Exhibit 99.3

UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION

Kaleyra, Inc. (f/k/a GigCapital, Inc.) (the “Company”) is providing the following unaudited pro forma combined financial information to aid you in your analysis of the financial aspects of the business combination between GigCapital, Inc. and Kaleyra, S.p.A., which was consummated on November 25, 2019. The historical financial information of Kaleyra, S.p.A. was derived from the unaudited condensed consolidated financial statements of Kaleyra S.p.A. as of and for the nine months ended September 30, 2019 and the audited consolidated financial statements of Kaleyra S.p.A. as of and for the year ended December 31, 2018. The historical financial information of GigCapital, Inc. was derived from the audited financial statements of GigCapital, Inc. as of and for the year ended September 30, 2019. This information should be read together with Kaleyra S.p.A.’s and GigCapital Inc.’s financial statements and related notes.

Description of the Transaction

GigCapital, Inc. entered into a Stock Purchase Agreement on February 22, 2019 (the “Purchase Agreement”), by and among GigCapital, Inc., Kaleyra S.p.A., Shareholder Representative Services LLC, (the “Seller Representative”) as representative for the holders (the “Kaleyra Stockholders”) of the ordinary shares of Kaleyra S.p.A. immediately prior to the closing of the Transaction (as defined below), and each of the following Kaleyra Stockholders of all of the stock of Kaleyra S.p.A. (collectively, such Kaleyra Stockholders, the “Sellers”): Esse Effe S.p.A, a company with shares formed under the laws of Italy (“Esse Effe”), Maya Investments Limited, a company formed under the laws of England (“Maya”), Hong Kong Permanent Shine Limited, a company formed under the laws of Hong Kong, Ipai Terry Hsiao, Giacomo Dall’Aglio, Alex Milani, Luca Giardina Papa, Filippo Monastra, Matteo Castelucci, Kirk Tsai, Justyna Miziolek, Erjon Metko, Claudio Ippolito, Andrea Riccardi, and Francesco Vizzone.

Following the approval at the special meeting of the stockholders of GigCapital, Inc. held on November 22, 2019, and pursuant to and in accordance with the terms of the Purchase Agreement, the Sellers on November 25, 2019 sold, transferred, assigned, conveyed and delivered to the Company all of the Kaleryra Stock (the “Transaction”). As partial consideration for the Transaction, on November 25, 2019 the Company issued unsecured convertible promissory notes to each of Esse Effe and Maya in the amount of $6,000,000 and $1,500,000, respectively, and also issued other unsecured promissory notes to each of Esse Effe and Maya in the identical respective amounts. Also, as additional partial consideration for the Transaction, the Company issued on November 25, 2019, in the aggregate 10,687,106 shares of common stock to the Sellers.

Accounting for the Transactions

The business combination is accounted for as a reverse recapitalization in accordance with U.S. GAAP. Under this method of accounting, GigCapital, Inc. will be treated as the “acquired” company for financial reporting purposes. This determination was primarily based on Kaleyra S.p.A.’s operations comprising substantially all of the ongoing operations of the post-combination company, Kaleyra S.p.A.’s senior management comprising substantially all of the senior management of the post-combination company and the existence of a majority voting interest in the post-combination company. Accordingly, for accounting purposes, the business combination is treated as the equivalent of Kaleyra S.p.A. issuing stock for the net assets of GigCapital, Inc., accompanied by a recapitalization. The net assets of GigCapital, Inc. is stated at historical cost, with no goodwill or other intangible assets recorded. Operations prior to the business combination are the historical operations of Kaleyra S.p.A.

Basis of Pro Forma Presentation

The historical financial information has been adjusted to give pro forma effect to events that are related and/or directly attributable to the business combination, are factually supportable and, with respect to the pro forma statements of operations, are expected to have a continuing impact on the results of the post-combination company. The unaudited pro forma condensed combined financial information is for illustrative purposes only. The financial results may have been different had the companies always been combined. You should not rely on the unaudited pro forma condensed combined financial information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the post-combination company will experience. Kaleyra S.p.A and GigCapital, Inc. have not had any historical relationship prior to the business combination. Accordingly, no pro forma adjustments were required to eliminate activities between the companies.


PROFORMA CONDENSED COMBINED BALANCE SHEET AS OF SEPTEMBER 30, 2019

(in thousands except share and per share amounts)

(unaudited)

 

                 Pro Forma  
     (A)
GigCapital, Inc.
    (B)
Kaleyra S.p.A
    Pro Forma
Adjustments
    Pro Forma Balance
Sheet
 

ASSETS

          

Current assets

          

Cash and cash equivalents

   $ 470     $ 10,702     $ 79,165       (1)    
         120       (1)    
         (480     (1)    
         (38,524     (2)    
         —         (4)    
         527       (5)    
         (1,639     (6)    
         (11,577     (7)    
         (17,045     (8)    
         (9,859     (9)       11,860  

Restricted Cash

         11,577       (7)    
         9,859       (9)       21,436  

Short-term marketable securities

       4,971           4,971  

Trade receivables

       41,054           41,054  

Prepaid expenses and accrued income

     18       897           915  

Other current assets

       2,931           2,931  
  

 

 

   

 

 

   

 

 

     

 

 

 

Total current assets

     488       60,555       22,124         83,167  

Property and equipment, net

       2,926           2,926  

Intangible assets, net

       9,847           9,847  

Goodwill

       17,087           17,087  

Deferred tax assets

       517       1,003       (4)       1,520  

Other long-term assets

       1,259           1,259  

Cash and marketable securities held in Trust Account

     78,758         480       (1)    
         (208     (1)    
         135       (1)    
         (79,165     (1)       —    

Interest receivable on cash held in trust account

     120         (120     (1)       —    
  

 

 

   

 

 

   

 

 

     

 

 

 

Total Assets

   $ 79,366     $ 92,191     $ (55,751 )      $ 115,806  
  

 

 

   

 

 

   

 

 

     

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

          

Current liabilities:

          

Accounts payable

   $ 1,392     $ 52,013     $ 3,650       (4)     $ 57,055  

Preference shares

       658           658  

Preference shares due to related parties

       1,780           1,780  

Current portion of bank and other borrowings

       10,638           10,638  

Deferred revenue

       1,560           1,560  

Payable to employees and related parties

     123       859           982  

Other current liabilities

     87       1,110     $ 11,577       (7)    
       $ 456       (7)    
       $ 467       (8)    
       $ 9,859       (9)       23,556  

Accrued liabilities

     1,140             1,140  

Notes payable

     3,051         15,000       (2)    
         527       (5)       18,578  
  

 

 

   

 

 

   

 

 

     

 

 

 

Total current liabilities

     5,793       68,618       41,536         115,947  

Bank and other borrowings

       16,135       —           16,135  

Long-term payable to employees

       1,258           1,258  

Deferred tax liabilities

       1,739           1,739  

Other long-term liabilities

       397           397  
  

 

 

   

 

 

   

 

 

     

 

 

 

Total liabilities

     5,793       88,147       41,536         135,476  

Commitments and contingencies

          

GigCapital

          

Common stock subject to possible redemption, 7,182,576 shares as of June 30, 2019 at a redemption value of $10.00 per share

          
     68,574       —         —        
         (68,574     (2)       —    

Stockholders’ equity

          

Common stock

     1       121       (121     (2)    
         1       (2)       2  

Preferred stock

     —               —    

Additional paid-in capital

     6,750       10,066       30,171       (2)    
         (15,000     (2)    
         (1     (2)    
         (1,752     (3)    
         (1,639     (6)    
         (11,577     (7)    
         (456 )      (7)    
         (17,512 )      (8)    
         (9,859 )      (9)    
         10,809       (10)       —    

Accumulated other comprehensive income

     —         1,018           1,018  

Accumulated deficit

     (1,752     (7,161     1,752       (3)    
         (2,647 )      (4)    
         (73 )      (1)    
         (10,809     (10)       (20,690
  

 

 

   

 

 

   

 

 

     

 

 

 

Total stockholders’ equity

     4,999       4,044       (28,713 )        (19,670 ) 
  

 

 

   

 

 

   

 

 

     

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

   $ 79,366     $ 92,191     $ (55,751 )      $ 115,806  
  

 

 

   

 

 

   

 

 

     

 

 

 

Pro Forma Adjustments to the Unaudited Condensed Combined Balance Sheet

 

(A)

Derived from the audited balance sheet of GigCapital, Inc. as of September 30, 2019.

(B)

Derived from the unaudited condensed consolidated balance sheet of Kaleyra S.p.A. as of September 30, 2019.

(1)

To reflect the receipt of additional extension payments of $480 thousand, taxes of $208 thousand and interest of $133 thousand followed by the release of $79,372 thousand of investments and $120 thousand of interest receivable held in the Trust Account as all amounts held in the Trust Account were released upon the consummation of the Business Combination to either be used to satisfy the exercise of Redemption Rights or for use by the post-combination company.

(2)

To reflect the redemption of 3,668 thoushand shares into cash by the stockholders of GigCapital, Inc. with $38,524 thousand paid out in cash on redemption. To reflect the cash payout for redemption, surrender of the Kaleyra S.p.A shares, the transfer of the remaining 3,514 thousand shares of Common Stock to permanent equity ($69,054 thousand), the issuance of 10,687 thousand shares of Common Stock ($.0001 par value), issuance of $7,500 thousand cash consideration notes and issuance of a $7,500 thousand Note Payable to the Sellers.

(3)

To reflect the elimination of the historical accumulated deficit of GigCapital Inc, the accounting acquiree.

(4)

To reflect the accrual of additional $3,650 thousand for a total estimated $14,091 thousand of legal, financial advisory and other professional fees related to the Business Combination, of which an estimated $5,319 thousand will be paid to Cowen and Chardan Capital Markets, LLC, as advisors to GigCapital, Inc., and an estimated $1,509 thousand will be paid in legal and accounting fees for GigCapital, Inc., in connection with the Business Combination. In addition, an estimated $2,150 thousand will be paid to Northland and GCA Altium S.r.l., as advisors to Kaleyra S.p.A, and an estimated $3,098 thousand will be paid in legal and accounting fees for Kaleyra S.p.A, in connection with the Business Combination.

(5)

To reflect the receipt of the remaining October capital call and the November capital call and the subsequent issuance of GigCapital, Inc. extension and working capital notes in October and November 2019.

(6)

To reflect the conversion of rights held by insiders or covered by forward share purchase agreements for 1,322 thousand shares of Common Stock and to record the tender and acceptance for cancellation of the remaining 1,656 thousand rights at a price of $0.99 per right in the Rights Tender Offer.

(7)

To reflect the establishment of an escrow account ($11,577 thousand) and the contingent liablilty for the conversion of rights and shares purchased in the aggregate of 1,083 thousand Shares, assuming a holding period of six months from the close of the Business Combination, for $10.68 per share and 43 thousand Right Shares for $10.50 per share assuming holding period of 60 days from the date of the Business Combination as defined in the Forward Share Purchase agreement with Yakira.

(8)

To reflect the cash payment and contingent liability for the purchase of 1,623 thousand Shares, assumed held for a period of 12 months from the date of the Business Combination, at approximately $10.79 per share, based on the OTC Equity Prepaid Forward Transaction with Nomura.

(9)

To reflect the establishment of an escrow account ($9,859) and the contingent liablilty for the purchase of 923 thousand Shares at $10.68 per share assuming a holding period of six months from the close of the Business Combination as defined in Forward Share Purchase agreement with Glazer Capital Management.

(10)

To reclass negative additional paid-in capital to accumulated deficit.


PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2019

(in thousands except share and per share amounts)

(unaudited)

 

     (A)                 (B)     (C)              
     GigCapital,
Inc.
    Kaleyra, S.p.A.     Pro Forma  
     Year Ended
September 30,
2019
    Three months
ended December 31,
2018
    Nine months
ended September 30,
2019
    Twelve months
ended September 30,
2019
    Pro Forma
Adjustments
          Pro Forma
Statement of
Operations
(A+B+C)
 

Revenue

     $ 27,815     $ 93,925     $ 121,740         $ 121,740  

Cost of revenue

       21,762       75,645       97,407           97,407  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Gross profit

     —         6,053       18,280       24,333       —           24,333  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Operating expenses:

                 —    

Research and development

       1,602       3,869       5,471           5,471  

Sales and marketing

       3,440       4,392       7,832           7,832  

General and administrative expenses

     2,981       5,927       10,667       16,594       (4,778     (2     14,797  

(Income) on equity investments

           —             —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Total operating expenses

     2,981       10,969       18,928       29,897       (4,778 )        28,100  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) from operations

     (2,981 )      (4,916 )      (648 )      (5,564 )      4,778         (3,767 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Other income, net

       (77     (106     (183         (183

Interest expense, net

       (97     206       109       314       (3     423  

Foreign currency loss

       361       402       763           763  

Interest (income) on marketable securities held in Trust Account

     (2,648           2,648       (1     —    
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Income (loss) before income taxes

     (333 )      (5,103 )      (1,150 )      (6,253 )      1,816         (4,770 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Income tax expense

     753       583       719       1,302       (753     (1     1,302  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net (loss) income

   $ (1,086 )    $ (5,686 )    $ (1,869 )    $ (7,555 )    $ 2,569       $ (6,072 ) 
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Net income loss per share attributable to common shareholders, basic and diluted

   $ (0.54       $ (74.28       $ (0.26
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Weighted-average shares used in computing net loss per share attributable to common shareholders basic and diluted

     4,207,008           101,707       19,008,691       (4     23,317,406  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

     

 

 

 

Pro Forma Adjustments to the Unaudited Condensed Combined Statement of Operations

 

(A)

Derived from the audited statement of operations of GigCapital, Inc. for the year ended September 30, 2019.

(B)

Derived by adding the unaudited condensed consolidated statements of operations for the nine months ended September 30, 2019 and the unaudited condensed consolidated statement of operations for the three months ended December 31, 2018 of Kaleyra S.p.A.

(1)

Represents an adjustment to eliminate both the interest income on marketable securities held in the Trust Account as of the beginning of the period and corresponding income tax expense.

(2)

To reflect the reversal of Business Combination related expenses included in the statements of operations incurred by GigCapital, Inc. (approximately $1,220 thousand) and Kaleyra S.p.A. (approximately $3,558 thousand).

(3)

To the reflect the interest at Libor plus 1% for one year on $7,500 thousand cash consideration notes and $7,500 thousand Note Payable to Sellers.

(4)

As the Business Combination is being reflected as if it had occurred at the beginning of the period presented, the calculation of weighted average shares outstanding for basic and diluted net income (loss) per share assumes that the shares issuable to the Kaleyra S.p.A. stockholders in the Business Combination have been outstanding for the entire period presented.

 

     12 Months Ended
September 30, 2019
 

Weighted-average common shares outstanding, basic and diluted:

  

GigCapital Inc. weighted average shares outstanding

     4,207,008  

GigCapital shares of common stock no longer subject to forfeiture

     60,000  

GigCapital Inc. shares subject to redemption reclassified to equity

     3,514,264  

Rights converted at closing

     1,321,756  

Aggregate Sellers shares earned based on redemption

range and Earn-Out criteria

     3,527,272  

Shares issued to Kaleyra in business combination (1)

     10,687,106  
  

 

 

 

Weighted-average common shares outstanding, basic and diluted

     23,317,406  
  

 

 

 

Percent of shares owned by GigCapital Inc.

     39

Percent of shares owned by Kaleyra

     61