Action Acquisition CORP - FORM 8-K/A - EX-99.3 - January 11, 2011

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8-K/A - Action Acquisition CORPv207805_8ka.htm
EX-10.1 - Action Acquisition CORPv207805_ex10-1.htm
EX-99.1 - Action Acquisition CORPv207805_ex99-1.htm
EX-99.2 - Action Acquisition CORPv207805_ex99-2.htm
EX-10.17 - Action Acquisition CORPv207805_ex10-17.htm
 
ORB AUTOMOTIVE CORPORATION (FORMERLY: ACTION ACQUISITION CORPORATION)
AND GRAND POWER CAPITAL, INC
Pro forma Consolidated Balance Sheet
As of June 30, 2010
(unaudited)
 
               
Pro forma
      
Pro forma
  
   
ORB(1)
    
GPC(2)
    
Adjustments
      
Combined
  
ASSETS
  
(historical)
    
(historical)
                
                           
CURRENT ASSETS
                          
Cash & cash equivalents
   $ 1,426     $ 215,746       (1,426 )
(B)
   $ 215,746  
Accounts receivable, net
     -       1,280,235                 1,280,235  
Bills receivable
     -       303,393                 303,393  
Other receivables, net
     -       237,201                 237,201  
Deposits
     -       10,401                 10,401  
Prepayment
     -       1,108,205                 1,108,205  
Inventory
     -       381,637                 381,637  
Due to related party
     -       19,818                 19,818  
                                   
Total current assets
     1,426       3,556,636                 3,556,636  
                                   
PROPERTY AND EQUIPMENT, net
     -       397,142                 397,142  
                                   
TOTAL ASSETS
   $ 1,426     $ 3,953,778               $ 3,953,778  
                                   
                                   
LIABILITIES AND STOCKHOLDERS' EQUITY
                            
                                   
CURRENT LIABILITIES
                                  
Accounts payable
   $ 1,132     $ 48,234       (1,132 )
(B)
   $ 48,234  
Accrued liabilities and other payables
     -       21,278                 21,278  
Payable to affiliate
     12,044       -       (12,044 )
(B)
     -  
Taxes payable
     -       712,357                 712,357  
Other payable to Shenzhen ORB original shareholders
     -       393,600                 393,600  
                                   
Total current liabilities
     13,176       1,175,469                 1,175,469  
                                   
COMMITMENTS
                                  
                                   
STOCKHOLDERS' EQUITY
                                  
Convertible preferred stock, $0.000128 par value, 781,250 shares  authorized, 98,885 shares issued and outstanding as of June 30, 2010.
     -       -       13  
(A)
     13  
Common stock, $0.000384 par value, 100,000,000 shares authorized, 4,883,974 shares issued and outstanding as of June 30, 2010.
     128       100       1,647  
(A) (B)
     1,875  
Additional paid in capital
     6,597       (100 )     (8,385 )
(A) (B)
     (1,888 )
Statutory reserve
             140,590                 140,590  
Accumulated other comprehensive income
             128,249                 128,249  
Retained earnings
     (18,475 )     2,509,470       18,475  
(B)
     2,509,470  
                                   
Total stockholders' equity
     (11,750 )     2,778,309                 2,778,309  
                                   
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
   $ 1,426     $ 3,953,778               $ 3,953,778  
 
 
(1)
Source:  audited financial statements of ORB Automotive Corporation (Formerly: Action Acquisition Corp) as of June 30, 2010 as filed in its Annual Report on Form 10-K filed with the SEC on November 23, 2010.
(2)
Source:  unaudited consolidated financial statements of Grand Power Capital, Inc. as of June 30, 2010 in its Current Report on Form 8-K/A filed with the SEC on December 1, 2010.
(A)
Issuance of 10,129,725 ordinary shares and 98,885.37 preference shares to GPC shareholders, total common shares outstanding after the reverse merger is 14,651,922 (pre-split), 4,883,974 (post-split); total preferred shares outstanding after the reverse merger is 98,885.37.
(B)
Elimination of ORB's capital accounts and accumulated deficit as result of recapitalization, and reflection of payment of all liabilities of ORB prior to closing.
 
 
See accompanying notes to pro forma combined financial statements
 
1
 
ORB AUTOMOTIVE CORPORATION (FORMERLY: ACTION ACQUISITION CORPORATION)
AND GRAND POWER CAPITAL, INC
Pro forma Consolidated Statement of Operations
For the Six Months Ended June 30, 2010
(unaudited)
 
               
Pro forma
    
Pro forma
  
   
ORB (1)
    
GPC (2)
    
Adjustments
    
Combined
  
   
(historical)
    
(historical)
              
                         
Net sales
   $ -     $ 2,362,028     $ -     $ 2,362,028  
                                 
Cost of goods sold
     -       1,322,124       -       1,322,124  
                                 
Gross profit
     -       1,039,904       -       1,039,904  
                                 
Operating expenses
                                
Selling expenses
     -       119,998       -       119,998  
General and administrative expenses
     833       182,222       -       183,055  
                                 
Total operating expenses
     833       302,220       -       303,053  
                                 
Income from operations
     (833 )     737,684       -       736,851  
                                 
Non-operating income (expenses)
                                
Interest income
     -       1,663       -       1,663  
Other expenses
     -       -       -       -  
                      -       -  
Total non-operating expenses, net
     -       1,663       -       1,663  
                                 
Income before income tax
     (833 )     739,347       -       738,514  
                                 
Income tax expense
     -       158,177       -       158,177  
                                 
Net income
   $ (833 )   $ 581,170     $ -     $ 580,337  
                                 
Earnings per share
                           $ 0.12  
                                 
Weighted average shares outstanding
                             4,883,974  
 
 
(1)
Source:  audited financial statements of  ORB Automotive Corporation (Formerly: Action Acquisition Corp) as of June 30, 2010 as filed in its Annual Report on Form 10-K filed with the SEC on November 23, 2010; and as of December 31, 2009 as filed in its Quarterly Report on Form 10-Q filed with SEC on February 19, 2010.
(2) 
Source:  unaudited consolidated financial statements of Grand Power Capital, Inc. as of June 30, 2010 in its Current Report on Form 8-K/A filed with the SEC on December 1, 2010.
 
 
See accompanying notes to pro forma combined financial statements
 
2
 
ORB AUTOMOTIVE CORPORATION (FORMERLY: ACTION ACQUISITION CORPORATION)
AND GRAND POWER CAPITAL, INC
Pro forma Consolidated Statement of Operations
For the Year Ended December 31, 2009
(unaudited)
 
               
Pro forma
    
Pro forma
  
   
ORB (1)
    
GPC (2)
    
Adjustments
    
Combined
  
   
(historical)
    
(historical)
              
                         
Net sales
   $ -     $ 4,306,946     $ -     $ 4,306,946  
                                 
Cost of goods sold
     -       2,287,228       -       2,287,228  
                                 
Gross profit
             2,019,718       -       2,019,718  
                                 
Operating expenses
                                
Selling expenses
     -       221,182       -       221,182  
General and administrative expenses
     3,243       196,897       -       200,140  
Research and development expense
     -       89,766       -       89,766  
                                 
Total operating expenses
     3,243       507,845       -       511,088  
                                 
Income from operations
     (3,243 )     1,511,873       -       1,508,630  
                                 
Non-operating income (expenses)
                                
Interest income
     -       683       -       683  
Other income
     -       286       -       286  
Other expenses
     -       (2,092 )     -       (2,092 )
                                 
Total non-operating expenses, net
     -       (1,123 )     -       (1,123 )
                                 
Income before income tax
     (3,243 )     1,510,750       -       1,507,507  
                                 
Income tax expense
     -       306,626       -     $ 306,626  
                                 
Net income
   $ (3,243 )   $ 1,204,124     $ -     $ 1,200,881  
                                 
Earnings per share
                           $ 0.25  
                                 
Weighted average shares outstanding
                             4,883,974  
 
 
(1)
Source:  audited financial statements of  ORB Automotive Corporation (Formerly: Action Acquisition Corp) as of June 30, 2009 as filed in its Annual Report on Form 10-K filed with the SEC on October 8, 2009; and as of December 31, 2008 as filed in its Quarterly Report on Form 10-Q filed with SEC on February 23, 2009; and as of December 31, 2009 as filed in its Quarterly Report on Form 10-Q filed with SEC on February 19, 2010.
(2)
Source:  audited combined financial statements of Grand Power Capital, Inc. and Shenzhen ORB-FT New Materials Co., Ltd. as of December 31, 2009 in this Current Report on Form 8-K/A.
 
 
See accompanying notes to pro forma combined financial statements
 
3
 
ORB Automotive Corporation (Formerly: Action Acquisition Corporation) and
Grand Power Capital, Inc.
Notes to Pro forma Consolidated Financial Statements

 
NOTE 1 - BASIS OF PRESENTATION

Pursuant to a share exchange agreement dated September 10, 2010, between ORB Automotive Corporation ("ORB" or “Company”), formerly known as Action Acquisition Corporation, and Grand Power Capital, Inc. ("GPC"). ORB issued 10,129,725 (pre-split) ordinary shares and 98,885.37 preference shares to GPC shareholders. On November 3, 2010, ORB effected a 1 for 3 consolidation of the Company’s issued and outstanding ordinary shares and  increased the amount of the Company’s authorized ordinary shares from 39,062,500 shares to 100,000,000 shares.  As a result of the consolidation and increase in share capital, the par value of the Company’s ordinary shares changed from $0.000128 per share to $0.000384 per share. As of September 30, 2010, there were 14,651,922 (pre-split) ordinary shares outstanding and 98,885.37 preference shares outstanding.    As a result of the reverse split, the total common shares outstanding after the reverse merge is 4,883,974 (post-split).

The accompanying pro forma consolidated balance sheet presents the accounts of ORB and GPC as if the acquisition of GPC by ORB occurred on June 30, 2010.  The accompanying pro forma consolidated statements of operations present the accounts of ORB and GPC for the year ended December 31, 2009 and for the six months ended June 30, 2010 as if the acquisition occurred on January 1, 2009 for statement of operations purpose. For accounting purposes, the transaction is being accounted for as a recapitalization of GPC as GPC’s shareholders will own the majority of the shares and will exercise significant influence over the operating and financial policies of the consolidated entity.

The following adjustments would be required if the acquisition occurred as indicated above:

a.
Recapitalization of GPC to account for the issuance:
 
●
of an aggregate of 10,129,725 (pre-split) ordinary shares and 98,885.37 preference shares to GPC shareholders, and

●
the total issued and outstanding common shares after the reverse merger were 4,883,974 (post-split).
 
b.
Elimination of ORB's capital accounts and accumulated deficit as result of recapitalization, and reflection of payment of all liabilities of ORB prior to closing.

4
 

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