Attached files
Exhibit 99.3
PROFORMA COMBINED FINANCIAL STATEMENTS
The unaudited pro forma combined balance sheet as of September 30, 2010 and statements of operations for the nine months ended September 30, 2010 and for the twelve months ended December 31, 2009 are presented below as if the reorganization had taken place on January 1, 2009. Kurrant Food Enterprises, Inc.’s fiscal year end is September 30. Zhidali Industrial Co., Ltd.’s fiscal year end is December 31. The statements of operations for Kurrant Food Enterprises, Inc. are presented for the nine months ended September 30, 2010 and for the year ended December 31, 2009 to conform to Zhidali’s fiscal year end of December 31. The pro forma combined balance sheet and statement of operations are presented for informational purposes only and are not necessarily indicative of the results of operations that actually would have been achieved had the sale been consummated as of that time, nor is it intended to be a projection of future results. The unaudited pro forma results are as follows:
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Zhidali Industrial Co., Ltd.
Pro Forma Combined Balance Sheet
(Unaudited)
(U.S. Dollars)
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Zhidali Industrial Co., Ltd.
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Kurrant Food Enterprises, Inc.
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Pro Forma Combined
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September 30, 2010
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September 30, 2010
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Pro Forma Adjustments
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September 30, 2010
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 98,519 | $ | 7,758 | $ | (7,758 | ) | (1 | ) | $ | 98,519 | |||||||
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Restricted cash
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123,841 | - | - | 123,841 | ||||||||||||||
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Due from related party
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154,022 | - | - | 154,022 | ||||||||||||||
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Inventories
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61,227 | - | - | 61,227 | ||||||||||||||
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Prepaid expenses
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1,577,060 | 3,000 | (3,000 | ) | (1 | ) | 1,577,060 | |||||||||||
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Other current assets
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246,803 | - | - | 246,803 | ||||||||||||||
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Total current assets
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2,261,472 | 10,758 | (10,758 | ) | 2,261,472 | |||||||||||||
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Property and equipment, net
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1,866,070 | 619 | (619 | ) | (1 | ) | 1,866,070 | |||||||||||
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Prepayments for fixed assets and construction-in-progress
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2,859,830 | - | - | 2,859,830 | ||||||||||||||
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Land use right, net
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2,412,401 | - | - | 2,412,401 | ||||||||||||||
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Total Assets
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$ | 9,399,773 | $ | 11,377 | $ | (11,377 | ) | $ | 9,399,773 | |||||||||
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Liabilities and Shareholders' Equity
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Current Liabilities
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Accounts payable and accrued expenses
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$ | 1,705,570 | $ | 1,955 | $ | (1,955 | ) | (1 | ) | $ | 1,705,570 | |||||||
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Notes payable-banks, current portion
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571,729 | - | - | 571,729 | ||||||||||||||
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Notes payable-other
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1,925,920 | - | - | 1,925,920 | ||||||||||||||
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Land use right obligation
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2,461,634 | - | - | 2,461,634 | ||||||||||||||
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Due to related parties
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- | 97,599 | (97,599 | ) | (1 | ) | - | |||||||||||
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Total current liabilities
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6,664,853 | 99,554 | (99,554 | ) | 6,664,853 | |||||||||||||
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Notes payable-banks
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895,777 | - | - | 895,777 | ||||||||||||||
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Total Liabilities
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7,560,630 | 99,554 | (99,554 | ) | 7,560,630 | |||||||||||||
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Shareholders' Equity
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Common Stock
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50,000 | 12,667 | (50,000 | ) | (2 | ) | 49,850 | |||||||||||
| 47,358 | (3 | ) | ||||||||||||||||
| (10,175 | ) | (4 | ) | |||||||||||||||
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Additional paid-in capital
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2,798,607 | 249,771 | 50,000 | (2 | ) | 2,798,757 | ||||||||||||
| (47,358 | ) | (3 | ) | |||||||||||||||
| 10,175 | (4 | ) | ||||||||||||||||
| (350,615 | ) | (5 | ) | |||||||||||||||
| 88,177 | (1 | ) | ||||||||||||||||
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Statutory reserves
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- | - | - | - | ||||||||||||||
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Accumulated other comprehensive income
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115,664 | - | - | 115,664 | ||||||||||||||
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Deficit accumulated during the development stage
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(1,125,128 | ) | (350,615 | ) | 350,615 | (5 | ) | (1,125,128 | ) | |||||||||
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Total shareholders' equity
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1,839,143 | (88,177 | ) | 88,177 | 1,839,143 | |||||||||||||
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Total Liabilities and Shareholders' Equity
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$ | 9,399,773 | $ | 11,377 | $ | (11,377 | ) | $ | 9,399,773 | |||||||||
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(1)
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To eliminate assets and liabilities retained by predecessor owners of Kurrant Food Enterprises, Inc.
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(2)
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To eliminate common stock of Zhidali Industrial Co., Ltd.
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(3)
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To record issuance of 47,358,327 shares of Kurrant's common stock and paid in capital for all of Zhidali’s outstanding common shares.
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(4)
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To record cancellation of 10,175,000 shares of Kurrant’s common stock.
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(5)
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To eliminate Kurrant’s accumulated deficit.
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Zhidali Industrial Co. Ltd.
Pro Forma Combined Income Statement
For the Nine Months Ended September 30, 2010
(Unaudited)
(U.S. Dollars)
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Zhidali Industrial Co., Ltd.
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Kurrant Food Enterprises, Inc.
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Pro Forma
Adjustments
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Pro Forma Combined
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Revenues
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$ | - | $ | 2,640 | $ | (2,640 | ) | (1) | $ | - | ||||||
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Cost of revenue
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- | - | - | - | ||||||||||||
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Gross profit
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- | 2,640 | (2,640 | ) | - | |||||||||||
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Operating expenses:
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General and administrative
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641,010 | 23,153 | (23,153 | ) | (1) | 641,010 | ||||||||||
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Depreciation and amortization
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107,312 | 4,997 | (4,997 | ) | (1) | 107,312 | ||||||||||
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Gain on asset disposals
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- | (1,498 | ) | 1,498 | (1) | - | ||||||||||
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Total operating expenses
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748,322 | 26,652 | (26,652 | ) | 748,322 | |||||||||||
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Other income (expense) :
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Other income
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56 | 50,685 | (50,685 | ) | (1) | 56 | ||||||||||
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Interest expense
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(116,277 | ) | (6,944 | ) | 6,944 | (1) | (116,277 | ) | ||||||||
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Income (loss) before income taxes
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(864,543 | ) | 19,729 | (19,729 | ) | (864,543 | ) | |||||||||
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Provision for income tax
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- | - | - | - | ||||||||||||
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Net income (loss)
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$ | (864,543 | ) | $ | 19,729 | $ | (19,729 | ) | $ | (864,543 | ) | |||||
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Other comprehensive income:
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Foreign currency translation adjustment
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32,671 | - | - | 32,671 | ||||||||||||
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Comprehensive income (loss)
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$ | (831,872 | ) | $ | 19,729 | $ | - | $ | (831,872 | ) | ||||||
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Net income (loss) per common share-basic and diluted
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$ | (17.29 | ) | $ | (0.02 | ) | ||||||||||
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Weighted average shares outstanding, basic and diluted
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50,000 | 49,800,660 | 49,850,660 | |||||||||||||
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(1)
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To eliminate Kurrant's income and expenses as the result of the elimination of assets and liabilities of Kurrant's as of January 1, 2009. |
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Zhidali Industrial Co. Ltd.
Pro Forma Combined Income Statement
For the Twelve Months Ended December 31, 2009
(Unaudited)
(U.S. Dollars)
|
Zhidali Industrial Co., Ltd.
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Kurrant Food Enterprises, Inc.
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Pro Forma
Adjustments
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Pro Forma Combined
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Revenues
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$ | - | $ | (3,824 | ) | 3,824 | (1) | $ | - | |||||||
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Cost of revenue
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- | - | - | - | ||||||||||||
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Gross profit
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- | (3,824 | ) | 3,824 | - | |||||||||||
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Operating expenses:
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General and administrative
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177,815 | 30,508 | (30,508 | ) | (1) | 177,815 | ||||||||||
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Depreciation and amortization
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12,051 | 8,188 | (8,188 | ) | (1) | 12,051 | ||||||||||
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Gain on asset disposals
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- | (757 | ) | 757 | (1) | - | ||||||||||
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Total operating expenses
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189,866 | 37,939 | (37,939 | ) | 189,866 | |||||||||||
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Other income (expense) :
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Other income
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348 | 8,350 | (8,350 | ) | (1) | 348 | ||||||||||
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Interest expense
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(25,496 | ) | (11,768 | ) | 11,768 | (1) | (25,496 | ) | ||||||||
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Loss before income taxes
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(215,014 | ) | (45,181 | ) | 45,181 | (215,014 | ) | |||||||||
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Provision for income taxes
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- | - | - | - | ||||||||||||
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Net loss
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$ | (215,014 | ) | $ | (45,181 | ) | 45,181 | $ | (215,014 | ) | ||||||
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Other comprehensive income
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Foreign currency translation adjustment
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3,470 | - | - | 3,470 | ||||||||||||
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Comprehensive loss
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$ | (211,544 | ) | $ | (45,181 | ) | $ | 45,181 | $ | (211,544 | ) | |||||
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Net loss per common share-basic and diluted
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$ | (4.30 | ) | $ | (0.00 | ) | ||||||||||
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Weighted average common shares outstanding, basic and diluted
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50,000 | 49,800,660 | 49,850,660 | |||||||||||||
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(1)
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To eliminate Kurrant's income and expenses as the result of the elimination of assets and liabilities of Kurrant's as of January 1, 2009. |
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