Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8-K/A - SOUPMAN, INC. | f8k110210a1_soupman.htm |
| EX-99.1 - AUDITED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2009 - SOUPMAN, INC. | f8k110210a1ex99i.htm |
| EX-23.1 - ACCOUNTANTS CONSENT - SOUPMAN, INC. | f8k110210a1ex23i_soupman.htm |
| EX-99.2 - UNAUDITED CONSOLIDATED BALANCE SHEETS - SOUPMAN, INC. | f8k110210a1ex99iiii_soupman.htm |
Exhibit 99.3
SELECTED UNAUDITED PRO FORMA
COMBINED FINANCIAL INFORMATION
The following unaudited pro forma combined balance sheet and statement of operations and related notes are presented for informational purposes only to show the pro forma effects of the acquisition of The Original Soupman, Inc. (“OSM”). The pro forma combined statements of operations for the year ended August 31, 2010 and for the three months ended November 30, 2010 are presented to show income from continuing operations as if the OSM acquisition occurred as of the beginning of each of the periods. The pro forma combined balance sheet as of November 30, 2010 is presented to show the financial position as if the OSM acquisition occurred as of November 30, 2010.
The pro forma data are based on assumptions and include adjustments as explained in the notes to the unaudited pro forma combined financial statements. The pro forma data are not necessarily indicative of the financial results that would have been attained had the acquisition of OSM occurred on the dates referenced above and should not be viewed as indicative of operations in future periods. The unaudited pro forma combined balance sheet and statements of operations should be read in conjunction with notes thereto and other financial statements included elsewhere in this Form 8-K as well as the Registrant’s historical financial statements contained in its Annual Report on Form 10-K for the year ended August 31, 2010 and its Quarterly on Form 10-Q for the three months ended November 30, 2010.
1
| Passport Arts, Inc, and The Original Soupman, Inc. and Subsidiaries | ||||||||||||||||
| Pro Forma Combined Balance Sheet (Unaudited) | ||||||||||||||||
| As of November 30, 2010 | ||||||||||||||||
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Pro forma
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||||||||||||||||
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PPOR
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OSM
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Adjustments
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Combined
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Assets
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Current Assets
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Cash and cash equilivants
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$ | 348 | $ | 895,646 | $ | 895,994 | ||||||||||
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Accounts receivable, net of allowance of $92,721
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397,012 | 397,012 | ||||||||||||||
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Current portion note receivable
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31,200 | 31,200 | ||||||||||||||
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Prepaid expenses and other current assets
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49,785 | 49,785 | ||||||||||||||
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Total current assets
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348 | 1,373,643 | - | 1,373,991 | ||||||||||||
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Property, plant and equipment, net
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- | 33,178 | 33,178 | |||||||||||||
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Note receivable
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- | 163,800 | 163,800 | |||||||||||||
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Due from Soup kitchen International, Inc.
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- | 873,029 | 873,029 | |||||||||||||
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Due from franchisees
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- | 356,955 | 356,955 | |||||||||||||
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Security deposits
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- | 4,800 | 4,800 | |||||||||||||
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Intangible assets, net
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- | 298,884 | 298,884 | |||||||||||||
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Total assets
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$ | 348 | $ | 3,104,289 | $ | - | $ | 3,104,637 | ||||||||
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Liabilities and stockholders' equity
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(deficit)
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Current liabilities
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Accounts payable
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$ | 35,032 | $ | 327,353 | $ | 362,385 | ||||||||||
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Accrued liabilities
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- | 437,904 | 437,904 | |||||||||||||
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Related party loan
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71,666 | - | 71,666 | |||||||||||||
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Current portion of long-term debt
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- | 2,307,573 | 2,307,573 | |||||||||||||
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Notes payable
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- | 37,500 | 37,500 | |||||||||||||
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Deferred franchisee fee income
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- | 118,750 | 118,750 | |||||||||||||
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Total current liabilities
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106,698 | 3,229,080 | - | 3,335,778 | ||||||||||||
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Long-term debt
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- | 1,362,649 | 1,362,649 | |||||||||||||
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Convertible notes payable
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- | 4,415,500 | 4,415,500 | |||||||||||||
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Total liabilities
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106,698 | 9,007,229 | - | 9,113,927 | ||||||||||||
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Shareholders equity (deficit)
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Common stock
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3,894 | 2,125 | 6,019 | |||||||||||||
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Additional paid in capital
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11,131 | - | 11,131 | |||||||||||||
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Additional paid in capita;
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(121,375 | ) | (5,905,065 | ) | (6,026,440 | ) | ||||||||||
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Total Shareholders equity (deficit)
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(106,350 | ) | (5,902,940 | ) | (6,009,290 | ) | ||||||||||
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Total liabilities and shareholders equity
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$ | 348 | $ | 3,104,289 | $ | - | $ | 3,104,637 | ||||||||
See notes to unaudited pro forma combined financial statements
2
| Passport Arts, Inc. and The Original Soupman, Inc. and Subsidiaries and | |||||||||||||||||
| Soup Kitchen International, Inc. | |||||||||||||||||
| Pro Forma Combined Statement of Operations (Unaudited) | |||||||||||||||||
| Passport Arts, Inc. For The Year Ended August 31, 2010 | |||||||||||||||||
| The Original Soupman, Inc. and Subsidiaries and Soup Kitchen International, Inc. For | |||||||||||||||||
| The Year Ended June 30, 2010 | |||||||||||||||||
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Y/E 8/31/2010
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Y/E 6/30/2010
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Pro Forma
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PPOR
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OSM
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Adjustments
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Combined
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Revenues
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Soup sales
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$ | - | $ | 1,370,355 | $ | - | $ | 1,370,355 | |||||||||
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Art sales
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10,141 | - | 10,141 | ||||||||||||||
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Franchise fee income
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- | 35,900 | 35,900 | ||||||||||||||
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Franchise royalty income
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- | 158,979 | 158,979 | ||||||||||||||
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Total revenues
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10,141 | 1,565,234 | - | 1,575,375 | |||||||||||||
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Cost of goods sold
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Cost of goods sold
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4,766 | 1,058,795 | 1,063,561 | ||||||||||||||
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Total cost of goods sold
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4,766 | 1,058,795 | - | 1,063,561 | |||||||||||||
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Gross profit
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5,375 | 506,439 | - | 511,814 | |||||||||||||
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Operating expenses
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Sales and marketing
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- | 184,452 | 184,452 | ||||||||||||||
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Royalties expense
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- | 225,000 | 225,000 | ||||||||||||||
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Payroll expenses and benefits
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- | 645,916 | 645,916 | ||||||||||||||
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Depreciation and amortization
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- | 77,500 | 77,500 | ||||||||||||||
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Other general and administrative
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76,321 | 516,741 | 593,062 | ||||||||||||||
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Total operating expenses
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76,321 | 1,649,609 | - | 1,725,930 | |||||||||||||
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Net loss from 0perations
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(70,946 | ) | (1,143,170 | ) | - | (1,214,116 | ) | ||||||||||
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Other income (expense)
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Interest income
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- | 1,570 | 1,570 | ||||||||||||||
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Interest expense
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- | (359,680 | ) | (359,680 | ) | ||||||||||||
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Gain (loss) on disposal of fixed assets
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212 | (66,843 | ) | (66,631 | ) | ||||||||||||
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Total other income (expense)
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212 | (424,953 | ) | - | (424,741 | ) | |||||||||||
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Net loss
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$ | (70,734 | ) | $ | (1,568,123 | ) | $ | - | $ | (1,638,857 | ) | ||||||
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Net loss per share
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$ | (0.02 | ) | N/A | - | $ | (0.12 | ) | |||||||||
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Weighted average shares outstanding
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3,893,600 | N/A | 10,319,228 |
(a)
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14,212,828 | ||||||||||||
See notes to unaudited pro forma combined financial statements
3
| Passport Arts, Inc. and The Original Soupman, Inc. and Subsidiaries | |||||||||||||||||
| Pro Forma Combined Statement of Operations (Unaudited) | |||||||||||||||||
| Passport Arts, Inc. For The Three Months Ended November 30, 2010 | |||||||||||||||||
| The Original Soupman, Inc. and Subsidiaries For The Three Months Ended September 30, 2010 | |||||||||||||||||
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Three Mths
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Three Mths
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11/30/2010
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9/30/2010
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Pro Forma
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PPOR
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OSM
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Adjustments
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Combined
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Revenues
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Soup sales
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$ | - | $ | 346,418 | $ | 346,418 | |||||||||||
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Royalty income
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- | 33,675 | 33,675 | ||||||||||||||
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Total revenues
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- | 380,093 | - | 380,093 | |||||||||||||
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Cost of goods sold
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Cost of goods sold
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- | 254,343 | 254,343 | ||||||||||||||
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Total cost of goods sold
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- | 254,343 | - | 254,343 | |||||||||||||
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Gross profit
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- | 125,750 | - | 125,750 | |||||||||||||
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Operating expenses
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Sales and marketing
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- | 140,740 | 140,740 | ||||||||||||||
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Royalties expense
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- | 56,250 | 56,250 | ||||||||||||||
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Payroll expenses and benefits
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- | 194,437 | 194,437 | ||||||||||||||
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Depreciation and amortization
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- | 74,411 | 74,411 | ||||||||||||||
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Other General and administrative
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14,317 | 3,476 | 17,793 | ||||||||||||||
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Total operating expenses
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14,317 | 469,314 | - | 483,631 | |||||||||||||
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Net loss from operations
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(14,317 | ) | (343,564 | ) | - | (357,881 | ) | ||||||||||
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Other income (expense)
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Interest expense
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- | (124,157 | ) | (124,157 | ) | ||||||||||||
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Total other income (expense)
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- | (124,157 | ) | - | (124,157 | ) | |||||||||||
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Net loss
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$ | (14,317 | ) | $ | (467,721 | ) | $ | - | $ | (482,038 | ) | ||||||
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Net loss per share
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$ | - | N/A | - | $ | (0.03 | ) | ||||||||||
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Weighted average shares outstanding
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3,893,600 | N/A | 10,319,228 |
(a)
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14,212,828 | ||||||||||||
See notes to unaudited pro forma combined financial statements
4
PASSPORT ARTS, INC.
NOTES TO UNAUDITED PROFORMA FINANCIAL STATEMENTS
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1.
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Basis of Presentation
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The acquisition of OSM is described elsewhere in this current report on Form 8-K. The unaudited pro forma combined balance sheet as of November 30, 2010 is based on the financial statements as of November 30, 2010 and the adjustments and assumptions described below. The unaudited pro forma combined statements of operations for the year ended August 31, 2010 are based on the financial statements of PPOR for the year ended August 31, 2010 and the financial statements of OSM for the Year ended June 30, 2010 and the adjustments and assumptions described below. The unaudited pro forma combined statement of operations for the three months ended November 30, 2010 are based on the financial statements of PPOR for the three months ended November 30, 2010 and the financial statements of OSM for the three months ended September 30, 2010 and the adjustments and assumptions described below.
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2.
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Pro Forma Adjustments
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The unaudited pro forma combined financial statements reflect the following adjustments:
(a) Record the additional shares outstanding as a result of recording the acquisition of OSM by PPOR.
5