Exhibit 99.3 

 

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

The following unaudited pro forma combined financial statements give effect to the Merger Agreement between Priced In Corp (“PRCD”), Priced In Corp. Subsidiary, Tigrent Inc. and Legacy Education Alliance Holdings, Inc. Immediately after the Merger consummation, the Company plans to change its name to Legacy Education Alliance, Inc. Of the then outstanding shares (19,997,500), 16,000,000 will be owned by Tigrent Inc, having exchanged their 10 shares in Legacy Education Alliance Holdings, Inc. (constituting 100% of Legacy Education Alliance Holdings, Inc. outstanding stock) and the remaining 3,997,500 shares will be held by the existing PRCD shareholders.

 

PRCD had 75,000,000 common shares authorized with a par value of $0.001 and on September 30, 2014 changed the par value to $0.0001 and increased the authorized shares by 125,000,000 to 200,000,000 shares with 12,750,000 shares outstanding. On September 30, 2014, PRCD completed a 1 for 1.23 Stock Split whereby each issued and outstanding share of PRCD common stock was converted into 1.23 share of PRCD (leaving 15,682,500 common shares). Upon closing of the Merger, 11,685,000 shares of the then outstanding 15,682,500 shares will be cancelled leaving 3,997,500 shares. Tigrent Inc. will exchange all of it shares in Legacy Education Alliance Holdings, Inc. (10 shares at $0.0001 par value common shares) for 16,000,000 shares of PRCD. After the merger, Tigrent Inc. will own 80% the then outstanding shares of PRCD.

 

The Merger will be accounted for as a “reverse merger” and recapitalization since, immediately following the completion of the transaction, the holders of Tigrent Inc.’s stock will have effective control of PRCD. In addition, Tigrent Inc. will have control of the combined entity through control of the Board by designating all four of the board seats to be held by the existing board of Tigrent Inc. Additionally, all of Tigrent Inc.’s officers and senior executive positions will continue on as management of the combined entity after consummation of the Merger. For accounting purposes, Legacy Education Alliance Holdings, Inc. will be deemed to be the accounting acquirer in the transaction and, consequently, the transaction will be treated as a recapitalization of PRCD. Accordingly, Legacy Education Alliance Holdings Inc.’s assets, liabilities and results of operations will become the historical financial statements of the registrant, and the Company’s assets, liabilities and results of operations will be consolidated with PRCD effective as of the date of the closing of the Merger. No step-up in basis or intangible assets or goodwill will be recorded in this transaction.

 

The unaudited pro forma combined balance sheet as of June 30, 2014 as well as the unaudited combined statements of operations for the year ended September 30, 2013 and for the nine months ended June 30, 2014, presented herein, gives effect to the Merger as if the transaction had occurred at the beginning of such period and includes certain adjustments within the Stockholder’s Equity section that are directly attributable to the transaction.

 

The unaudited pro forma combined financial statements have been prepared for illustrative purposes only and are not necessarily indicative of the consolidated financial position or results of operations in future periods or the results that actually would have been realized had Legacy Education Alliance Holdings, Inc. and PRCD been a combined company during the specified periods. The unaudited pro forma combined financial statements, including the notes thereto, are qualified in their entirety by reference to, and should be read in conjunction with, the historical combined financial statements of Tigrent Inc. included herein, and the historical financial statements of PRCD included in its Annual Report on Form 10-K for the year ended September 30, 2013 and its Quarterly Report on Form 10-Q for the nine months ended June 30, 2014.

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Legacy Education Alliance, Inc.

Pro Forma Condensed Combined Balance Sheet

As of June 30, 2014

(Unaudited In thousands)

  

   Tigrent Inc. and Subsidiaries   Legacy Education Alliance, Inc. F/K/A Priced In Corp.   Adj   Pro Forma   Pro Forma 
   (Historical)   (Historical)   #   (Adjustments)   (Combined) 
                          
Assets                         
Current assets:                         
Cash and cash equivalents  $6,207   $2         -   $6,209 
Restricted cash   2,734    -         -    2,734 
Deferred course expenses   10,407    -         -    10,407 
Prepaid expenses and other current assets   2,211    -         -    2,211 
Income taxes receivable   31    -         -    31 
Inventory   293    -         -    293 
Total current assets   21,883    2         -    21,885 
Property and equipment, net   1,366    -         -    1,366 
Other assets   245    -         -    245 
Total assets  $23,494   $2        $-   $23,496 
                          
Liabilities and Stockholders’ Deficit                         
Current liabilities:                         
Accounts payable  $3,101   $-         -    3,101 
Royalties payable   29    -         -    29 
Accrued course expenses   1,542    -         -    1,542 
Accrued salaries, wages and benefits   666    -         -    666 
Other accrued expenses   2,524    12         -    2,536 
Long-term debt, current portion   8    -         -    8 
Deferred revenue   62,660    -         -    62,660 
Total current liabilities   70,530    12         -    70,542 
Long-term debt, net of current portion   57    -         -    57 
Deferred revenue, net of current portion   197    -         -    197 
Other long-term liabilities   62    -         -    62 
Total liabilities   70,846    12         -    70,858 
Stockholders’ deficit:                         
Common stock   7,825    7    A,B,C    (7,830)   2 
Additional  paid-in-capital   2,716    70    A,B,C,D    7,753    10,539 
   Cumulative foreign currency translation
   adjustment
   (1,228)   -         -    (1,228)
Accumulated deficit   (56,665)   (87)   D    77    (56,675)
Total stockholders’ deficit   (47,352)   (10)        -    (47,362)
Total liabilities and stockholders’ deficit  $23,494   $2        $-   $23,496 

 

See Notes and Assumptions to Unaudited Pro Forma Combined Financial Statements.

 

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Legacy Education Alliance, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Unaudited

Nine months ended June 30,2014

( In thousands, except per share data)

 

      Tigrent Inc. and Subsidiaries       Legarcy Educatoin Alliance, Inc. F/K/A Priced In Corp.       Pro Forma Unaudited       Pro Forma Unaudited  
      (Historical)        (Historical)        Adjustments       Combined  
Revenue   $ 73,009     $ -     $ -     $ 73,009  
Direct course expenses     32,254       -       -       32,254  
Advertising and sales expenses     16,031       -       -       16,031  
Royalty expense     5,661       -       -       5,661  
General and administrative expenses     11,558       44       -       11,602  
Income from operations     7,505       (44 )     -       7,461  
Other income (expense):                                
Litigation settlement     1,300       -       -       1,300  
Other income (expense), net     (129 )     -       -       (129 )
Income before income taxes     8,676       (44 )     -       8,632  
(Provision) benefit for income taxes     95       -       -       95  
Net income (loss) from continuing operations     8,771       (44 )     -       8,727  
Loss from discontinued operations     -       -       -       -  
Net income (loss)   $ 8,771     $ (44 )   $ -     $ 8,727  
                                 
Basic weighted average net income (loss) per share attributable to common stockholders:                                
From continuing operations   $ 0.59     $ (0.01 )           $ 0.44  
From discontinued operations   $ 0.00     $ 0.00             $ 0.00  
Net income attributable to Tigrent Inc.’s common stockholders   $ 0.59     $ (0.01 )           0.44  
                                 
Diluted weighted average net income (loss) per share attributable to common stockholders:                                
From continuing operations   $ 0.55                          
From discontinued operations   $ 0.00                          
Net income attributable to Tigrent Inc.’s common stockholders   $ 0.55                          
                                 
Basic weighted average shares outstanding     14,886       7,773               19,998   
Diluted weighted average shares outstanding     15,843       7,773                  

 

See Notes and Assumptions to Unaudited Pro Forma Combined Financial Statements.

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Legacy Education Alliance, Inc.

Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) Unaudited

Twelve months ended September 30,2014

( In thousands, except per share data)

    

Tigrent Inc. and Subsidiaries

    

Legacy Education Alliance, Inc. F/K/A Priced In Corp.

    

Pro Forma Unaudited

    

Pro Forma Unaudited

 
    

(Historical)

    

(Historical)

    Adjustments    Combined 
Revenue  $81,381   $-   $-   $81,381 
Direct course expenses   39,647    -    -    39,647 
Advertising and sales expenses   21,913    -    -    21,913 
Royalty expense   6,620    -    -    6,620 
General and administrative expenses   13,570    33    -    13,603 
Income from operations   (369)   (33)   -    (402)
Other income (expense):                    
Forgiveness of debt   1,652    -    -    1,652 
Litigation settlement   -    -    -    - 
Other income (expense), net   (356)   -    -    (356)
Income before income taxes   927    (33)   -    894 
(Provision) benefit for income taxes   180    -    -    180 
Net income (loss) from continuing operations   1,107    (33)   -    1,074 
Loss from discontinued operations   (167)   -    -    (167)
Loss from disposal of discontinued operations   (394)   -    -    (394)
Loss on discontinued operations   (561)   -    -   (561)
Net income (loss)   546    (33)  $-   $513 
Basic weighted average net income (loss) per share attributable to common stockholders:                    
From continuing operations  $0.08   $(0.01)     $0.05 
From discontinued operations  $(0.04)  $0.00     $(0.03)
Net income attributable to Tigrent Inc.’s common stockholders  $0.04   $(0.01)     $0.02 
Diluted weighted average net income (loss) per share attributable to common stockholders:                    
From continuing operations  $0.08                
From discontinued operations  $(0.04)               
Net income attributable to Tigrent Inc.’s common stockholders  $0.04                
Basic weighted average shares outstanding   13,431    5,000        19,998 
Diluted weighted average shares outstanding   14,663                

 

See Notes and Assumptions to Unaudited Pro Forma Combined Financial Statements.

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NOTES AND ASSUMPTIONS TO PRO FORMA COMBINED FINANCIAL STATEMENTS

(Unaudited)

 

(A)  On October 1, 2014 Priced In Corp. filed its First Amended and Restated Articles of Incorporation with the State of Nevada, pursuant to which it increased the total number of shares of capital stock which may be issued by PRCD to two hundred twenty million (220,000,000), of which:

 

(i) Two Hundred Million (200,000,000) shall be common stock, par value of $.0001 per share. Each share of Common Stock shall entitle the holder thereof to one (1) vote on any matter submitted to a vote at a meeting of the stockholders; and

 

(ii) Twenty Million (20,000,000) shall be preferred stock, par value of $.0001 per share.

 

(B)  On October 1, 2014, PRCD affected an 1.23 for 1 stock split. The split was approved by PRCD’s stockholders and Board of

Directors.

(C)  Legacy Alliance Holdings, Inc. (A wholly-owned subsidiary of Tigrent Inc.) will exchange its 10 $0.01 par common for 16,000,000 shares of PRCD.

 

(D)  To eliminate the accumulated deficit of PRCD (the accounting acquiree).

 

Tigrent’s restricted shares have no effect on the combined company and therefore no pro forma diluted earnings per share information is presented.

 

The unaudited pro forma combined financial statements do not include any adjustment for non-recurring costs incurred or to be incurred after June 30, 2014 by both Tigrent and PRCD to consummate the Reverse Merger, except as noted above.  Merger costs include fees payable for legal fees and accounting fees and are estimated to be approximately $700,000.  Such costs will be expensed as incurred.

 

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