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8-K/A - FORM 8-K/A - ORBSAT CORPc05457e8vkza.htm
EX-99.1 - EXHIBIT 99.1 - ORBSAT CORPc05457exv99w1.htm
Exhibit 99.2
ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA COMBINED FINANCIAL INFORMATION
(UNAUDITED)

 


 

ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
Index to Unaudited Pro Forma Combined Financial Information
         
    Pages  
 
Introduction to Unaudited Pro Forma Combined Financial Information
    2  
 
       
Unaudited Pro Forma Combined Balance Sheet
    3  
 
       
Unaudited Pro Forma Combined Statement of Operations
    4  
 
       
Notes to Unaudited Pro Forma Combined Financial Statements
    5  

 

1


 

ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
Introduction to Unaudited Pro Forma Combined Financial Information
The following unaudited pro forma combined balance sheet is presented to illustrate the estimated effects of our acquisition of the business and assets of Brand Interaction Group, LLC, a New Jersey limited liability (“BIG”). On June 21, 2010, Eclips Media Technologies, Inc. (“Eclips”), through its wholly-owned subsidiary SD Acquisition Corp., a New York corporation (“SD”), acquired (the “Acquisition”) the business and certain assets and assumed certain liabilities of BIG.
The Unaudited Pro Forma Combined Financial Information has been prepared using the purchase method of accounting for this business acquisition. The financial statements of Eclips included in the following unaudited pro forma combined financial statements are derived from the audited financial statements of Eclips for the year ended December 31, 2009 as filed in the Company’s 10-K for the period ended December 31, 2009. The financial statements of BIG included in the following unaudited pro forma combined financial statements are derived from the audited financial statements of BIG for the year ended December 31, 2009 contained elsewhere in this Form 8-K. The unaudited pro forma combined balance sheet is prepared as though the transactions occurred at the close of business on December 31, 2009. The pro forma combined statement of operations gives effect to the transactions as though they occurred on January 1, 2009.
Because the selected unaudited pro forma combined financial information is based upon BIGs’ financial position and BIGs’ operating results during periods when this entity was not under the control, influence or management of Eclips, the information presented may not be indicative of the results that would have actually occurred had the transactions been completed at January 1, 2009 nor is it indicative of future financial or operating results of the combined entity.

 

2


 

ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
                                         
    Eclips Media                    
    Technologies, Inc.     Brand Interaction              
    and Subsidiaries     Group, LLC              
    December 31,     December 31,              
    2009     2009     Pro Forma Adjustments     Pro Forma  
    Historical     Historical     Dr.     Cr.     Balances  
    (Unaudited)     (Unaudited)                     (Unaudited)  
ASSETS
                                       
CURRENT ASSETS:
                                       
Cash
  $     $ 5,392     $     $     $ 5,392  
 
                             
 
Total Current Assets
          5,392                   5,392  
 
                             
 
Property and equipment, net
                             
Software, net
                             
Goodwill
           (1)     868,152             868,152  
Intangible Assets, net
          4,296                   4,296  
 
                             
 
Total Assets
  $     $ 9,688     $ 868,152     $     $ 877,840  
 
                             
 
                                       
LIABILITIES AND STOCKHOLDERS’ DEFICIT
                                       
 
                                       
CURRENT LIABILITIES:
                                       
Note payable
  $     $ 120,000  (2)   $ 120,000           $  
Accounts payable and accrue expenses
    167,686       56,714  (2)     41,714  (1)     68,152       250,838  
Derivative liability
    67,147                         67,147  
Due to related parties
          127,206  (2)     127,206              
 
                             
 
                                       
Total Current Liabilities
    234,833       303,920       288,920       68,152       317,985  
 
                             
 
LONG -TERM LIABILITIES:
                                       
Convertible debentures, net of debt discount
    7,620                         7,620  
 
                             
Total long-term liabilities
    7,620                         7,620  
 
                             
 
Total liabilities
    242,453       303,920       288,920       68,152       325,605  
 
                             
 
                                       
STOCKHOLDERS’ DEFICIT:
                                       
 
                                       
Preferred stock, $.0001 par value; 10,000,000 authorized
                                       
Series A, 3,000,000 issued and outstanding
    300                         300  
Series B, none issued and outstanding
                             
Series C, none issued and outstanding
                             
Series D, none issued and outstanding
                             
Common stock; $.0001 par value; 750,000,000 shares authorized; 129,725,338 shares issued and outstanding
    12,972                (1)     2,000       14,972  
Additional paid-in capital
    24,224,685       (16,507 )        (1)(2)     1,086,920       25,295,098  
Accumulated deficit
    (24,480,410 )     (277,725 )                 (24,758,135 )
 
                             
 
                                       
Total Stockholders’ Deficit
    (242,453 )     (294,232 )           1,088,920       552,235  
 
                             
 
                                       
Total Liabilities and Stockholders’ Deficit
  $     $ 9,688     $ 288,920     $ 1,157,072     $ 877,840  
 
                             
See accompanying notes to unaudited pro forma combined financial statements.

 

3


 

ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
                                         
    Eclips Media                    
    Technologies, Inc.     Brand Interaction              
    and Subsidiaries     Group, LLC              
    For the Year Ended     For the Year Ended              
    December 31,     December 31,              
    2009     2009     Pro Forma Adjustments     Pro Forma  
    Historical     Historical     Dr.     Cr.     Balances  
    (Unaudited)     (Unaudited)                 (Unaudited)  
 
                                       
Net revenues
  $     $ 121,642     $     $     $ 121,642  
 
                             
 
                                       
Operating Expenses:
                                       
Cost of revenues
          147,972                   147,972  
Payroll expense
    117,249                         117,249  
Professional fees
    114,938       2,178                   117,116  
Sales and marketing
          148,577                   148,577  
Other general and administrative
    47,509       61,187                   108,696  
 
                             
 
                                       
Total Operating Expenses
    279,696       359,914                   639,610  
 
                             
 
                                       
Loss from continuing operations
    (279,696 )     (238,272 )                 (517,968 )
 
                                       
Other expense:
                                       
Loss on disposal of property and equipment
    (59,429 )                       (59,429 )
Change in fair value of derivative liability
    233                         233  
Interest expense
    (2,110 )     (2,944 )                 (5,054 )
 
                             
 
                                       
Total Other Expense
    (61,306 )     (2,944 )                 (64,250 )
 
                             
 
                                       
Loss from continuing operations before provision for income taxes
    (341,002 )     (241,216 )                 (582,218 )
 
                                       
Provision for income taxes
                             
 
                             
 
                                       
Loss from continuing operations
    (341,002 )     (241,216 )                 (582,218 )
Loss from discontinued operations, net of tax
    (1,907,663 )                       (1,907,663 )
 
                             
 
                                       
Net loss available to common shareholders
  $ (2,248,665 )   $ (241,216 )   $     $     $ (2,489,881 )
 
                             
 
                                       
Net loss per common share:
                                       
Basic and Diluted
  $ (0.02 )                           $ (0.02 )
 
                                   
 
                                       
Weighted avergae shares outstanding:
                                       
Basic and Diluted
    129,725,338                               149,725,338  
 
                                   
See accompanying notes to unaudited pro forma combined financial statements.

 

4


 

ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
Unaudited pro forma adjustments reflect the following transaction:
                 
1)
               
Goodwill
    868,152          
Account payable
            68,152  
Common stock, at par
            2,000  
Additional paid-in capital
            798,000  
 
               
This adjustment reflects the effect of applying purchase accounting to the acquisition of business and assets of Brand Interaction Group, LLC and the assumption of certain liabilities including the issuance of 20,000,000 shares of common stock valued at $800,000, direct closing cost of $68,152 and the recording of goodwill. The recording of goodwill is based upon a preliminary valuation and allocation of purchase price.
               
 
               
2)
               
Note payable
    120,000          
Accounts payable and accrued expenses
    41,714          
Due to related parties
    127,206          
Additional paid-in capital
            288,920  
 
               
This adjustment reflects certain liabilities not included in the acquisition of business of Brand Interaction Group, LLC based on the Asset Purchase Agreement.
               

 

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