Attached files
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| 8-K/A - AMENDMENT TO FORM 8-K - Montalvo Spirits, Inc. | v332162_8ka.htm |
Exhibit 99.4
INTRODUCTION TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
On December 21, 2012, Advanced Cloud Storage, Inc. (the “Registrant”) authorized an amendment to its Articles of Incorporation (the “Amendment”) to change its name to Montalvo Spirits, Inc., to increase the number of its authorized shares of capital stock from 75,000,000 to 310,000,000 shares which 300,000,000 shares were designated common stock, par value $0.001 per share (the “Common Stock”) and 10,000,000 shares were designated “blank check” preferred stock, par value $0.001 per share (the “Preferred Stock”) and to effect a forward split such that 32.4552 shares of Common Stock were issued for every 1 share of Common Stock issued and outstanding immediately prior to the Amendment (the “Forward Split”). Also on December 21, 2012, the Registrant entered into an Agreement and Plan of Share Exchange (the “Exchange Agreement”) with Casa Montalvo Holdings, Inc., a California corporation (“Casa Montalvo”), whereby the Registrant acquired all of the issued and outstanding capital stock of Casa Montalvo in exchange (the “Exchange”) for approximately 59,000,000 post-split shares of Common Stock. Simultaneously therewith, the Registrant accepted a subscription of a private placement offering of Two Hundred Thousand (200,000) shares of its Common Stock, on a post-Split basis, at an aggregate purchase price of One Hundred Thousand Dollars ($100,000).
The following unaudited pro forma condensed combined financial statements are presented to illustrate the estimated effects of the Exchange. The unaudited pro forma combined financial statements were prepared using the historical financial statements of the Registrant and Casa Montalvo. The unaudited pro forma combined financial information should be read in conjunction with the Registrant’s audited financial statements as of and for the year ended March 31, 2012 which are included in its March 31, 2012 Annual Report on Form 10-K. The financial information of the Registrant is filed together with this Unaudited Pro Forma Condensed Combined Financial Statements on Form 8-K.
The unaudited pro forma combined balance sheet as of September 30, 2012 combines the unaudited balance sheet of the Registrant as of September 30, 2012 and the unaudited balance sheet of Casa Montalvo as of September 30, 2012 and assumes that the Exchange was consummated on September 30, 2012. The unaudited pro forma combined balance sheet as of December 31, 2011 combines the unaudited balance sheet of the Registrant as of December 31, 2011 and the audited balance sheet of Casa Montalvo as of December 31, 2011 and assumes that the Exchange was consummated on December 31, 2011.
The unaudited pro forma combined statements of operations for the interim period ended September 30, 2012 assumes that the Exchange was consummated at the beginning of the period presented. The unaudited pro forma combined statement of operations for the interim period ended September 30, 2012 combines the unaudited statement of operations of the Registrant for the six months ended September 30, 2012 with the unaudited statements of operations of Casa Montalvo for the nine months ended September 30, 2012.
The unaudited pro forma combined statements of operations for the interim period ended December 31, 2011 assumes that the Exchange was consummated at the beginning of the period presented. The unaudited pro forma combined statement of operations for the interim period ended December 31, 2011 combines the unaudited statement of operations of the Registrant for the nine months ended December 31, 2011 with the audited statements of operations of Casa Montalvo for the period from inception through December 31, 2011.
The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what our financial position or results of operations would have been had the Exchange occurred as of the dates indicated, nor is it indicative of our future financial position or results of operations for any period. You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience after the Exchange.
The unaudited pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances.
ADVANCED CLOUD STORAGE, INC.
(A Development Stage Company)
Pro Forma Consolidated Balance Sheets
| CASA Montalvo | Montalvo Spirit | Pro Forma Adjustments |
Notes | Combined | ||||||||||
| September 30, 2012 | September 30, 2012 | |||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS | ||||||||||||||
| Cash | $ | 6,436 | $ | - | $ | 100,000 | d | $ | 106,436 | |||||
| Prepaid expenses | - | 2,099 | 2,099 | |||||||||||
| Inventories | 350,993 | - | 350,993 | |||||||||||
| Total Current Assets | 357,429 | 2,099 | 100,000 | 459,528 | ||||||||||
| TOTAL ASSETS | $ | 357,429 | $ | 2,099 | $ | 100,000 | $ | 459,528 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Accounts payable and accrued liabilites | $ | 220,321 | $ | 8,834 | $ | 229,155 | ||||||||
| Advances from stockholders | 9,809 | 9,809 | ||||||||||||
| Bank overdraft | 973 | - | 973 | |||||||||||
| Advance from officer | 150 | - | 150 | |||||||||||
| Note payable | 31,000 | - | 31,000 | |||||||||||
| Notes payable - related parties | 21,000 | - | 21,000 | |||||||||||
| Total Current Liabilities | 273,444 | 18,643 | - | 292,087 | ||||||||||
| LONG-TERM LIABILITIES | ||||||||||||||
| Notes payable - related parties, net of current maturities |
324,000 | 324,000 | ||||||||||||
| Total Liabilities | 597,444 | 18,643 | - | 616,087 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||
| STOCKHOLDERS'EQUITY (DEFICIT) | ||||||||||||||
| Preferred stock: $0.001 par value, 10,000,000 shares authirozied; none issued or outstanding |
- | - | - | |||||||||||
| Common stock, $0.001 par value, 300,000,000 shares authorized 10,237,250 and 66,900,012 shares issued and outstanding respectively |
15,360 | 10,237 | $ | (10,000) | a. | 66,900 | ||||||||
| 1,818 | b | |||||||||||||
| 64,645 | c | |||||||||||||
| 200 | d | |||||||||||||
| (15,360) | e | |||||||||||||
| Additional paid-in capital | 51,740 | 9,253 | 10,000 | a. | 83,656 | |||||||||
| (1,818) | b | |||||||||||||
| (64,645) | c | |||||||||||||
| 99,800 | d | |||||||||||||
| 15,360 | e | |||||||||||||
| (36,034) | f | |||||||||||||
| Deficit accumulated during the development stage |
(307,115) | (36,034) | 36,034 | f | (307,115) | |||||||||
| Total Stockholders' Equity (Deficit) | (240,015) | (16,544) | 100,000 | (156,559) | ||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
$ | 357,429 | $ | 2,099 | $ | 100,000 | $ | 459,528 | ||||||
| a | To record retirement of 10,000,000 shares of common stock at par | |||||||||||
| b | To record issuance of 1,817,891 shares for 100% of Casa Montalvo common stock | |||||||||||
| c | To record forward stock split of 32.4552 | |||||||||||
| Original shares outstanding | 10,237,250 | |||||||||||
| Shares cancelled | (10,000,000) | |||||||||||
| Shares issued for Casa Montalvo | 1,817,891 | |||||||||||
| Shares outstanding prior to forward split | 2,055,141 | $ 2,055.14 | ||||||||||
| Forward split ratio 1:32.4552 | 32.4552 | |||||||||||
| Post split shares | 66,700,012 | |||||||||||
| Less shares originally outstanding | (2,055,141) | |||||||||||
| Increase in shares | 64,644,871 | |||||||||||
| Increase in shares at par value of $0.001 | 64,645 | |||||||||||
| d | To record shares issued and proceeds received from subscription offering of 200,000 shares of common stock at a price of $0.50 per share on a post-split basis | |||||||||||
| Common stock - 200,000 @ $0.001 par | 200 | |||||||||||
| Additional Paid in Capital - $100,000 less $200 | 99,800 | |||||||||||
| e | To reclass Casa Montalvo's common stock to Additional Paid in Capital in connection with the reverse acquisition | |||||||||||
| f | To reclassify Montalvo Spirit’s accumulated deficit as additional paid-in capital in connection with the recapitalization of Montalvo Spirit | |||||||||||
| F-2 |
ADVANCED CLOUD STORAGE, INC.
(A Development Stage Company)
Pro Forma Consolidated Statements of Operations
| CASA | Montalvo Spirits | ||||||||||||||||||
| For the Nine Months | For the Nine Months | ||||||||||||||||||
| Ended | Ended | ||||||||||||||||||
| September 30, 2012 | September 30, 2012 | Pro Forma Adjustment |
Pro Forma | ||||||||||||||||
| (Unaudited) | (Unaudited) | Combined | |||||||||||||||||
| NET SALES | $ | 16,148 | $ | - | $ | $ | 16,148 | ||||||||||||
| COST OF GOODS SOLD | 11,573 | - | 11,573 | ||||||||||||||||
| GROSS PROFIT | 4,575 | - | - | 4,575 | |||||||||||||||
| OPERATING EXPENSES | |||||||||||||||||||
| Selling | 13,410 | 13,410 | |||||||||||||||||
| Salaries and wages | 162,000 | 162,000 | |||||||||||||||||
| Consulting | 54,000 | 54,000 | |||||||||||||||||
| Professional Fees | 3,284 | 3,284 | |||||||||||||||||
| General and administrative | 27,585 | 1,500 | 29,085 | ||||||||||||||||
| Total Operating Expenses | 256,995 | 4,784 | 261,779 | ||||||||||||||||
| LOSS FROM OPERATIONS | (252,420) | (4,784) | - | (257,204) | |||||||||||||||
| OTHER (INCOME) EXPENSE | |||||||||||||||||||
| Interest expense | 3,929 | 3,929 | |||||||||||||||||
| Total Other (Income) Expense | 3,929 | - | - | 3,929 | |||||||||||||||
| LOSS BEFORE INCOME TAXES | (256,349) | (4,784) | (261,133) | ||||||||||||||||
| Income tax provision | - | - | - | ||||||||||||||||
| NET LOSS | $ | (256,349) | $ | (4,784) | $ | - | $ | (261,133) | |||||||||||
| NET LOSS PER COMMON SHARE | |||||||||||||||||||
| - Basic and diluted | $ | (0.02) | $ | (0.00) | $ | (0.00) | |||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | |||||||||||||||||||
| - Basic and diluted | 15,337,655 | 10,237,250 | 66,900,012 | ||||||||||||||||
| F-3 |
Advanced Cloud Storage, Inc.
(A Development Stage Company)
Pro Forma Consolidated Balance Sheets
| CASA Montalvo | Advanced Cloud | Pro Forma Adjustments | Notes | Combined | ||||||||||||||
| December 31, 2011 | December 31, 2011 | |||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| ASSETS | ||||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||
| Cash | $ | 1,626 | $ | 961 | $ | 100,000 | d | $ | 102,587 | |||||||||
| Prepaid expenses | - | 1,574 | 1,574 | |||||||||||||||
| Inventories | 16,100 | - | 16,100 | |||||||||||||||
| Total Current Assets | 17,726 | 2,535 | 100,000 | 120,261 | ||||||||||||||
| TOTAL ASSETS | $ | 17,726 | $ | 2,535 | $ | 100,000 | $ | 120,261 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||||||
| Accounts payable and accrued liabilites | $ | 392 | $ | 1,882 | $ | 2,274 | ||||||||||||
| Advances from stockholders | 6,499 | 6,499 | ||||||||||||||||
| Total Current Liabilities | 392 | 8,381 | - | 8,773 | ||||||||||||||
| LONG-TERM LIABILITIES | ||||||||||||||||||
| Notes payable - related parties, net of current maturities | 11,000 | 11,000 | ||||||||||||||||
| Total Liabilities | 11,392 | 8,381 | - | 19,773 | ||||||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||||||
| STOCKHOLDERS'EQUITY (DEFICIT) | ||||||||||||||||||
| Preferred stock: $0.001 par value, 10,000,000 shares authirozied; none issued or outstanding | - | - | - | |||||||||||||||
| Common stock, $0.001 par value, 300,000,000 shares authorized 10,237,250 and 66,900,012 shares issued and outstanding respectively | 15,329 | 10,237 | $ | (10,000 | ) | a. | 66,900 | |||||||||||
| 1,818 | b | |||||||||||||||||
| 64,645 | c | |||||||||||||||||
| 200 | d | |||||||||||||||||
| (15,329 | ) | e | ||||||||||||||||
| Additional paid-in capital | 41,771 | 9,253 | 10,000 | a. | 84,354 | |||||||||||||
| (1,818 | ) | b | ||||||||||||||||
| (64,645 | ) | c | ||||||||||||||||
| 99,800 | d | |||||||||||||||||
| 15,329 | e | |||||||||||||||||
| (25,336 | ) | f | ||||||||||||||||
| Deficit accumulated during the development stage | (50,766 | ) | (25,336 | ) | 25,336 | f | (50,766 | ) | ||||||||||
| Total Stockholders' Equity (Deficit) | 6,334 | (5,846 | ) | 100,000 | 100,488 | |||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 17,726 | $ | 2,535 | $ | 100,000 | $ | 120,261 | ||||||||||
| a | To record retirement of 10,000,000 shares of common stock at par |
| b | To record issuance of 1,817,891 shares for 100% of Casa Montalvo common stock |
| c | To record forward stock split of 32.4552 |
| Original shares outstanding | 10,237,250 | |||||||
| Shares cancelled | (10,000,000 | ) | ||||||
| Shares issued for Casa Montalvo | 1,817,891 | |||||||
| Shares outstanding prior to forward split | 2,055,141 | $ | 2,055.14 | |||||
| Forward split ratio 1:32.4552 | 32.4552 | |||||||
| Post split shares | 66,700,012 | |||||||
| Less shares originally outstanding | (2,055,141 | ) | ||||||
| Increase in shares | 64,644,871 | |||||||
| Increase in shares at par value of $0.001 | 64,645 |
| d | To record shares issued and proceeds received from subscription offering of 200,000 shares of common stock at a price of $0.50 per share on a post-split basis |
| Common stock - 200,000 @ $0.001 par | 200 | |||
| Additional Paid in Capital - $100,000 less $200 | 99,800 |
| e | To reclass Casa Montalvo's common stock to Additional Paid in Capital in connection with the reverse acquisition |
| f | To reclassify Advanced Cloud’s accumulated deficit as additional paid-in capital in connection with the recapitalization of Montalvo Spirit |
| F-4 |
| Advanced Cloud Storage, Inc. |
| (A Development Stage Company) |
| Pro Forma Consolidated Statements of Operations |
| CASA Montalvo | Advanced Cloud | |||||||||||||||
| For the Period | For the Nine Months | |||||||||||||||
| through | Ended | |||||||||||||||
| December 31, 2011 | December 31, 2011 | Pro Forma Adjustment | Pro Forma | |||||||||||||
| (Unaudited) | Combined | |||||||||||||||
| NET SALES | $ | - | $ | - | $ | $ | - | |||||||||
| COST OF GOODS SOLD | - | - | - | |||||||||||||
| GROSS PROFIT | - | - | - | - | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Selling | 33,224 | 33,224 | ||||||||||||||
| Salaries and wages | 7,500 | 7,500 | ||||||||||||||
| Consulting | - | - | ||||||||||||||
| General and administrative | 9,650 | 1,835 | 11,485 | |||||||||||||
| Total Operating Expenses | 50,374 | 3,335 | 53,709 | |||||||||||||
| LOSS FROM OPERATIONS | (50,374 | ) | (3,335 | ) | - | (53,709 | ) | |||||||||
| OTHER (INCOME) EXPENSE | ||||||||||||||||
| Interest expense | 392 | - | 392 | |||||||||||||
| Total Other (Income) Expense | 392 | - | - | 392 | ||||||||||||
| LOSS BEFORE INCOME TAXES | (50,766 | ) | (3,335 | ) | (54,101 | ) | ||||||||||
| Income tax provision | - | - | - | |||||||||||||
| NET LOSS | $ | (50,766 | ) | $ | (3,335 | ) | $ | - | $ | (54,101 | ) | |||||
| NET LOSS PER COMMON SHARE | ||||||||||||||||
| - Basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||
| - Basic and diluted | 15,248,330 | 10,237,250 | 66,900,012 | |||||||||||||
| F-5 |