Attached files
| file | filename |
|---|---|
| 8-K/A - EAST COAST DIVERSIFIED CORPORATION - EAST COAST DIVERSIFIED CORP | eastcoast_8ka-011510.htm |
| EX-10.2 - LICENSE AGREEMENT - EAST COAST DIVERSIFIED CORP | eastcoast_8ka-ex1002.htm |
| EX-99.2 - UNAUDITED FINANCIAL STATEMENTS - EAST COAST DIVERSIFIED CORP | eastcoast_8ka-ex9902.htm |
| EX-10.1 - SETTLEMENT, RELEASE AND LICENSE AGREEMENT - EAST COAST DIVERSIFIED CORP | eastcoast_8ka-ex1001.htm |
| EX-10.3 - 2010 INCENTIVE STOCK PLAN - EAST COAST DIVERSIFIED CORP | eastcoast_8ka-ex1003.htm |
East Coast Diversified Corporation
PRO-FORMA COMBINED FINANCIAL STATEMENTS
March 31, 2010
(Unaudited)
East Coast Diversified Corporation
CONTENTS
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PAGE
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1
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PRO-FORMA COMBINED BALANCE SHEET AT MARCH 31, 2010 (Unaudited)
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PAGE
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2
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PRO-FORMA COMBINED STATEMENT OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2010 (Unaudited)
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PAGE
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3
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SIGNIFICANT NOTES AND ASSUMPTIONS TO PRO-FORMA COMBINED FINANCIAL STATEMENTS (Unaudited)
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Pro Forma Combined Balance Sheet
March 31, 2010
(Unaudited)
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Pro Forma Adjustments
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March 31,
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|||||||||||||||||||||
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Historical
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Dr
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Cr
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2010
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ASSETS
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EarthSearch Communications International, Inc.
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East Coast Diversified Corporation
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Pro Forma
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Current assets
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||||||||||||||||||||||
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Cash and cash equivalents
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$ | 2,685 | $ | 6 | $ | 2,691 | ||||||||||||||||
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Accounts receivable, net
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2,423 | - | 2,423 | |||||||||||||||||||
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Inventory
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23,417 | - | 23,417 | |||||||||||||||||||
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Prepaid expenses
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5,000 | - | 5,000 | |||||||||||||||||||
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Supplier advances
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15,170 | - | 15,170 | |||||||||||||||||||
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Total current assets
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48,695 | 6 | 48,701 | |||||||||||||||||||
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Other assets
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||||||||||||||||||||||
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Fixed assets, net
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24,802 | - | 24,802 | |||||||||||||||||||
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Intangibles, net
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220,070 | - | 220,070 | |||||||||||||||||||
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Escrow deposits
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245,000 | - | 245,000 | |||||||||||||||||||
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Security deposits
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4,521 | 0 | 4,521 | |||||||||||||||||||
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Total Other Assets
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494,393 | - | 494,393 | |||||||||||||||||||
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Total Assets
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$ | 543,088 | $ | 6 | $ | 543,094 | ||||||||||||||||
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LIABILITIES AND STOCKHOLDERS' DEFICIENCY
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Liabilities
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Current liabilities
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Loans payable
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$ | 663,055 | $ | - | $ | 663,055 | ||||||||||||||||
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Loans payable - related party
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888,155 | - | 888,155 | |||||||||||||||||||
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Accounts payable and accrued expenses
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638,261 | 53,000 | 691,261 | |||||||||||||||||||
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Accrued payroll and related liabilities
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993,540 | - | 993,540 | |||||||||||||||||||
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Total current liabilities
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3,183,011 | 53,000 | 3,236,011 | |||||||||||||||||||
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Total liabilities
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3,183,011 | 53,000 | 3,236,011 | |||||||||||||||||||
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Stockholders' deficiency
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||||||||||||||||||||||
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Common Stock
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1,533,009 | 47,661 | 3 | 1,433,002 | 47,661 | |||||||||||||||||
| 3 | 100,007 | |||||||||||||||||||||
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Additional paid-in capital
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5,250,101 | 7,910,887 | 2 | 8,011,542 | 6,216,383 | |||||||||||||||||
| 3 | 1,433,002 | |||||||||||||||||||||
| 3 | 366,065 | |||||||||||||||||||||
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Accumulated deficit
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(9,423,033 | ) | (8,011,542 | ) | 2 | 8,011,542 | (8,766,373 | ) | ||||||||||||||
| - | 3 | 656,660 | ||||||||||||||||||||
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Total ECDC stockholders' deficiency
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(2,639,923 | ) | (52,994 | ) | (2,502,329 | ) | ||||||||||||||||
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Noncontrolling interest
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3 | 190,588 | (190,588 | ) | ||||||||||||||||||
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Total stockholders' deficiency
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(2,639,923 | ) | (52,994 | ) | (2,692,917 | ) | ||||||||||||||||
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Total liabilities and stockholders' deficiency
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$ | 543,088 | $ | 6 | $ | 543,094 | ||||||||||||||||
See Summary of Significant Notes and Assumptions to Pro Forma Financial Statements
1
East Coast Diversified Corporation
Proforma Combined Statement of Operations
For the Three Months Ended March 31, 2010
(Unaudited)
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Three Months
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Ended
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Pro Forma Adjustments
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March 31,
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Historical
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Dr
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Cr
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2010
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EarthSearch Communications International, Inc.
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East Coast Diversified Corporation | Pro Forma | ||||||||||||||||
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Revenues
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$ | 9,103 | $ | - | $ | 9,103 | ||||||||||||
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Cost of sales
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8,837 | - | 8,837 | |||||||||||||||
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Gross profit
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266 | - | 266 | |||||||||||||||
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Selling, general and administrative
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479,439 | - | 479,439 | |||||||||||||||
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Operating loss
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(479,173 | ) | - | (479,173 | ) | |||||||||||||
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Other income (expense)
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(44,953 | ) | (3,225,791 | ) | 1 | 3,225,791 | (44,953 | ) | ||||||||||
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Loss before taxes
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(524,126 | ) | (3,225,791 | ) | (524,126 | ) | ||||||||||||
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Income taxes
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- | - | - | |||||||||||||||
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Net loss
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$ | (524,126 | ) | $ | (3,225,791 | ) | $ | (524,126 | ) | |||||||||
See Summary of Significant Notes and Assumptions to Pro Forma Financial Statements
2
East Coast Diversified Corporation
SIGNIFICANT NOTES AND ASSUMPTIONS TO PRO-FORMA FINANCIAL
STATEMENTS
(Unaudited)
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(1)
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The accompanying unaudited pro-forma financial information reflects the financial statements of East Coast Diversified Corporation ("ECDC") and EarthSearch Communications International, Inc. ("EarthSearch") regarding a planned acquisition of EarthSearch. The pro-forma adjustments to the balance sheet give effect to the acquisition as if it occurred on March 31, 2010 and the pro-forma statement of operations gives effect to the acquisition as if it occurred on January 1, 2010. ECDC has a different end of quarter compared to EarthSearch therefore, for the purposes of this proforma, the January 31, 2010 financials for ECDC were used for the March 31, 2010 financials. The differences are immaterial. The acquisition is treated as a recapitalization of EarthSearch since ECDC became an inactive publicly-held corporation at the merger date and the stockholders of EarthSearch obtained a controlling interest in the voting common stock of ECDC and management control of ECDC as a result of the acquisition. Accordingly, the assets and liabilities of ECDC are recorded at their historical cost on the books of EarthSearch with a balancing charge to additional paid-in capital. In addition, the common stock issued to the EarthSearch stockholders is recorded at ECDC's par value with a balancing charge to additional paid-in capital. Under recapitalization accounting, the historical results of operations are those of EarthSearch and the results of operations of ECDC are included only from the acquisition date.
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(2)
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Significant assumptions include (a) the stockholders of EarthSearch based on December 31, 2009 shares outstanding in EarthSearch, are issued 35,000,000 new ECDC common shares at a $.001 par value, (b) no operations of ECDC are included from the acquisition date since it is assumed that if EarthSearch obtained control of ECDC on January 1, 2010, the operations of ECDC would have ceased at that time. In addition, no transactions that may have occurred subsequent to March 31, 2010 have been considered.
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Loss on conversion of debt
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$
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3,225,551
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||
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Interest expense
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$
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240
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The second adjustment is to reverse the accumulated deficit of accounting acquiree, ECDC.
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Additional paid-in capital
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$
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8,011,542
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Accumulated deficit
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$
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8,011,542
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The third adjustment is to reclassify equity for the effects of the recapitalization.
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Common stock
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$
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1,433,002
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Additional paid-in capital
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$
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1,433,002
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The fourth adjustment is to record minority interest in EarthSearch.
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Common stock
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$
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100,007
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Additional paid-in capital
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$
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366,065
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Minority interest
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$
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190,588
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Accumulated deficit
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$
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656,660
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3