Artistry Publications Inc - FORM 8-K - EX-99.2 - UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - February 18, 2010

Attached files

file filename
8-K - CURRENT REPORT - Artistry Publications Incf8k0210_artisty.htm
EX-10.9 - BOWLING HOUSE LEASE AGREEMENT - Artistry Publications Incf8k0210ix_artisty.htm
EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Artistry Publications Incf8k0210ex99i_artisty.htm
EX-10.6 - RURAL LAND LEASE AGREEMENT - Artistry Publications Incf8k0210ex10vi_artisty.htm
EX-10.8 - NAN?AN OFFICE LEASE AGREEMENT - Artistry Publications Incf8k0210ex10viii_artisty.htm
EX-10.4 - OPTION AGREEMENT - Artistry Publications Incf8k0210ex10iv_artisty.htm
EX-10.3 - EQUITY PLEDGE AGREEMENT - Artistry Publications Incf8k0210ex10iii_artisty.htm
EX-10.5 - VOTING RIGHTS PROXY AGREEMENT - Artistry Publications Incf8k0210ex10v_artisty.htm
EX-2.2 - SHARE EXCHANGE AGREEMENT - Artistry Publications Incf8k0210ex2i_artisty.htm
EX-10.7 - JIANGBEI OFFICE LEASE AGREEMENT - Artistry Publications Incf8k0210ex10vii_artisty.htm
EX-10.2 - OPERATING AGREEMENT - Artistry Publications Incf8k0210ex10ii_artisty.htm
EX-10.1 - CONSULTING SERVICE AGREEMENT - Artistry Publications Incf8k0210ex10i_artisty.htm
 
Exhibit 99.2
 
Artistry Publications Inc.
 
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

Basis of Presentation
 
The unaudited pro forma consolidated financial statements of Artistry Publications INC. (“Artistry” or the “Shell”) in the opinion of management include all material adjustments directly attributable to the share exchange contemplated by a share exchange agreement, dated February 12, 2010, among Gold Industry Limited (“Gold Industry”), the Shell and all of the shareholders of Gold Industries (the “Share Exchange Agreement”). Pursuant to the Share Exchange Agreement, on February 12, 2010, the Shell issued to the shareholders of Gold Industry 8,800,000 shares of common stocks at par value $0.001 each in exchange for all of the issued and outstanding common stock of Gold Industry. Gold Industries thereby became a wholly owned subsidiary of the Shell. The pro forma consolidated statement of operations includes the accounts of the Shell and Gold Industry.

The statement of operations was prepared as if the above mentioned acquisition of Gold Industry by the Shell were consummated on December 31, 2009 and the balance sheet was prepared as if they were consummated on December 31, 2009. These pro forma consolidated financial statements have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the transaction occurred on the dates indicated and are not necessarily indicative of the results that may be expected in the future.
 
 
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Artistry Publications INC.
 
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET AS OF December 31, 2009

 
   
November 30,
    
December 31,
      
Unaudited
    
   
2009
    
2009
  
Pro-forma
  
Pro-forma
    
   
Artistry
    
Gold Industry
  
Adjustment
  
Consolidated
  
Note
                       
ASSETS
                      
Current Assets:
                      
     Cash and cash equivalents
   $ 362     $ 4,608,455       $ 4,608,817    
     Accounts receivable
     499       -         499    
     Inventories
     8,088       9,014,045         9,022,133    
     Advances to suppliers
     -       21,968         21,968    
     Related part receivable
             1,174         1,174    
     Other current assets
             57,551         57,551    
Total current assets
     8,949       13,703,193         13,712,142    
Property, plant and equipment, net
     -       7,348,253         7,348,253    
Other Non-current assets
                            
      Prepayment to suppliers
     -       8,948,700         8,948,700    
      Prepayment to related party suppliers
     -       1,408,320         1,408,320    
      Prepaid Expenses
     -       797,865         797,865    
      Other Assets
     -       16,584         16,584    
      Intangible assets, net
     -       11,937,561         11,937,561    
Total Non-current assets
     -       23,109,030         23,109,030    
TOTAL ASSETS
   $ 8,949     $ 44,160,476       $ 44,169,425    
                             
LIABILITIES AND EQUITY
                            
Current Liabilities:
                            
     Accounts payable
   $ 9,250     $ 103,947       $ 113,197    
     Welfare payable
     -       97,064         97,064    
     Taxes payable
     19       1,416,638         1,416,657    
     Other accrued payable
     -       60,256         60,256    
     Short-term bank loans
     -       2,474,829         2,474,829    
Total current liabilities
     9,269       4,152,734         4,162,003    
Long-Term Liabilities:
                            
     Deferred Revenue
     -       10,138,267         10,138,267    
Total liabilities
     9,269       14,291,001         14,300,270    
                             
Commitments and contingencies
                            
                             
Equity:
                            
     Common stock
     13,075       12,100,000  
(13,075
 )    12,100,000    
     Preferred stock
     -       -         -    
     Additional paid-in capital
     138,077       -  
(138,077
 )    -    
     Retained earnings (deficit)
     (151,472 )     15,878,871  
151,152
     15,878,461    
Accumulated other comprehensive income
             1,890,604         1,890,604    
Total equity
     (320 )      29,869,475  
320
     29,869,475    
TOTAL LIABILITIES AND EQUITY
   $ 8,949     $ 44,160,476       $ 44,160,476    
 
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Artistry Publications Inc.
 
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
For the fiscal year ended
            
   
August 31,
    
March 31,
      
Unaudited
    
   
2009
    
2009
  
Pro-forma
  
Pro-forma
    
   
Artistry
    
Gold Industry
  
Adjustment
  
Consolidated
  
Note
                       
Net sales
   $ 4,643     $ 18,313,720       $ 18,318,363    
Cost of sales
     2,925       9,938,853         9,941,778    
Gross profit
     1,718       8,374,867         8,376,585    
                             
Operating expenses:
                            
Selling expenses
     -       426,415         426,415    
General and administrative expenses
     57,514       1,045,060         1,102,574    
      57,514       1,471,475         1,528,989    
Income from operations
     (55,796 )     6,903,392         6,847,596    
                             
Other income (expenses):
                            
Other income
     -       255,893         255,893    
Interest expense
             (235,208         (235,208    
Interest income
             6,361         6,361    
Rental income
     -       260,286         260,286    
Non-operating expenses
             (3,772         (3,772    
      -       283,560         283,560    
Income before provision for income taxes
     (55,796 )      7,186,952         7,131,156    
Provision for income taxes
     -       (1,689,693         (1,689,693    
                             
Net income/ (loss)
   $ (55,796 )    $ 5,497,259       $ 5,441,463    
 
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Artistry Publications Inc.
 
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
 
   
For the three months ended
            
   
November 31,
    
December 31,
      
Unaudited
    
   
2009
    
2009
  
Pro-forma
  
Pro-forma
    
   
Artistry
    
Gold
  
Adjustment
  
Consolidated
  
Note
                       
Net sales
   $ 389     $ 11,403,585       $ 11,403,974    
Cost of sales
     238       5,339,808         5,340,046    
Gross profit
     151       10,679,854         10,680,005    
                             
Operating expenses:
                            
Selling expenses
     -       61,641         61,641    
General and administrative expenses
     14,554       581,557         596,111    
      14,554       643,198         657,752    
Income from operations
     (14,403 )     10,036,656         10,022,253    
                             
Other income (expenses):
                            
Other income
     -       140,824         140,824    
Interest expense
     -       (58,759         (58,759    
Interest income
     -       2,948         2,948    
Rental income
     -       65,438         65,438    
      -       150,451         150,451    
Income before provision for income taxes
     (14,403 )      5,571,030         5,556,627    
Provision for income taxes
     -       (1,414,552 )        (1,414,552 )   
                             
Net income/ (loss)
   $ (14,403 )    $ 4,156,478       $ 4,142,075    
 
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Notes to unaudited pro-forma consolidated financial statements:

1.  
On February 12, 2010, Artistry concluded a Share Exchange Agreement (“Agreement”) with Gold Industry. Prior to the merger, Artisrty was a corporation with no significant assets and liabilities. As a result of the Agreement, there was a change in control of the public entity. In accordance with Accounting Standards Codification subtopic 805-10, Business Combinations (“ASC 805-10), Gold Industry was the acquiring entity. While the transaction is accounted for using the purchase method of accounting, in substance the Agreement is a recapitalization of Gold Industry’s capital structure. For accounting purposes, the Artistry accounted for the transaction as a reverse acquisition and Gold Industry is the surviving entity. The value of the net assets acquired were deminimis. The Company did not recognize goodwill or any intangible assets in connection with the transaction. Effective with the Agreement, all previously outstanding shares of common stock were exchanged for an aggregate of 8,800,000 shares of the Company’s common stock. In accordance with the Accounting and Financial Reporting Interpretations and Guidance prepared by the staff of the U.S. Securities and Exchange Commission, Artistry (the legal acquirer) is considered the accounting acquiree and Gold Industry (the legal acquiree) is considered the accounting acquirer.
 
The consolidated financial statements subsequent to the merger of these entities will in substance be those of Gold Industry, with the assets and liabilities, and revenues and expenses, of Artistry being included effective from the date of consummation of Share Exchange Transactions. Artistry is deemed to be a continuation of business of Gold Industry. The outstanding common stock of Artistry prior to the Share Exchange Transactions will be accounting for at their net book value and no goodwill will be recognized.
 
2.  
To reflect the issuance of Artistry’s Common stock, $0.001 par value per share; 100,000,000 shares authorized; 13,075,000 shares issued and outstanding in connection with the Share Exchange Transactions.

3.  
To reflect the issuance of Gold Industry Limited’s 100,000,000 shares of common stock, par value of $0.121 per share in connection with the Share Exchange Transactions.

4.  
The fiscal year end of Artistry was August 31st prior to its merger with Gold Industry. The fiscal year end of Gold Industry is March 31st.



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