Attached files
PROPFRMA CONSOLIDATED STATEMENTS OF
INCOME AND OTHER COMPREHENSIVE INCOME
(Stated In US Dollar)
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For years ended December 31,
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2010
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2009
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Revenues
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14,383,519 | 6,247,818 | ||||||
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Cost Of Revenues
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11,547,533 | 5,699,970 | ||||||
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Gross Profit
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2,835,986 | 547,847 | ||||||
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Operating Expense:
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||||||||
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Selling and marketing
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145,901 | 85,236 | ||||||
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General and administrative
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649,866 | 386,014 | ||||||
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Total operating expenses
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795,767 | 471,251 | ||||||
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Income (loss) from operations:
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2,040,219 | 76,596 | ||||||
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Other income (expenses):
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||||||||
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Other income (expenses)
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32,545 | 36,515 | ||||||
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Interest income
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30,952 | 846 | ||||||
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Interest expense
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-79,354 | -60,532 | ||||||
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Total other expenses, net
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-15,858 | -23,171 | ||||||
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Provision for income taxes
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268,244 | 3,206 | ||||||
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Net income
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1,756,117 | 50,219 | ||||||
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Other comprehensive income:
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||||||||
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Comprehensive income
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1,806,801 | 63,992 | ||||||
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Net income per share:
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||||||||
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Basic and diluted
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0.079 | 0.002 | ||||||
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Basic and diluted
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22,225,200 | 22,225,200 | ||||||
| 40,000,000 | 40,000,000 | |||||||
| 0.0452 | 0.0016 | |||||||
PROFORMA BALANCE SHEET
(Stated In US Dollar)
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December 31,
2010
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December 31,
2009
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ASSETS
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||||||||
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Current Assets
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||||||||
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Cash
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657,773 | 379,003 | ||||||
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Accounts receivable due from non-related parties, net of allowance for doubtful accounts of nil and nil as of December 31, 2010 and 2009, respectively
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2,774,129 | 863,296 | ||||||
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Accounts receivable due from related parties
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545,885 | 808,998 | ||||||
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Non trade accounts receivable due from a non-related party
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104,108 | 100,974 | ||||||
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Non trade accounts receivable due from a related party
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603,423 | 556,516 | ||||||
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Prepayment to suppliers
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121,105 | 56,709 | ||||||
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Inventories
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1,010,633 | 1,380,371 | ||||||
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Prepaid expenses and other current assets
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140,747 | 284,577 | ||||||
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Total current assets
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5,957,803 | 4,430,443 | ||||||
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Property, plant and equipment - net
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1,264,636 | 1,154,446 | ||||||
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Total Assets
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7,222,439 | 5,584,890 | ||||||
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LIABILITIES AND EQUITY
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0 | 0 | ||||||
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Current Liabilities
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0 | 0 | ||||||
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Short-term debt
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1,207,967 | 1,171,612 | ||||||
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Accounts payable due from non-related parties
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3,029,795 | 3,409,526 | ||||||
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Accounts payable due to a related party
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71,547 | 47,663 | ||||||
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Advances from customers
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4,784 | 573,955 | ||||||
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Income and other taxes payable
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665,475 | 7,167 | ||||||
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Accrued expenses and other current liabilities
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134,920 | 73,816 | ||||||
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Total current liabilities
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5,114,488 | 5,283,739 | ||||||
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Equity
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0 | 0 | ||||||
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Common stock, ($1 par value, 50,000 shares authorized and Nil issued and outstanding)
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22,225 | 22,225 | ||||||
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Additional paid-in-capital
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276,638 | 298,899 | ||||||
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Statutory reserve
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172,216 | 0 | ||||||
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Retained earnings
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1,549,941 | -56,220 | ||||||
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Accumulated other comprehensive income
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86,931 | 36,247 | ||||||
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Total Equity
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2,107,951 | 301,150 | ||||||
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Total Liabilities and Equity
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7,222,439 | 5,584,890 | ||||||
Note 1 – BASIS OF PRESENTATION
In May, 2011, China Green Lighting Limited (“CGL”or the “Company”) entered into a Share Exchange Agreement with Transit Management Holding Corp., a Colorado corporation and its wholly-owned subsidiary, Transit Management, Inc., a Colorado corporation , whereby Transit Management Holding Corp. As a result of the reverse acquisition, the Company became Transit's wholly-owned subsidiary and the former shareholders of the Company became controlling stockholders of Transit. The share exchange transaction with Transit was treated as a reverse acquisition, with the Company as the accounting acquirer and Transit as the acquired party.
Consequently, the assets and liabilities and the historical operations that will be reflected in the consolidated financial statements for periods prior to the Share Exchange Agreement will be those of the Company and will be recorded at the historical cost basis. After the completion of the Share Exchange Agreement, the Company’s consolidated financial statements will include the assets and liabilities of the Company and Transit, the historical operations of the Company and the operations of Transit from the closing date of the Share Exchange Agreement.
These pro forma consolidated financial statements are prepared assuming the above transaction occurred on December 31, 2009 (as to the balance sheet) and on January 1, 2009 (as to the income statements).
Audited financial statements of the Company for years ended December 31, 2010 and 2009 and Transit for years ended November 30, 2010 and 2009 have been used in the preparation of these pro forma consolidated financial statements. These pro forma consolidated financial statements should be read in conjunction with the historical financial statements of Transit and the Company.
Base on the share exchange agreement between Transit Management Holding Corp. and China Green Lighting Limited on 13th day of May 2011. an aggregate of 29200 shares of Series A Convertible Preferred Stock, $0.10 par value will be issued at the closing date, which will be converted at 1 share of preferred stock for 1000 shares of common stock. At the same time, the company will approve a 1 for 3 reverse stock split of the outstanding common stock. Eventually, there will be 40,000,000 shares of the Company's common stock issued and outstanding. Earning per share will be $0.0452, 0.0016 for the year of 2010, 2009 respectively.