Ziyang Ceramics Corp - FORM 8-K/A - EX-99.2 - UNAUDITED PRO FORMA BALANCE SHEET AS OF MARCH 31, 2011 AND UNAUDITED PRO FORMA STATEMENTS OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2010 AND THE THREE MONTHS ENDED MARCH 31, 2011. - September 12, 2011

Attached files

file filename
EX-21.1 - SUBSIDIARIES OF THE REGISTRANT - Ziyang Ceramics Corpexh21-1.htm
EX-10.30 - PEOPLES REPUBLIC OF CHINA MINING PERMIT DATED JUNE 7, 2009 FOR THE MENG FAMILY ZHUANG ZI VILLAGE CLAY QUARRY MINE. - Ziyang Ceramics Corpexh10-30.htm
EX-10.33 - PEOPLES REPUBLIC OF CHINA MINING PERMIT DATED NOVEMBER 2, 2009 FOR THE PAN FAMILY VILLAGE QUARRY MINE. - Ziyang Ceramics Corpexh10-33.htm
EX-10.34 - PEOPLES REPUBLIC OF CHINA MINING PERMIT DATED MARCH 5, 2009 FOR THE WEI JIN ZI CLAY QUARRY MINE. - Ziyang Ceramics Corpexh10-34.htm
EX-10.25 - OPTION AGREEMENT DATED JUNE 29, 2011 BETWEEN BEST ALLIANCE WORLDWIDE INVESTMENTS LIMITED AND CERTAIN SHAREHOLDERS OF ZIYANG CERAMIC COMPANY LIMITED. - Ziyang Ceramics Corpexh10-25.htm
EX-10.32 - PEOPLES REPUBLIC OF CHINA MINING PERMIT DATED AUGUST 3, 2008 FOR THE ZHU PAN SAN VILLAGE CLAY QUARRY MINE. - Ziyang Ceramics Corpexh10-32.htm
EX-10.31 - PEOPLES REPUBLIC OF CHINA MINING PERMIT DATED FEBRUARY 9, 2007 FOR THE WA DIAN SHI JIA LAKE QUARRY MINE. - Ziyang Ceramics Corpexh10-31.htm
8-K/A - CHINA AMERICA HOLDINGS, INC. FORM 8-K/A DATED SEPTEMBER 12, 2011 - Ziyang Ceramics Corpcaah8-ks.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF ZIYANG CERAMIC COMPANY LIMITED AS OF DECEMBER 31, 2009 AND 2008 AND UNAUDITED FINANCIAL STATEMENTS OF SHAOXING HIGH SCHOOL AS OF SEPTEMBER 30, 2010 AND 2009. - Ziyang Ceramics Corpexh99-1.htm
 
Exhibit 99.2
 
The following unaudited pro forma financial statements of China America Holdings, Inc., (“CAAH”) are based on, and should be read in conjunction with:
 
1.
CAAH’s audited financial statements for the fiscal year ended September 30, 2011, its unaudited financial statements for the quarters ended December 31, 2010 and 2009 and March 31, 2011 and the related notes thereto, which are incorporated by reference into this Current Report on Form 8-K;
 
2.
The audited financial statements of Zhucheng Ziyang Ceramic Co., Ltd, (“Ziyang”) for the years ended December 31, 2010 and 2009, the unaudited financial statements of Ziyang, for the three months ended March 31, 2011 and the "Management's Discussion and Analysis of Financial Condition and Results of Operations" for such periods, all of which appear elsewhere in this report.
 
The pro forma financial statements give effect to the reverse acquisition and recapitalization of CAAH and the consolidation of Ziyang as a wholly owned subsidiary, as well as the additional shares of common stock and convertible notes payable issued in conjunction with the reverse acquisition and recapitalization , as if the transaction had taken place on the date or at the beginning of the periods presented. The convertible notes payable were accounted for as equity in accordance with ASC 505 as they provide for automatic conversion into our common shares upon completion of the 400 to 1 reverse share split.
 
In addition, CAAH completed the sale of its only operational subsidiary, Aohong Chemical Co., Ltd, on June 10, 2011, rendering CAAH a shell company in accordance with SEC regulation AB. To provide more meaningful information reflecting the financial positions and results of operations of the shell company, the pro forma financial statements give effect to the sale of the discontinued operations, as if the transaction had taken place on the date or at the beginning of the periods presented.
 
In June 2011, shareholders of Ziyang formed China Ziyang Technology (“CZT”) under the laws of Hong Kong. On June 29, 2011, CZT acquired 100% of the equity interest in Ziyang from its shareholders for RMB 50 million ($7,725,439). On a consolidated basis, CZT’s financials were eliminated due to common ownership with Ziyang.
 
The unaudited pro forma financial statements of CAAH are for informational purposes only, are not indications of future performance, and should not be considered indicative of actual results that would have been achieved had the recapitalization transactions actually been consummated on the date or at the beginning of the periods presented.

 
- 1 -
 
 

CHINA AMERICA HOLDINGS, INC. AND SUBSIDIARIES
  
UNAUDITED PROFORMA CONSOLIDATED BALANCE SHEET
  
March 31, 2011
  
                                   
   
China America Holdings Historical
    
Sale of CAAH Discontinued Operations
      
Ziyang Ceramic Historical
    
Pro Forma Adjustments
      
Pro Forma Consolidated
  
                                   
ASSETS
                                  
CURRENT ASSETS:
                                  
Cash
  
$
9,558
            
$
6,007,343
            
$
6,016,901
  
Notes receivable
          
$
1,728,340
  
(c )
                    
1,728,340
  
Accounts receivable
                      
315,757
              
315,757
  
Inventories, net
                      
2,706,745
              
2,706,745
  
Loan receivable
                      
3,206,058
              
3,206,058
  
Prepaid expenses and other assets
                      
362,024
              
362,024
  
Assets of discontinued operations
    
38,192,385
      
(38,192,385
)
                      
-
  
Total current assets
    
38,201,943
      
(36,464,045
)
      
12,597,927
              
14,335,825
  
                                           
Restricted cash
                      
549,610
              
549,610
  
Property and equipment, net
                      
10,436,041
              
10,436,041
  
Intangible assets, net
                      
2,768,156
              
2,768,156
  
Other long term assets
                      
160,651
              
160,651
  
                                           
Total assets
  
$
38,201,943
    
$
(36,464,045
)
    
$
26,512,385
    
$
-
      
$
28,250,283
  
                                             
LIABILITIES AND SHAREHOLDERS' EQUITY
                                            
CURRENT LIABILITIES:
                                            
Loans payable - short term
                    
$
7,404,467
              
$
7,404,467
  
Notes payable
  
$
1,780,000
    
$
(1,780,000
)
(c )
    
549,610
                
549,610
  
Notes payable-related party
    
554,000
                       $ 
500,000
  
(e)
    
1,054,000
  
Accounts payable and accrued expenses
    
92,586
                
1,636,968
                
1,729,554
  
Other payables
                      
881,342
                
881,342
  
Advance from customers
                      
198,025
                
198,025
  
Dividend payable
                      
3,053,388
                
3,053,388
  
Taxes payable
                      
442,721
                
442,721
  
Due to related parties
    
397,063
                                  
397,063
  
Derivative Liability
    
53,437
                                  
53,437
  
Liabilities of discontinued operations
    
27,788,227
      
(27,788,227
)
                        
-
  
Total current liabilities
    
30,665,313
      
(29,568,227
)
      
14,166,521
      
500,000
        
15,763,607
  
                                             
Loans payable - long term
                      
229,004
                
229,004
  
                                             
          Total Liabilities
    
30,665,313
      
(29,568,227
)
      
14,395,525
      
500,000
        
15,992,611
  
                                             
SHAREHOLDERS' EQUITY:
                                            
China America Holdings, Inc. shareholders' equity
                                            
Common stock
    
192,711
                      
$
236,014
  
(a)
    
428,725
  
Additional paid-in capital
    
20,566,787
                
7,294,797
      
(20,854,700
)
(b)
    
7,006,884
  
Statutory reserves
    
792,352
      
(792,352
)
(d)
    
2,106,043
                
2,106,043
  
(Accumulated deficit ) Retained earnings
    
(20,884,101
)
    
765,415
  
(d)
    
2,125,797
      
20,118,686
  
(f)
    
2,125,797
  
Accumulated other comprehensive income
    
736,044
      
(736,044
)
(d)
    
590,223
                
590,223
  
Total China America Holdings, Inc. shareholders' equity
    
1,403,793
      
(762,981
)
      
12,116,860
      
(500,000
)
      
12,257,672
  
Noncontrolling interest
    
6,132,837
      
(6,132,837
)
(d)
                      
-
  
Total shareholders' equity
    
7,536,630
      
(6,895,818
)
      
12,116,860
      
(500,000
)
      
12,257,672
  
Total liabilities and equity
  
$
38,201,943
    
$
(36,464,045
)
    
$
26,512,385
    
$
-
      
$
28,250,283
  



 
- 2 -
 
 

 
(a)
Denoted 236,013,800 shares of CAAH common stock issued to the former shareholders of Ziyang Ceramic at par value of $0.001.
(b)
Denoted: 1) 236,013,800 shares of CAAH common stock issued to Best Alliance Worldwide Investments, Limited ("BAW"), valued at $0.018 per share based on the closing price at the acquisition date of June 30, 2011. The resulting amount of $4,248,248 was debited to additional paid in capital as a recapitalization, with corresponding credits to common stock of $236,014 and to additional paid in capital of $4,012,235.
               2) P romissory notes issued to BAW convertible to 7,369,966 shares of CAAH common stock after giving effect to a 400 to 1 reverse stock split issued to BAW, deemed as equity in accordance with ASC 505 as the terms provides for automatic conversion upon completion of the 400 to 1 reverse split. The promissory notes bear the nominal amounts of $14,739,932, which were debited to additional paid in capital with corresponding credits to additional paid in capital;
               3) P romissory note issued to China Direct convertible to 1,538,223 shares of CAAH common stock after giving effect to a 400 to 1 reverse stock split, deemed as equity in accordance with ASC 505 as the terms provides for automatic conversion upon completion of the 400 to 1 reverse split. The promissory note is valued at $0.018 per share based on the closing price at the acquisition date of June 30, 2011. The resulting amount of $11,075, 206 was debited to additional paid in capital with a corresponding credit to additional paid in capital; and
               4) $500,000 as portion of the consulting fee to be paid to consultants.
               
(c )
The sale price of the discontinued operations was $3,508,340, settled through forgiveness of a note payable C AAH owed the purchaser of $1,780,000 and receipt of a note receivable of $1,728,340 the purchaser tendered to CAAH.
(d)
Denoted the elimination of equity items associated with the subsidiary sold and related loss from disposition of the subsidiary.
(e)
Denoted the $500,000 cash portion of the consulting fee to be paid to consultants for services provided to CAAH in conjunction with the recapitalization transaction.
(f)
Denoted elimination of the sum of accumulated deficit of CAAH’s historical retained earnings ($20,884,101) net of the effects to retained earnings upon the ale of CAAH’s Discontinued Operations ($765,415).

 
- 3 -
 
 


 
CHINA AMERICA HOLDNGS, INC. AND SUBSIDIARIES
  
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
YEAR ENDED DECEMBER 31, 2010
  
                               
   
China America Holdings
Historical
    
Sale of CAAH Discontinued Operations
      
Ziyang Ceramic
Historical
    
Pro Forma
Adjustments
      
Pro Forma
Consolidated
  
                                   
Net revenues
                
$
31,101,051
            
$
31,101,051
  
Cost of sales
                  
20,234,098
              
20,234,098
  
Gross profit
                  
10,866,953
              
10,866,953
  
                                       
Operating expenses:
                                      
Selling expenses
                  
171,631
              
171,631
  
Consulting expense-related party
  
$
538,825
                              
538,825
  
General and administrative
    
143,662
              
1,646,333
              
1,789,995
  
Total operating expenses
    
682,487
              
1,817,964
      
-
        
2,500,451
  
                                           
Income (loss) from continuing operations
    
(682,487
)
            
9,048,989
      
-
        
8,366,502
  
                                           
Other income (expenses):
                                          
Interest expense
                    
(327,187
)
              
(327,187
)
Interest expense-related party
    
(18,905
)
                              
(18,905
)
Other income (expenses)
    
(105,806
)
            
(939
)
              
(106,745
)
Gain on change in fair value of derivative liability
    
129,313
                                
129,313
  
Total other income (expenses)
    
4,602
              
(328,126
)
    
-
        
(323,524
)
Net income (loss) from continuing operations before income taxes
    
(677,885
)
            
8,720,863
      
-
        
8,042,978
  
                                           
Discontinued operations:
                                          
Income from discontinued operations
    
1,710,546
    
$
(1,710,546
)
(a)
                      
-
  
Loss on disposal of discontinued operations
    
(2,902,212
)
    
2,902,212
  
(a)
                      
-
  
Total (loss) income from discontinued operations
    
(1,191,666
)
    
1,191,666
                          
-
  
(Loss) income before income taxes
    
(1,869,551
)
    
1,191,666
        
8,720,863
                
8,042,978
  
Income taxes
    
(520,630
)
    
520,630
  
(a)
    
(1,452,993
)
              
(1,452,993
)
Net (loss) income
    
(2,390,181
)
    
1,712,296
        
7,267,870
      
-
        
6,589,985
  
Income attributable to noncontrolling interest
    
(522,611
)
    
522,611
  
(a)
                      
-
  
Net (loss) income attributable to China America Holdings, Inc.
  
$
(2,912,792
)
  
$
2,234,907
      
$
7,267,870
    
$
-
      
$
6,589,985
  
                                             
Basic and diluted income (loss) per common share
                                            
Income (loss) from continuing operation
  
$
(0.00
)
  
$
0.00
                        
$
0.02
  
Income (loss) from discontinued operations
  
$
      
$
1.01
                        
$
0.00
  
   
$
0.98
    
$
1.01
                        
$
0.02
  
Weighted common shares outstanding- basic and diluted
    
168,823,503
      
168,823,503
                
236,013,800
 
(b)
     
404,837,303
 
 
(a)
Denoted the elimination of results of operations derived from discontinued operations.
(b)
Denoted the shares of China America Holdings, Inc common stock issued in conjunction with the reverse acquisition and recapitalization of China Ziyang Technology on the June 30, 2011 closing date.


 
- 4 -
 
 


CHINA AMERICA HOLDNGS, INC. AND SUBSIDIARIES
  
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
  
THREE MONTHS ENDED MARCH 31, 2011
  
   
   
 
China America Holdings Historical
    
Sale of CAAH Discontinued Operations
      
 
Ziyang Ceramic Historical
    
 
Pro Forma Adjustments
      
 
Pro Forma Consolidated
  
                                   
Net revenues
                
$
7,483,617
            
$
7,483,617
  
Cost of sales
                  
4,843,704
              
4,843,704
  
Gross profit
                  
2,639,913
              
2,639,913
  
                                       
Operating expenses:
                                      
Selling expenses
                  
49,256
              
49,256
  
Consulting expense-related party
  
$
34,400
                              
34,400
  
General and administrative
    
19,875
              
473,684
      
-
        
493,559
  
Total operating expenses
    
54,275
              
522,940
      
-
        
577,215
  
                                           
Income (loss) from continuing operations
    
(54,275
)
            
2,116,973
      
-
        
2,062,698
  
                                           
Other income (expenses):
                                          
Interest expense
                    
(29,149
)
              
(29,149
)
Interest expense-related party
    
(5,267
)
                              
(5,267
)
Other income (expenses)
    
-
              
(38
)
              
(38
)
Gain on change in fair value of derivative liability
    
6,608
                                
6,608
  
Total other income (expenses)
    
1,341
              
(29,187
)
    
-
        
(27,846
)
Net income (loss) from continuing operations before income taxes
    
(52,934
)
            
2,087,786
      
-
        
2,034,852
  
                                           
Discontinued operations:
                                          
Income from discontinued operations
    
565,259
    
$
(565,259
)
 
(a)
                      
-
  
Loss on disposal of discontinued operations
    
(316,997
)
    
316,997
  
 
(a)
                      
-
  
Total income from discontinued operations
    
248,262
      
(248,262
)
                        
-
  
Income before income taxes
    
195,328
      
(248,262
)
      
2,087,786
                
2,034,852
  
Income taxes
                      
(353,178
)
              
(353,178
)
Net income
    
195,328
      
(248,262
)
      
1,734,608
      
-
        
1,681,674
  
Income attributable to noncontrolling interest
    
(248,262
)
    
248,262
  
(a)
                      
-
  
Net (loss) income attributable to China America Holdings, Inc.
  
$
(52,934
)
  
$
-
      
$
1,734,608
    
$
-
      
$
1,681,674
  
                                             
Basic and diluted income (loss) per common share
                                            
Income (loss) from continuing operation
  
$
(0.00
)
  
$
0.00
                        
$
0.00
  
Income (loss) from discontinued operations
  
$
1.00
    
$
1.00
                        
$
0.00
  
   
$
1.00
    
$
1.00
                        
$
0.00
  
Weighted common shares outstanding- basic and diluted
    
191,542,253
      
191,542,253
                
236,013,800
 
(b)
    
427,556,053
 
 
(a)
Denoted the elimination of results of operations derived from discontinued operations.
(b)
Denoted the shares of China America Holdings, Inc common stock issued in conjunction with the reverse acquisition and recapitalization of China Ziyang Technology on the June 30, 2011 closing date .



 
- 5 -
 

Stock widget

Investing forum

Ziyang Ceramics Corp Reports