Lapis Technologies
Inc (1)
|
Micronet Ltd (2)
|
Pro forma
Adjustments
|
Pro forma
consolidated
|
||||||||||||||
Assets
|
|||||||||||||||||
Current assets
|
|||||||||||||||||
Cash and cash equivalents
|
$ | 2,951 | 4,787 | 3,000 |
(c)
|
$ | 6,759 | ||||||||||
- | - | 325 |
(d)
|
||||||||||||||
- | - | (4,304 | ) |
(i)
|
|||||||||||||
Marketable securities
|
- | 2,957 | - | 2,957 | |||||||||||||
Trade account receivables
|
5,537 | 3,638 | - | 9,175 | |||||||||||||
Inventories
|
2,350 | 5,837 | 1,171 |
(l)
|
9,358 | ||||||||||||
Other account receivables
|
808 | 444 | 217 |
(b)
|
1,469 | ||||||||||||
Call option
|
- | - | 404 |
(o)
|
404 | ||||||||||||
Total current assets
|
11,646 | 17,663 | 813 | 30,122 | |||||||||||||
Property and equipment, net
|
735 | 1,634 | (176 | ) |
(b)
|
2,193 | |||||||||||
Long term deposit
|
25 | 17 | - | 42 | |||||||||||||
Intangible assets, net | - | 41 | 1,960 |
(f)
|
1,960 | ||||||||||||
(41 | ) |
(b)
|
|||||||||||||||
Deferred tax assets
|
10 | 248 | - | 258 | |||||||||||||
Total long term assets
|
770 | 1,940 | 1,743 | 4,453 | |||||||||||||
Total assets
|
$ | 12,416 | 19,603 | 2,556 | $ | 34,575 | |||||||||||
Liabilities and equity
|
|||||||||||||||||
Current liabilities:
|
|||||||||||||||||
Short term bank loans
|
$ | 1,061 | - | - | $ | 1,061 | |||||||||||
Account payables
|
1,083 | 2,617 | - | 3,700 | |||||||||||||
Current portion of long term loans and convertible debentures
|
1,625 | 691 | 1,500 |
(c)
|
3,816 | ||||||||||||
Deferred tax liabilities
|
- | - | 176 |
(n)
|
176 | ||||||||||||
Other account payables
|
1,068 | 2,650 | 325 |
(d)
|
4,043 | ||||||||||||
Total current liabilities
|
4,837 | 5,958 | 2,001 | 12,796 | |||||||||||||
Long term loans and convertible debentures, net of current portion
|
3,210 | 579 | 628 |
(e)
|
4,417 | ||||||||||||
Accrued severance pay, net
|
183 | 662 | 274 |
(a)
|
1,119 | ||||||||||||
Prepaid income
|
- | 72 | - | 72 | |||||||||||||
Warrant liability
|
782 | 8 | 873 |
(c)
|
1,663 | ||||||||||||
Put option
|
- | - | 163 |
(o)
|
163 | ||||||||||||
Excess of losses in affiliated company
|
58 | - | - | 58 | |||||||||||||
Deferred tax liability
|
- | - | 293 |
(n)
|
293 | ||||||||||||
Total liabilities
|
9,070 | 7,279 | 4,232 | 20,581 | |||||||||||||
Equity
|
|||||||||||||||||
Common stock
|
6 | 433 | (433 | ) |
(j)
|
6 | |||||||||||
Additional Paid in capital
|
- | 3,919 | (3,919 | ) |
(j)
|
- | |||||||||||
Capital fund for Share based payment
|
- | 792 | (792 | ) |
(j)
|
- | |||||||||||
Non-controlling interests
|
- | - | 6,299 |
(h)
|
6,299 | ||||||||||||
Accumulated other comprehensive income
|
(188 | ) | (593 | ) | 593 |
(j)
|
(188 | ) | |||||||||
4,623 |
(g)
|
||||||||||||||||
Retained earnings
|
3,528 | 7,773 | (274 | ) |
(a)
|
7,877 | |||||||||||
Total equity
|
3,346 | 12,324 | (1,676 | ) | 13,994 | ||||||||||||
total liability and equity
|
$ | 12,416 | 19,603 | 2,556 | $ | 34,575 |
(1)
|
As reported in Lapis unaudited quarterly report on Form 10-Q for the six months ended June 30, 2012 filed with the SEC on August 14, 2012.
|
(2)
|
As reported in Micronet unaudited financial statements appears in this 8-K/A and translated to US Dollar.
|
Lapis Technologies.
Inc (1)
|
Micronet Ltd (2)
|
Adjustments |
Pro forma
Consolidated (3)
|
||||||||||||||
Revenues
|
$ | 4,432 | $ | 14,424 | $ | - | $ | 18,856 | |||||||||
Cost of revenues
|
2,915 | 8,953 | 1,171 |
(l)
|
13,039 | ||||||||||||
Gross profit
|
1,517 | 5,471 | ( 1,171 | ) | 5,817 | ||||||||||||
Operating expenses:
|
|||||||||||||||||
Selling and marketing
|
175 | 304 | - | 479 | |||||||||||||
Administrative and general
|
781 | 975 | 36 |
(p)
|
1,792 | ||||||||||||
Research and development
|
109 | 796 | - | 905 | |||||||||||||
Amortization of intangible assets
|
- | - | 907 |
(k)
|
907 | ||||||||||||
Total operating expenses
|
1,065 | 2,075 | 943 | 4,083 | |||||||||||||
Income (loss) from operations
|
452 | 3,396 | (2,114 | ) | 1,734 | ||||||||||||
Financial income (expenses), net
|
(400 | ) | 112 | (314 | ) |
(e)
|
(602 | ) | |||||||||
Other income
|
4 | - | - | 4 | |||||||||||||
Income (loss) before provision for income taxes
|
56 | 3,508 | (2,428 | ) | 1,136 | ||||||||||||
Provision (benefit) for income taxes
|
12 | 56 | (312 | ) |
(q)
|
(244 | ) | ||||||||||
Equity in loss of affiliated company
|
(17 | ) | - | - | (17 | ) | |||||||||||
Net income (loss)
|
27 | 3,452 | (2,116 | ) | 1,363 | ||||||||||||
Net income attribute to noncontrolling interests
|
- | - | 866 |
(m)
|
866 | ||||||||||||
Net income (loss) attribute to Lapis
|
$ | 27 | $ | 3,452 | $ | (2,982 | ) | $ | 497 | ||||||||
Earnings per share attributable to lapis
|
|||||||||||||||||
Basic
|
$ | 0.00 | $ | 0.08 | |||||||||||||
Diluted
|
$ | 0.00 | $ | 0.07 | |||||||||||||
weighted average common shares outstanding:
|
|||||||||||||||||
Basic
|
6,483,000 | 6,483,000 | |||||||||||||||
Diluted
|
6,483,000 | 7,006,296 |
Lapis Technologies.
Inc (1)
|
Micronet Ltd (2)
|
Pro forma Adjustments
|
Pro forma consolidated (3)
|
||||||||||||||
Revenues
|
$ | 10,146 | $ | 12,545 | $ | - | $ | 22,691 | |||||||||
Cost of revenues
|
6,297 | 8,920 | 1,171 |
(l )
|
16,388 | ||||||||||||
3,849 | 3,625 | (1,171 | ) | 6,303 | |||||||||||||
Gross profit
|
|||||||||||||||||
operating expenses:
|
|||||||||||||||||
Selling and marketing expenses
|
350 | 482 | - | 832 | |||||||||||||
Administrative and general expenses
|
1,366 | 1,659 | (29 | ) |
(p)
|
2,996 | |||||||||||
Research and development costs
|
240 | 1,446 | - | 1,686 | |||||||||||||
Amortization of intangible assets
|
- | - | 1,084 |
(k)
|
1,084 | ||||||||||||
Total operating expenses
|
1,956 | 3,587 | 1,055 | 6,598 | |||||||||||||
Income (loss) from operations
|
1,893 | 38 | ( 2,226 | ) | (295 | ) | |||||||||||
Financial income (expenses), net
|
(567 | ) | 1 | (628 | ) |
(e)
|
(1,194 | ) | |||||||||
Income (loss) before provision for income taxes
|
1,326 | 39 | (2,854 | ) | (1,489 | ) | |||||||||||
Provision (benefit) for income taxes
|
(77 | ) | - | (338 | ) |
(q)
|
(415 | ) | |||||||||
Equity in losses of affiliated company
|
(44 | ) | - | - | (44 | ) | |||||||||||
Income from discontinued operation
|
- | 144 | - | 144 | |||||||||||||
Net Income (loss)
|
1,359 | 183 | (2,516 | ) | (974 | ) | |||||||||||
Net loss attribute to noncontrolling interests
|
- | (892 | ) |
(m)
|
(892 | ) | |||||||||||
Net income (loss) attribute to Lapis
|
$ | 1,359 | $ | 183 | (1,624 | )$ | $ | (82 | ) | ||||||||
Earnings (losses) per share attributable to lapis:
|
|||||||||||||||||
Basic
|
$ | 0.21 | $ | (0.01 | ) | ||||||||||||
Diluted
|
$ | 0.21 | $ | (0.01 | ) | ||||||||||||
weighted average common shares outstanding:
|
|||||||||||||||||
Basic
|
6,483,000 | 6,483,000 | |||||||||||||||
Diluted
|
6,483,000 | 6,483,000 |
June 30, 2012
U.S. $
(in Thousands)
|
||||
Current assets
|
$ | 18,695 | ||
Derivative asset- call option
|
404 | |||
Property, plant and equipment
|
1,400 | |||
Non- current assets
|
268 | |||
Identifiable intangible assets:
|
||||
Customer relations
|
918 | |||
Backlog
|
712 | |||
Core Technology
|
330 | |||
Total assets acquired
|
22,727 | |||
Current liabilities
|
4,689 | |||
Derivative liability- put option
|
163 | |||
Convertible notes
|
1,266 | |||
Long-term liabilities, including deferred taxes liability
|
1,383 | |||
Total liabilities assumed
|
7,501 | |||
Non controlling interest
|
5,664 | |||
Employees stock options
|
635 | |||
Gain on bargain purchase
|
4,623 | |||
Net assets acquired
|
$ | 4,304 |
a.
|
Adjusted to record the GAAP difference between IFRS and US GAAP regarding accrued severance pay at Micronet amounted to $274.
|
b.
|
Adjusted to classify certain fixed assets and intangibles at Micronet recorded based on IFRS to long term receivables and fixed assets to be recorded based on US GAAP, respectively.
|
c.
|
Adjusted to record the borrowing of $3,000$ ($1,500 - were recorded as current portion) along with the issued warrants from UTA which financed the acquisition. The fair value of the warrants at issuance day was $873.
|
d.
|
Adjustment to record a borrowing of $325 from the company major shareholder, which financed the acquisition.
|
e.
|
Adjusted to record the interest expenses derived from the $3,000 borrowing of 8% per year and discount amortization amounted to $314 for six months ended in June 30, 2012 and $628 for the year ended.
|
f.
|
Adjusted to record the intangibles assets of $1,960 derived from the acquisition.
|
g.
|
Adjusted to record gain on bargain purchase derived from the acquisition of $4,623.
|
h.
|
Adjusted to record the non controlling interests and the value of vested employees stock option upon acquisition of $5,664 and $635, respectively.
|
i.
|
Adjusted to record the cash portion of the acquisition price of $4,304.
|
j.
|
Adjusted to record the elimination of the equity account of Micronet.
|
k.
|
Adjusted to record the amortization of intangibles assets amounted to $907 for the six months ended in June 30, 2012 and $1,084 for the fiscal year ended. Customer relations over 3 years, core technology over 5 years and backlog over two (2) quarters.
|
l.
|
Adjusted to record the step up of inventory to fair value upon acquisition and the decrease in that step up following amortization of $1,171.
|
m.
|
Adjusted to record the proportionate share of income attributable to non controlling interests.
|
n.
|
Adjusted to record the deferred tax liability.
|
o.
|
The call and put option derived upon acquisition amounted to $404 and $163 respectively, and were not revaluated on the pro forma statements of operations.
|
p.
|
Adjusted to record severance pay expense recorded based on IFRS into US GAAP amounted to $36 for the six months ended June 30, 2012 and $ (29) for the fiscal year ended.
|
q.
|
Adjusted to record the decrease in the deferred tax liability of $312 for the six months ended June 30, 2012 and $338 for the fiscal year ended.
|