UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

Form 8-K

 

 

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (date of earliest event reported):

May 19, 2015

 

 

 

Jamba, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-32552   20-2122262

(State or other jurisdiction

of incorporation)

 

(Commission

File No.)

 

(I.R.S. Employer

Identification No.)

 

6475 Christie Avenue, Suite 150, Emeryville, California 94608

(Address of principal executive offices)

 

Registrant's telephone number, including area code:

(510) 596-0100

 

 

 

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:

 

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

 

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

 

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

 

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

 

 
 

  

Item 2.01. Completion of Acquisition or Disposition of Assets.

 

On May 19, 2015, Jamba Juice Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”) completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area, California as part of the Company’s refranchising initiative. In connection with the refranchising transaction, Jamba Juice Company transferred to Blended Star NorCal, Inc. (“Blended Star”) all machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with the stores for a purchase price of $2,500,000 plus payment for all marketable inventory and cash on hand at each of the stores. Blended Star agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction.

 

The accompanying unaudited pro forma condensed consolidated financial statements give effect to the disposition of the assets in the above referenced refranchising transaction.

 

Item 9.01. Financial Statements and Exhibits

 

(a)This Exhibit 99.1 includes updates to the pro forma financial statements filed as Exhibit 99.1 to the Form 8-K filed on May 4, 2015, to include updates to assets held for sale and also to reflect the effect of increased royalties and to correct a typographical error appearing in the unaudited pro forma condensed consolidated financial statements filed as a result of the completion of recent refranchising transactions.

 

(b)Pro Forma Financial Information

 

The unaudited pro forma condensed consolidated financial statements of the Company, which reflect the disposition described in Item 2.01 and all other prior disposals under the Company’s refranchising initiative, are furnished as Exhibit 99.1 to this Current Report on Form 8-K and are incorporated by reference herein.

 

(d)Exhibits

 

99.1Unaudited pro forma condensed consolidated financial statements of the Company.

 

 
 

  

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.

 

  JAMBA, INC.
   
Date: May 26, 2015 By:

/s/ Karen L. Luey

   

Karen L. Luey

Chief Financial Officer, Chief Administrative

Officer, Executive Vice President and Secretary

 

 



 

Exhibit 99.1

 

JAMBA INC. 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS 

(Dollars in thousands, except share and per share amounts)

 

       PRO FORMA ADJUSTMENTS     
   Reported
December 30,
   April
Disposal 
   April
Disposal 
    May    Other   Total   Pro Forma
December 30,
 
   2014   1   2   Disposal   Disposals   Adjustments   2014 
ASSETS                                   
Current assets:                                   
Cash and cash equivalents  $17,750   $1,499   $2,760   $2,300   $2,347    $8,906(a)   $26,656 
Receivables, net of allowances  of $280 and $291   16,977    -    -    -    -    -    16,977 
                                    
Inventories   2,300    (83)   (48)   (56)   (25)   (212)(b)   2,088 
Prepaid and refundable income taxes   474    -    -    -    -    -    474 
                                    
Prepaid rent   504    -    -    -    -    -    504 
                                    
Assets held for sale   11,221    (2,427)   -    (1,311)   (191)   (3,929)(c)   7,292 
Prepaid expenses and other current assets   8,105    -    (95)   -    -    (95)(b)   8,010 
                                    
Total current assets   57,331    (1,011)   2,617    933    2,131    4,670    62,001 
                                    
Property, fixtures and equipment, net   29,575    -    (829)   -    (208)   (1,037)(c)   28,538 
                                    
Goodwill   982    (7)   (11)   (9)   -    (27)(c)   955 
Trademarks and other intangible assets, net   2,360    -    -    -    -    -    2,360 
                                    
Other long-term assets   2,241    -    -    -    -    -    2,241 
                                    
Total assets  $92,489   $(1,018)  $1,777   $924   $1,923   $3,606   $96,095 
                                    
LIABILITIES AND STOCKHOLDERS' EQUITY                                   
Current liabilities:                                   
Accounts payable  $3,926   $-   $-   $-   $-   $-   $3,926 
Accrued compensation and benefits   6,325    -    -    -    -    -    6,325 
Workers' compensation and health insurance reserves   1,311    -    -    -    -    -    1,311 
                                    
Accrued jambacard liability   38,184    -    -    -    -    -    38,184 
                                    
Other current liabilities   16,454    -    -    -    -    -    16,454 
                                    
Total current liabilities   66,200    -    -    -    -    -    66,200 
Deferred revenue and other long-term liabilities   9,544    -    -    -    -    -    9,544 
                                    
Total liabilities   75,744    -    -    -    -    -    75,744 
                                    
Stockholders' equity:                                   
Common stock, $.001 par value, 30,000,000 shares authorized; 16,567,803 and  17,154,655shares issued and outstanding, respectively  $17   $-   $-   $-   $-   $-   $17 
                                    
Additional paid-in-capital   396,629    -    -    -    -    -    396,629 
                                    
Treasury Shares at cost   (11,991)   -    -    -    -    -    (11,991)
                                    
Accumulated deficit   (368,041)   (1,018)   1,908    924    1,923    3,737(d)    (364,304)
Total equity attributable to Jamba, Inc.   16,614    (1,018)   1,908    924    1,923    3,737    20,351 
                                    
Noncontrolling interest   131    -    (131)   -    -    (131)(e)   - 
                                    
Total stockholders' equity   16,745    (1,018)   1,777    924    1,923    3,606    20,351 
Total liabilities and stockholders' equity  $92,489   $(1,018)  $1,777   $924   $1,923   $3,606   $96,095 

  

 
 

  

JAMBA INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

DECEMBER 30, 2014

 

(Dollars in thousands)

  

       PRO FORMA ADJUSTMENTS     
   Reported
Year ended
December 30,
2014
   April
Disposal
1
   April
Disposal
2
   May
Disposal 
   Other
Disposals  
   Total
Adjustments
   Pro Forma 
Year ended
December 30,
2014
 
Revenue:                                   
Company Stores  $198,737   $(9,563)  $(6,551)  $(7,219)  $(3,404)  $(26,737)A  $172,000 
Franchise and other revenue   19,311    526    360    397    187    1,471B   20,782 
Total revenue   218,048    (9,037)   (6,191)   (6,822)   (3,217)   (25,266)   192,782 
Costs and operating expenses (income):                                   
Cost of sales   52,236    (2,418)   (1,634)   (1,851)   (870)   (6,773)C   45,463 
Labor   61,749    (3,164)   (1,808)   (2,198)   (959)   (8,129)C   53,620 
Occupancy   27,630    (1,192)   (813)   (843)   (305)   (3,153)C   24,477 
Store operating   33,089    (1,473)   (846)   (1,106)   (465)   (3,890)C   29,199 
Depreciation and amortization   10,084    (501)   (149)   (323)   (72)   (1,045)C   9,039 
General and administrative   37,278    -    -    -    -    -    37,278 
Other operating, net   (718)   -    -    -    -    -    (718)
Total costs and operating expenses   221,348    (8,748)   (5,250)   (6,321)   (2,671)   (22,990)   198,358 
 Loss from operations   (3,300)   (289)   (941)   (501)   (546)   (2,276)   (5,576)
Other income (expense):                                   
Interest income   74    -    -    -    -    -    74 
Interest expense   (195)   -    -    -    -    -    (195)
Total other expense, net   (121)   -    -    -    -    -    (121)
Loss before income taxes   (3,421)   (289)   (941)   (501)   (546)   (2,276)   (5,697)
Income tax expense   (168)   -    -    -    -    -    (168)
Net loss   (3,589)   (289)   (941)   (501)   (546)   (2,276)   (5,865)
Less: Net income attributable to noncontrolling interest   43    -    (43)   -    -    (43)D   - 
Net loss attributable to common stockholders  $(3,632)  $(289)  $(898)  $(501)  $(546)  $(2,233)  $(5,865)

 

 
 

  

Jamba Inc.

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

December 30, 2014

 

1.Description of Refranchising Transactions

 

On April 28, 2015, Jamba Juice Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”) completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area as part of the Company’s refranchising initiative in two separate transactions.

 

In connection with the first refranchising transaction, Jamba Juice Company transferred to M5 Partners, Inc. all machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with stores for a purchase price of $1,850,000 plus payment for all marketable inventory and cash on hand at each of the stores. M5 Partners agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“April Disposal 1”).

 

In another refranchising transaction completed on April 28, 2015, Jamba Juice Company sold its 88% membership interest in Jamba Juice Southern California LLC (“JJSC”) to Strategic Marketing Sciences, Inc., its minority partner in the joint venture. JJSC was formed to operate a group of stores in Southern California. The purchase price for the membership interest was $3,000,000 plus payment for all marketable inventory and cash on hand at each of the stores. Strategic Marketing Sciences agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“April Disposal 2”).

 

On May 19, 2015, the Company completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area. In connection with the refranchising transaction, the Company transferred to Blended Star NorCal, Inc. all machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with stores for a purchase price of $2,500,000 plus payment for all marketable inventory and cash on hand at each of the stores. Blended Star NorCal, Inc. agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“May Disposal”).

 

In addition to the transactions mentioned above, the Company entered into multiple individually insignificant agreements and refranchised a small group of stores located in Southern California and in the San Francisco Bay Area during the 13 week period ended March 31, 2015. In connection with the refranchising transactions, the Company received aggregate proceeds of $2,352,000 and the purchasers entered into the Company’s standard franchise agreements with ten-year terms in connection with entering into the transactions (“Other Disposals”).

 

2.Basis of Presentation

 

The effect of the refranchising transactions on a cumulative basis is reflected in the unaudited pro forma condensed consolidated financial statements.

 

The unaudited pro forma condensed consolidated financial statements were prepared in accordance with U.S. GAAP and pursuant to U.S. Securities and Exchange Commission Regulation S-X Article 11, and present the pro forma financial position and results of operations of the Company based upon the historical information after giving effect to the disposal and adjustments described in the Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements. The unaudited pro forma condensed consolidated balance sheet is presented as if the refranchising had occurred on December 30, 2014, and the unaudited pro forma condensed consolidated statement of operations for the year ended December 30, 2014 is presented as if the disposal had occurred on January 1, 2014.

 

The unaudited pro forma condensed consolidated financial information is presented for informational purposes only and is not indicative of the Company's financial results or financial position as if the transactions reflected herein had occurred, or been in effect during the Pro forma periods. This unaudited pro forma condensed consolidated financial information should not be viewed as indicative of the Company's expected financial results for future periods.

 

 
 

  

3.Adjustments to Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

Adjustments in the columns titled "Pro Forma Adjustments" represent the following:

 

(a) - Represents the pro forma adjustments for the proceeds received offset by store-related cash balances at the end of the year (in thousands).

 

   Amount 
Proceeds received  $9,776 
Cost to sell   (828)
Store-related assets   (42)
   $8,906 

 

(b) - Represents the pro forma adjustments for the assets that will no longer be on Jamba's balance sheet as a result of the disposal of the stores to the franchise partners.

 

(c) - Represents the pro forma adjustments for the estimated net book value of the assets purchased by the franchise partners from Jamba.

 

(d) - Represents the pro forma adjustments for the impact of the refranchising transaction on the Company’s accumulated deficit (in thousands).

 

   Amount 
Proceeds received  $9,776 
Less: Cost to sell   (828)
Assets held for sale   (3,929)
Property, fixtures & equipment   (1,037)
Goodwill and current assets   (376)
Noncontrolling interest   131 
   $3,737 

 

(e) - Represents the pro forma adjustment to eliminate the 12% noncontrolling interest in Jamba Juice Southern California ("JJSC"), since the purchaser is acquiring the remaining interest on the JJSC stores.

 

4.Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

A - Reflects the pro forma adjustments for the full year of revenue from the stores sold to franchise partners.

 

B - Reflects the pro forma adjustments for estimated royalty income that would have been earned had the stores been owned by franchisees for the 2014 fiscal year.

 

C - Reflects the pro forma adjustments for the expenses related to the stores sold to franchise partners.

 

D - Reflects the pro forma adjustments to eliminate the 12% noncontrolling interest in JJSC, since the owner of the noncontrolling interest is acquiring the remaining interest on the JJSC stores.

 

 
 

 

JAMBA INC. 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS 

(Dollars in thousands, except share and per share amounts)

  

       PRO FORMA ADJUSTMENTS     
   Reported
March 31,
   April
Disposal
   April
Disposal
   May   Other     Total   Pro Forma
March 31,
 
   2015   1   2   Disposal   Disposals     Adjustments   2015 
ASSETS                                   
Current assets:                                   
                                    
Cash and cash equivalents  $8,116   $1,499   $2,760   $2,300   $-   $6,559(a)  $14,675 
Receivables, net of allowances  of $272 and $280   16,226    -    -    -    -    -    16,226 
                                    
Inventories   2,267    (90)   (44)   (63)   -    (197)(b)   2,070 
                                    
Prepaid and refundable income taxes   329    -    -    -    -    -    329 
                                    
Prepaid rent   2,931    -    -    -    -    -    2,931 
                                    
Assets held for sale   22,875    (2,427)   (804)   (1,311)   -    (4,542)(c)   18,333 
Prepaid expenses and other current assets   7,554    -    (95)   -    -    (95)(b)   7,459 
                                    
Total current assets   60,298    (1,018)   1,817    927    -    1,726    62,024 
                                    
Property, fixtures and equipment, net   16,002    -    -    -    -    -    16,002 
                                    
Goodwill   897    (7)   (11)   (9)   -    (27)(c)   870 
Trademarks and other intangible assets, net   1,295    -    -    -    -    -    1,295 
                                    
Other long-term assets   1,969    -    -    -    -    -    1,969 
                                    
Total assets  $80,461   $(1,025)  $1,806   $918   $-   $1,699   $82,160 
                                    
LIABILITIES AND STOCKHOLDERS' EQUITY                                   
                                    
Current liabilities:                                   
                                    
Accounts payable  $2,310   $-   $-   $-   $-   $-   $2,310 
                                    
Accrued compensation and benefits   4,813    -    -    -    -    -    4,813 
Workers' compensation and health insurance reserves   1,680    -    -    -    -    -    1,680 
                                    
Accrued jambacard liability   32,368    -    -    -    -    -    32,368 
                                    
Other current liabilities   21,005    -    -    -    -    -    21,005 
                                    
Total current liabilities   62,176    -    -    -    -    -    62,176 
Deferred revenue and other long-term liabilities   8,643    -    -    -    -    -    8,643 
Total liabilities   70,819    -    -    -    -    -    70,819 
                                    
Stockholders' equity:                                   
Common stock, $0.001 par value, 30,000,000 shares authorized; 17,523,014 and 16,166,869 shares issued and outstanding at March 31, 2015, respectively and 16,567,803 shares issued and outstanding  at December 30, 2014  $18   $-   $-   $-   $-   $-   $18 
                                    
Additional paid-in-capital   397,928    -    -    -    -    -    397,928 
                                    
Treasury Shares at cost   (18,674)   -    -    -    -    -    (18,674)
                                    
Accumulated deficit   (369,792)   (1,025)   1,968    918    -    1,861(d)   (367,931)
Total equity attributable to Jamba, Inc.   9,480    (1,025)   1,968    918    -    1,861    11,341 
                                    
Noncontrolling interest   162    -    (162)   -    -    (162)(e)   - 
                                    
Total stockholders' equity   9,642    (1,025)   1,806    918    -    1,699    11,341 
Total liabilities and stockholders' equity  $80,461   $(1,025)  $1,806   $918   $-   $1,699   $82,160 

  

 
 

  

JAMBA INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

MARCH 31, 2015

 

(Dollars in thousands)

  

       PRO FORMA ADJUSTMENTS     
   Reported
13 week
period ended
March 31,
2015
   April
Disposal
1
   April
Disposal
2
   May
Disposal 
   Other
Disposals
   Total
Adjustments
   Pro Forma 
13 week
period ended
March 31,
2015
 
Revenue:                                   
                                    
Company Stores  $47,728   $(2,350)  $(1,644)  $(1,737)  $(667)  $(6,398)A  $41,330 
                                    
Franchise and other revenue   4,776    129    90    96    37    352B   5,128 
                                    
Total revenue   52,504    (2,221)   (1,554)   (1,641)   (630)   (6,046)   46,458 
Costs and operating expenses (income):                                   
                                    
Cost of sales   12,407    (585)   (428)   (428)   (177)   (1,618)C   10,789 
                                    
Labor   16,088    (822)   (477)   (557)   (233)   (2,089)C   13,999 
                                    
Occupancy   6,835    (301)   (207)   (222)   (49)   (779)C   6,056 
                                    
Store operating   8,034    (376)   (224)   (244)   (54)   (898)C   7,136 
                                    
Depreciation and amortization   1,873    (51)   (32)   (68)   (76)   (227)C   1,646 
                                    
General and administrative   8,963    -    -    -    -    -    8,963 
                                    
Other operating, net   (28)   -    -    -    1,924    1,924D   1,896 
                                    
Total costs and operating expenses   54,172    (2,135)   (1,368)   (1,519)   1,335    (3,687)   50,485 
                                    
Loss from operations   (1,668)   (86)   (186)   (122)   (1,965)   (2,359)   (4,027)
                                    
Other income (expense):                                   
                                    
Interest income   15    -    -    -    -    -    15 
                                    
Interest expense   (41)   -    -    -    -    -    (41)
                                    
Total other expense, net   (26)   -    -    -    -    -    (26)
                                    
Loss before income taxes   (1,694)   (86)   (186)   (122)   (1,965)   (2,359)   (4,053)
                                    
Income tax expense   (26)   -    -    -    -    -    (26)
                                    
Net loss   (1,720)   (86)   (186)   (122)   (1,965)   (2,359)   (4.079)
Less: Net income attributable to noncontrolling interest   31         (31)             (31)E   - 
Net loss attributable to common stockholders  $(1,751)  $(86)  $(155)  $(122)  $(1,965)  $(2,328)  $(4,079)

 

 
 

  

Jamba Inc.

Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements

March 31, 2015

 

1.Description of Refranchising Transactions

 

On April 28, 2015, Jamba Juice Company, a California corporation and wholly-owned subsidiary of Jamba, Inc. (the “Company”) completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area as part of the Company’s refranchising initiative in two separate transactions.

 

In connection with the first refranchising transaction, Jamba Juice Company transferred to M5 Partners, Inc. all machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with stores for a purchase price of $1,850,000 plus payment for all marketable inventory and cash on hand at each of the stores. M5 Partners agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“April Disposal 1”).

 

In another refranchising transaction completed on April 28, 2015, Jamba Juice Company sold its 88% membership interest in Jamba Juice Southern California LLC (“JJSC”) to Strategic Marketing Sciences, Inc., its minority partner in the joint venture. JJSC was formed to operate a group of stores in Southern California. The purchase price for the membership interest was $3,000,000 plus payment for all marketable inventory and cash on hand at each of the stores. Strategic Marketing Sciences agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“April Disposal 2”).

 

On May 19, 2015, the Company completed the refranchising of a group of Company-owned stores located in the San Francisco Bay Area as part of its refranchising. In connection with the refranchising transaction, the Company transferred to Blended Star NorCal, Inc. all machinery, equipment, computer hardware (including point of sale equipment), furniture, fixtures, tools, signs, vehicles, other tangible personal property and all goodwill associated with stores for a purchase price of $2,500,000 plus payment for all marketable inventory and cash on hand at each of the stores. Blended Star NorCal, Inc. agreed to enter into the Company’s standard franchise agreement with a ten-year term in connection with entering into the transaction (“May Disposal”).

 

In addition to the transactions mentioned above, the Company entered into multiple individually insignificant agreements and refranchised a small group of stores located in Southern California and in the San Francisco Bay Area during the 13 week period ended March 31, 2015. In connection with the refranchising transactions, the Company received aggregate proceeds of $2,352,000 and the purchasers entered into the Company’s standard franchise agreements with a ten-year terms in connection with entering into the transactions (“Other Disposals”).

 

2.Basis of Presentation

 

The unaudited pro forma condensed consolidated financial statements were prepared in accordance with U.S. GAAP and pursuant to U.S. Securities and Exchange Commission Regulation S-X Article 11, and present the pro forma financial position and results of operations of the Company based upon the historical information after giving effect to the disposal and adjustments described in the Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements. The unaudited pro forma condensed consolidated balance sheet is presented as if the refranchising had occurred on March 31, 2015, and the unaudited pro forma condensed consolidated statement of operations for the 13 week period ended March 31, 2015 is presented as if the disposal had occurred on December 31, 2014. As a result, pro forma adjustments for refranchising of the small group of stores completed during the 13 week period ended March 31, 2015 were reflected in the unaudited pro forma condensed consolidated statement of operations only.

 

The unaudited pro forma condensed consolidated financial information is presented for informational purposes only and is not indicative of the Company's financial results or financial position as if the transactions reflected herein had occurred, or been in effect during the Pro forma periods. This unaudited pro forma condensed consolidated financial information should not be viewed as indicative of the Company's expected financial results for future periods.

 

 
 

  

3.Adjustments to Unaudited Pro Forma Condensed Consolidated Balance Sheet

 

Adjustments in the columns titled "Pro Forma Adjustments" represent the following:

 

(a) - Represents the pro forma adjustments for the proceeds received offset by store-related cash balances at the end of the 13 week period ended March 31, 2015 (in thousands).

 

   Amount 
Proceeds received  $7,424 
Cost to sell   (828)
Store-related assets   (37)
   $6,559 

 

(b) - Represents the pro forma adjustments for the assets that will no longer be on Jamba's balance sheet as a result of the disposal of the stores to the franchise partners.

 

(c) - Represents the pro forma adjustments for the estimated net book value of the assets purchased by the franchise partners from Jamba.

 

(d) - Represents the pro forma adjustments for the impact of the refranchising transaction on the Company’s accumulated deficit (in thousands).

  

   Amount 
Proceeds received  $7,424 
Less: Cost to sell   (828)
Assets held for sale   (4,542)
Goodwill and current assets   (355)
Noncontrolling interest   162 
   $1,861 

 

(e) - Represents the pro forma adjustments to eliminate the 12% noncontrolling interest in Jamba Juice Southern California ("JJSC"), since the purchaser is acquiring the remaining interest on the JJSC stores.

 

4.Adjustments to Unaudited Pro Forma Condensed Consolidated Statement of Operations

 

A - Reflects the pro forma adjustments for the revenue during the 13 week period ended March 31, 2015 from the stores sold to franchise partners.

 

B - Reflects the pro forma adjustments for estimated royalty income that would have been earned had the stores been owned by franchisees for the 13 week period ended March 31, 2015.

 

C - Reflects the pro forma adjustments for the expenses related to the stores sold to franchise partners.

 

D - Reflects the pro forma adjustments to remove the effect of the gain on refranchising the small group of stores during the 13 week period ended March 31, 2015.

 

E - Reflects the pro forma adjustments to eliminate the 12% noncontrolling interest in JJSC, since the owner of the noncontrolling interest is acquiring the remaining interest on the JJSC stores.

 

 

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