Attached files
| file | filename |
|---|---|
| 8-K/A - Iveda Solutions, Inc. | v228816_8ka.htm |
| EX-99.1 - Iveda Solutions, Inc. | v228816_ex99-1.htm |
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Iveda and Megasys
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Pro Forma Condensed Consolidated
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Iveda Solution
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Megasys
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Consolidated
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Balance Sheet
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For the period
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For the period
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Pro Forma
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For the period
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For the Four Month Period 4/30/11
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ended 4/30/2011
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ended 4/30/2011
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Adjustments
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ended 4/30/2011
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ASSETS
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CURRENT ASSETS
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Cash and Cash Equivalents
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262,999 | 740,561 | 1,003,560 | |||||||||||||
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Accounts Receivable
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172,649 | 588,726 | 761,375 | |||||||||||||
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Prepaid Expenses
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14,116 | 32,834 | 46,950 | |||||||||||||
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Note Receivables
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13,435 | 13,435 | ||||||||||||||
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Advances to Suppliers
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17,435 | 17,435 | ||||||||||||||
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Tender Deposits
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239,573 | 239,573 | ||||||||||||||
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Advances to Employees
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19,468 | 19,468 | ||||||||||||||
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Inventory
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9,606 | 121,822 | 131,428 | |||||||||||||
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Total Current Assets
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459,370 | 1,773,854 | 2,233,224 | |||||||||||||
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PROPERTY AND EQUIPMENT
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Office Equipment
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212,764 | 39,348 | 252,112 | |||||||||||||
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Furniture and Fixtures, moldings
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27,805 | 5,649 | 33,454 | |||||||||||||
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Software
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47,966 | 164,458 | 212,424 | |||||||||||||
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Leased Equipment
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247,792 | 247,792 | ||||||||||||||
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Vehicles
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40,264 | 40,264 | ||||||||||||||
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Leasehold Improvements
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36,964 | 11,955 | 48,919 | |||||||||||||
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Total Property and Equipment
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573,291 | 261,674 | 834,965 | |||||||||||||
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Less: Accumulated Depreciation
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295,713 | 240,996 | 536,709 | |||||||||||||
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Property and Equipment, Net
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277,578 | 20,678 | 298,256 | |||||||||||||
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OTHER ASSETS
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Deposits
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9,014 | 9,014 | ||||||||||||||
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Restricted cash
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13,956 | 13,956 | ||||||||||||||
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Intangible assets
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330,000 | (a) | 330,000 | |||||||||||||
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Investment in Megasys/Goodwill
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1,666,000 | 130,710 | (a) | 1,796,710 | ||||||||||||
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Total Assets
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$ | 2,411,962 | $ | 1,808,488 | $ | 460,710 | $ | 4,681,160 | ||||||||
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LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY CURRENT LIABILITIES
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Accounts Payable
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71,705 | 153,046 | 224,751 | |||||||||||||
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Accrued Expenses
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61,221 | 57,487 | 118,708 | |||||||||||||
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Current Portion of Capital Lease
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32,726 | 32,726 | ||||||||||||||
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Bank Loans - Short Term
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70,047 | 70,047 | ||||||||||||||
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Income Tax Payable
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230,183 | 230,183 | ||||||||||||||
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Notes Payable
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44,904 | 44,904 | ||||||||||||||
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Deferred Tax Liability
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50,410 | 50,410 | ||||||||||||||
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Customer Deposits
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- | |||||||||||||||
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Deferred Revenue
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6,686 | 27,121 | 33,807 | |||||||||||||
| - | ||||||||||||||||
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Total Current Liabilities
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172,338 | 633,198 | 805,536 | |||||||||||||
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LONG-TERM LIABILITIES
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Capital Lease, Net Current Portion
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6,248 | 6,248 | ||||||||||||||
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Total Liabilities
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178,586 | 633,198 | 811,784 | |||||||||||||
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STOCKHOLDERS' (DEFICIT) EQUITY
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Common Stock, $0.00001 par value;
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162 | 883,630 | (883,630 | ) (b) | 182 | |||||||||||
| 20 | (c) | |||||||||||||||
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Additional Paid-In Capital
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9,732,130 | 23,490 | 1,635,980 | (c) | 11,368,110 | |||||||||||
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Accumulated Comprehensive Income
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116,455 | (116,455 | ) (b) | |||||||||||||
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Accumulated Deficit
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(7,498,916 | ) | 175,205 | (175,205 | ) (b) | (7,498,916 | ) | |||||||||
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Total Stockholders' Equity
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2,233,376 | 1,175,290 | 3,869,376 | |||||||||||||
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Total Liabilities and Stockholders' Equity
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$ | 2,411,962 | $ | 1,808,488 | $ | 460,710 | $ | 4,681,160 | ||||||||
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Iveda and Megasys
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Pro Forma Condensed Consolidated
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Iveda Solutions
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Megasys
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Pro Forma
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Pro Forma
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Statement of Operations
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For Year ended
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For Year ended
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Adjustments
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Consolidated
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For the Year Ended 12/31/10
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12/31/2010
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12/31/2010
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12/31/2010
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REVENUE
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940,008 | 5,590,417 | 6,530,425 | |||||||||||||
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COST OF REVENUE
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587,748 | 3,814,549 | 4,402,297 | |||||||||||||
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GROSS PROFIT
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352,260 | 1,775,868 | 2,128,128 | |||||||||||||
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OPERATING EXPENSES
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2,271,772 | 748,992 | 461,805 | (d) | 3,482,569 | |||||||||||
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LOSS FROM OPERATIONS
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(1,919,512 | ) | 1,026,876 | 461,805 | (d) | (1,354,411 | ) | |||||||||
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OTHER INCOME (EXPENSE)
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Interest Income
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1,043 | 418 | 1,461 | |||||||||||||
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Interest Expense
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(16,920 | ) | (23,732 | ) | (40,652 | ) | ||||||||||
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Total Other Income (Expense)
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(15,877 | ) | (23,314 | ) | (39,191 | ) | ||||||||||
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INCOME (LOSS) BEFORE INCOME TAXES
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(1,935,389 | ) | 1,003,562 | 461,805 | (d) | (1,393,632 | ) | |||||||||
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BENEFIT (PROVISION) FOR INCOME TAXES
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- | (223,136 | ) | (223,136 | ) | |||||||||||
| (1,935,389 | ) | 780,426 | 461,805 | (d) | (1,616,768 | ) | ||||||||||
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Foreign Currency translation
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94,978 | 94,978 | ||||||||||||||
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NET LOSS
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(1,935,389 | ) | 875,404 | 461,805 | (d) | (1,521,790 | ) | |||||||||
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BASIC AND DILUTED LOSS PER SHARE
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$ | (0.14 | ) | $ | (0.10 | ) | ||||||||||
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WEIGHTED AVERAGE SHARES
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13,998,210 | 15,698,210 | ||||||||||||||
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Iveda and Megasys
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Pro Forma Condensed Consolidated
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Iveda Solutions
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Megasys
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Pro Forma
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Pro Forma
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Statement of Operations
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For Four months
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For Four months
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Adjustments
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Consolidated
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For the Four Months Ended 4/30/11
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ended 4/30/2011
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ended 4/30/2011
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4/30/2011
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REVENUE
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375,914 | 530,274 | 906,188 | |||||||||||||
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COST OF REVENUE
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203,715 | 364,546 | 568,261 | |||||||||||||
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GROSS PROFIT
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172,199 | 165,728 | 337,927 | |||||||||||||
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OPERATING EXPENSES
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960,659 | 136,687 | (305,138 | ) (e) | 792,208 | |||||||||||
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INCOME (LOSS) FROM OPERATIONS
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(788,460 | ) | 29,041 | 305,138 | (e) | (454,281 | ) | |||||||||
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OTHER INCOME (EXPENSE)
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Miscellaneous Income
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295 | 295 | ||||||||||||||
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Interest Income
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264 | 23 | 287 | |||||||||||||
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Interest Expense
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(15,622 | ) | (1,058 | ) | (16,680 | ) | ||||||||||
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Total Other Income (Expense)
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(15,358 | ) | (740 | ) | (16,098 | ) | ||||||||||
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INCOME (LOSS) BEFORE INCOME TAXES
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(803,818 | ) | 28,301 | 305,138 | (e) | (470,379 | ) | |||||||||
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BENEFIT (PROVISION) FOR INCOME TAXES
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- | (4,811 | ) | (4,811 | ) | |||||||||||
| (803,818 | ) | 23,490 | 305,138 | (e) | (475,190 | ) | ||||||||||
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Foreign Currency translation
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14,635 | 14,635 | ||||||||||||||
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NET INCOME (LOSS)
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$ | (803,818 | ) | $ | 38,125 | 305,138 | (e) | $ | (460,555 | ) | ||||||
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BASIC AND DILUTED LOSS PER SHARE
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$ | (0.06 | ) | $ | (0.03 | ) | ||||||||||
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WEIGHTED AVERAGE SHARES
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13,715,549 | 15,415,549 | ||||||||||||||
NOTES TO THE UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
The unaudited pro forma condensed consolidated statement of income for the twelve months ended December 31, 2010 gives effect to the consolidated results of operations as if the merger occurred at January 1, 2010. The unaudited pro forma condensed consolidated statement of income for the four months ended April 30, 2011 gives effect to the consolidated results of operations as if the merger occurred at January 1, 2010. These results are not necessarily indicative of the consolidated results of operations of the Company as they may be in the future, or as they might have been had these events been effective at January 1, 2010 . The unaudited pro forma condensed consolidated balance sheet gives effect to the financial position at April 30, 2011 reflecting the merger on April 30, 2011. The unaudited pro forma condensed consolidated financial information should be read in conjunction with the historical financial statements of the Company and Megasys and the related notes thereto.
PRO FORMA ADJUSTMENTS FOR THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET AT APRIL 30, 2011:
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(a)
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Gives effect to the preliminary allocation of the purchase price to intangible assets and goodwill in exchange for 1,7000,000 shares of Iveda Solutions common stock plus contingent consideration of 2,000,000 shares of Iveda Solutions common stock if certain financial goals are attained by MegaSys.
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(b)
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Gives effect to the Equity of MegaSys not acquired in the acquisition.
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(c) Gives effect to the estimated value of the contingent consideration of 2,000,000 shares of Iveda Solutions common stock.
PRO FORMA ADJUSTMENTS FOR THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010 AND THE FOUR MONTHS ENDED APRIL 30, 2011:
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(d)
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Gives effect to the costs associated with the acquisition of MegaSys being incurred in the year ended December 31, 2010 plus the amortization of Intangible Assets allocated from the Purchase Price.
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(e)
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Gives effect to allocating the costs associated with the acquisition of MegaSys to the year ended December 31, 2010 offset by the amortization of Intangible Assets allocated from the Purchase Price.
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The preliminary purchase price allocation is as follows:
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Cash
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$ | 740,561 | ||
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Accounts Receivable
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588,726 | |||
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Propert and Equipment
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20,678 | |||
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Other Assets
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458,523 | |||
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Intangible Assets
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330,000 | |||
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Goodwill
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1,796,710 | |||
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Liabilities Assumed
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(633,198 | ) | ||
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Total Purchase Price
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$ | 3,302,000 |
NOTE: The Company is still in the process of evaluating the fair value of the assets acquired and the liabilities assumed in order to make a final determination of the excess purchase price, including allocation to the intangibles other than goodwill. Accordingly, the purchase accounting information is preliminary and has been made solely for the purpose of developing such pro forma condensed consolidated financial information. Based on current information, the preliminary determination of the cost in excess of the net assets acquired and the allocation to goodwill and intangible assets should not materially differ from the final determination.