BUSINESS COMBINATION

6 Months Ended

Jun. 30, 2015

NOTE 3 – BUSINESS COMBINATION

On June 4, 2014, Unified Signal, Inc. completed an acquisition (the "merger") of TelBill Holdings, LLC. (“TelBill”) pursuant to the terms of the Membership Interest Purchase Agreement (the “Merger Agreement”) with TelBill Holdings, LLC (dba Unified Signal) dated as of June 4, 2014.

The Company acquired TelBill in exchange for the following: (i) 30,600,000 shares of Registrant's common stock, par value $0.001 ("Common Stock") to Mr. Holt, (ii) the reservation of an additional 5,400,000 shares of the Company’s Common Stock to be allocated as warrants to the employees of the Company and (iii) a one-time "true-up" to Mr. Holt for the period of eighteen months after the Closing Date in the event the Registrant raises additional capital such that Seller shall own not less than 51% of the Registrant on a fully-diluted basis (collectively, the "Purchase Price").

The merger was accounted for using the purchase method of accounting for financial reporting purposes. The acquisition method requires the identification of the acquiring entity based on the criteria of ASC 805-10-55-12, “Accounting for Business Combinations”. Based on an analysis of the relative voting rights in the combined entity after the business combination and the composition of the board of directors and the relative size (measured in assets, revenues, or earnings), the merger was accounted for as a reverse acquisition. For accounting purposes, TelBill Holdings, LLC was identified as the acquiring entity and Unified Signal, Inc. as the acquired entity. Under the purchase method of accounting the purchase price is preliminarily allocated to the acquiree’s assets and liabilities at fair value and any excess purchase price is then attributed to identifiable intangible assets and goodwill. The preliminary purchase price allocation may be modified as more information is obtained for a period of no more than one year. Accordingly, the financial statements and related footnote disclosures presented for the period prior to the Merger are those of TelBill Holdings, LLC and its subsidiaries alone. The financial statements for the six months ended June 30, 2015 include the operations and cash flows of TelBill and its subsidiaries.

In accordance with the merger, each TelBill Holdings, LLC member received, in exchange for each membership interest of TelBill Holdings, LLC common stock held, or deemed to be held by such member immediately prior to the closing of the merger on June 4, 2014, one membership interest of TelBill Holdings, LLC, resulting in TelBill Holdings, LLC members owning approximately 55.5% of the shares of the combined company. A total of 24,491,728 shares of common stock were issued in connection with this exchange.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition. The total acquisition price of $6,217,849 has been allocated as follows:

Cash	$	351
Accounts receivable		1,204
Prepaid expenses and other current assets		40,508
Restricted cash		150,000
Property and equipment		415,674
Deferred costs, related party		74,074
Customer list		200,000
Goodwill		7,782,644
Other intangible assets		35,366
Treasury stock		26,000
Accounts payable		(586,922	)
Advances from related parties		(517,115	)
Notes payable		(535,481	)
Legal reserves		(433,799	)
Derivative liability		(403,155	)
Common stock subscription		(31,500	)

Total purchase price	$	6,217,849

Goodwill and customer lists represent the excess of the purchase price over the fair value of the net tangible assets acquired. For income tax reporting purposes, the goodwill and other intangibles assets identified above are non-deductible.

Pro forma results

The following results set forth the unaudited pro forma results of the Company as if the acquisition of DataJack, Inc. had taken place on the first day of the periods presented. These combined results are not necessarily indicative of the results that may have been achieved had the companies always been combined.

	Six months ended, 2014

Total revenues	$	2,220,846
Net loss		(5,925,209	)
Basic and diluted net loss per common share	$	(0.17	)

- Definition

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).

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+ Details

Unified Signal, Inc. 10-Q/A