Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT TO CURRENT REPORT FORM 8-K - GRANDPARENTS.COM, INC. | v308757_8ka.htm |
| EX-21.1 - EXHIBIT 21.1 - GRANDPARENTS.COM, INC. | v308757_ex21-1.htm |
| EX-10.15 - EXHIBIT 10.15 - GRANDPARENTS.COM, INC. | v308757_ex10-15.htm |
| EX-10.16 - EXHIBIT 10.16 - GRANDPARENTS.COM, INC. | v308757_ex10-16.htm |
NorWesTech, Inc.
Pro forma Condensed Combined Balance Sheet
As of December 31, 2011
| ASSETS | ||||||||||||||||||||||||
| NWT December 31, 2011 | Grandparents December 31, 2011 | Pro
Forma Adjustments | Pro-forma December 31, 2011 | |||||||||||||||||||||
| Current Asset: | ||||||||||||||||||||||||
| Cash | $ | 1,745,274 | $ | 347,284 | [D] [E] | $ | 2,400,000 | $ | 4,492,558 | |||||||||||||||
| Restricted cash | - | 40,000 | - | 40,000 | ||||||||||||||||||||
| Accounts receivable, net | - | 84,922 | - | 84,922 | ||||||||||||||||||||
| Other receivable, net | 111 | - | - | 111 | ||||||||||||||||||||
| Notes receivable | 500,000 | - | [G] | (500,000 | ) | - | ||||||||||||||||||
| Prepaid expenses | 19,724 | 254,826 | - | 274,550 | ||||||||||||||||||||
| Total Current Assets | 2,265,109 | 727,032 | 1,900,000 | 4,892,141 | ||||||||||||||||||||
| Property & Equipment, net | - | 35,170 | - | 35,170 | ||||||||||||||||||||
| Other Assets: | ||||||||||||||||||||||||
| Security deposits | - | 3,701 | - | 3,701 | ||||||||||||||||||||
| Intangibles, net | - | 5,110,993 | - | 5,110,993 | ||||||||||||||||||||
| Total Other Assets | - | 5,114,694 | - | 5,114,694 | ||||||||||||||||||||
| Total Assets | $ | 2,265,109 | $ | 5,876,896 | $ | 1,900,000 | $ | 10,042,005 | ||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
| Current Liabilities: | ||||||||||||||||||||||||
| Accounts payable | $ | 52,516 | $ | 596,584 | - | $ | 649,100 | |||||||||||||||||
| Accrued expenses | 32,300 | 185,191 | - | 217,491 | ||||||||||||||||||||
| Warrant derivative liability | - | 211,645 | - | 211,645 | ||||||||||||||||||||
| Short-term advances | - | - | - | - | ||||||||||||||||||||
| Notes payable, current maturities | - | 900,882 | [G] | (500,000 | ) | 400,882 | ||||||||||||||||||
| Accrued management fees | - | 512,500 | - | 512,500 | ||||||||||||||||||||
| Cumulative preferred return | - | 120,488 | - | 120,488 | ||||||||||||||||||||
| Total Current Liabilities | 84,816 | 2,527,290 | (500,000 | ) | 2,112,106 | |||||||||||||||||||
| Long-Term Liabilities: | ||||||||||||||||||||||||
| Notes Payable, net of current maturities | - | 300,000 | - | 300,000 | ||||||||||||||||||||
| Total Long-Term Liabilities | - | 300,000 | - | 300,000 | ||||||||||||||||||||
| Liabilities held for sale | ||||||||||||||||||||||||
| Total Liabilities | 84,816 | 2,827,290 | (500,000 | ) | 2,412,106 | |||||||||||||||||||
| Commitments and Contingencies | ||||||||||||||||||||||||
| Stockholders' Equity: | ||||||||||||||||||||||||
| Common Stock | 167,961 | - | - | 167,961 | ||||||||||||||||||||
| Series A Convertible Preferred (5,588,749 Common) | - | - | [B] | - | - | |||||||||||||||||||
| Series B Convertible Preferred (1,289,749 Common) | - | - | [D] | 30,000 | 30,000 | |||||||||||||||||||
| Class A Preferred Units, $1 par value | - | 918,000 | [A] [B] | (918,000 | ) | - | ||||||||||||||||||
| Class B Units | - | - | - | - | ||||||||||||||||||||
| Additional Paid in Capital | 28,449,307 | 81,312 | [B] [D] [E] [F] | (16,023,975 | ) | 12,506,644 | ||||||||||||||||||
| Transaction advisory warrants | - | - | [F] | 1,161,342 | 1,161,342 | |||||||||||||||||||
| Accumulated Deficit | (26,436,975 | ) | (5,074,706 | ) [C] [F] | 25,275,633 | (6,236,048 | ) | |||||||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 2,265,109 | $ | 5,876,896 | $ | 1,900,000 | $ | 10,042,005 | ||||||||||||||||
| [A] | The Contribution Agreement Transaction is deemed to be a reverse acquisition. In accordance with the Accounting and Financial Reporting Interpretations and Guidance provided by the staff of the U.S. Securities and Exchange Commission, NWT (the legal acquirer) is considered the accounting acquiree and Grandparents (the legal acquiree) is considered the accounting acquirer. The consolidated financial statements of the combined entity will in substance be those of Grandparents, with the assets and liabilities, and revenues and expenses, of NWT being included effective from the date of consummation of the Merger Transaction. Grandparents is deemed to be a continuation of the business of NWT. The outstanding stock of Grandparents prior to the Merger Transaction will be accounted for at its net book value and no goodwill will be recognized |
| [B] | To reflect the issuance of one (1) share of Series A Convertible preferred Stock and GP Warrant of NWT (legal acquiror) for all of the assets and liability of Grandparents (legal acquireee, but accounting acquirer), upon closing of the Transaction, resulting in the elimination of all issued and outstanding units of Grandparents |
| [C] | To eliminate the accumulated deficit of NWT upon closing of the Transaction |
| [D] | To reflect the issuance of 3,000,000 shares of Series B Convertible Preferred stock for aggregate gross proceeds of $3,000,000 |
| [E] | Transaction cost of $600,000 for capital raise of $3,000,000 gross proceeds, net proceeds of $2,400,000 |
| [F] | The pro forma financial statements give effect to the issuance of a warrant to purchase 5,588,749 shares of Common Stock as a Transaction advisory fee for the Contribution Agreement, and the issuance of a warrant to purchase 1,289,711 shares of Common Stock as a Private Placement agent fee at fair value. The fair value of the Private Placement agent fee was accounted for as a reduction of additional paid in capital in connection with the $3 million capital raise. |
| [G] | Bridge loan of $500,000 eliminated upon closing of the Transaction |
See accompanying notes to the condensed financial statements
NorWesTech, Inc.
PRO FORMA UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF INCOME
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2011
| NWT July 1, 2010 to June 30, 2011 | Grandparents January 1, 2011 to December 31, 2011 | Pro Forma Adjustments | Pro-forma January 1 to December 31, 2011 | |||||||||||||
| Revenues: | ||||||||||||||||
| Advertising revenue | $ | - | $ | 478,133 | $ | - | $ | 478,133 | ||||||||
| Total Revenues | - | 478,133 | - | 478,133 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Selling and marketing | - | 104,323 | - | 104,323 | ||||||||||||
| Salaries | - | 897,886 | - | 897,886 | ||||||||||||
| Rent | - | 157,761 | - | 157,761 | ||||||||||||
| Consulting | - | 6,270 | - | 6,270 | ||||||||||||
| Equity-based compensation | - | 165,789 | - | 165,789 | ||||||||||||
| Transaction costs | - | - | [D] | - | - | |||||||||||
| Management fees | - | 600,000 | - | 600,000 | ||||||||||||
| Other general and administrative | 17,615 | 488,413 | [A] [B] | 159,622 | 665,650 | |||||||||||
| Depreciation and amortization | - | 842,187 | - | 842,187 | ||||||||||||
| Total operating expenses | 17,615 | 3,262,629 | [A] [B] | 159,622 | 3,439,866 | |||||||||||
| Other income (expenses): | ||||||||||||||||
| Interest income (expense), net | - | (34,670 | ) | 395 | (34,275 | ) | ||||||||||
| Gain on purchase of business | - | - | - | - | ||||||||||||
| Other income (loss), net | - | 18,633 | 95 | 18,728 | ||||||||||||
| Total other income (expenses) | - | (16,037 | ) | 490 | (15,547 | ) | ||||||||||
| Net loss from operations, before preferred return | (17,615 | ) | (2,800,533 | ) | (159,132 | ) | (2,977,280 | ) | ||||||||
| Preferred return expense | - | (94,408 | ) | - | (94,408 | ) | ||||||||||
| Net loss from operations | $ | (17,615 | ) | $ | (2,894,941 | ) | $ | (159,132 | ) | $ | (3,071,688 | ) | ||||
| Net loss per share, from continuing operations | $ | - | [C] | $ | (0.18 | ) | ||||||||||
| Weighted average common shares outstanding, basic and diluted: | 16,909,501 | [C] | 16,909,501 | |||||||||||||
| [A] | To remove NWT activity for the period from July 1, 2010 to December 31, 2010 |
| [B] | To include NWT activity for the period from July 1, 2011 to December 30, 2011 |
| [C] | The Pro Forma statements of operations assumes the Contribution Agreement and Private Company Financings occurred as of January 1, 2010. Therefore, the weighted average number of shares outstanding for the period ended December 31, 2011 is 16,909,501. If the convertible preferred shares were converted, the total number of shares outstanding subsequent to completion of the Private Company Financing and Merger Transactions would be 84,091,566 shares |
| [D] | The pro forma financial statements do not give effect to the issuance of a warrant to purchase 5,588,749 shares of Common Stock as a Transaction advisory fee for the Contribution Agreement and having a fair market value of $1,161,342 because such fee is not a recurring expense. |
See accompanying notes to the condensed financial statements