8-K/A

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K/A
(Amendment No. 1)

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 6, 2009

EBIX, INC.

(Exact name of registrant as specified in its charter)

Delaware	0-15946	77-0021975
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

5 Concourse Parkway, Suite 3200, Atlanta, Georgia	30328
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (678) 281-2020

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Explanatory Note: On October 6, 2009 Ebix, Inc. (the “Company” or “Ebix”) filed a current report on Form 8-K (the “Original Filing”) in connection with the completion of its acquisition of E-Z Data, Inc. (“EZ Data”). This Amendment No. 1 amends the Original Filing to provide the financial statement information required by Items 9.01(a) and 9.01(b) of Form 8-K which were not included in the initial filing.

Item 9.01 Financial Statements and Exhibits

(a)	Financial Statements of Business Acquired
	The audited financial statements of EZ Data, including its balance sheets as of December 31, 2008, the statement of income, cash flows, and changes in stockholders equity for the year ended December 31, 2008, and the related notes and report of its independent auditor are filed as Exhibit 99.2 to this current report on Form 8-K/A.
	The unaudited financial statements of EZ Data, including its balance sheets as of September 30, 2009 and 2008, the statement of income, cash flows, and changes in stockholders equity for the nine months ended September 30, 2009 and 2008, and the related notes are filed as Exhibit 99.3 to this current report on Form 8-K/A.
(b)	Pro Forma Financial Information
	Ebix and EZ Data unaudited condensed and combined financial information, comprised of the pro forma combined balance sheets as of September 30, 2009, and pro forma combined statements of income for the for year ended December 31, 2008 and the nine months ended September 30, 2009 and the related notes are filed as Exhibit 99.4 to this current report on Form 8-K/A.
(c)	Exhibits

Exhibit 2.1*	Agreement and Plan of Merger, dated September 30, 2009, by and amongst Ebix, E-Z Data, and Dale Okuno and Dilip Sontakey, as Sellers
Exhibit 2.2*	IP Asset Purchase Agreement, dated September 30, 2009, by and amongst Ebix Singapore PTE LTD., Ebix, Inc, E-Z Data, and Dale Okuno and Dilip Sontakey, as Shareholders dated September 30, 2009
Exhibit 23.1	Consent of independent audit firm (Krycler, Ervin, Taubman & Walheim)
Exhibit 99.1*	Press release dated October 1, 2009, issued by Ebix, Inc. (re: EZ Data acquisition)
Exhibit 99.2	EZ Data financial statements for the year ended December 31, 2008
Exhibit 99.3	EZ Data financial statements (unaudited) for the nine months ended September 30, 2009 and 2008
Exhibit 99.4	Ebix and EZ Data pro forma condensed and combined financial information (unaudited) as of and for the nine month period ended September 30, 2009, and the twelve month period ended December 31, 2008

* Previously filed

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EBIX, INC.
By:	/s/ Robert Kerris
	Name:	Robert Kerris
	Title:	Chief Financial Officer and Corporate Secretary

Dated: December 17, 2009

Exhibit Index

Exhibit No.	Description
Exhibit 2.1*	Agreement and Plan of Merger, dated September 30, 2009, by and amongst Ebix, E-Z Data, and Dale Okuno and Dilip Sontakey, as Sellers
Exhibit 2.2*	IP Asset Purchase Agreement, dated September 30, 2009, by and amongst Ebix Singapore PTE LTD., Ebix, Inc, E-Z Data, and Dale Okuno and Dilip Sontakey, as Shareholders dated September 30, 2009
Exhibit 23.1	Consent of independent audit firm (Krycler, Ervin, Taubman & Walheim)
Exhibit 99.1*	Press release dated October 1, 2009, issued by Ebix, Inc. (re: EZ Data acquisition)
Exhibit 99.2	EZ Data financial statements for the year ended December 31, 2008
Exhibit 99.3	EZ Data financial statements (unaudited) for the nine months ended September 30, 2009 and 2008
Exhibit 99.4	Ebix and EZ Data pro forma condensed and combined financial information (unaudited) as of and for the nine month period ended September 30, 2009, and the twelve month period ended December 31, 2008

* Previously filed

EX-23.1

Exhibit 23.1

December 15, 2009

CONSENT OF INDEPENDENT AUDITORS

The Board of Directors
Ebix, Inc.

We consent to the use in this Form 8-K/A of Ebix, Inc., of our report dated July 24, 2009 relating to our audit of the financial statements of EZ Data, Inc. as of December 31, 2008, and for the year then ended and for our report dated December 4, 2009 for the review of the financial statements for the nine months ended September 30, 2008 and 2009.

Krycler, Ervin, Taubman & Walheim, AAC
Sherman Oaks, California
December 15, 2009

15303 VENTURA BOULEVARD, SUITE 1040 • SHERMAN OAKS, CA 91403 • P. 818.995.1040 • F: 818.995.4124
WWW.KETW.COM • EMAIL: INFO@KETW.COM

EX-99.2

Exhibit 99.2

E-Z DATA, INC. and
SUBSIDIARY

Consolidated Financial Statements for the
Year Ended December 31, 2008 and
Independent Auditor’s Report

INDEPENDENT AUDITORS’ REPORT

Board of Directors and Stockholders
E-Z Data, Inc.

We have audited the accompanying consolidated balance sheet of E-Z Data, Inc. and subsidiary (the “Company”) as of December 31, 2008, and the related consolidated statements of income, stockholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to in the first paragraph above present fairly, in all material respects, the financial position of E-Z Data, Inc. and subsidiary as of December 31, 2008, and the results of their operations and their cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Krycler, Ervin, Taubman & Walheim
An Accountancy Corporation

JULY 24, 2009

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2008

ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	214,074
Accounts receivable, net of allowance for doubtful accounts of $18,489		2,732,373
Unbilled revenue		1,267,924
Other receivables		888,379
Prepaid and other current assets		953,750
TOTAL CURRENT ASSETS		6,056,500
PROPERTY AND EQUIPMENT NET		1,558,392
DEFERRED INCOME TAXES		47,000
OTHER ASSETS NET		52,393
TOTAL ASSETS	$	7,714,285
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Notes Payable to bank	$	1,350,000
Advances from stockholders		2,301,783
Accounts payable and accrued expenses		2,665,785
Deferred revenue		78,558
Deferred income taxes		74,000
TOTAL CURRENT LIABILITIES		6,470,126
STOCKHOLDERS’ EQUITY
Common stock, no par value 1,000 shares authorized; 400 shares issued and outstanding		4,000
Retained earnings		1,240,159
TOTAL STOCKHOLDERS’ EQUITY		1,244,159
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	7,714,285

See notes to consolidated financial statements.

2

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 2008

REVENUES NET	$	22,180,955
COST AND EXPENSES
Technical, selling, general and administrative		18,190,374
Research and development		3,619,707
TOTAL COST AND EXPENSES		21,810,081
OPERATING INCOME		370,874
OTHER EXPENSES (INCOME)
Interest expense		149,845
TOTAL OTHER EXPENSES (INCOME)		149,845
INCOME BEFORE INCOME TAXES		221,029
INCOME TAXES		25,700
NET INCOME	$	195,329

See notes to consolidated financial statements.

3

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
YEAR ENDED DECEMBER 31, 2008

	Common Stock				Retained
	Shares		Amount		Earnings		Total
BALANCE JANUARY 1, 2008		400	$	4,000	$	1,044,830	$	1,048,830
NET INCOME		—		—		195,329		195,329
BALANCE DECEMBER 31, 2008		400	$	4,000	$	1,240,159	$	1,244,159

See notes to consolidated financial statements.

4

E-Z DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2008

CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	195,329
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		671,636
Changes in operating assets and liabilities:
Accounts receivable		2,215,439
Unbilled revenues		(1,267,924	)
Other receivables		(57,400	)
Prepaid and other current assets		(586,640	)
Accounts payable and accrued expenses		433,470
Deferred income taxes		14,000
Deferred revenue		(286,177	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,331,733
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of property and equipment		(795,454	)
NET CASH USED IN INVESTING ACTIVITIES		(795,454	)
CASH FLOW FROM FINANCING ACTIVITIES:
Increase in notes payable to bank		750,000
Decrease in notes payable to bank		(900,000	)
Decrease in advances from stockholders		(719,167	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		(869,167	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(332,889	)
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR		546,963
CASH AND CASH EQUIVALENTS — END OF YEAR	$	214,074
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION — Cash paid during the year for:
Interest	$	149,845
Income taxes net of refunds	$	0

See notes to consolidated financial statements

5

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2008

NOTE 1 — GENERAL

E-Z Data, Inc. was incorporated in the state of California on September 14, 1987. The Company is primarily engaged in the development and marketing of practice management software to the insurance industry in the United States.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of E-Z Data. Inc., E-Z Data LLC and E-Z Data, ULC (Note 5)(collectively, the “Company”). Significant intercompany accounts and transactions have been eliminated.

Cash Equivalents

The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents

Concentration of Credit Risk

Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. With respect to cash and cash equivalents, the Company places such financial instruments with high credit quality financial institutions. A majority of accounts receivables are with large, established insurance companies. The Company performs ongoing credit evaluations of its customers and maintains an allowance for potential credit losses.

As of December 31, 2008, one customer had a receivable balance representing approximately 28% of total accounts receivable . The balance due from that customer amounted to approximately $754,719.

Two customers accounted for more than 40% of revenues during the year, one customer accounted for 29% and the second for 11% of total revenues. Total revenues from these customers totaled approximately $9,102,660 for the year.

Unbilled Revenues

Unbilled revenues represent income earned on the percentage of completion method in excess of amounts billed on uncompleted contracts.

Developed Software

Developed software was acquired as part of the purchase of LifeMarkets LLC . The cost is being amortized over its estimated useful life of five years. Amortization amounted to $zero for the year. Asset completely amortized as of December 31, 2007.

For internally developed software, the Company accounts for software development cost under Statement of Financial Accounting Standards (“SFAS”) No. 86, Accounting for the Costs of Computer Software to Be Sold, Leased or Otherwise Marketed. Under SFAS No. 86, software development costs incurred subsequent to the establishment of technical feasibility are capitalized and amortized on a product-by-product basis. The annual amortization should be the greater amount of the amount calculated by using the ratio of the revenue generated by product or the amount calculating by amortizing the capitalized cost using the straight-line method over the estimated economic life of the product. The period between the achievement of technological feasibility and the release of the Company’s product has been of short duration. As of December 31, 2008, such capitalizable software development costs were significant and all software development costs have been charged to expenses in the accompanying consolidated statement of income.

6

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2008

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization are provided for on the straight-line and declining balance method over the estimated useful lives of the assets. Repairs and maintenance are charged to expenses as incurred.

Other Assets

Other assets consists of acquired technology, which represents amounts paid by the Company for the right to use certain completed software that is incorporated into the Company’s products, and are expensed on a per unit basis as used.

Income Taxes

The Company has elected to be treated for income tax purposes as an S Corporation. As an S Corporation, the Company’s taxable income is passed through to the stockholders. The Company is required to pay 1.5% state franchise tax.

Deferred income taxes are provided for temporary differences between the financial reporting and income tax basis of the Company’s assets and liabilities. The primary temporary differences relate to accounts receivable and accrued liabilities, since taxable income is reported on a cash basis for the state franchise tax. A valuation allowance is recorded, if necessary, to reduce deferred income tax assets to the amount expected to be recoverable.

Revenue Recognition

The Company recognizes licensing fees with corporate customers under the percentage of completion method, when significant modifications are made to the base product before it can be used by the customer. Revenue is recognized upon delivery for those product sales where little or no modification of the software is required.

Revenues from maintenance and support contracts are recognized on the straight-line method over the term of the contract

Consulting and training service contracts are recognized when services are performed or under the percentage of completion method for fixed fee contracts.

Deferred revenues represent unearned amounts received under maintenance and support contracts and amounts billed to customers but not recognized as revenue.

Research and Development

The Company expenses research and development costs as incurred.

Use of Estimates

The preparation of financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 3 — RELATED PARTY TRANSACTIONS AND LEASE COMMITMENTS

A Company owned by the stockholders provided programming services to the Company. The total expenses incurred for the year amounted to approximately $4,286,000. Included in accounts payable and accrued expenses is zero due to this related party as of December 31, 2008.

The Company has advanced to related parties $886,800 as of December 31, 2008. The advances are non-interest bearing and are due on demand. The advances are included in other receivables.

7

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2008

NOTE 3 — RELATED PARTY TRANSACTIONS AND LEASE COMMITMENTS (Continued)

The Company has outstanding advances payable to the stockholders of $2,301,783 as of December 31, 2008. The advances are non-interest bearing and are due on demand.

The Company leases an office building from a partnership owned by the two shareholders. The lease requires monthly payments of $29,857 through December 2010. Rental expense on the lease was 358,284 for the year. Future minimum lease payments under all long-term operating leases are as follows:

Year Ending
December 31,
2009	$	358,284
2010	$	358,284

Total rent expense on long-term operating leases amounted to approximately $645,974 for the year.

NOTE 4 — PROPERTY AND EQUIPMENT

Property and equipment consists of the following at December 31, 2008:

Equipment	$	3,143,546
Furniture and fixtures		419,225
Leasehold improvement		244,470
Software licenses		3,320,721
Total Property & Equipment		7,127,962
Less accumulated depreciation and amortization		(5,569,570	)
	$	1,558,392

NOTE 5 — E-Z DATA, ULC

In November 2006, The Company established an entity in Canada (E-Z Data, ULC) for which The Company is the sole shareholder. In December 2006 E-Z Data, ULC (ULC) entered into an agreement with an unrelated Canadian company, CPU Management Software, Inc. (CPU) to acquire substantially all of it’s tangible and intangible assets. CPU’s business is substantially the same as The Company’s, marketing to Canadian customers.

The purchase price of $316,881 (Canadian) is contingent based on future revenues. As of December 31, 2008 ULC had a net loss of $91,238.

NOTE 6 — DEBT

The Company has a $2,000,000 line of credit with City National Bank. The line is secured by all Company assets and is guaranteed by the stockholders. Outstanding borrowings bear interest at the bank’s reference rate or LIBOR plus 2% . At December 31, 2008, total of $1,350,000 of borrowings was outstanding, with an interest rate of 3.25.

NOTE 7 — PROFIT SHARING PLAN

The Company contributes to a discretionary profit sharing plan that provides eligible employees with a share of Company profits. In order to be eligible, employees must complete one year of service and be at least 21 years of age. Vesting is based on years of service, with employees becoming fully vested after six years. $64,485 contribution was made in year ended December 31, 2008.

8

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31, 2008

NOTE 8 — INCOME TAXES

Total Deferred income tax assets and liabilities are as follows at December 31, 2008:

Deferred income tax liabilities-current	$	75,000
Deferred income tax assets-current, net of valuation allowance of $25,000	$	1,000
Deferred income tax assets-noncurrent, net of valuation allowance of $450,000	$	48,000
Deferred income tax liabilities-noncurrent	$	1,000

The valuation allowance did not change during the year.

NOTE 9 — INCOME TAXES (Continued)

The Company has state net operating loss carryforwards of approximately $1,756,000, which expire through 2014.

The Company has federal and state research and development credit carryforwards generated prior to its status as an S Corporation of approximately $153,000 and $133,000, respectively, to reduce future income taxes. The federal carryforwards expire through 2012, and the state credits may be carried forward indefinitely. These credits may not be used by the Company during its classification as an S Corporation. Additionally, the Company has state research and development credit carryforwards of approximately $197,000 as an S Corporation. The credits may be carried forward indefinitely.

The tax provision as of December 31, 2008 consists of:

Currently payable	$	11,700
Deferred		14,000
Total	$	25,700

9

EX-99.3

Exhibit 99.3

E-Z DATA, INC. and
SUBSIDIARY

Consolidated Financial Statements for the
Nine months Ended September 30, 2009 and 2008

Board of Directors and Stockholders
E-Z Data, Inc.
Pasadena, California

We have reviewed the accompanying consolidated balance sheet of E-Z Data, Inc. and subsidiary (the “Company”) as of the nine month periods ended September 30, 2009 and September 30, 2008 and the related consolidated statements of income, stockholders’ equity, and cash flows for the nine months then ended, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. All information included in these financial statements is the representation of the management of E-Z Data, Inc.

A review consists principally of inquiries of Company personnel and analytical procedures applied to financial data. It is substantially less in scope than an audit in accordance with generally accepted auditing standards, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our review, we are not aware of any material modifications that should be made to the accompanying financial statements in order for them to be in conformity with generally accepted accounting principles.

Krycler, Ervin, Taubman & Walheim
An Accountancy Corporation

December 4, 2009

1

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30,

	2009			2008
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	206,046		$	656,082
Accounts receivable, net of allowance for doubtful accounts of		2,210,885			2,941,748
Investments		100,000			—
Unbilled revenue		—			683,955
Other receivables		30,030			954,279
Prepaid and other current assets		394,269			286,949
TOTAL CURRENT ASSETS		2,941,230			5,523,013
PROPERTY AND EQUIPMENT NET		1,294,717			1,542,219
DEFERRED INCOME TAXES		—			66,000
OTHER ASSETS NET		52,393			52,393
TOTAL ASSETS	$	4,288,340		$	7,183,625
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES
Notes payable to bank	$	—		$	1,350,000
Advances from stockholders		—			2,323,450
Accounts payable and accrued expenses		941,679			2,592,630
Equipment loan		206,008			—
Advance payment on pending sale of intellectual property		3,800,000			—
Deferred revenue		922,328			799,055
Deferred income taxes		—			34,000
TOTAL CURRENT LIABILITIES		5,870,015			7,099,135
STOCKHOLDERS’ EQUITY
Common stock, no par value 1,000 shares authorized; 400 shares issued and outstanding		4,000			4,000
Additional paid in capital		521,861			—
Retained earnings		(2,107,536	)		80,490
TOTAL STOCKHOLDERS’ EQUITY		(1,581,675	)		84,490
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	4,288,340		$	7,183,625

See notes to consolidated financial statements.

2

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30,

	2009			2008
NET REVENUE	$	14,860,837		$	15,553,292
COST AND EXPENSES
Technical, selling, general and administrative		13,422,707			12,593,947
Research and development		3,808,085			3,819,972
TOTAL COST AND EXPENSES		17,230,792			16,413,919
OPERATING (LOSS)		(2,369,955	)		(860,627	)
OTHER INCOME (EXPENSES)
Debt forgiveness — related party		(886,800	)		—
Interest expense		(117,940	)		(114,912	)
TOTAL OTHER EXPENSES (INCOME)		(1,004,740	)		(114,912	)
INCOME (LOSS) BEFORE INCOME TAXES		(3,374,695	)		(975,539	)
INCOME TAXES		(27,000	)		(11,200	)
NET LOSS	$	(3,347,695	)	$	(964,339	)

See notes to consolidated financial statements.

3

EZ-DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 2009

					Additional
					Paid-In Capital
	Common Stock				& Sub-S			Retained
	Shares		Amount		Distributions			Earnings			Total
BALANCE JANUARY 1, 2008		400	$	4,000	$	—		$	1,044,829		$	1,048,829
NET LOSS		—		—		—			(964,339	)		(964,339	)
BALANCE SEPTEMBER 30, 2008		400	$	4,000	$	—		$	80,490		$	84,490
BALANCE JANUARY 1, 2009		400	$	4,000	$	—		$	1,240,159		$	1,244,159
LOANS CONVERTED TO CAPITAL		—		—		2,301,783			—			2,301,783
SUB-S DISTRIBUTIONS		—		—		(1,779,922	)		—			(1,779,922	)
NET INCOME		—		—		—			(3,347,695	)		(3,347,695	)
BALANCE SEPTEMBER 30, 2009		400	$	4,000	$	521,861		$	(2,107,536	)	$	(1,581,675	)

See notes to consolidated financial statements.

4

E-Z DATA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30,

	2009			2008
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	(3,347,695	)	$	(964,339	)
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization		539,041			507,597
Changes in operating assets and liabilities:
Accounts receivable		521,488			2,006,064
Unbilled revenues		1,267,924			(683,955	)
Other receivables		858,349			(123,300	)
Prepaid and other current assets		559,481			80,161
Accounts payable and accrued expenses		(1,724,106	)		360,315
Deferred income taxes		(27,000	)		(45,000	)
Deferred revenue		843,770			434,320
NET CASH USED IN OPERATING ACTIVITIES		(508,748	)		1,571,863
CASH FLOW FROM INVESTING ACTIVITIES:
Investments		(100,000	)		—
Advance payment on pending sale of intellectual property		3,800,000			—
Purchase of property and equipment		(275,366	)		(615,241	)
NET CASH USED IN INVESTING ACTIVITIES		3,424,634			(615,241	)
CASH FLOW FROM FINANCING ACTIVITIES:
Increase in notes payable to bank		300,000			750,000
Decrease in notes payable to bank		(1,650,000	)		(900,000	)
Increase in equipment loan		206,008			—
Decrease in advances from stockholders		—			(697,500	)
Distributions		(1,779,922	)		—
NET CASH PROVIDED BY FINANCING ACTIVITIES		(2,923,914	)		(847,500	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(8,028	)		109,121
CASH AND CASH EQUIVALENTS — BEGINNING OF YEAR		214,074			546,962
CASH AND CASH EQUIVALENTS — END OF YEAR	$	206,046		$	656,083
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION — Cash paid during the year for:
Interest	$	(117,940	)	$	(114,912	)
Income taxes net of refunds	$	800		$	800

See notes to consolidated financial statements

5

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

NOTE 1 — GENERAL

E-Z Data, Inc. was incorporated in the state of California on September 14, 1987. The Company is primarily engaged in the development and marketing of practice management software to the insurance industry in the United States.

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of E-Z Data. Inc., E-Z Data LLC and E-Z Data, ULC (collectively, the “Company”). Significant intercompany accounts and transactions have been eliminated.

Cash Equivalents

The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents

Concentration of Credit Risk

Financial instruments that subject the Company to credit risk consist primarily of cash and cash equivalents and accounts receivable. With respect to cash and cash equivalents, the Company places such financial instruments with high credit quality financial institutions. A majority of accounts receivables are with large, established insurance companies. The Company performs ongoing credit evaluations of its customers and maintains an allowance for potential credit losses.

As of September 30, 2009, one customer had a receivable balance representing approximately 27% of total accounts receivable . The balance due from that customer amounted to approximately $575,061.

Two customers accounted for more than 35% of revenues during the year, one customer accounted for 29% and the second for 6% of total revenues. Total revenues from these customers totaled approximately $5,375,913 for the nine month period ended September 30, 2009.

Two customers accounted for more than 46% of revenues during the year, one customer accounted for 32% and the second for 14% of total revenues. Total revenues from these customers totaled approximately $7,291,507 for the nine month period ended September 30, 2008.

Unbilled Revenues

Unbilled revenues represent income earned on the percentage of completion method in excess of amounts billed on uncompleted contracts.

Developed Software

For internally developed software, the Company accounts for software development cost under Statement of Financial Accounting Standards (“SFAS”) No. 86, Accounting for the Costs of Computer Software to Be Sold, Leased or Otherwise Marketed. Under SFAS No. 86, software development costs incurred subsequent to the establishment of technical feasibility are capitalized and amortized on a product-by-product basis. The annual amortization should be the greater amount of the amount calculated by using the ratio of the revenue generated by product or the amount calculating by amortizing the capitalized cost using the straight-line method over the estimated economic life of the product. In most instances, the period between the achievement of technological feasibility and the release of the Company’s product has been of short duration and the costs are not significant and therefore, they have generally been expensed.

6

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

NOTE 2 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Property and Equipment

Property and equipment are stated at cost. Depreciation and amortization are provided for on the straight-line and declining balance method over the estimated useful lives of the assets. Repairs and maintenance are charged to expenses as incurred.

Other Assets

Other assets consists of acquired technology, which represents amounts paid by the Company for the right to use certain completed software that is incorporated into the Company’s products, and are expensed on a per unit basis as used.

Income Taxes

The Company has elected to be treated for income tax purposes as an S Corporation. As an S Corporation, the Company’s taxable income is passed through to the stockholders. The Company is required to pay 1.5% state franchise tax.

Deferred income taxes are provided for temporary differences between the financial reporting and income tax basis of the Company’s assets and liabilities. The primary temporary differences relate to accounts receivable and accrued liabilities, since taxable income is reported on a cash basis for the state franchise tax. A valuation allowance is recorded, if necessary, to reduce deferred income tax assets to the amount expected to be recoverable.

Revenue Recognition

The Company recognizes licensing fees with corporate customers under the percentage of completion method, when significant modifications are made to the base product before it can be used by the customer. Revenue is recognized upon delivery for those product sales where little or no modification of the software is required.

Revenues from maintenance and support contracts are recognized on the straight-line method over the term of the contract

Consulting and training service contracts are recognized when services are performed or under the percentage of completion method for fixed fee contracts.

Deferred revenues represent unearned amounts received under maintenance and support contracts and amounts billed to customers but not recognized as revenue.

Research and Development

The Company expenses research and development costs as incurred.

Use of Estimates

The preparation of financial statement in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

NOTE 3 — RELATED PARTY TRANSACTIONS AND LEASE COMMITMENTS

A Company owned by the stockholders (Premier Technology Group or PTG) provided programming services to the Company. PTG is owned 100% by the stockholders whose voting rights comprise 100%. The total expenses incurred amounted to approximately $2,529,630 and $3,068,529 for the nine month period ended September 30, 2009 and 2008 respectively. Included in accounts payable and accrued expenses is zero due to this related party as of September 30, 2009 and 2008.

Included in other non-operating expenses is the write off of $886,800 which is related to the forgiveness of advances made to that related party in prior years.

7

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

NOTE 3 — RELATED PARTY TRANSACTIONS AND LEASE COMMITMENTS (Continued)

The Company has outstanding advances payable to the stockholders of $-0- and $2,323,450 as of September 30, 2009 and 2008 respectively. The advances are non-interest bearing and are due on demand.

During the period ended September 30, 2009, The Company converted the balance on the advance in the amount of $2,301,783 to Additional Paid-In capital.

The Company leases an office building from a partnership owned by the two shareholders. The lease requires monthly payments of $29,857 through December 2010. Rental expense on the lease was $268,713 and $268,713 for the nine month period ended September 2009 and 2008 respectively. Future minimum lease payments under all long-term operating leases are as follows:

Three month period ending 12/31/2009	$	89,571
Twelve month period ending 12/31/2010	$	358,284

Total rent expense on long-term operating leases amounted to approximately $503,830 and $539,054 for the nine month period ended September 30, 2009 and 2008 respectively.

NOTE 4 — PROPERTY AND EQUIPMENT

Property and equipment consists of the following at September 30, 2009:

				Useful Lives
Equipment	$	3,425,834		5-7 Years
Furniture and fixtures		419,225		7 Years
Leasehold improvement		257,790		39 Years
Software licenses		3,300,478		3 Years
Total Property & Equipment		7,403,327
Less accumulated depreciation and amortization		(6,108,610	)
	$	1,294,717

NOTE 5 — DEBT

The Company had a $2,000,000 line of credit with City National Bank. The line was secured by all Company assets and was guaranteed by the stockholders. Outstanding borrowings bear interest at the bank’s reference rate or LIBOR plus 2%. At September 30, 2008 $1,350,000 of borrowings was outstanding, with an interest rate of 5%. The line was paid off by the due date of August 1, 2009 and was not renewed.

On August 1, 2009 the Company converted a City National Bank equipment line of credit into a three year termed loan. The loan matures August 1, 2012. The adjustable interest rate at 9/30/2009 was 3.5%. Loan balance as of September 30, 2009 was $206,008.

NOTE 6 — PROFIT SHARING PLAN

The Company contributes to a discretionary profit sharing plan that provides eligible employees with a share of Company profits. In order to be eligible, employees must complete one year of service and be at least 21 years of age. Vesting is based on years of service, with employees becoming fully vested after six years. $66,202 and $50,168 contribution was made in the nine months ended September 30, 2009 and 2008 respectively.

8

E-Z DATA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008

NOTE 7 — INCOME TAXES

Total Deferred income tax assets and liabilities are as follows at September 30, 2008:

Deferred income tax liabilities-current net of valuation allowance of $-0-	$	59,000
Deferred income tax assets-current, net of valuation allowance of $25,000	$	25,000
Deferred income tax assets-noncurrent, net of valuation allowance of $428,000	$	67,000
Deferred income tax liabilities-noncurrent, net of valuation allowance of $-0-	$	1,000

Total valuation allowance for deferred taxes is $453,000.

Total Deferred income tax assets and liabilities are as follows at September 30, 2009:

Deferred income tax liabilities-current net of valuation allowance of $39,000	$	-0-
Deferred income tax assets-current, net of valuation allowance of $28,000	$	-0-
Deferred income tax assets-noncurrent, net of valuation allowance of $472,675	$	-0-
Deferred income tax liabilities-noncurrent, net of valuation allowance of $1,000	$	-0-

Total valuation allowance for deferred taxes is $540,675.

The Company has state net operating loss carry forwards of approximately $1,756,000, which expire through 2014.

The Company has federal and state research and development credit carry forwards generated prior to its status as an S Corporation of approximately $153,000 and $133,000, respectively, to reduce future income taxes. The federal carry forwards expire through 2012, and the state credits may be carried forward indefinitely. These credits may not be used by the Company during its classification as an S Corporation. Additionally, the Company has state research and development credit carry forwards of approximately $197,000 as an S Corporation. The credits may be carried forward indefinitely.

The tax provision as of September 30, 2009 consists of:

Currently payable	$	-0-
Deferred		(27,000	)
Total	$	(27,000	)

NOTE 8 — SUBSEQUENT EVENTS

As of October 1, 2009 intellectual property with a -0- book value, was sold to Ebix Singapore PTE LTD for $3,800,000 which resulted in an extraordinary gain of $3,800,000. The payment was received prior to 9/30/09 and is included in Advance payment on pending sale of intellectual property.

Per an agreement effective October 1, 2009, the owners of E-Z Data, Inc., agreed to sell their stock and merge The Company into E-Z Data Acquisition Sub, LLC, a wholly owned subsidiary of Ebix, Inc. for $46,550,000.

9

EX-99.4

Exhibit 99.4

Unaudited Pro Forma Condensed and Combined Financial Information

The following unaudited pro forma condensed and combined financial statements have been prepared to give effect to the acquisition by Ebix, Inc. (“Ebix” or the “Company”) of E-Z Data, Inc. (“EZ Data”). These pro forma combined financial statements are derived from the historical consolidated financial statements of Ebix which are incorporated by reference into this document, Facts Services, Inc. (“Facts”) acquired in May 2009, Peak Performance Solutions, Inc. (“Peak”) acquired in October 2009, and the historical financial statements of EZ Data which is included with this current report as Exhibits 99.2, 99.3, 99.4. The pro forma condensed and combined statement of for the year ended December 31, 2008 include twelve months of operating results for EZ Data, Peak , and Facts. These historical financial statements have been adjusted as described in the notes to the unaudited pro forma combined financial statements.

The unaudited pro forma combined balance sheet has been prepared assuming the acquisition of EZ Data occurred on September 30, 2009. The unaudited pro forma combined statements of income have been prepared assuming the acquisition of EZ Data, Peak, and Facts occurred on January 1, 2008. In all cases the purchase method, which requires an allocation of the purchase price to assets acquired and liabilities assumed at their fair value, has been applied to the accounting for the acquisition of EZ Data. Basic and diluted earnings per share and weighted average shares outstanding have retroactively adjusted to reflect the 3-for-1 stock split that was effective on October 9, 2008.

The purchase price allocation for the acquisition of EZ Data reflected in the unaudited pro forma combined financial statements is preliminary and is subject to revision. The final purchase price allocation will be based on a formal third-party valuation of identifiable intangible assets, and an in-depth analysis of the value of other assets acquired and liabilities assumed. Actual results may differ from these unaudited pro forma combined financial statements once the valuation studies necessary to finalize the required purchase price allocation are completed. Therefore, the unaudited pro forma combined financial statements are for informational purposes only and are not intended to represent or be indicative of the consolidated results of operations or financial position that would be reported had the acquisition of EZ Data been completed as of the dates presented. No effect has been given in these pro forma financial statements for future synergistic benefits that may be realized through the combination of the two companies including cross selling opportunities and cost reductions that may be realized by integrating their operations. The unaudited pro forma condensed and combined financial statements should not be considered representative of the Company’s future consolidated results of operation or financial position nor should the historical results operations be indicative of our future expected results of operations.

Ebix, Inc. and Subsidiaries
Unaudited Pro Forma Condensed and Combined Statements of Income
December 31, 2008
(In thousands, except per share data)

				Facts/Peak
				Combined			EZ-Data			Ebix/EZ-Data
	As Reported			Unaudited/			Unaudited/			Combined
	Ebix, Inc.			Adjusted			Adjusted			Pro Forma
Operating Revenue	$	74,752		$	10,240		$	20,438		$	105,430		(E)
Operating expenses:
Cost of services provided		14,161			342			5,209			19,712
Product development		8,962			66			3,335			12,363
Sales and marketing		4,344			485			1,608			6,437
General and administrative		14,715			6,837			9,325			30,877
Amortization and depreciation		3,306			1,059			1,819			6,184		(D)
Total operating expenses		45,488			8,789			21,296			75,573		(F)
Operating income		29,264			1,451			(858	)		29,857
Interest income		475			5			—			480
Interest expense		(1,626	)		—			(438	)		(2,064	)	(H) (O)
Foreign exchange gain (loss)		586			(23	)		—			563
Income before income taxes		28,699			1,433			(1,296	)		28,836
Income tax expense		(1,385	)		(591	)		(50	)		(2,026	)	(P) (Q)
Net income	$	27,314		$	842		$	(1,346	)	$	26,810
Basic earnings per common share	$	2.78								$	2.59
Diluted earnings per common share	$	2.28								$	2.10
Basic weighted average shares outstanding		9,838									10,334		(J)
Diluted weighted average shares outstanding		12,260									12,756		(J)

Ebix, Inc. and Subsidiaries
Unaudited Pro Forma Condensed and Combined Statements of Income
September 30, 2009
(In thousands, except per share data)

				Facts/Peak
				Combined			EZ-Data			Ebix/EZ-Data
	As Reported			Unaudited/			Unaudited/			Combined
	Ebix, Inc.			Adjusted			Adjusted			Pro Forma
Operating Revenue	$	66,381		$	5,885		$	14,860		$	87,126
Operating expenses:
Cost of services provided		13,298			147			3,485			16,930
Product development		8,258			22			3,808			12,088
Sales and marketing		3,553			214			1,509			5,276
General and administrative		11,355			3,759			7,889			23,003
Amortization and depreciation		2,517			554			1,439			4,510		(D)
Total operating expenses		38,981			4,362			17,230			61,807
Operating income/(loss)		27,400			1,189			(3,270	)		25,319
Interest income		147			—			—			147
Interest expense		(791	)		—			(287	)		(1,078	)	(H) (O)
Debt forgiveness		—			—			—			—		(G)
Foreign exchange gain (loss)		894			—			—			894
Income before income taxes		27,650			1,189			(3,557	)		25,282
Income tax (expense)/benefit		(925	)		(471	)		1,319			(77	)	(P) (Q)
Net income	$	26,725		$	718		$	(2,238	)	$	25,205
Basic earnings per common share	$	2.63								$	2.36
Diluted earnings per common share	$	2.17								$	1.94
Basic weighted average shares outstanding		10,177									10,673		(J)
Diluted weighted average shares outstanding		12,490									12,986		(J)

Ebix, Inc. and Subsidiaries
Consolidated Balance Sheets
as of September 30, 2009
(In thousands, except share amounts)
(Unaudited)

										Ebix/EZ-Data
										Combined &
	As Reported			EZ-Data			Peak			Adjusted
	Ebix, Inc.			Unaudited			Unaudited			Pro Forma
ASSETS
Current assets:
Cash and cash equivalents	$	30,857		$	206		$	187		$	9,124		(A)
Short-term investments		1,369			—			—			1,369
Accounts receivable, net of allowance		18,660			2,211			1,129			18,660		(L)
Advanced deposits on pending business acquisitions		11,880			—			—			—		(A)
Other current assets		1,860			424			231			2,320		(C)
Total current assets		64,626			2,841			1,547			31,473
Property and equipment, net		5,142			1,295			422			6,859
Goodwill		104,339			—			—			153,335		(B)
Indefinite-lived intangibles		14,790			—			—			14,790
Other intangible assets, net		12,222			—			1,859			30,507		(B) (C)
Other assets		700			152			804			852		(C)
Total assets	$	201,819		$	4,288		$	4,632		$	237,816
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses	$	4,184		$	942		$	4		$	5,130
Accrued payroll and related benefits		2,408			—			553			2,961
Short term debt		23,850			—			—			23,850
Current portion of convertible debt, net of discount of $811 and $0, respectively		39,881			—			—			39,881
Current portion of long term debt and capital lease obligations		181			206			—			387
Deferred revenue		6,763			922			205			7,890
Advance payment on pending sale of intellectual property		—			3,800			—			—		(R)
Other current liabilities		321			—			—			321
Total current liabilities		77,588			5,870			762			80,420
Long term debt and capital lease obligation, less current portion		398			—			875			398		(H)
Other liabilities		2,204			—			27			10,551		(I) (N)
Deferred revenue		53			—			—			53
Deferred rent		702			—			—			702
Total liabilities		80,945			5,870			1,664			92,124
Commitments and Contingencies, Note 8
Stockholders’ equity:
Common stock, $.10 par value		1,049			4			—			1,099		(M) (K)
Additional paid-in capital		123,835			522			938			148,603		(M) (K)
Treasury		(76	)		—			(168	)		(76	)	(K)
Accumulated deficit		(3,474	)		(2,108	)		2,198			(3,474	)	(K)
Accumulated other comprehensive loss		(460	)		—			—			(460	)
Total stockholders’ equity		120,874			(1,582	)		2,968			145,692
Total liabilities and stockholders’ equity	$	201,819		$	4,288		$	4,632		$	237,816

Notes to Unaudited Pro Forma Condensed Combined Financial Statements

1. Basis of Presentation

Effective October 1, 2009, Ebix, Inc. (“Ebix” or the “Company”) acquired E-Z Data, Inc. (“EZ Data”), a leading industry provider of on-demand CRM solutions for insurance companies, brokers, agents, investment dealers, and financial advisors, for $50.4 million, consisting of cash consideration in the amount of $25.4 million paid at closing and $25.0 million in shares of Ebix common stock valued at the average market closing price for the three most recent days prior to September 30, 2009. Ebix funded the cash portion of the purchase price for this business acquisition using the proceeds from the Company’s two convertible promissory notes that it issued in late August 2009.

The accompanying unaudited condensed financial statements present the pro forma results of operations and the financial position of Ebix and EZ Data on a combined basis and are based on the historical financial information of each company after giving effect to the acquisition. The unaudited pro forma combined balance sheet has been prepared assuming the acquisition of EZ Data occurred on September 30, 2009. The unaudited pro forma combined statements of income have been prepared assuming the acquisition of EZ Data occurred on January 1, 2008.

The unaudited pro forma condensed and combined financial statements are based on estimates and assumptions which are preliminary and have been made solely for the purposes of developing such pro forma information. The estimated pro forma adjustments arising from the merger are derived from the preliminary estimated fair value of assets acquired and liabilities assumed, and the related allocation of the purchase price consideration. The final determination of the purchase price allocation will be based on the established fair value of the assets acquired, including the fair value of the identifiable intangible assets, and liabilities assumed as of October 1, 2009. The excess of the purchase price over the fair value of net assets acquired is allocated to goodwill. The final determination of the purchase consideration, fair values, and resulting goodwill may differ significantly from what is reflected in these unaudited pro forma condensed and combined financial statements. A summary of the estimated purchase price allocation to the fair value of assets acquired and liabilities assumed is as follows (in thousands):

Purchase Price:
Cash consideration	$	25,350
Common stock consideration		25,000
	$	50,350
Preliminary Allocation of Purchase Price as of September 30, 2009:
Tangible assets (net)	$	(199	)
Identifiable intangible assets		15,756
Goodwill		39,975
	$	50,350

The amount allocated to the intangible assets represents the Company’s preliminary estimate of the identifiable intangible assets acquired from EZ Data, which include customer relationships and developed technology. The recording of the identifiable intangible assets results in the establishment of a deferred tax liability of $5.9 million.

2. Pro Forma Adjustments — related to the acquisitions of EZ Data and Peak in October 2009, and Facts in May 2009

Pro forma adjustments reflect only those adjustments that are factually supportable and do not include the impact of contingencies that will not be known until the resolution of the contingency. The following are brief descriptions of each of the referenced pro forma adjustments included in these unaudited condensed and combined financial statements.

(A) Reflects the impact of the combined cash consideration paid for the purchase of EZ Data ($25.4 million) and Peak ($8.0 million) for a total of $33.4 million

(B) Includes the establishment of goodwill and other intangible assets in the amounts of $49.0 million and $18.3 million respectively in connection with the combined acquisitions of EZ Data and Peak. The preliminary estimated identifiable intangible assets and their related estimated useful lives are as follows:

Intangible				Percent of			Remaining
Assets (in thousands)	Fair Value			Purchase Price			Useful Life
Developed Technology	$	2,866	4.79			%		3-5 years
Customer Relationships	$	15,418			25.76	%		12-15 years

(C)	Includes the elimination of pre-existing tangible and intangible assets of Peak in the aggregate amount of $2.2 million which were recognized in connection with prior business acquisitions that Peak had completed
(D)	Includes assumed amortization expense of $1.7 million for the year ended December 31, 2008, and $1.2 million for the nine months ended September 30, 2009, respectively, in connection with the recognition of acquired amortizable intangible assets
(E)	Includes a reduction of operating revenue in the amount of $1.7 million for EZ Data for the year ended December 31, 2008 due to the unsustainable nature of certain components of its non-recurring revenue streams during 2008
(F)	Includes a reduction of operating expenses in the amount of $1.6 million that were associated with 2008 non-recurring revenue referenced in note (E)
(G)	Includes the elimination of a loss in the amount of $887 thousand pertaining to the forgiveness of an advance made to a related party to EZ Data. This was a unique transaction that precedes EZ Data’s acquisition by Ebix, and will not be repeated.
(H)	Reflects the removal of liability balances in the amount of $875 thousand and associated interest expense related to the bank debt and advances from shareholders from the income statements of the acquired businesses as these obligations were fully satisfied prior the acquisitions by Ebix. Accordingly interest expense was reduced by $346 thousand and $279 thousand respectively in the December 31, 2008 and September 30, 2009 pro forma income statements.

(I)	Includes a deferred tax liability in the amount of $5.9 million thousand for the book versus tax differences attributable to acquired intangible assets.
(J)	Increases the number of basic and diluted shares of common stock by 496,000 shares to give effect to the shares issued as purchase consideration in connection with the acquisition of EZ Data
(K)	Includes the elimination of the equity balances for EZ Data and Peak.
(L)	Includes the elimination $3.3 million of acquired accounts receivable from Peak and EZ Data, as the cash proceeds from such receivables will be retained by the sellers.
(M)	Includes additional equity resulting from the shares of common stock that were issued as purchase consideration for the acquisition of EZ Data
(N)	Includes a liability in the amount of $1.5 million with respect to potential future contingent consolidation to be paid in connection with the acquisition of Peak.
(O)	Adds imputed interest expense (at a rate of 1.75% per annum) in the amounts of $438 thousand for the year ended December 31, 2008, and $328 thousand for the nine months ended September 30, 2009, respectively, in connection with the proceeds of the $25 million of convertible debt financing issued in August 2009 which were used to the fund the cash portion of the EZ Data acquisition price.
(P)	Includes the tax effect of the pro forma adjustments which resulted in tax benefits in the amounts of $90 thousand and $19 thousand for the year ended December 31, 2008, and the nine months ending September 30, 2009, respectively
(Q)	Imputed federal and state income tax expense for E-Z Data (previously an S-Corp) using a marginal effective tax rate of 39.83%, resulting in $140 thousand of tax expense for the year ended December 31, 2008, and a $1.3 million tax benefit for the nine months ended September 30, 2009.
(R)	Reflects the elimination of a liability in the amount of $3.8 million which pertains to an advance payment for intellectual property made by Ebix Singapore PTE LTD to EZ Data prior to its acquisition by Ebix. The transaction was subsequently consummated on October 1, 2009.