UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Introduction

On November 30, 2021, Kubient, Inc. (the “Kubient” or the “Company”) entered into and consummated an Asset Purchase Agreement (the “Purchase Agreement”) between the Company and MediaCrossing Inc., a Delaware corporation (“MediaCrossing”), pursuant to which the Company acquired certain assets and liabilities that were critical to continue to operate the business of MediaCrossing for (i) $500,000 in cash and (ii) if the acquired business achieves certain milestones in 2022, up to 822,369 shares of the Company’s common stock, par value $0.00001 per share (the “Earnout Shares”) (the “Transaction”). In accordance with Accounting Standards Codification (“ASC”) 805, the Company determined that the Transaction should be accounted for as a business combination after determining that the acquired set of assets of MediaCrossing, the fair value of which was not concentrated in a single asset or group of similar assets and included (a) cash, (b) prepaid expenses and other current assets, (c) intangible assets as detailed further below and (d) an assembled workforce, met the definition of a business.

The following unaudited pro forma condensed combined financial statements reflect adjustments to the historical financial results of Kubient in connection with the Transaction, as defined below. These unaudited pro forma condensed combined financial statements adjust the historical financial statements to give effect to Xxxxxxx’s acquisition of certain assets of MediaCrossing as follows:

The unaudited pro forma condensed combined balance sheet gives effect to the Transaction as if consummated as of September 30, 2021 and is derived from:


 •
for Kubient, the unaudited condensed consolidated balance sheet as of September 30, 2021; and

•
for MediaCrossing, the unaudited condensed balance sheet as of September 30, 2021.

The unaudited pro forma condensed combined statement of operations for the nine months ended September 30, 2021 gives effect to the Transaction as if consummated as January 1, 2020 and is derived from:


 •
for Xxxxxxx, the unaudited condensed consolidated statement of operations for the nine months ended September 30, 2021; and

•
for MediaCrossing, the unaudited condensed statement of operations for the nine months ended September 30, 2021.

The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2020 gives effect to the Transaction as if consummated as of January 1, 2020 and is derived from:


 •
for Kubient, the audited consolidated statement of operations for the year ended December 31, 2020; and

•
for MediaCrossing, the audited statement of operations for the year ended December 31, 2020.

The unaudited pro forma condensed combined financial statements include the following pro forma adjustments:


 •
Pre-acquisition adjustments to the historical MediaCrossing unaudited condensed balance sheet as of September 30, 2021 to remove the effect of the assets and liabilities not acquired by Kubient with respect to the Transaction;

•
Reclassification adjustments to the historical MediaCrossing statements of operations for the nine months ended September 30, 2021 and for the year ended December 31, 2020 in order to conform to the historical financial statement presentation of the Company; and

•
Transaction accounting adjustments to reflect the application of required accounting principles for the Transaction.

The transaction accounting adjustments and other adjustments are based on available information and assumptions that the Company’s management believes are reasonable. Such adjustments are estimates and actual experience may differ from expectations.

The following unaudited pro forma condensed combined financial information has been prepared in accordance with Article 11 of Regulation S-X, as amended by the final rule, Release No. 33-10786, “Amendments to Financial Disclosures about Acquired and Disposed Businesses.” Release No. 33-10786 replaces the existing pro forma adjustment criteria with simplified requirements to depict the accounting for the transaction (“Transaction Accounting Adjustments”) and present the reasonably estimable synergies and other transaction effects that have occurred or reasonably expected to occur (“Management’s Adjustments”). Management of the Company has elected not to present Management’s Adjustments and has only presented Transaction Accounting Adjustments in the unaudited pro forma condensed combined financial statements.

The unaudited pro forma condensed combined financial statements are provided for informational purposes as required by Form 8-K and do not purport to represent what the results of operations or financial position of the Company would actually have been had the Transaction occurred on the dates noted above, or to project the results of operations or financial position of the Company for any future periods. In the opinion of management, all necessary adjustments to the unaudited pro forma condensed combined financial statements have been made.

The unaudited pro forma condensed combined financial statements have been derived from, and should be read in conjunction with, the historical financial statements of the Company included in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and of the annual and interim financial statements of MediaCrossing that are included in the Company’s Current Report on Form 8-K/A to which these unaudited pro forma condensed combined financial statements are being filed as an exhibit. Assumptions underlying the pro forma adjustments are described in the accompanying notes, which should be read in conjunction with the unaudited pro forma condensed combined financial statements.


Unaudited Pro Forma Condensed Combined Balance Sheet

As of September 30, 2021

   
Kubient
    
MediaCrossing
    
Pre-
Acquisition Adjustments
      
Net Assets
Acquired of MediaCrossing
      
Transaction
Accounting
Adjustments
      
Pro Forma
Combined
  
   
Note A
    
Note B
    
Note C
      
Note D
      
Note E
          
Assets
                                          
                                           
Current Assets:
                                          
Cash
  
$
28,746,456
    
$
2,127,913
    
$
(1,606,438
)
(a)
  
$
521,475
  
(a)
  
$
(500,000
)
(a)
  
$
28,767,931
  
Accounts receivable, net
    
372,971
      
1,346,021
      
(1,346,021
)
(a)
    
-
        
-
        
372,971
  
Media rebates receivable
    
-
      
147,935
      
(147,935
)
(a)
    
-
        
-
        
-
  
Prepaid expenses and other current assets
    
625,643
      
727,456
      
(620,513
)
(a)
    
106,943
  
(a)
    
-
        
732,586
  
 
                                                      
Total Current Assets
    
29,745,070
      
4,349,325
      
(3,720,907
)
      
628,418
        
(500,000
)
      
29,873,488
  
                                                       
Property and equipment, net
    
34,035
      
34,691
      
(34,691
)
(a)
    
-
        
-
        
34,035
  
Intangible assets, net
    
2,440,316
      
-
      
-
        
-
        
650,000
  
 (a)
    
3,090,316
  
Goodwill
    
-
      
-
      
-
        
-
        
463,000
  
 (a)
    
463,000
  
Operating lease right-of-use assets
    
-
      
1,183,815
      
(1,183,815
)
(a)
    
-
        
-
        
-
  
Deferred offering costs
    
37,510
      
-
      
-
        
-
        
-
        
37,510
  
Deferred tax assets, net
    
-
      
800,022
      
(800,022
)
(a)
    
-
        
-
        
-
  
Restricted cash
    
-
      
262,500
      
(262,500
)
(a)
    
-
        
-
        
-
  
Security deposits
    
-
      
62,374
      
(62,374
)
(a)
    
-
        
-
        
-
  
Other asset
    
-
      
4,955
      
(4,955
)
(a)
    
-
        
-
        
-
  
                                                       
Total Assets
  
$
32,256,931
    
$
6,697,682
    
$
(6,069,264
)
    
$
628,418
      
$
613,000
      
$
33,498,349
  
                                                       
Liabilities and Stockholders’ Equity
                                                      
                                                       
Current Liabilities:
                                                      
Accounts payable - suppliers
  
$
451,709
    
$
-
    
$
-
  
(a)
  
$
-
      
$
-
      
$
451,709
  
Accounts payable - trade
    
817,389
      
-
      
-
        
-
        
185,000
  
 (b)
    
1,002,389
  
Accounts payable
    
-
      
1,201,044
      
(1,201,044
)
(a)
    
-
        
-
        
-
  
Accrued expenses and other current liabilities
    
921,990
      
891,173
      
(891,173
)
(a)
    
-
        
-
        
921,990
  
Notes payable
    
260,322
      
34,893
      
(34,893
)
(a)
    
-
        
-
        
260,322
  
Advance xxxxxxxx
    
-
      
1,046,066
      
(417,648
)
(a)
    
628,418
  
(a)
    
-
        
628,418
  
Media rebate funding agreement liability
    
-
      
94,917
      
(94,917
)
(a)
    
-
        
-
        
-
  
Current portion of operating lease liabilities
    
-
      
198,043
      
(198,043
)
(a)
    
-
        
-
        
-
  
                                                       
Total Current Liabilities
    
2,451,410
      
3,466,136
      
(2,837,718
)
      
628,418
        
185,000
        
3,264,828
  
                                                       
Contingent consideration
    
-
      
-
      
-
        
-
        
613,000
  
 (a)
    
613,000
  
Notes payable, non-current portion
    
77,422
      
438,902
      
(438,902
)
(a)
    
-
        
-
        
77,422
  
Operating lease liabilities, non-current portion
    
-
      
1,111,199
      
(1,111,199
)
(a)
    
-
        
-
        
-
  
                                                       
Total Liabilities
    
2,528,832
      
5,016,237
      
(4,387,819
)
      
628,418
        
798,000
        
3,955,250
  
                                                       
Commitments and Contingencies
                                                      
                                                       
Stockholders’ Equity:
                                                      
Preferred stock:
                                                      
Series A Convertible Preferred Stock
    
-
      
5
      
(5
)
(a)
    
-
        
-
        
-
  
Series A-1 Convertible Preferred Stock
    
-
      
5
      
(5
)
(a)
    
-
        
-
        
-
  
Series A-2 Convertible Preferred Stock
    
-
      
849
      
(849
)
(a)
    
-
        
-
        
-
  
Common stock
    
143
      
9
      
(9
)
(a)
    
-
        
-
        
143
  
Additional paid-in capital
    
51,827,263
      
10,260,570
      
(10,260,570
)
(a)
    
-
        
-
        
51,827,263
  
Retained earnings/accumulated deficit
    
(22,099,307
)
    
(8,579,993
)
    
8,579,993
  
(a)
    
-
        
(185,000
)
 (b)
    
(22,284,307
)
                                                       
Total Stockholders’ Equity
    
29,728,099
      
1,681,445
      
(1,681,445
)
      
-
        
(185,000
)
      
29,543,099
  
 
                                                      
Total Liabilities and Stockholders’ Equity
  
$
32,256,931
    
$
6,697,682
    
$
(6,069,264
)
    
$
628,418
      
$
613,000
      
$
33,498,349
  

See notes to unaudited pro forma condensed combined financial information.


Unaudited Pro Forma Condensed Combined Statement of Operations

For the Nine Months Ended September 30, 2021

   
Kubient
    
MediaCrossing
    
Reclassification Adjustments
    
MediaCrossing As Reclassified
    
Transaction
Accounting
Adjustments
      
Pro Forma
Combined
  
   
Note A
    
Note B
    
Note C
          
Note D
          
                                       
Net Revenues
  
$
1,882,311
    
$
2,210,176
    
$
-
    
$
2,210,176
    
$
-
      
$
4,092,487
  
                                                   
Operating Expenses:
                                                  
Cost of services
    
-
      
903,026
      
-
      
903,026
      
-
        
903,026
  
Sales and marketing
    
1,977,150
      
-
      
1,355,325
      
1,355,325
      
87,000
  
 (a)
    
3,419,475
  
Technology
    
1,916,020
      
-
      
-
      
-
      
-
        
1,916,020
  
General and administrative
    
3,878,765
      
639,313
      
953,394
      
1,592,707
      
17,500
  
 (a)
    
5,488,972
  
Employee compensation and benefits
    
-
      
1,809,360
      
(1,809,360
)
    
-
      
-
        
-
  
Business development and marketing
    
-
      
499,359
      
(499,359
)
    
-
      
-
        
-
  
 
                                                  
Total Operating Expenses
    
7,771,935
      
3,851,058
      
-
      
3,851,058
      
104,500
        
11,727,493
  
 
                                                  
Loss From Operations
    
(5,889,624
)
    
(1,640,882
)
    
-
      
(1,640,882
)
    
(104,500
)
      
(7,635,006
)
                                                   
Other Income (Expense):
                                                  
Interest income
    
84,469
      
247
      
-
      
247
      
-
        
84,716
  
Interest expense
    
(5,308
)
    
-
      
-
      
-
      
-
        
(5,308
)
Other income
    
233
      
-
      
-
      
-
      
-
        
233
  
Gain on extinguishment of PPP loan
    
-
      
481,325
      
-
      
481,325
      
-
        
481,325
  
                                                   
Total Other Income (Expense)
    
79,394
      
481,572
      
-
      
481,572
      
-
        
560,966
  
 
                                                  
Loss Before Income Taxes
    
(5,810,230
)
    
(1,159,310
)
    
-
      
(1,159,310
)
    
(104,500
)
      
(7,074,040
)
                                                   
Income tax provision
    
-
      
(859,021
)
    
-
      
(859,021
)
    
-
        
(859,021
)
 
                                                  
Net Loss
  
$
(5,810,230
)
  
$
(2,018,331
)
  
$
-
    
$
(2,018,331
)
  
$
(104,500
)
    
$
(7,933,061
)
 
                                                  
Net Loss Per Share - Basic and Diluted
  
$
(0.43
)
                                        
$
(0.58
)
 
                                                  
Weighted Average Common Shares Outstanding - Basic and Diluted
    
13,624,435
                                        
13,624,435
  

See notes to the unaudited pro forma condensed combined financial information


Unaudited Pro Forma Condensed Combined Statement of Operations

For the Year Ended December 31, 2020

   
Kubient
    
MediaCrossing
    
Reclassification Adjustments
    
MediaCrossing As Reclassified
    
Transaction Accounting Adjustments
    
Pro Forma Combined
  
   
Note A
    
Note B
    
Note C
          
Note D
        
                                     
Net Revenues
  
$
2,900,029
    
$
4,627,622
    
$
-
    
$
4,627,622
    
$
-
    
$
7,527,651
  
                                                 
Operating Expenses:
                                                
Cost of services
    
-
      
1,380,458
      
-
      
1,380,458
      
-
      
1,380,458
  
Sales and marketing
    
503,721
      
-
      
1,951,981
      
1,951,981
      
116,000(
a)
    
2,571,702
  
Technology
    
2,088,538
      
-
      
-
      
-
      
-
      
2,088,538
  
General and administrative
    
4,774,508
      
1,107,877
      
1,297,401
      
2,405,278
      
208,333(
a)(b)
    
7,388,119
  
Employee compensation and benefits
    
-
      
2,332,304
      
(2,332,304
)
    
-
      
-
      
-
  
Business development and marketing
    
-
      
917,078
      
(917,078
)
    
-
      
-
      
-
  
                                                 
Total Operating Expenses
    
7,366,767
      
5,737,717
      
-
      
5,737,717
      
324,333
      
13,428,817
  
                                                 
Loss From Operations
    
(4,466,738
)
    
(1,110,095
)
    
-
      
(1,110,095
)
    
(324,333
)
    
(5,901,166
)
                                                 
Other (Expense) Income:
                                                
Interest expense
    
(1,123,086
)
    
-
      
-
      
-
      
-
      
(1,123,086
)
Interest expense - related parties
    
(403,372
)
    
-
      
-
      
-
      
-
      
(403,372
)
Interest income
    
12,589
      
10,864
      
-
      
10,864
      
-
      
23,453
  
Amortization of beneficial conversion feature
    
(1,984,322
)
    
-
      
-
      
-
      
-
      
(1,984,322
)
Gain on settlement of notes and other payables
    
148,600
      
-
      
-
      
-
      
-
      
148,600
  
Loss on settlement of other payables
    
(23,601
)
    
-
      
-
      
-
      
-
      
(23,601
)
Gain on forgiveness of accounts payable - supplier
    
236,248
      
-
      
-
      
-
      
-
      
236,248
  
Loss on extinguishment of convertible note payable
    
(297,272
)
    
-
      
-
      
-
      
-
      
(297,272
)
Other income
    
15,294
      
-
      
-
      
-
      
-
      
15,294
  
                                                 
Total Other (Expense) Income
    
(3,418,922
)
    
10,864
      
-
      
10,864
      
-
      
(3,408,058
)
                                                 
Loss Before Income Taxes
    
(7,885,660
)
    
(1,099,231
)
    
-
      
(1,099,231
)
    
(324,333
)
    
(9,309,224
)
                                                 
Income tax benefit
    
-
      
276,285
      
-
      
276,285
      
-
      
276,285
  
                                                 
Net Loss
    
(7,885,660
)
    
(822,946
)
    
-
      
(822,946
)
    
(324,333
)
    
(9,032,939
)
                                                 
Deemed dividend related to warrant down round adjustment
    
(1,682,000
)
    
-
      
-
      
-
      
-
      
(1,682,000
)
                                                 
Net Loss Attributable to Common Shareholders
  
$
(9,567,660
)
  
$
(822,946
)
  
$
-
    
$
(822,946
)
  
$
(324,333
)
  
$
(10,714,939
)
                                                 
Net Loss Per Share - Basic and Diluted
  
$
(1.85
)
                                  
$
(2.07
)
                                                 
Weighted Average Common Shares Outstanding - Basic and Diluted
    
5,185,204
                                      
5,185,204
  

See notes to the unaudited pro forma condensed combined financial information

Notes to Unaudited Pro Forma Condensed Combined Financial Statements

1. Basis of Pro Forma Presentation

The unaudited pro forma condensed combined financial statements have been prepared for illustrative and informational purposes only and were prepared from the respective historical information of Kubient and MediaCrossing, and reflect adjustments to the historical information in accordance with the SEC Final Rule Release No. 33-10786 and in accordance with Article 11 of Regulation S-X of the Securities Exchange Act of 1934 using the acquisition method of accounting, as defined by Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, and using the fair value concepts as defined in ASC Topic 820, Fair Value Measurement. As a result, Kubient has recorded the business combination in its consolidated financial statements and has applied the acquisition method to account for MediaCrossing’s assets acquired and liabilities assumed upon completion of the Transaction. The acquisition method requires recording the identifiable assets acquired and liabilities assumed at their fair values on the acquisition date and recording goodwill for the excess of the purchase price over the aggregate fair value of the identifiable assets acquired and liabilities assumed.

The unaudited pro forma condensed combined financial statements are not necessarily indicative of what Xxxxxxx's financial position or results of operations would have been had the Transaction occurred on the dates indicated, nor is it necessarily indicative of what the financial position or results of operations of the combined company will be in future periods. The historical financial information has been adjusted to reflect transaction related adjustments that management believes are necessary to present fairly Kubient's pro forma financial position and results of operations following the closing of the Transaction for the period indicated. Additionally, the unaudited pro forma condensed combined statement of income does not reflect any benefits that may result from potential revenue enhancements, anticipated cost savings and expense efficiencies or other synergies that may be achieved from the Transaction.

To prepare the unaudited pro forma condensed combined financial statements, Kubient adjusted MediaCrossing’s assets and liabilities to their estimated fair values based on preliminary valuation procedures performed. As of the date of the Current Report on Form 8-K/A to which these unaudited pro forma condensed combined financial statements are being filed as an exhibit, Xxxxxxx has not completed the detailed valuation procedures necessary to finalize the required estimated fair values and lives of MediaCrossing’s assets to be acquired and liabilities to be assumed and the related allocation of the purchase price. Accordingly, the final acquisition accounting adjustments may be materially different from the unaudited pro forma adjustments. Also, as of the date of the Current Report on Form 8-K/A to which these unaudited pro forma condensed combined financial statements are being filed as an exhibit, certain reclassifications have been made to align MediaCrossing’s presentation with that of Kubient. Furthermore, Kubient has not as yet completed its review of MediaCrossing’s accounting policies/presentation and as such may not have identified all adjustments and further reclassifications necessary to conform MediaCrossing’s accounting and presentation with that of Kubient. As a result of this review, the final acquisition accounting adjustments may be materially different from the unaudited pro forma adjustments.

2. Pro Forma Adjustments
 
The following pro forma adjustments give effect to the business combination.
 
Unaudited Pro Forma Condensed Combined Balance Sheet – As of September 30, 2021
 

 Note A
Derived from the unaudited condensed consolidated balance sheet of Kubient as of September 30, 2021.


Note B
Derived from the unaudited condensed balance sheet of MediaCrossing as of September 30, 2021 included elsewhere in this Current Report.
 
Pro Forma Adjustments:

 
Note C
(a)
  
To adjust the historical condensed balance sheet of MediaCrossing to remove the effect of the assets and liabilities not acquired by Xxxxxxx with respect to the Transaction. In the Transaction, the Company acquired certain assets and liabilities that were critical to continue to operate the business of MediaCrossing. In accordance with ASC 805, the Company determined that the Transaction should be accounted for as a business combination after determining that the acquired set of assets of MediaCrossing, the fair value of which was not concentrated in a single asset or group of similar assets and included (a) cash, (b) prepaid expenses and other current assets, (c) intangible assets as detailed further below and (d) an assembled workforce, met the definition of a business.
         
 
Note D
(a)
  
Represents the residual net assets acquired by Xxxxxxx with respect to the Transaction.
         
 
Note E
(a)
  
To record the purchase consideration of $500,000 in cash, payable at closing of the Transaction, and $613,000 which represents the estimated fair value of the Earnout Shares defined above. The Earnout Shares consist of up to 822,369 shares of the Company’s common stock, depending on the amount of revenue generated by the acquisition in 2022. Each share had a fair value of $2.55 as of the acquisition date. The Earnout Shares were measured using a Monte Carlo simulation. Key assumptions used in the fair value assessment consisted of revenue projections (which were used to estimate the number of Earnout Shares issuable), discount rate, volatility, and risk-free rate. The fair value measurement of the contingent consideration is based on significant inputs not observed in the market and thus represents a Level 3 measurement. Level 3 instruments are valued based on unobservable inputs that are supported by little or no market activity and reflect Xxxxxxx’s own assumptions in measuring fair value.
 
This preliminary purchase price allocation has been used to prepare the transaction accounting adjustments in the pro forma condensed combined balance sheet and statements of operations. The final purchase price allocation will be determined when the Company has completed the detailed valuations and necessary calculations as described in more detail in the explanatory notes below. The final allocation could differ materially from the preliminary allocation used in the transaction accounting adjustments. The final allocation may include (1) changes in allocations to intangible assets and goodwill; and (2) other changes to assets and liabilities.
 
The following table summarizes the allocation of the preliminary purchase price as of the acquisition date:

Purchase Consideration:
      
Cash
  
$
500,000
  
Contingent consideration
    
613,000
  
         
Total Purchase Consideration
    
1,113,000
  
         
Less:
        
Customer contracts and related customer relationships (1)
    
580,000
  
Restrictive covenant agreements (1)
    
70,000
  
Cash
    
521,475
  
Prepaid expenses and other current assets
    
106,943
  
Deferred revenue
    
(628,418
)
 
        
Fair Value of Identified Net Assets
    
650,000
  
         
Remaining Unidentified Goodwill Value
  
$
463,000
  


(1)
As part of the preliminary valuation analysis, the Company identified (i) customer contracts and related customer relationships and (ii) restrictive covenant agreements as intangible assets. The fair value of the identifiable intangible assets is determined using the “income approach”. The customer contracts and related customer relationships have an estimated useful life of five (5) years and the restrictive covenant agreements have an estimated useful life of three (3) years.

The following table summarizes the estimated fair values of MediaCrossing’s identifiable intangible assets and their estimated useful lives using a straight-line method of amortization:

Intangible Asset
  
Estimated
Fair Value
    
Estimated
Useful Life
in Years
    
For The
Nine Months Ended
September 30, 2021
    
For The
Year Ended
December 31, 2020
  
Customer Contracts and Related Customer Relationships
  
$
580,000
      
5
    
$
87,000
    
$
116,000
  
Restrictive Covenant Agreements
    
70,000
      
3
      
17,500
      
23,333
  
                                 
Total
  
$
650,000
            
$
104,500
    
$
139,333
  

  (b)
To recognize additional transaction costs of approximately $185,000 incurred subsequent to September 30, 2021. The transaction costs consisted primarily of legal, accounting and other professional fees directly related to the Transaction.

Unaudited Pro Forma Condensed Combined Statement of Operations For the Nine Months Ended September 30, 2021

 
Note A
Derived from the unaudited condensed consolidated statement of operations of Kubient for the nine months ended September 30, 2021.
     
 
Note B
Derived from the unaudited condensed statement of operations of MediaCrossing for the nine months ended September 30, 2021 included elsewhere in this Current Report.
 
Pro Forma Adjustments:
 
 
Note C
Certain reclassifications have been made to the historical presentation of MediaCrossing to conform to the financial statement presentation of the Company, as follows:
 
   
For the Nine Months Ended September 30, 2021
  
   
MediaCrossing
Historical
    
Reclassification
Adjustments
    
MediaCrossing
As Reclassified
  
                   
Operating Expenses:
                  
Cost of services
  
$
903,026
    
$
-
    
$
903,026
  
Sales and marketing
    
-
      
1,355,325
      
1,355,325
  
General and administrative
    
639,313
      
953,394
      
1,592,707
  
Employee compensation and benefits
    
1,809,360
      
(1,809,360
)
    
-
  
Business development and marketing
    
499,359
      
(499,359
)
    
-
  
                         
Total Operating Expenses
  
$
3,851,058
    
$
-
    
$
3,851,058
  
 
 
Note D
(a) To record the amortization of fair value of the acquired intangible assets of MediaCrossing.

Unaudited Pro Forma Condensed Combined Statement of Operations For the Year Ended December 31, 2020

 
Note A
Derived from the audited statement of operations of Kubient for the year ended December 31, 2020.
     
 
Note B
Derived from the audited statement of operations of MediaCrossing for the year ended December 31, 2020 included elsewhere in this current report.
 
Pro Forma Adjustments:
 
 
Note C
Certain reclassifications have been made to the historical presentation of MediaCrossing to conform to the financial statement presentation of the Company, as follows:

   
For the Year Ended December 31, 2020
  
   
MediaCrossing Historical
    
Reclassification Adjustments
    
MediaCrossing As Reclassified
  
                   
Operating Expenses:
                  
Cost of services
  
$
1,380,458
    
$
-
    
$
1,380,458
  
Sales and marketing
    
-
      
1,951,981
      
1,951,981
  
General and administrative
    
1,107,877
      
1,297,401
      
2,405,278
  
Employee compensation and benefits
    
2,332,304
      
(2,332,304
)
    
-
  
Business development and marketing
    
917,078
      
(917,078
)
    
-
  
                         
Total Operating Expenses
  
$
5,737,717
    
$
-
    
$
5,737,717
  

 
Note D
(a) To record the amortization of fair value of the acquired intangible assets of MediaCrossing.
 
(b) To recognize additional transaction costs of approximately $185,000 incurred subsequent to September 30, 2021. The transaction costs consisted primarily of legal, accounting and other professional fees directly related to the Transaction.
 

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Filed: February 4th, 2022
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