|SEVEN STARS CLOUD GROUP, INC. filed this Form 8-K/A on 08/14/2017|
Basis of pro forma presentation
The following unaudited pro forma combined financial information and related notes present the historical combined financial information of Seven Stars Cloud Group, Inc. and its subsidiaries (hereinafter referred to as "SSC", "we," "our," "us" and similar terms unless the context indicates otherwise), Wecast Services Group Limited("SVG") and Wide Angle Group Limited ("WAG") after giving effect to SSC's acquisitions of SVG and WAG that were completed on January 30, 2017 and January 31, 2017, respectively (the "Acquisition Date"). The unaudited pro forma combined financial information gives effect to our acquisitions of SVG and WAG based on the assumptions, reclassifications and adjustments described in the accompanying notes to the unaudited pro forma combined financial information.
The unaudited pro forma combined statements of income for the year ended December 31, 2016 are presented as if the acquisition had occurred on January 1, 2016. The historical financial information is adjusted in the unaudited pro forma combined financial information to give effect to pro forma events that are (1) directly attributable to the proposed acquisition, (2) factually supportable, and (3) with respect to the combined statements of income, expected to have a continuing impact on the combined results.
The unaudited pro forma adjustments are not necessarily indicative of or intended to represent the results that would have been achieved had the transaction been consummated as of the dates indicated or that may be achieved in the future. The actual results reported by the combined company in periods following the acquisition may differ significantly from those reflected in these unaudited pro forma combined financial information for a number of reasons, including cost saving synergies from operating efficiencies and the effect of the incremental costs incurred to integrate the three companies.
The unaudited pro forma combined financial information should be read in conjunction with our historical consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the year ended December 31, 2016, our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 and the historical financial statements of SVG and WAG for the year ended December 31, 2016 and 2015 contained in this Form 8-K/A.