Attached files
| file | filename |
|---|---|
| 8-K/A - GREEN ENVIROTECH HOLDINGS CORP. FORM 8K/A - GREEN ENVIROTECH HOLDINGS CORP. | form8ka.htm |
| EX-99.1 - EXHIBIT 99.1 - GREEN ENVIROTECH HOLDINGS CORP. | ex991.htm |
Exhibit 99.2
GREEN ENVIROTECH HOLDINGS CORP.
Unaudited Proforma Consolidated Balance Sheet
December 31, 2010
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ASSETS
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GETH Balance Sheet Dec 31, 2010
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Magic Bright Balance Sheet Dec 31, 2010
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Adjustments
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Consolidated
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Current Assets:
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Cash
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$ | 26,184 | $ | 76,566 | A | 300,000 | B | 300,000 | $ | 102,750 | ||||||||||||
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Cash-Restricted
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- | 53,175 | $ | 53,175 | ||||||||||||||||||
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Accounts Receivable and Prepaids
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5,000 | 1,231,646 | $ | 1,236,646 | ||||||||||||||||||
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Amounts due from stockholders & related parties
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- | - | $ | - | ||||||||||||||||||
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Inventories
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15,496 | 807,575 | $ | 823,071 | ||||||||||||||||||
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Total Current Assets
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$ | 46,680 | $ | 2,168,962 | 300,000 | 300,000 | $ | 2,215,642 | ||||||||||||||
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Fixed Assets:
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Plant and equipment, net
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$ | 120,000 | $ | 1,697,069 | $ | 1,817,069 | ||||||||||||||||
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Construction in progress
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113,929 | - | $ | 113,929 | ||||||||||||||||||
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Total Fixed Assets
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$ | 233,929 | $ | 1,697,069 | $ | 1,930,998 | ||||||||||||||||
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Non-current Assets:
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Cash value of life insurance, net
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$ | - | $ | 38,398 | $ | 38,398 | ||||||||||||||||
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Deposits
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263,990 | $ | 263,990 | |||||||||||||||||||
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Investment Magic Bright
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B | 6,000,000 | D | 6,104,880 | $ | - | ||||||||||||||||
| C | 104,880 | |||||||||||||||||||||
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Investment Magic Bright - Goodwill
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- | D | 5,612,998 | $ | 5,612,998 | |||||||||||||||||
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Total Non-current Assets
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$ | 263,990 | $ | 38,398 | 11,717,878 | 6,104,880 | $ | 5,915,386 | ||||||||||||||
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TOTAL ASSETS
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$ | 544,599 | $ | 3,904,429 | $ | 12,017,878 | $ | 6,404,880 | $ | 10,062,026 | ||||||||||||
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LIABILITIES AND STOCKHOLDERS EQUITY
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GETH
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Magic Bright
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Adjustments |
Consolidated
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Current Liabilities:
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Short-term borrowings, secured
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$ | - | $ | 887,382 | $ | 887,382 | ||||||||||||||||
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Accounts payable and accrued expenses
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528,914 | 191,583 | 720,497 | |||||||||||||||||||
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Current portion of long-term debt
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- | 273,982 | 273,982 | |||||||||||||||||||
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Advances from customers
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- | 526,131 | 526,131 | |||||||||||||||||||
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Obligation under finance leases
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- | 7,747 | 7,747 | |||||||||||||||||||
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Income taxes payable
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- | 230,225 | 230,225 | |||||||||||||||||||
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Loan payable -other
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702,500 | - | A | 300,000 | 1,702,500 | |||||||||||||||||
| B | 700,000 | |||||||||||||||||||||
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Loan payable -related party
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304,696 | 35,975 | 340,671 | |||||||||||||||||||
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Total Current Liabilities
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$ | 1,536,110 | $ | 2,153,025 | $ | - | $ | 1,000,000 | $ | 4,689,135 | ||||||||||||
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Long-Term Liabilities
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Deferred tax liabilities
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$ | - | $ | 13,926 | $ | 13,926 | ||||||||||||||||
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Long-term liabilities
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- | 1,245,596 | 1,245,596 | |||||||||||||||||||
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Total Long-Term Liabilities
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$ | - | $ | 1,259,522 | $ | - | $ | - | $ | 1,259,522 | ||||||||||||
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TOTAL LIABILITIES
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$ | 1,536,110 | $ | 3,412,547 | $ | - | $ | 1,000,000 | $ | 5,948,657 | ||||||||||||
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STOCKHOLDERS EQUITY
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Peferred stock
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$ | - | $ | - | B | 1,000 | $ | 1,000 | ||||||||||||||
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Common stock
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63,517 | 1,285 | D | 1,285 | C | 184 | 63,701 | |||||||||||||||
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Additional paid in capital
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3,130,753 | - | B | 4,999,000 | 8,234,449 | |||||||||||||||||
| C | 104,696 | |||||||||||||||||||||
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Retained earnings
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(4,185,781 | ) | 487,020 | D | 487,020 | (4,185,781 | ) | |||||||||||||||
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Accumulated other comprehensive income (loss)
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3,577 | D | 3,577 | - | ||||||||||||||||||
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Total Equity
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$ | (991,511 | ) | $ | 491,882 | $ | 491,882 | $ | 5,104,880 | $ | 4,113,369 | |||||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 544,599 | $ | 3,904,429 | $ | 491,882 | $ | 6,104,880 | $ | 10,062,026 | ||||||||||||
1
GREEN ENVIROTECH HOLDINGS CORP.
Unaudited Proforma Consolidated Statement of Operations
For the Year Ended December 31, 2010 for GETH and
The Nine Months Ended December 31, 2010 for Magic Bright Limited
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GETH Year Ended Dec 31, 2010
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Magic Bright Nine Months Ended Dec 31, 2010
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Adjustments
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Consolidated
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Revenues
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$ | - | $ | 16,585,464 | $ | 16,585,464 | |||||||
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Cost of Revenues
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$ | 5,302 | $ | 15,781,522 | $ | 15,786,824 | |||||||
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Gross Profit
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$ | (5,302 | ) | $ | 803,942 | $ | 798,640 | ||||||
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Operating Expenses
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Wages and professional fees
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$ | 760,541 | $ | - | $ | 760,541 | |||||||
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Professional fees-common stock issued
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2,127,782 | - | 2,127,782 | ||||||||||
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General and administration
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333,741 | 450,706 | 784,447 | ||||||||||
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Total operating expenses
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$ | 3,222,064 | $ | 450,706 | $ | 3,672,770 | |||||||
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Total operating income (loss)
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$ | (3,227,366 | ) | $ | 353,236 | $ | (2,874,130 | ) | |||||
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Other income
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$ | (34,126 | ) | $ | (28,951 | ) | $ | (63,077 | ) | ||||
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Total income (loss) before income taxes
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$ | (3,261,492 | ) | $ | 324,285 | $ | (2,937,207 | ) | |||||
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Provision for income taxes
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$ | - | $ | 176,788 | $ | 176,788 | |||||||
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Net inome (loss)
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$ | (3,261,492 | ) | $ | 147,497 | $ | (3,113,995 | ) | |||||
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Per share, basic and diluted
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$ | (0.05 | ) | $ | 14.75 | $ | (0.05 | ) | |||||
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Weighted average number of share outstanding
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62,184,274 | 10,000 | 63,416,758 | ||||||||||
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Other comprehensive income
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$ | - | $ | 16,808 | $ | 16,808 | |||||||
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Total comprehensive income (loss)
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$ | (3,261,492 | ) | $ | 164,305 | $ | (3,097,187 | ) | |||||
2
GREEN ENVIROTECH HOLDINGS CORP.
Unaudited Proforma Consolidated Statement of Operations
For the Year Ended December 31, 2009 for GETH and
The Year Ended March 31, 2009 for Magic Bright Limited
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GETH Year Ended Dec 31, 2009
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Magic Bright Year Ended March 31, 2009
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Adjustments
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Consolidated
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Revenues
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$ | - | $ | 35,152,503 | $ | 35,152,503 | |||||||
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Cost of Revenues
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$ | - | $ | 34,305,962 | $ | 34,305,962 | |||||||
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Gross Profit
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$ | - | $ | 846,541 | $ | 846,541 | |||||||
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Operating Expenses
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Wages and professional fees
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$ | 498,183 | $ | - | $ | 498,183 | |||||||
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Professional fees-common stock issued
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- | - | - | ||||||||||
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General and administration
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81,257 | 948,695 | 1,029,952 | ||||||||||
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Total operating expenses
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$ | 579,440 | $ | 948,695 | $ | 1,528,135 | |||||||
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Total operating income (loss)
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$ | (579,440 | ) | $ | (102,154 | ) | $ | (681,594 | ) | ||||
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Other income and (expense)
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$ | (19,712 | ) | $ | (9,857 | ) | $ | (29,569 | ) | ||||
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Total income (loss) before income taxes
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$ | (599,152 | ) | $ | (112,011 | ) | $ | (711,163 | ) | ||||
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Provision for income taxes
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$ | - | $ | (15,446 | ) | $ | (15,446 | ) | |||||
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Net inome (loss)
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$ | (599,152 | ) | $ | (127,457 | ) | $ | (726,609 | ) | ||||
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Per share, basic and diluted
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$ | (0.01 | ) | $ | (12.75 | ) | $ | (0.01 | ) | ||||
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Weighted average number of share outstanding
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59,999,895 | 10,000 | 63,416,758 | ||||||||||
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Other comprehensive income
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$ | - | $ | 6,655 | $ | 6,655 | |||||||
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Total comprehensive income (loss)
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$ | (599,152 | ) | $ | (120,802 | ) | $ | (719,954 | ) | ||||
3
GREEN ENVIROTECH HOLDINGS CORP.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma consolidated financial statements give effect to the acquisition of Magic Bright Limited (“Magic Bright”) by Green EnviroTech Holdings Corp. (“GETH” and the “Company”) and are based on estimates and assumptions set forth herein and in the notes to such pro forma statements.
During the third quarter of 2010, the Company issued a Letter of Intent to explore the possibility of purchasing Magic Bright for cash and stock. On February 14, 2011, the Company entered into a Securities Purchase Agreement with Magic Bright. Pursuant to the Purchase Agreement, the Company agreed to purchase, and the stockholders of Magic Bright agreed to sell, all of the issued shares of Magic Bright. On March 30, 2011, GETH executed the Purchase Agreement with Magic Bright and upon closing of the transaction Magic Bright became a wholly-owned subsidiary of GETH.
In accordance with the Purchase Agreement, the 10,000 issued and outstanding shares of common stock of Magic Bright became that of GETH. The Company paid $6,104,880, consisting of $1,000,000 in cash, $5,000,000 in preferred stock and $104,880 in common stock. There was $300,000 cash paid at closing and the balance to be paid over the next three quarters of 2011. There was issued $5,000,000 in securities represented by 1,000,000 shares of Magic Bright Acquisition Series Convertible Preferred Stock with a stated value of $5.00 per share and 184,000 shares of the Company’s common stock valued at $104,880 issued to the employees of Magic Bright.
This transaction is being accounted for as an acquisition wherein Magic Bright became a wholly owned subsidiary of GETH.
The following unaudited pro forma consolidated statement of operations for the year ended December 31, 2010 for GETH and the nine months ended December 31, 2010 for Magic Bright gives effect to the above as if the transactions had occurred at the beginning of the period. The unaudited pro forma consolidated balance sheet at December 31, 2010 assumes the effects of the above as if this transaction had occurred as of January 1, 2010.
4
GREEN ENVIROTECH HOLDINGS CORP.
PRO FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSThe unaudited pro forma consolidated financial statements are based upon, and should be read in conjunction with GETH’s audited financial statements as of and for the two years ended December 31, 2010 and 2009.
The unaudited pro forma consolidated financial statements and notes thereto contained forward-looking statements that involve risks and uncertainties. Therefore, our actual results may vary materially from those discussed herein. The unaudited pro forma consolidated financial statements do not purport to be indicative of the results that would have been reported had such events actually occurred on the dates specified, nor is it indicative of the Company’s future results.
5
GREEN ENVIROTECH HOLDINGS CORP.
NOTES TO UNAUDITED PRO FORMACONSOLIDATED FINANCIAL STATEMENTS
NOTE A– ACCOUNTING TREATMENT APPLIED AS A RESULT OF THIS TRANSACTION
The transaction is being accounted for as an acquisition. GETH is the acquirer for accounting purposes. Magic Bright becomes the subsidiary. Accordingly, Magic Bright’s Balance Sheet and Operations are combined with GETH after the date of acquisition.
NOTE B – ADJUSTMENTS
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(a)
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To record the loan for the cash needed at closing for the acquisition of Magic Bright Limited.
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(b)
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To record the acquisition of Magic Bright Limited which called for the issue of 1,000,000 shares of preferred stock valued at $5 per share, cash and a short term liability due in twelve months.
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(c)
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To record the 184,000 shares of common stock issued to the employees of Magic Bright as a condition of closing.
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(d)
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To record the elimination entry associated with the combined statement.
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NOTE C – PRO FORMA WEIGHTED AVERAGES SHARES OUTSTANDING
Pro forma shares outstanding assuming the transaction occurred as of December 31, 2010.
| Green EnviroTech Holdings Corp. Shares Outstanding | 62,184,274 |
| Preferred Shares issued in acquisition | 1,000,000 |
| Pro forma shares outstanding: | |
| Common | 62,184,274 |
| Preferred | 1,000,000 |
6