Attached files
file | filename |
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8-K/A - FORM 8-K/A - ORBSAT CORP | c05457e8vkza.htm |
EX-99.1 - EXHIBIT 99.1 - ORBSAT CORP | c05457exv99w1.htm |
Exhibit 99.2
ECLIPS MEDIA TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA COMBINED FINANCIAL INFORMATION
(UNAUDITED)
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
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 Companys 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
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
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
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. |
5