EX-99.1 6 exhibit991proformastatemen.htm EXHIBIT 99.1 Exhibit99.1ProFormaStatementofOperations


Exhibit 99.1

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

On September 4, 2014, Viggle Inc. (“the Company”) filed Form 8-K/A with the Securities and Exchange Committee that included an unaudited Pro Forma Combined Statement of Operations for the nine months ended March 31, 2014. The below Pro Forma Combined Statement of Operations is updated to reflect the year ended June 30, 2014.





Unaudited Pro Forma Combined Statement of Operations (amounts in thousands except per share amounts)

 
Year Ended June 30, 2014
 
Historical
 
Historical
 
Pro Forma
 
 
 
 
Historical
 
Pro forma
 
Pro forma
 
Viggle
 
Wetpaint July 1, 2013 to December 16, 2013
 
Adjustments
 
Subtotal
 
Choose Digital July 1, 2013 to June 24, 2014
 
Adjustments
 
Combined
Revenues
$
17,985

 
 
$
3,127

 
 
$
—

 
 
$
21,112

 
 
$
738

 
 
$
—

 
 
$
21,850

 
Cost of watchpoints and engagement points
(2,310
)
 
 
—
 
 
 
—
 
 
 
(2,310
)
 
 
—
 
 
 
—
 
 
 
(2,310
)
 
Selling, general and administrative
(81,534
)
 
 
(3,029
)
 
 
(1,059
)
 
a
(85,622
)
 
 
(4,534
)
 
 
(903
)
 
a
(91,059
)
 
Operating (loss) income
(65,859
)
 
 
98
 
 
 
(1,059
)
 
 
(66,820
)
 
 
(3,796
)
 
 
(903
)
 
 
(71,519
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other income (expense), net
320
 
 
 
25
 
 
 
—
 
 
 
345
 
 
 
935
 
 
 
(936
)
 
c
344
 
 
Interest expense, net
(2,805
)
 
 
(14
)
 
 
—
 
 
 
(2,819
)
 
 
—
 
 
 
—
 
 
 
(2,819
)
 
Total other income (expense)
(2,485
)
 
 
11
 
 
 
—
 
 
 
(2,474
)
 
 
935
 
 
 
(936
)
 
 
(2,475
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income before income taxes
(68,344
)
 
 
109
 
 
 
(1,059
)
 
 
(69,294
)
 
 
(2,861
)
 
 
(1,839
)
 
 
(73,994
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income taxes
(92
)
 
 
—
 
 
 
—
 
 
 
(92
)
 
 
—
 
 
 
—
 
 
 
(92
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income
(68,436
)
 
 
109
 
 
 
(1,059
)
 
 
(69,386
)
 
 
(2,861
)
 
 
(1,839
)
 
 
(74,086
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accretion of Series A Convertible Redeemable Preferred Stock
352
 
 
 
—
 
 
 
—
 
 
 
352
 
 
 
—
 
 
 
—
 
 
 
352
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (loss) income attributable to common stockholders
$
(68,084
)
 
 
$
109

 
 
$
(1,059
)
 
 
$
(69,034
)
 
 
$
(2,861
)
 
 
$
(1,839
)
 
 
$
(73,734
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss per common share - basic and diluted
$
(21.02
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(13.27
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding - basic and diluted
3,239,598
 
 
 
 
 
 
540,921
 
 
b1
 
 
 
 
 
 
1,963,309
 
 
b2
5,555,947
 
 





NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

1.
Pro Forma Adjustments

The pro forma adjustments included in the unaudited pro forma combined financial statements are as follows:

(a)
Represents amortization of intangible assets acquired in each acquisition based on their preliminary fair values and estimated useful lives for the period from July 1, 2013 through the respective acquisition dates. Estimated useful lives of the intangible assets are approximately 7 years and amortization is calculated on a straight-line basis.

(b1)
Represents the issuance of 540,921 shares of common stock in connection with the acquisition of Wetpaint.

(b2)
Represents the issuance of 1,963,309 shares of common stock in connection with the acquisition of Choose Digital.

(c) Represents the elimination of one time gain related to debt forgiveness.