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8-K/A - VISUALANT INCvisualant-060810_8k2nd.htm
EX-23.1 - MADSEN & ASSOCIATES CPA'S, CONSENT - VISUALANT INCexhibit_23-1.htm
EX-99.1 - TRANSTECH SYSTEMS, INC. AUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR - VISUALANT INCexhibit_99-1.htm
EX-99.3 - THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS OF THE CO - VISUALANT INCexhibit_99-3.htm

VISUALANT, INC. AND SUBSIDIARIES
 
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
 
AS OF
 
 
     
Historical
   
Historical
TransTech
         
EXHIBIT 99.2
 
     
Visualant, Inc.
   
Systems, Inc.
             
     
Audited
   
Audited
   
Pro Forma
   
Pro Forma
 
     
September 30, 2009
   
December 31, 2009
   
Adjustments
   
Combined
 
ASSETS
                       
CURRENT ASSETS:
                       
 
Cash and cash equivalents
  $ 5,325     $ 34,619     $ -     $ 39,944  
 
Accounts receivable, net of allowance of $0 and $16,750, respectively
    -       780,788       -       780,788  
 
Prepaid expenses
    6,514       16,461       -       22,975  
 
Inventories
    -       423,425       -       423,425  
 
Notes receivable
    -       31,408       -       31,408  
 
Total current assets
    11,839       1,286,701       -       1,298,540  
                                   
EQUIPMENT, NET
    -       601,418       -       601,418  
                                   
OTHER ASSETS:
                               
 
Intangible assets, net
    -       -       927,875       927,875  
 
Goodwill
    -       -       983,645       983,645  
 
Investment in Novabeam, Inc.
    50       -       -       50  
 
Other assets
    -       1,091       -       1,091  
                                   
 
TOTAL ASSETS
  $ 11,889     $ 1,889,210     $ 1,911,520     $ 3,812,619  
 
                               
LIABILITIES AND STOCKHOLDERS' DEFICIT
                               
CURRENT LIABILITIES:
                               
 
Accounts payable - trade
  $ 209,159     $ 776,305     $ -     $ 985,464  
 
Accounts payable - related parties
    156,367       -       -       156,367  
 
Accrued liabilities
    133,407       33,070       -       166,477  
 
Accrued liabilities - related parties
    722,346       -       -       722,346  
 
Note payable - current portion of long term debt
    157,072       509,247       650,000       1,316,319  
                                   
 
Total current liabilities
    1,378,351       1,318,622       650,000       3,346,973  
                                   
LONG TERM  LIABILITIES:
                               
 
Long term debt
    -       13,840       1,650,000       1,663,840  
                                   
STOCKHOLDERS' DEFICIT:
                               
 
Preferred stock - $0.001 par value, 50,000,000 shares authorized, no shares
                               
 
issued and outstanding
    -       -       -       -  
 
Common stock - $0.001 par value, 100,000,000 shares authorized, 29,162,707 and
    -       -       -       -  
 
and 0 shares issued and outstanding
    29,162       25,000       (21,200 )     32,962  
 
Additional paid in capital
    6,229,733       600,000       (469,208 )     6,360,525  
 
Accumulated deficit
    (7,625,357 )     (101,910 )     101,910       (7,625,357 )
 
Total stockholders' deficit
    (1,366,462 )     523,090       (388,498 )     (1,231,870 )
 
Noncontrolling interest
    -       33,658       -       33,658  
                                   
 
TOTAL LIABILITIES & STOCKHOLDERS' DEFICIT
  $ 11,889     $ 1,889,210     $ 1,911,502     $ 3,812,601  
                                   
The accompanying notes are an integral part of these unaudited pro forma combined condensed consolidated financial statements.
 
The unaudited Consolidated Balance Sheet of the Company as of June 30, 2010 is consolidated with TransTech and is included in the Form 10-Q filed with the SEC on August 12, 2010. 
 


 
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VISUALANT, INC. AND SUBSIDIARIES
 
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                         
   
Historical
   
Historical
TransTech
             
   
Visualant, Inc.
   
Systems, Inc.
         
EXHIBIT 99.2
 
   
Audited
   
Audited
             
   
Year Ended,
   
Year Ended,
   
Pro Forma
   
Pro Forma
 
   
September 30, 2009
   
December 31, 2009
   
Adjustments
   
Combined
 
REVENUE
  $ -     $ 10,448,041     $ -     $ 10,448,041  
COST OF SALES
    -       8,645,958       -       8,645,958  
GROSS PROFIT
    -       1,802,083       -       1,802,083  
RESEARCH AND DEVELOPMENT EXPENSES
    214,105       -       -       214,105  
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
    682,943       1,615,512       176,929       2,475,384  
OPERATING LOSS
    (897,048 )     186,571       (176,929 )     (887,406 )
                                 
OTHER INCOME (EXPENSE):
                               
Interest expense
    (53,561 )     (50,385 )     -       (103,946 )
Other income
    -       33,056       -       33,056  
Total other expense
    (53,561 )     (17,329 )     -       (70,890 )
                                 
LOSS BEFORE INCOME TAXES
    (950,609 )     169,242       (176,929 )     (958,296 )
                                 
Income taxes - current benefit
    -       -       -       -  
                                 
NET LOSS
    (950,609 )     169,242       (176,929 )     (958,296 )
                                 
NONCONTROLLING INTEREST
    -       (19,027 )     -       (19,027 )
                                 
NET LOSS ATTRIBUTABLE TO VISUALANT, INC. AND SUBSIDIARIES COMMON SHAREHOLDERS
  $ (950,609 )   $ 150,215     $ (176,929 )   $ (977,323 )
                                 
Basic and diluted loss per common share  attributable to Visualant, Inc. and subsidiaries common shareholders-
                               
Basic and diluted loss per share
  $ (0.03 )   $ -     $ -     $ (0.03 )
                                 
Weighted average shares of common stock outstanding- basic and diluted
    28,003,021       -       -       28,003,021  
                                 
The accompanying notes are an integral part of these unaudited pro forma combined condensed consolidated financial statements.
 

 
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Notes to Unaudited Pro Forma Combined Condensed Financial Statements

The cost to acquire TransTech Systems, Inc. has been preliminarily allocated to the assets acquired according to estimated fair values and is subject to adjustment when additional information concerning asset valuations is finalized, but no later than June 8, 2011. Final purchase accounting adjustments may differ materially from the pro forma financial information. The preliminary allocation is as follows:
 
Common stock
 
$
76,000
 
Notes payable
   
2,300,000
 
Accounts receivable, net
   
(755,836
)
Inventories
   
(444,105
)
Equipment, net
   
(590,955
)
Other assets
   
(141,870
)
Accounts payable - trade
   
921,183
 
Notes payable - current portion of long term debt
   
499,680
 
Other liabilities
   
103,193
 
         
Total purchase price
 
$
1,967,290
 
         
 Portion allocated to identifiable intangible assets
 
$
983,645
 
 Portion allocated to goodwill
   
983,645
 
         
Total
 
$
1,967,290
 
 

The fair value of the TransTech intellectual property acquired was $983,645, estimated by using a discounted cash flow approach based on future economic benefits associated with agreements with customers, or through expected continued business activities with its customers. In summary, the estimate was based on a projected income approach and related discounted cash flows over five years, with applicable risk factors assigned to assumptions in the forecasted results.

The remaining $983,645 excess of cost of an acquired entity over the fair value of amounts assigned to assets acquired and liabilities assumed in the acquisition of TransTech Systems, Inc. was allocated to goodwill. With the adoption of ASC 350, goodwill is not amortized, rather it is tested for impairment annually, and will be tested for impairment between annual tests if an event occurs or circumstances change that would indicate the carrying amount may be impaired.

 
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