EX-99.2 5 ex99-2.htm

 

Exhibit 99.2

 

Unaudited Pro Forma Consolidated Financial Statements

(Introductory Note)

 

The unaudited pro forma consolidated balance sheet as of December 31, 2014, and the unaudited pro forma consolidated statements of operations for the fiscal year ended December 31, 2014, give effect to transactions by Diego Pellicer Worldwide, Inc., (“Diego Pellicer”) and Type 1 Media, Inc., (“Type1”) occurring in connection with the Merger and include (a) the recapitalization of Type1 and spin-off of pre-Merger assets and liabilities, and conversion of Diego Pellicer common into Type1 common stock which occurred on March 11, 2015, and are based on the historical financial statements of Diego Pellicer, as if those transactions occurred on December 31, 2014 for purposes of the pro forma consolidated balance sheet, and on the first day of the respective periods for purposes of the pro forma consolidated statement of operations.

 

The unaudited pro forma consolidated financial information is presented for illustrative purposes only and does not purport to represent what Diego Pellicer actual results of operations or financial position would have been had the transactions actually been completed on or at the beginning of the indicated periods, and is not indicative of future results of operations or financial condition.

 

The historical financial information of Diego Pellicer for the fiscal year ended December 31, 2014 have been derived from the audited financial statements for such period. The unaudited pro forma consolidated financial information should be read in conjunction with Diego Pellicer ’s audited consolidated financial statements and notes thereto. The pro forma adjustments are based upon available information and assumptions that management believes are reasonable.

 

 
 

 

DIEGO PELLICER WORLDWIDE, INC.

Unaudited Pro Forma Balance Sheets

December 31, 2014

 

   Diego Pellicer    Type 1          
   Worldwide, Inc.    Media, Inc.          
   December 31, 2014    December 31, 2014    Adjustments    Consolidated 
Assets                     
                     
Current assets:                    
Cash and equivalents  $33,101   $25,473   $(25,473)  $33,101 
Prepaid expenses   8,946    -    -    8,946 
Total current assets   42,047    25,473    (25,473)   42,047 
              -      
Property and Equipment, net   253,990    1,548    (1,548)   253,990 
                     
Other assets:                    
Investment, at cost   525,567    -    -    525,567 
Deposits   323,000    -    -    323,000 
Total other assets   848,567    -    -    848,567 
                     
Total assets   $1,144,604   $27,021   $(27,021)  $1,144,604 
                     
Liabilities and Stockholders’ Equity (Deficiency)                     
                     
Current liabilities:                    
Accounts payable  $298,939   $65,178    (65,178)  $298,939 
Accrued expenses - related party   124,333    16,025    (16,025)   124,333 
Accrued Compensation   1,176,563    -    -    1,176,563 
Deferred Revenue   53,000    -    -    53,000 
Total current liabilities   1,652,835    81,203    (81,203)   1,652,835 
                     
Deferred revenue   424,000    -    -    424,000 
Total Liabilities    2,076,835    81,203    (81,203)   2,158,038 
                     
Stockholders’ equity (deficiency):                    
Preferred stock   504    -    -    504 
Common stock   1352    6    (6)   1,352 
Additional paid-in capital   4,333,980    (1,778)   1,778    4,333,980 
Treasury shares, at cost   (87,300)   -    -    (87,300)
Accumulated deficit   (5,180,767)   (52,410)   52,410    (5,180,767)
Total stockholders’ equity (deficiency)   (932,231)   (54,182)   54,182    (932,231)
                     
Total liabilities and stockholders’ equity  $1,144,604   $27,021   $(27,021)  $1,171,625 

 

 
 

 

DIEGO PELLICER WORLDWIDE, INC.

Unaudited Pro Forma Statements of Operations

December 31, 2014

 

   Diego Pellicer    Type 1          
   Worldwide, Inc.   Media, Inc.          
   December 31, 2014    December 31, 2014    Adjustments    Consolidated 
                 
Revenues  $48,567   $52,033   $(52,033)  $48,567 
                     
Operating Expenses (Net)   4,816,688    71,788    (71,788)   4,816,688 
                     
Other Income   -    4,092    (4,092)   - 
                     
Net Loss  $(4,768,121)  $(15,663)  $15,663   $(4,768,121)

 

 
 

 

Diego Pellicer Worldwide, Inc.

Notes to Pro Forma Financial Statements

(Unaudited)

 

Note 1 – INTRODUCTION

 

Merger

 

On March 11, 2015, Diego Pellicer Worldwide, Inc. (the “Company”) entered into a Share Exchange Agreement with Type 1 Media, Inc. (“Type 1”). This transaction was closed on March 11, 2015, and each issued and outstanding share of common stock of Type 1 was exchanged for one share of Diego Pellicer Worldwide, Inc.

 

Pursuant to the share exchange:

 

  Each issued and outstanding share of common stock, par value $0.0001 per share, of Type 1 Media, Inc. will be converted into one share of Diego Pellicer Worldwide, Inc. (“DPWW”) common stock, $0.0001 par value per share (“DPWW Common Stock” or “DPWW Shares”)

 

The completion of the Share Exchange resulted in a change of control. The Share Exchange was accounted for as a reverse merger and recapitalization. Type 1 was the acquirer for financial reporting purposes and the Company was the acquired company.

 

Consequently, the assets and liabilities and the operations reflected in the historical financial statements prior to the Share Exchange were those of Diego Pellicer Worldwide, Inc. and was recorded at its historical cost basis; and the consolidated financial statements after completion of the Share Exchange included the assets and liabilities of the Company and Type 1 Media Inc. historical operations of Type 1 Media Inc. and operations of the Company from the closing date of the Share Exchange

 

In connection with the Share Exchange, all share and per share amounts have been retroactively restated to the earliest period presented.

 

Note 2 - PRO FORMA PRESENTATION

 

General

 

The following unaudited pro forma combined balance sheets and income statements are based on historical financial statements of Type 1 Media Inc. as if the transaction had occurred during the period ended December 31, 2014, the date of accounting acquirer’s most recent period end.

 

The unaudited pro forma combined financial statements are provided for information purposes only. The pro forma financial statements are not necessarily indicative of what the financial position or results of operations actually would have been had the acquisition been completed at the dates indicated below. In addition, the unaudited pro forma combined financial statements do not purport to project the future financial position or operating results of the combined company. The unaudited pro forma combined financial information has been prepared in accordance with the rules and regulations of the Securities and Exchange Commission.

 

For pro forma purposes:

 

  The unaudited Pro Forma Combined Balance Sheets as of December 31, 2014 of the companies give effect to the transaction as if it had occurred at the beginning of the most recent year/period ended; and
     
  The unaudited Pro Forma Combined Statements of Operations for the period ended December 31, 2014 combines the income statements of the companies for the indicated periods, giving effect to the transaction as if it had occurred at the beginning of those periods.

 

These unaudited pro forma combined financial statements and accompanying notes should be read in conjunction with the separate audited financial statements of Type 1 Media Inc. as of and for the year ended December 31, 2014.