 144 | ||||||||||||
Balance - December 31, 2012
|
1,500 | $ | 25 | $ | 61 | $ | 86 |
Year Ended
|
Year Ended
|
Six-months ended
|
Six-months ended
|
|||||||||||||
December 31,
2011
|
December 31,
2012
|
June 30,
2012
|
June 30,
2013
|
|||||||||||||
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||||||
Net (loss) income
|
$ | (41 | ) | $ | 144 | $ | (8 | ) | $ | (384 | ) | |||||
Adjustments to reconcile net (loss) income to net cash (used in)/provided by operating activities | ||||||||||||||||
Depreciation and amortization
|
0 | 3 | 0 | 0 | ||||||||||||
Provision for bad debt
|
11 | 0 | 0 | 0 | ||||||||||||
Impairment Charge
|
0 | 0 | 0 | 300 | ||||||||||||
Changes in Assets and Liabilities
|
||||||||||||||||
Accounts receivable, net
|
(17 | ) | (58 | ) | 7 | 62 | ||||||||||
Security deposit
|
0 | (3 | ) | (3 | ) | 0 | ||||||||||
Other receivables
|
3 | 2 | 2 | 0 | ||||||||||||
Accounts payable and accrued liabilities
|
0 | 4 | (2 | ) | (6 | ) | ||||||||||
Due to related parties
|
0 | 24 | 24 | (24 | ) | |||||||||||
Net cash (used in)/provided by operating activities
|
(44 | ) | 116 | 20 | (52 | ) | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||
Purchase of property and equipment
|
0 | (5 | ) | (5 | ) | 0 | ||||||||||
Purchase of capitalized software
|
0 | (200 | ) | 0 | (100 | ) | ||||||||||
Net cash used in investing activities
|
0 | (205 | ) | (5 | ) | (100 | ) | |||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||
Proceeds from stockholders loan
|
46 | 175 | 41 | 59 | ||||||||||||
Net cash provided by financing activities
|
46 | 175 | 41 | 59 | ||||||||||||
Net increase/(decrease) in cash
|
2 | 86 | 56 | (93 | ) | |||||||||||
Cash at beginning of period
|
11 | 13 | 13 | 99 | ||||||||||||
Cash at end of period
|
$ | 13 | $ | 99 | $ | 69 | $ | 6 | ||||||||
NON-CASH INVESTING AND FINANCING ACTIVITIES:
|
||||||||||||||||
Purchase of capitalized software with accounts payable
|
$ | - | $ | 100 | $ | - | $ | - | ||||||||
Conversion of advances from stockholders to equity
|
$ | - | $ | - | $ | - | $ | 53 |
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
|
As of
December 31,
2011
|
As of
December 31,
2012
|
As of
June 30,
2013
|
||||||||||
Computer
|
$ | 1 | $ | 1 | $ | 1 | ||||||
Furniture & Fixtures
|
0 | 5 | 5 | |||||||||
Capitalized Software
|
0 | 300 | 0 | |||||||||
Less: Accumulated Depreciation
|
(1 | ) | (4 | ) | (4 | ) | ||||||
$ | 0 | $ | 302 | $ | 2 |
Ascend Acquisition Corp. | Kitara Media, LLC | New York Publishing Group, Inc. | Proforma Adjustments |
Proforma Combined
|
|||||||||||||||||
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
|||||||||||||||||
ASSETS
|
|||||||||||||||||||||
CURRENT ASSETS
|
|||||||||||||||||||||
Cash
|
$ | 2 | $ | 37 | $ | 6 | $ | 1,671 |
(a)
|
$ | 1,716 | ||||||||||
Accounts receivable, net
|
0 | 4,647 | 44 | 0 | 4,691 | ||||||||||||||||
Prepaid expenses
|
0 | 146 | 0 | 0 | 146 | ||||||||||||||||
Other receivablees
|
0 | 4 | 0 | 0 | 4 | ||||||||||||||||
TOTAL CURRENT ASSETS
|
2 | 4,834 | 50 | 1,671 | 6,557 | ||||||||||||||||
Property and equipment, net
|
0 | 337 | 2 | 0 | 339 | ||||||||||||||||
Restricted cash
|
0 | 124 | 0 | 0 | 124 | ||||||||||||||||
Security deposit
|
0 | 0 | 3 | 0 | 3 | ||||||||||||||||
Intangible assets
|
0 | 193 | 0 | 2,244 |
(b)
|
2,437 | |||||||||||||||
TOTAL ASSETS
|
2 | 5,488 | 55 | 3,915 | 9,460 | ||||||||||||||||
CURRENT LIABILITIES
|
|||||||||||||||||||||
Accounts payable and accrued liabilities
|
178 | 1,381 | 0 | (29 | ) |
(a)
|
1,530 | ||||||||||||||
Bridge loan payable
|
300 | 0 | 0 | (300 | ) |
(a)
|
0 | ||||||||||||||
Due to member
|
2 | 0 | 0 | 0 | 2 | ||||||||||||||||
Advances from stockholder, current
|
0 | 0 | 100 | 0 | 100 | ||||||||||||||||
TOTAL CURRENT LIABILITIES
|
480 | 1,381 | 100 | (329 | ) | 1,632 | |||||||||||||||
COMMITMENTS AND CONTINGENCIES
|
|||||||||||||||||||||
Deferred revenue
|
122 | 0 | 0 | 0 | 122 | ||||||||||||||||
Deferred rent
|
0 | 14 | 0 | 0 | 14 | ||||||||||||||||
Advances from stockholder, non-current
|
0 | 0 | 200 | 0 | 200 | ||||||||||||||||
TOTAL LIABILITIES
|
602 | 1,395 | 300 | (329 | ) | 1,968 | |||||||||||||||
STOCKHOLDERS' AND MEMBER'S (DEFICIENCY) EQUITY
|
|||||||||||||||||||||
Member's Equity
|
0 | 4,093 | 0 | (4,093 | ) |
(d)
|
0 | ||||||||||||||
Common stock, $0.0001 par value, authorized 300,000,000 shares, issued and outstnading 59,011,675
|
5 | 0 | 0 | 1 |
(b)
|
5 | |||||||||||||||
(3 | ) |
(c)
|
|||||||||||||||||||
2 |
(d)
|
||||||||||||||||||||
Common Stock (no par value, 1,500 shares authorized, issued and outstanding) for NYPG
|
0 | 0 | 25 | (25 | ) |
(b)
|
0 | ||||||||||||||
Additional paid-in capital
|
2,290 | 0 | 53 | 2,000 |
(a)
|
7,013 | |||||||||||||||
1,945 |
(b)
|
||||||||||||||||||||
3 |
(c)
|
||||||||||||||||||||
722 |
(d)
|
||||||||||||||||||||
(Accumulated Deficit) Retained Earnings
|
(2,895 | ) | 0 | (323 | ) | 323 |
(b)
|
474 | |||||||||||||
3,369 |
(d)
|
||||||||||||||||||||
TOTAL STOCKHOLDERS' AND MEMBER'S (DEFICIENCY) EQUITY
|
(600 | ) | 4,093 | (245 | ) | 4,244 | 7,492 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' AND MEMBER'S (DEFICIENCY) EQUITY
|
$ | 2 | $ | 5,488 | $ | 55 | $ | 3,915 | $ | 9,460 |
Ascend Acquisition Corp.
|
Kitara Media, LLC
|
New York Publishing Group, Inc.
|
Proforma Adjustments
|
Proforma Combined
|
|||||||||||||||||
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
Year Ended
|
|||||||||||||||||
December 31, 2012
|
December 31, 2012
|
December 31, 2012
|
December 31, 2012
|
December 31, 2012
|
|||||||||||||||||
Revenue
|
$ | 84 | $ | 23,557 | $ | 553 | $ | - | $ | 24,194 | |||||||||||
Cost of revenue
|
0 | 18,598 | 0 | 0 | 18,598 | ||||||||||||||||
Gross profit
|
84 | 4,959 | 553 | 0 | 5,596 | ||||||||||||||||
Operating expenses
|
|||||||||||||||||||||
Software development costs
|
159 | 0 | 0 | 0 | 159 | ||||||||||||||||
Impairment property and equipment
|
0 | 649 | 0 | 0 | 649 | ||||||||||||||||
Selling, general and administrative expense
|
1,324 | 7,135 | 409 | 49 |
(e)
|
9,198 | |||||||||||||||
281 |
(f)
|
||||||||||||||||||||
Total operating expense
|
1,483 | 7,784 | 409 | 330 | 10,006 | ||||||||||||||||
Operating income (loss)
|
(1,399 | ) | (2,825 | ) | 144 | (330 | ) | (4,410 | ) | ||||||||||||
Other income (expense)
|
|||||||||||||||||||||
Interest income
|
2 | (1 | ) | 0 | 0 | 1 | |||||||||||||||
Other income
|
7 | 0 | 0 | 0 | 7 | ||||||||||||||||
Impairment of investments
|
(102 | ) | 0 | 0 | 0 | (102 | ) | ||||||||||||||
FX gain/(loss)
|
0 | (4 | ) | 0 | 0 | (4 | ) | ||||||||||||||
Total other income (expense)
|
(93 | ) | (5 | ) | 0 | 0 | (98 | ) | |||||||||||||
Net income(loss)
|
$ | (1,492 | ) | $ | (2,830 | ) | $ | 144 | $ | (330 | ) | $ | (4,508 | ) | |||||||
Weighted average common shares outstanding, basic and diluted
|
48,840 | 0 | 0 | 7,804 |
(g)
|
56,644 | |||||||||||||||
Net loss per common share, basic and diluted
|
(0.03 | ) | 0 | 0 | 0 | (0.08 | ) | ||||||||||||||
Ascend Acquisition Corp.
|
Kitara Media, LLC
|
New York Publishing Group, Inc.
|
Proforma Adjustments
|
Proforma Combined
|
|||||||||||||||||
Six-month ended
|
Six-month ended
|
Six-month ended
|
Six-month ended
|
Six-month ended
|
|||||||||||||||||
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
June 30, 2013
|
|||||||||||||||||
Revenue
|
$ | - | $ | 10,428 | $ | 215 | $ | - | $ | 10,643 | |||||||||||
Cost of revenue
|
0 | 7,382 | 0 | 0 | 7,382 | ||||||||||||||||
Gross profit
|
0 | 3,046 | 215 | 0 | 3,261 | ||||||||||||||||
Impairment of property and equipment
|
0 | 0 | 300 | 0 | 300 | ||||||||||||||||
Selling, general and administrative expense
|
0 | 2,926 | 299 | 24 |
(e)
|
3,390 | |||||||||||||||
141 |
(f)
|
||||||||||||||||||||
0 | 2,926 | 599 | 165 | 3,690 | |||||||||||||||||
Income (loss) from continuing operations
|
0 | 120 | (384 | ) | (165 | ) | (429 | ) | |||||||||||||
Loss from discontinued operations
|
(1,088 | ) | 0 | 0 | 1,088 | (h) | 0 | ||||||||||||||
Net (loss) income
|
$ | (1,088 | ) | $ | 120 | $ | (384 | ) | $ | 923 | $ | (429 | ) | ||||||||
Weighted average common shares outstanding, basic and diluted
|
50,956 | 0 | 0 | 7,804 |
(g)
|
58,760 | |||||||||||||||
Net loss from continuing operations, basic and diluted
|
$ | - | $ | - | $ | - | $ | - | $ | (0.01 | ) | ||||||||||
Net loss from discontinued operations, basic and diluted
|
$ | (0.02 | ) | $ | - | $ | - | $ | - | $ | (0.00 | ) | |||||||||
Net loss per common share, basic and diluted
|
$ | (0.02 | ) | $ | - | $ | - | $ | - | $ | (0.01 | ) |
(a)
|
To record the effect of the $2 million financing (condition precedent to closing)
|
(b)
|
To record the effect of the business combination of New York Publishing Group, Inc (“NYPG”). The purchase method was used by allocating the purchase price to the Company’s identifiable assets and liabilities, including intangible assets, based on the shares issued to NYPG (10,000,000) times the market rate of the stock ($0.20) at the time of the merger. The proforma allocation of the purchase price is preliminary and subject to change.
|
(c)
|
To record the effect of the shares cancelled to certain shares held by Ascend stockholders
|
(d)
|
To record the effect of the reverse merger purchase of Kitara Media, LLC as a recapitalization.
|
(e)
|
To record pro forma stock compensation expense for employment agreements entered into with named executive officers and directors, who were granted stock options.
|
(f)
|
To record pro forma amortization expense for the intangible asset with an estimated life of eight years for New York Publishing Group as part of the consideration for the stock issuance.
|
(g)
|
To record pro forma adjustment to weighted average shares outstanding for the period presented.
|
(h)
|
To remove the effect of discontinued operations.
|