Attached files
Exhibit 99.3
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION:
The following selected Unaudited Pro Forma Financial Information is based on the historical
financial statements of Genesis Fluid Solutions, Inc. (Genesis) and Cherry Tankers, Inc. (CT)
and has been prepared to illustrate the effect of Genesiss acquisition of CT. The Unaudited Pro
Forma Financial Information has been prepared treating the transaction as a recapitalization of
Genesis. CT reports its financial results on a financial year ending December 31. The financial
statements of CT included in the following unaudited pro forma financial information are based on
the audited statements of CT for the twelve months ended December 31, 2008 and the unaudited six
months ended June 30, 2009. The pro forma balance sheet gives effect to the acquisition of CT as if
it occurred on December 31, 2008 and June 30, 2009. The pro forma statements of operations give
effect to the acquisition of CT as if it occurred on January 1, 2008 and January 1, 2009.
Because the selected unaudited pro forma combined financial information is based upon CTs
financial position and operating results during periods when CT was not under the control,
influence or management of Genesis, the information presented may not be indicative of the results
that would have actually occurred had the transaction been completed at, and for the twelve months
ended, December 31, 2008 or at, and for the six months ended, June 30, 2009, as appropriate, nor is
it indicative of future financial or operating results of the combined entity.
Genesis Fluid Solutions Holdings, Inc.
Index to Unaudited Pro Forma Combined Financial Statements
Description | Page | |||
Unaudited Balance Sheet as of December 31, 2008 |
3 | |||
Unaudited Balance Sheet as of June 30, 2009 |
4 | |||
Unaudited Statements of Operations for the Twelve Months Ended December 31, 2008 |
5 | |||
Unaudited Statements of Operations for the Six Months Ended June 30, 2009 |
6 | |||
Significant Notes and Assumptions to the Pro Forma Financial Statements |
7 |
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GENESIS FLUID SOLUTIONS HOLDINGS, INC.
Unaudited Pro Forma Combined Balance Sheet as of December 31, 2008
Genesis | ||||||||||||||||
Genesis Historical | Pro Forma | Consolidated Pro | ||||||||||||||
Audited | CT Historical Audited | Adjustments | Forma | |||||||||||||
ASSETS |
||||||||||||||||
Current Assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 9,076 | $ | 377 | $ | | $ | 9,453 | ||||||||
Accounts receivable, other |
60,468 | | | 60,468 | ||||||||||||
Total Current Assets |
69,544 | 377 | | 69,921 | ||||||||||||
Fixed Assets, net |
844,999 | | | 844,999 | ||||||||||||
Patents, net |
54,492 | | | 54,492 | ||||||||||||
Patents, pending |
98,097 | | | 98,097 | ||||||||||||
Other non-current assets |
2,334 | | | 2,334 | ||||||||||||
Total Assets |
1,069,466 | 377 | | 1,069,843 | ||||||||||||
LIABILITIES AND SHAREHOLDERS (DEFICIT) |
||||||||||||||||
Current Liabilities |
||||||||||||||||
Current portion of convertible and
non-convertible
notes and loans |
992,723 | | | 992,723 | ||||||||||||
Current portion of capital lease obligations |
143,428 | | | 143,428 | ||||||||||||
Trade accounts payable |
110,524 | 2,439 | | 112,963 | ||||||||||||
Accrued and other liabilities |
771,540 | 8,910 | | 780,450 | ||||||||||||
Due to related parties |
50,819 | 1,851 | | 52,670 | ||||||||||||
Customer deposits |
215,000 | | | 215,000 | ||||||||||||
Total Current Liabilities |
2,351,368 | 13,200 | | 2,364,568 | ||||||||||||
Long Term Debt, Less current portion |
||||||||||||||||
Notes payable |
84,666 | | | 84,666 | ||||||||||||
Capital lease obligations |
117,822 | | | 117,822 | ||||||||||||
Total long term debt |
202,488 | | | 202,488 | ||||||||||||
Total Liabilities |
2,553,856 | 13,200 | | 2,567,056 | ||||||||||||
Stockholders (Deficit) |
||||||||||||||||
Common stock |
2,496,609 | 1,370 | (2,497,764 | ) | 215 | |||||||||||
Additional paid in capital |
| 274,688 | 2,208,883 | 2,483,571 | ||||||||||||
Accumulated other comprehensive (loss) |
(10,867 | ) | | | (10,867 | ) | ||||||||||
Accumulated deficit |
(3,970,132 | ) | (288,881 | ) | 288,881 | (3,970,132 | ) | |||||||||
Total Shareholders (Deficit) |
(1,484,390 | ) | (12,823 | ) | | (1,497,213 | ) | |||||||||
Total Liabilities and Shareholders (Deficit) |
$ | 1,069,466 | $ | 377 | | $ | 1,069,843 | |||||||||
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GENESIS FLUID SOLUTIONS HOLDINGS, INC.
Unaudited Pro Forma Combined Balance Sheet as of June 30, 2009
Genesis | ||||||||||||||||
Genesis Historical | CT Historical | Pro Forma | Consolidated Pro | |||||||||||||
Audited | Audited | Adjustments | Forma | |||||||||||||
ASSETS |
||||||||||||||||
Current Assets: |
||||||||||||||||
Cash and cash equivalents |
$ | 334,400 | $ | 4,939 | $ | | $ | 339,339 | ||||||||
Inventory work in progress |
12,061 | | | 12,061 | ||||||||||||
Total Current Assets |
345,461 | 4,939 | | 350,400 | ||||||||||||
Fixed assets, net |
781,029 | | | 781,029 | ||||||||||||
Patents, net |
52,285 | | | 52,285 | ||||||||||||
Patents pending |
107,356 | | | 107,356 | ||||||||||||
Debt issuance costs, net |
333 | | | 333 | ||||||||||||
Total Assets |
1,286,464 | 4,939 | | 1,291,403 | ||||||||||||
LIABILITIES AND SHAREHOLDERS (DEFICIT) |
||||||||||||||||
Current Liabilities |
||||||||||||||||
Current portion of convertible and
non-convertible
notes and loans |
945,269 | | | 945,269 | ||||||||||||
Current portion of capital lease obligations |
148,473 | | | 148,473 | ||||||||||||
Trade accounts payable |
271,460 | 4,349 | | 275,809 | ||||||||||||
Accrued and other liabilities |
882,150 | 4,000 | | 886,150 | ||||||||||||
Due to related parties |
28,300 | 29,759 | | 58,059 | ||||||||||||
Customer deposit |
215,000 | | | 215,000 | ||||||||||||
Total Current Liabilities |
2,490,652 | 38,108 | | 2,528,760 | ||||||||||||
Long Term Debt, Less current portion |
||||||||||||||||
Notes payable |
84,666 | | | 84,666 | ||||||||||||
Capital lease obligations |
24,892 | | | 24,892 | ||||||||||||
Total long term debt |
109,558 | | | 109,558 | ||||||||||||
Total Liabilities |
2,600,210 | 38,108 | | 2,638,318 | ||||||||||||
Stockholders (Deficit) |
||||||||||||||||
Common Stock |
3,647,361 | 1,370 | (3,648,516 | ) | 215 | |||||||||||
Additional Paid in Capital |
| 274,688 | 3,339,239 | 3,613,927 | ||||||||||||
Accumulated other comprehensive (loss) |
(12,210 | ) | | | (12,210 | ) | ||||||||||
Accumulated Deficit |
(4,948,897 | ) | (309,227 | ) | 309,277 | (4,948,847 | ) | |||||||||
Total Shareholders (Deficit) |
(1,313,746 | ) | (33,169 | ) | | (1,346,915 | ) | |||||||||
Total Liabilities and Shareholders (Deficit) |
$ | 1,286,464 | $ | 4,939 | | $ | 1,291,403 | |||||||||
4
GENESIS FLUID SOLUTIONS HOLDINGS, INC.
Unaudited Pro Forma Combined Statements of Operations for the Twelve Months Ended December 31, 2008
Genesis Historical | CT Historical | PRO FORMA | Genesis | |||||||||||||
Audited | Audited | ADJUSTMENTS | PRO FORMA | |||||||||||||
Net revenues |
$ | 35,097 | $ | | $ | | $ | 35,097 | ||||||||
Cost of revenues |
393,683 | | | 393,683 | ||||||||||||
Gross (Deficit) |
(358,586 | ) | | | (358,586 | ) | ||||||||||
Expenses: |
||||||||||||||||
Sales and marketing |
63,993 | | | 63,993 | ||||||||||||
General and administrative |
522,790 | 218,903 | | 741,693 | ||||||||||||
Research and development |
2,011 | | | 2,011 | ||||||||||||
Provision for impairment in the carrying
value of equipment |
124,630 | | | (124,630 | ) | |||||||||||
Total Expenses |
713,424 | 218,903 | | 932,327 | ||||||||||||
(Loss) from Operating |
(1,072,010 | ) | (218,903 | ) | | (1,290,913 | ) | |||||||||
Other Income and (Expense): |
||||||||||||||||
Interest and other income |
10,103 | | | 10,103 | ||||||||||||
Interest expense |
(332,219 | ) | | | (332,219 | ) | ||||||||||
Loss on disposal |
(174,125 | ) | | | (174,125 | ) | ||||||||||
Total Other Income/(Expense) |
(496,241 | ) | | | (496,241 | ) | ||||||||||
Net (Loss) |
($1,568,251 | ) | ($218,903 | ) | | ($1,787,154 | ) | |||||||||
(Loss) per common share basic and diluted |
($1.57 | ) | ($0.02 | ) | ($0.17 | ) | ||||||||||
Shares used in computing earnings (loss) per share |
1,000,000 | 13,705,000 | 10,631,000 |
5
GENESIS FLUID SOLUTIONS HOLDINGS, INC.
Unaudited Pro Forma Combined Statements of Operations for the Six Months Ended June 30, 2009
CT | PRO FORMA | Genesis | ||||||||||||||
Genesis Historical | Historical | ADJUSTMENTS | PRO FORMA | |||||||||||||
Net revenues |
$ | | $ | | $ | | $ | | ||||||||
Cost of revenues |
75,571 | | | 75,571 | ||||||||||||
Gross (Deficit) |
(75,571 | ) | | | (75,571 | ) | ||||||||||
Expenses: |
||||||||||||||||
Sales and marketing |
23,929 | | | 23,929 | ||||||||||||
General and administrative |
616,328 | 20,346 | | 636,674 | ||||||||||||
Research and development |
| | | | ||||||||||||
Total Operating Expenses |
640,257 | 20,346 | | 660,603 | ||||||||||||
(Loss) from Operating |
(715,828 | ) | (20,346 | ) | | (736,174 | ) | |||||||||
Other Income (Expense): |
||||||||||||||||
Interest (expense) |
(262,937 | ) | | | (262,937 | ) | ||||||||||
Total Other Income/(Expense) |
(262,937 | ) | | | (262,937 | ) | ||||||||||
Net (Loss) |
($978,765 | ) | ($20,346 | ) | $ | | ($999,111 | ) | ||||||||
(Loss) per common share basic and diluted |
($0.98 | ) | ($0.00 | ) | ($0.09 | ) | ||||||||||
Shares used in computing loss per share |
1,000,000 | 13,705,000 | 10,631,000 |
6
GENESIS FLUID SOLUTIONS HOLDINGS, INC.
SIGNIFICANT NOTES AND ASSUMPTIONS TO THE PRO FORMA FINANCIAL STATEMENTS
The unaudited pro forma balance sheets give effect to the following unaudited pro forma
adjustments:
1. | Adjustment reflects the accounting for the effective assumption of CTs liabilities in excess of assets as a capital transaction and to revise the par value of the post-transaction outstanding common stock. |
7