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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-99.2 - THE UNAUDITED PRO FORMA COMBINED CONDENSED CONSOLIDATED BALANCE SHEET OF THE COM - VISUALANT INCexhibit_99-2.htm
EX-99.1 - TRANSTECH SYSTEMS, INC. AUDITED CONSOLIDATED FINANCIAL STATEMENTS AS OF AND FOR - VISUALANT INCexhibit_99-1.htm

VISUALANT, INC. AND SUBSIDIARIES
 
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                         
   
Historical
   
Historical
TransTech
             
   
Visualant, Inc.
   
Systems, Inc.
         
EXHIBIT 99.3
 
   
Unaudited
   
Unaudited
             
   
9 Months Ended,
   
9 Months Ended,
   
Pro Forma
   
Pro Forma
 
   
June 30, 2010
   
June 30, 2010
   
Adjustments
   
Combined
 
REVENUE
  $ -     $ 6,191,057     $ -     $ 6,191,057  
COST OF SALES
    -       4,981,939       -       4,981,939  
GROSS PROFIT
    -       1,209,118       -       1,209,118  
RESEARCH AND DEVELOPMENT EXPENSES
    58,500       -       -       58,500  
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
    690,916       1,251,339       147,547       2,089,802  
OPERATING LOSS
    (749,416 )     (42,221 )     (147,547 )     (939,184 )
                                 
OTHER INCOME (EXPENSE):
                               
Interest expense
    (57,962 )     (44,634 )     -       (102,596 )
Other income
    -       22,844       -       22,844  
Total other expense
    (57,962 )     (21,790 )     -       (79,752 )
                                 
LOSS BEFORE INCOME TAXES
    (807,378 )     (64,011 )     (147,547 )     (1,018,936 )
                                 
Income taxes - current benefit
    -       -       -       -  
                                 
NET LOSS
    (807,378 )     (64,011 )     (147,547 )     (1,018,936 )
                                 
NONCONTROLLING INTEREST
    -       (30,362 )     -       (30,362 )
                                 
NET LOSS ATTRIBUTABLE TO VISUALANT, INC. AND SUBSIDIARIES COMMON SHAREHOLDERS
  $ (807,378 )   $ (94,373 )   $ (147,547 )   $ (1,049,298 )
                                 
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
    30,728,036       -       -       30,728,036  
                                 
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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