EX-99.2 2 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 Worldwide, Inc. December 31, 2014   Type 1 Media, Inc. December 31, 2014   Consolidated   Pro forma adjustments   Pro forma consolidated 
Assets                         
Current assets:                         
Cash and equivalents  33,101   25,473   58,574   (25,473)(1)  33,101 
Prepaid expenses   8,946    -    8,946    -    8,946 
Total current assets   42,047    25,473    67,520    (25,473)   42,047 
                   -      
Property and Equipment, net   253,990    1,548    255,538    (1,548)(2)   253,990 
                          
Other assets:                         
Investment, at cost   525,567    -    525,567    -    525,567 
Deposits   323,000    -    323,000    -    323,000 
Total other assets   848,567    -    848,567    -    848,567 
                          
Total assets   1,144,604    27,021    1,171,625    (27,021)   1,144,604 
                          
Liabilities and Stockholders’ Equity (Deficit)                         
                          
Current liabilities:                         
Accounts payable   298,939    65,178    364,117    (65,178)(3)   298,939 
Accrued expenses - related party   124,333    16,025    140,358    (16,025)(4)   124,333 
Accrued compensation   1,176,563    -    1,176,563    -    1,176,563 
Deferred revenue   53,000    -    53,000    -    53,000 
Total current liabilities   1,652,835    81,203    1,734,038    (81,203)   1,652,835 
                          
Deferred revenue   424,000    -    424,000    -    424,000 
Total Liabilities   2,076,835    81,203    2,158,038    (81,203)   2,076,835 
                          
Stockholders’ equity (deficit):                         
Preferred stock   504    -    504    (504)(5)   - 
Common stock   1,352    6    1,358    22(5)   1,319 
                   (55)(6)     
                   (6)     
Additional paid-in capital   4,333,980    (1,778)   4,332,202    1,778(7)   4,334,517 
                   537(5,6)     
Treasury shares, at cost   (87,300)   -    (87,300)   -    (87,300)
Accumulated deficit   (5,180,767)   (52,410)   (5,233,177)   52,410(8)   (5,180,767)
Total stockholders’ equity (deficit)   (932,231)   (54,182)   (986,413)   54,182    (932,231)
                          
Total liabilities and stockholders’ equity   1,144,604    27,021    1,171,625    (27,021)   1,144,604 

 

 
 

 

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)(8)  $48,567 
                     
Operating Expenses (Net)   4,816,688    71,788    (71,788)(8)   4,816,688 
                     
Other Income   -    4,092    (4,092)(8)    - 
                     
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 13, 2015 (the “Closing Date”), Diego Pellicer Worldwide, Inc. (f/k/a Type 1 Media, Inc.) (the “Company” or “PubCo”) closed on a merger and share exchange agreement (the “Merger Agreement”) by and among (i) the Company, and (ii) Diego Pellicer World-wide 1, Inc., a Delaware corporation, (“Diego PrivCo”), and (iii) Jonathan White, the majority shareholder of the Company (the “Majority Shareholder”). Pursuant to the terms of the Merger Agreement, Diego PrivCo shall be merged with and into the Company, with the Company to continue as the surviving corporation (the “Surviving Corporation”) in the Merger, and the Company succeeding to and assuming all the rights, assets, liabilities, debts, and obligations of Diego PrivCo (the “Merger”).

 

Pursuant to the share exchange:

 

  each share of (i) issued and outstanding share of common stock, par value $0.0001 per share, of Diego PrivCo (“Diego PrivCo Common Stock”), will be converted into one (1) share of PubCo common stock, $0.000001 par value per share (“PubCo Common Stock” or “PubCo Shares”); (ii) each issued and outstanding share of Series A Preferred Stock, par value $0.0001 per share of Diego PrivCo, with the exception of the TMK Shares (“Diego PrivCo Series A Share”), will be converted into 1.031157 share(s) of PubCo Common Stock; (iii) each issued and outstanding share of the Series A Preferred Stock, par value $0.0001 per share, of Diego PrivCo issued to TMK Holdings LLC (“TMK Shares”), will be converted into one (1) share of PubCo Common Stock (iv) each issued and outstanding share of Series B Preferred Stock, par value $0.0001 per share, of Diego PrivCo (“Diego PrivCo Series B Share”, and together with the Diego PrivCo Common Stock, Diego PrivCo Series A Shares and TMK Shares, the “Diego PrivCo Shares”), will be converted into one (1) share of PubCo Common Stock; (v) the issued and outstanding warrant to purchase Diego PrivCo Series A Shares (“Diego PrivCo A Warrants”), will be converted into warrants to purchase share of PubCo Common Stock(“PubCo A Warrants”); and (vi) the issued and outstanding warrant to purchase Diego PrivCo Series B Shares (the “Diego PrivCo B Warrants” and together with the Diego PrivCo A Warrants, the “Diego PrivCo Warrants”), will be converted into a warrant to purchase share of PubCo Common Stock. As a result of the Merger, the Company issued a total of 21,627,695 shares of common stock.

 

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.

 

Pro forma adjustments:

 

The unaudited pro forma balance sheet and statements of operations reflect the following adjustments associated with the Share Exchange between Diego Pellicer Worldwide, Inc. and Type 1 Media Inc.

 

  (1) Type 1 Media Inc. reported no cash available in any of its accounts as of the date of the transaction.
     
  (2) $1,548 in fixed assets of Type 1 Media Inc. were disposed of or written off as of the date of the transaction.
     
  (3) $65,178 of accounts payable of Type 1 Media Inc. were satisfied as of the date of the transaction.
     
  (4) $16,025 accrued payables of Type 1 Media Inc. were retired as of the date of the transaction.
     
  (5) Represents the issuance of 21,627,695 shares of Diego Pellicer Worldwide, Inc. in exchange for 55,000,000 shares of Type 1 Media Inc.
     
  (6) Represents the consolidation of the operating performance of Type 1 Media Inc. into Diego Pellicer Worldwide, Inc.
     
  (7) Eliminated as a result of the Share Exchange.

 

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.