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8-K/A - LINKWELL CORPORATION FORM 8-K/A - Linkwell CORPlwll8-ka.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF METAMINING NEVADA AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2011. - Linkwell CORPexh99-1.htm
 


Exhibit 99.2

LINKWELL CORPORATION AND SUBSIDIARIES
PRO FORMA FINANCIAL INFORMATION

The following unaudited pro forma financial statements of Linkwell Corporation (“LWLL”) are based on, and should be read in conjunction with:

1.
LWLL’s audited financial statements for the fiscal year ended December 31, 2011.

2.
Metamining Nevada, Inc.’s audited financial statements for the fiscal year ended December 31, 2011.

On March 30, 2012, LWLL issued 9,581,973 shares of its Series C convertible preferred stock and 3,000,000 Series C common stock purchase warrants in conjunction with the acquisition of Metamining Nevada. LWLL is the legal acquirer in the transaction. As a result of the acquisition, under reverse acquisition accounting rules per ASC 805-40, LWLL becomes the accounting acquiree owning 8.9%, and Metamining Nevada is the accounting acquirer owning 91.1% of the total outstanding shares of common stock on an as converted basis after giving effect to the transaction.

The pro forma financial statements give effect to the acquisition as if it had taken place on the date or at the beginning of the period presented.
 
 
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LINKWELL CORPORATION AND SUBSIDIARIES
 
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME
 
FOR THE YEAR ENDED DECEMBER 31, 2011
 
                         
   
Linkwell Corporation
     
Metamining Nevada, Inc.
   
Pro Forma
     
Pro Forma
 
                 
Adjustments
     
Consolidated
 
   
(Audited)
     
(Audited)
   
(Unaudited)
     
(Unaudited)
 
NET SALES
                           
  Non-related companies
  $ 7,685,380                     $ 7,685,380  
  Related companies
    9,272,860                       9,272,860  
     Total Net Sales
    16,958,240                       16,958,240  
Cost of Sales
    9,529,720                       9,529,720  
     Gross Profit
    7,428,520         -               7,428,520  
                                   
Operating (expenses) income:
                                 
   Selling expenses
    1,439,412                         1,439,412  
   General and administrative
    3,194,631         117,945               3,312,576  
       Total operating expenses
    4,634,043         117,945               4,751,988  
       Operating income (loss)
    2,794,477         (117,945 )             2,676,532  
Other (expenses) income:
                                 
   Other expense
    (45,877 )                       (45,877 )
   Interest income
    1,055                         1,055  
   Interest expense
    (89,036 )                       (89,036 )
       Total other expense
    (133,858 )       -       -         (133,858 )
        Income (loss) before income taxes
    2,660,619         (117,945 )               2,542,674  
   Income tax expense
    (492,630 )                         (492,630 )
   Net income (loss)
    2,167,989         (117,945 )               2,050,044  
   Net income attributable to noncontrolling interests-continuing operations
    (279,703 )       -                 (279,703 )
      Net income (loss) attributable to Linkwell Corp
    1,888,286         (117,945 )     -         1,770,341  
                                     
Other comprehensive income:
                                   
   Foreign currency translation
    785,599         -                 785,599  
Comprehensive income
  $ 2,673,885       $ (117,945 )     -       $ 2,555,940  
                                     
Basic and diluted income (loss) per common share
                                   
   Basic
  $ 0.62                           3.87  
   Diluted  (2)
  $ 0.62                           0.14  
   Basic weighted average common shares outstanding
    3,048,310  
 
             (2,591,065 (3)     457,245  
   Diluted weighted average common shares outstanding
    3,048,310  
 
            12,581,973  
(1)
    13,039,218  
                         (2,591,065 (3)        


 
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Note (1): Represents the dilutive effect of 9,581,973 shares of Series C convertible preferred stock and 3,000,000 Series C warrants issued by Linkwell Corporation in conjunction with the acquisition of Metamining Nevada, which is treated as reverse acquisition.

Note (2): The dilutive effect impacts only the dilutive EPS in the pro forma calculation.

Note (3): Represents adjustment for Linkwell common shares to reflect the proposed 1:200 reverse stock split in the acquisition.

 
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LINKWELL CORPORATION AND SUBSIDIARIES
 
PRO FORMA CONSOLIDATED BALANCE SHEETS
 
As of December 31, 2011
 
                               
   
Linkwell Corporation
   
Metamining Nevada, Inc.
   
Pro Forma Adjustments
   
(A)
   
Pro Forma
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
         
(Unaudited)
 
ASSETS
                             
CURRENT ASSETS
                             
Cash and cash equivalents
  $ 2,919,670                       $ 2,919,670  
Accounts receivable, net
    2,707,574                         2,707,574  
Accounts receivable - related parties, net
    9,943,773                         9,943,773  
Due from related party
    691,156                         691,156  
Other receivables
    3,926,230                         3,926,230  
Prepaid expenses and other current assets
    671,340                         671,340  
Inventories, net
    1,964,313                         1,964,313  
Total current assets
    22,824,056                         22,824,056  
                                   
NON-CURRENT ASSETS
                                 
Investment
    1,282,467                         1,282,467  
Property, plant and equipment, net
    2,185,116                         2,185,116  
Construction in progress
    240,497                         240,497  
Prepaid for land use right
    606,263                         606,263  
Intangible assets
    308,188                         308,188  
Property and mineral rights
          $ 14,250,000                   14,250,000  
Total non-current assets
    4,622,532       14,250,000                   18,872,532  
                                     
TOTAL ASSETS
  $ 27,446,588     $ 14,250,000                 $ 41,696,588  
                                     
LIABILITIES AND STOCKHOLDERS' EQUITY
                                   
CURRENT LIABILITIES
                                   
Loans payable
  $ 1,587,075                         $ 1,587,075  
Accounts payable and accrued expenses
    3,112,699     $ 5,000                   3,117,699  
Advances from customers
    365,993                           365,993  
Taxes payable
    456,169                           456,169  
Other payables
    255,569                           255,569  
Due to related parties
    1,834,582                           1,834,582  
Notes payable
            5,625,000                   5,625,000  
Total current liabilities
    7,612,087       5,630,000                   13,242,087  
                                     
Notes payable
            5,625,000                   5,625,000  
Put option liability
    2,400,000               (2,400,000 )   (1 )(5)     0  
Total liabilities
    10,012,087       11,255,000       (2,400,000 )           18,867,087  
                                       
STOCKHOLDERS' EQUITY
                                     
Common Stock
    47,303                             47,303  
Additional paid-in capital
    7,870,021       3,112,945       11,131,775     (1 )(5)     22,114,741  
Statutory surplus reserve
    802,749               (802,749 )   (3 )     0  
Retained earnings (Accumulated deficit)
    6,076,805       (117,945 )     (6,076,805 )   (2 )     (117,945 )
Accumulated other comprehensive income
    1,852,221               (1,852,221 )   (4 )     0  
Total  equity
    16,649,099       2,995,000       2,400,000             22,044,099  
                                       
NONCONTROLLING INTEREST
    785,402                             785,402  
                                       
TOTAL STOCKHOLDERS' EQUITY
    17,434,501               2,400,000             19,834,501  
                                       
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
  $ 27,446,588     $ 14,250,000       0           $ 41,696,588  
 
Note (A): See related notes for explanations for pro forma adjustments.
 
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Note (1): On March 30, 2012, Linkwell Corporation issued 9,581,973 shares of its Series C convertible preferred stock and 3,000,000 Series C common stock purchase warrants in conjunction with the acquisition of Metamining Nevada, which have been accounted for as additional paid in capital  and also been charged to additional paid in capital to reflect merger under reverse acquisition accounting rules (ASC 805-40). As a result of the acquisition, the legal acquirer ("LWLL") becomes the accounting acquiree owning 8.9%, and the legal acquiree, ("Metamining Nevada") is the accounting acquirer owning 91.1% of the total outstanding shares after giving effect to the transaction.
Aggregate effect of the transactions:

A. To eliminate Linkwell retained earnings
 
 $6,076,805
 
See Note (2)
B. To eliminate Linkwell statutory surplus reserve
 
802,749
 
See Note (3)
C. To eliminate Linkwell accumulated other comprehensive income (AOCI)
 
1,852,221
 
See Note (4)
D. To eliminate Linkwell put option liability
 
2,400,000
 
See Note (5)
Total APIC adjustments
 
 $11,131,775
   
         
Note (2): Represents the elimination of Linkwell retained earnings.
 
 $6,076,805
 
See Note (1)
         
Note (3): Represents the elimination of Linkwell statutory surplus reserve.
 
 $802,749
 
See Note (1)
         
Note (4): Represents the elimination of Linkwell AOCI.
 
 $1,852,221
 
See Note (1)
         
Note (5): Represents the elimination of Linkwell put option liability, which was cancelled by the option holders in March 2012.
 
 $2,400,000
 
See Note (1)


 
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