|9 Months Ended|
Sep. 30, 2015
On November 26, 2014, the Company entered into an Asset Purchase Agreement (the Purchase Agreement) with Global Outreach Ventures, Inc. (Global Outreach), Eric Bull (Mr. Bull), Terri Gladwell (Ms. Gladwell) and Sergio Zlobin (Mr. Zlobin, and together with Mr. Bull and Ms. Gladwell, the Stockholders), pursuant to which the Company acquired all of the issued and outstanding membership interests of Global Outreach's wholly-owned subsidiaries, Noble Voice LLC (Old Noble Voice) and Compliant Lead LLC (Compliant and, together with Old Noble Voice, Noble Voice) for an aggregate purchase price of $1,389,386, consisting of a promissory note (see Note 7).
On September 24, 2014 (the Closing Date), NAPW, Inc., operator of the National Association of Professional Women, became part of the Company upon the closing of the Company's merger transaction with NAPW Merger Sub, Inc., a Delaware corporation and wholly-owned subsidiary of the Company (Merger Sub), NAPW, Inc., a New York corporation (Old NAPW), and Matthew B. Proman, the sole shareholder of Old NAPW (Mr. Proman), pursuant to an Agreement and Plan of Merger, dated as of July 11, 2014 (the Merger Agreement). In accordance with the terms of the Merger Agreement, on the Closing Date, Old NAPW merged with and into Merger Sub (the Merger). As a result of the Merger, the separate corporate existence of Old NAPW ceased and Merger Sub continues as the surviving corporation, a wholly-owned subsidiary of the Company and was renamed NAPW, Inc.
Pursuant to the Merger Agreement, the Company acquired all issued and outstanding shares of Old NAPW's common stock for an aggregate purchase price consisting of (i) 5,110,975 shares of Common Stock of the Company, which were issued to Mr. Proman, (ii) 959,096 shares of Common Stock, which were issued pursuant to a subscription agreement to Star Jones, NAPW's President and National Spokeswoman, (iii) 239,774 shares of Common Stock, which were issued pursuant to a subscription agreement to Christopher Wesser, NAPW's General Counsel (together with the shares issued to Mr. Proman and Ms. Jones, the Merger Shares), (iv) cash of $3,555,000, (v) a promissory note in the original principal amount of $445,000 payable to Mr. Proman (see Note 8) (vi) an option for Mr. Proman to purchase 183,000 shares of the Company's Common Stock at a price of $3.45 per share, (vi) a warrant for Mr. Proman to purchase 50,000 shares of the Company's Common Stock at a price of $4.00 per share and (vii) a warrant for Mr. Proman to purchase 131,250 shares of the Company's Common Stock at a price of $10.00 per share.
During the quarter ended September 30, 2015, Old NAPW settled a legal case that existed prior to the Merger (see Note 9). As a result of the settlement, the Company recorded an increase in goodwill of $133,693 during the three months ended September 30, 2015.
On July 16, 2015, the Company and Mr. Proman entered into a Separation Agreement and Mutual Release of All Claims (the Separation Agreement) (see Note 9).
The following unaudited consolidated pro forma information gives effect to the acquisitions of Noble Voice and NAPW as if these transactions had occurred on January 1, 2014. The following pro forma information is presented for illustration purposes only and is not necessarily indicative of the results that would have been attained had the acquisitions been completed on January 1, 2014, nor are they indicative of results that may occur in any future periods. Pro forma information is not presented for the three and nine months ended September 30, 2015, as the Company's results of operations include the consolidated results for the full period.
The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).
Reference 1: http://www.xbrl.org/2003/role/presentationRef