Attached files
| file | filename |
|---|---|
| 8-K/A - Monster Arts Inc. | form8ka.htm |
| EX-99.1 CHARTER - Monster Arts Inc. | ex99-1.htm |
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The following unaudited Pro Forma Combined Balance Sheet is derived from the balance sheets of Monster Offers and Ad Shark, Inc. as of September 30, 2012. The unaudited Pro Forma Combined Balance Sheet reflects the merger between Monster Offers and Ad Shark, Inc. and assumes that such acquisition was consummated as of September 30, 2012. The following unaudited Pro Forma Combined Statements of Operations, derived from the Statements of Operations of Monster Offers and Ad Shark, Inc. for the nine months ended September 30, 2012, give effect to the merger as if it has occurred at December 31, 2011. The unaudited Pro Forma Combined Financial Statements account for the merger as a capital transaction in substance (and not a business combination of two operating entities) that would be equivalent to Monster Offers issuing securities to Ad Shark, Inc. in exchange for the net monetary assets of Ad Shark, Inc., accompanied by a recapitalization and, as a result, no goodwill relating to the merger will be recorded in the unaudited Pro Forma Combined Financial Statements.
The unaudited Pro Forma Combined Balance Sheet and Statements of Operations should be read in conjunction with the financial statements of Monster Offers included in the Form 10-K filing. The unaudited Pro Forma Combined Statements of Operations do not purport to represent what the results of operations would actually have been if the merger had occurred on the dated indicated or to project the results of operations from any future period or date. The pro forma adjustments, as described in the accompany data, are based on available information and the assumptions are set forth in the notes thereto, which management believes are reasonable.
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
SEPTEMBER 30, 2012
| Pro Forma | Pro Forma | |||||||||||||||
| Monster Offers | Ad Shark, Inc. | Adjustments | Combined | |||||||||||||
| Assets: | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 189 | $ | 3 | - | $ | 192 | |||||||||
| Accounts Receivable | 2,423 | - | - | 2,423 | ||||||||||||
| Loan to related parties | - | 297,781 | - | 297,781 | ||||||||||||
| Prepaid Expense | 89,477 | - | - | 89,477 | ||||||||||||
| Total Current Assets | 92,089 | 297,784 | - | 389,873 | ||||||||||||
| Other Assets: | ||||||||||||||||
| Investment in Iconosys | 100,000 | - | - | 100,000 | ||||||||||||
| Total Other Assets | 100,000 | - | - | 100,000 | ||||||||||||
| Property and Equipment, net | - | 1,445 | - | 1,445 | ||||||||||||
| Website, net | - | 40,025 | - | 40,025 | ||||||||||||
| Total Assets | $ | 192,089 | $ | 339,254 | - | 531,343 | ||||||||||
| Liabilities: | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable & Accrued Expenses | $ | 48,979 | $ | 113,231 | - | $ | 162,210 | |||||||||
| Accrued Interest | 6,085 | - | - | 6,085 | ||||||||||||
| Due to Related Party | 6,700 | - | - | 6,700 | ||||||||||||
| Notes Payable | 13,250 | - | - | 13,250 | ||||||||||||
| Convertible Notes Payable, net of unamortized discount | 60,667 | - | - | 60,667 | ||||||||||||
| Total Current Liabilities | 135,681 | 113,231 | - | 248,912 | ||||||||||||
| Stockholders’ Equity (Deficit): | ||||||||||||||||
| Monster Offers: Common Stock- par value $.001 authorized 75,000,000 shares, Issued 3,384,361 shares | 3,384 | - | (b) | 27,940 | 31,324 | |||||||||||
| Ad Shark, Inc: Common Stock- par value $.001 authorized 500,000,000 shares, Issued 7,776,098 shares | - | 7,776 | (b) | (7,776 | ) | - | ||||||||||
| Additional Paid in Capital | 4,157,590 | 495,262 | (a) (b) | (4,124,730 | ) | 528,122 | ||||||||||
| Stock Subscription Payable | 450,750 | 150,000 | (a) | (450,750 | ) | 150,000 | ||||||||||
| Deficit Accumulated During the Development Stage | (4,555,316 | ) | (427,015 | ) (b) | 4,555,316 | (427,015 | ) | |||||||||
| Total Stockholders’ Deficit | 56,408 | 226,023 | - | 282,431 | ||||||||||||
| Total Liabilities and Stockholders’ Deficit | $ | 192,089 | $ | 339,254 | - | 531,343 | ||||||||||
The accompanying notes are an integral part of these pro forma financial statements.
| F-1 |
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012
| Pro Forma | ||||||||||||||||
| Monster Offers | Ad Shark, Inc. | Adjustments | Combined | |||||||||||||
| Revenues | $ | 78,168 | $ | 2,000 | $ | - | $ | 80,168 | ||||||||
| Costs of Services | - | - | - | - | ||||||||||||
| Gross Margin | 78,168 | 2,000 | - | 80,168 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Advertising | - | 27,406 | - | 27,406 | ||||||||||||
| Bad Debt | 1,250 | - | - | 1,250 | ||||||||||||
| Consulting | 261,588 | 150,000 | - | 411,588 | ||||||||||||
| Officer Compensation | 20,806 | 79,054 | - | 99,860 | ||||||||||||
| Professional Fees | 23,005 | 25,402 | - | 48,407 | ||||||||||||
| Selling, General and Administrative | 199,706 | 60,960 | - | 260,666 | ||||||||||||
| Operating Expenses | 506,355 | 342,822 | - | 849,177 | ||||||||||||
| Operating (Loss) | (428,187 | ) | (340,822 | ) | - | (769,009 | ) | |||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest Expense | (63,635 | ) | (7 | ) | - | (63,642 | ) | |||||||||
| Interest Income | - | 3,682 | - | 3,682 | ||||||||||||
| Other Income | - | 40 | - | 40 | ||||||||||||
| Financing Fees | (16,148 | ) | - | - | (16,148 | ) | ||||||||||
| Loss on debt settlement | (2,514,865 | ) | - | - | (2,514,865 | ) | ||||||||||
| Other (Income) Expense | (2,594,648 | ) | 3,715 | - | (2,590,933 | ) | ||||||||||
| Net Loss | $ | (3,022,835 | ) | $ | (337,107 | ) | $ | - | $ | (3,359,942 | ) | |||||
| Loss per Share, Basic & Diluted | $ | (0.11 | ) | |||||||||||||
| Weighted Average Shares Outstanding | 29,821,521 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
| F-2 |
MONSTER OFFERS
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The Unaudited Pro Forma Combined Financial Statements give effect to the following adjustments:
(a.) In November of 2012, Monster Offers acquired all the outstanding shares of Ad Shark, Inc. pursuant to the acquisition agreement. The shares of Ad Shark, Inc were cancelled upon the execution of the agreement.
(b.) Effective November 9, 2012, Monster Offers and Ad Shark, Inc. completed the acquisition agreement as where Ad Shark, Inc. became a wholly-owned subsidiary of Monster Offers. The shareholders of Ad Shark, Inc. were issued a total of 27,939,705 shares of Monster Offers common stock in exchange for their shares.
| F-3 |
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The following unaudited Pro Forma Combined Balance Sheet is derived from the balance sheets of Monster Offers and Ad Shark, Inc. as of December 31, 2011. The unaudited Pro Forma Combined Balance Sheet reflects the merger between Monster Offers and Ad Shark, Inc. and assumes that such acquisition was consummated as of December 31, 2011. The following unaudited Pro Forma Combined Statements of Operations, derived from the Statements of Operations of Monster Offers and Ad Shark, Inc. for the year ended December 31, 2011, give effect to the merger as if it has occurred at December 31, 2011. The unaudited Pro Forma Combined Financial Statements account for the merger as a capital transaction in substance (and not a business combination of two operating entities) that would be equivalent to Monster Offers issuing securities to Ad Shark, Inc. in exchange for the net monetary assets of Ad Shark, Inc., accompanied by a recapitalization and, as a result, no goodwill relating to the merger will be recorded in the unaudited Pro Forma Combined Financial Statements.
The unaudited Pro Forma Combined Balance Sheet and Statements of Operations should be read in conjunction with the financial statements of Monster Offers included in the Form 10-K filing. The unaudited Pro Forma Combined Statements of Operations do not purport to represent what the results of operations would actually have been if the merger had occurred on the dated indicated or to project the results of operations from any future period or date. The pro forma adjustments, as described in the accompany data, are based on available information and the assumptions are set forth in the notes thereto, which management believes are reasonable.
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
DECEMBER 31, 2011
| Pro Forma | Pro Forma | |||||||||||||||
| Monster Offers | Ad Shark, Inc. | Adjustments | Combined | |||||||||||||
| Assets: | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 3,817 | $ | - | - | $ | 3,817 | |||||||||
| Accounts Receivable | 9,423 | - | - | 9,423 | ||||||||||||
| Prepaid Expense | 26,272 | - | - | 26,272 | ||||||||||||
| Total Current Assets | 39,512 | - | - | 39,512 | ||||||||||||
| Other Assets: | ||||||||||||||||
| Unamortized Financing Fees | 2,421 | - | - | 2,421 | ||||||||||||
| Investment in Iconosys | 100,000 | - | - | 100,000 | ||||||||||||
| Other Assets | - | 49,500 | - | 49,500 | ||||||||||||
| Total Other Assets | 102,421 | 49,500 | - | 151,921 | ||||||||||||
| Property and Equipment, net | - | 2,036 | - | 2,036 | ||||||||||||
| Website, net | - | 55,777 | - | 55,777 | ||||||||||||
| Total Assets | $ | 141,933 | $ | 107,313 | - | $ | 249,246 | |||||||||
| Liabilities: | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable & Accrued Expenses | $ | 58,229 | $ | 39,193 | - | $ | 97,422 | |||||||||
| Bank Overdraft | - | 493 | 493 | |||||||||||||
| Accrued Interest | 9,341 | - | - | 9,341 | ||||||||||||
| Unearned Revenue | 33,333 | - | - | 33,333 | ||||||||||||
| Convertible Notes Payable, net of unamortized discount | 176,330 | - | - | 176,330 | ||||||||||||
| Total Current Liabilities | 277,233 | 39,686 | - | 316,919 | ||||||||||||
| Stockholders’ Equity (Deficit): | ||||||||||||||||
| Monster Offers: Common Stock- par value $.001 authorized 75,000,000 shares, Issued 220,568 shares | 221 | - | (b) | 27,940 | 28,161 | |||||||||||
| Ad Shark, Inc: Common Stock- par value $.001 authorized 500,000,000 shares, Issued 0 shares | - | - | - | - | ||||||||||||
| Additional Paid in Capital | 910,385 | 2,285 | (a) (b) | (1,405,171 | ) | (492,501 | ) | |||||||||
| Stock Subscription Payable | 486,575 | 155,250 | (a) | (155,250 | ) | 486,575 | ||||||||||
| Deficit Accumulated During the Development Stage | (1,532,481 | ) | (89,908 | ) (b) | 1,532,481 | (89,908 | ) | |||||||||
| Total Stockholders’ Deficit | (135,300 | ) | 67,627 | (0 | ) | (67,673 | ) | |||||||||
| Total Liabilities and Stockholders’ Deficit | $ | 141,933 | $ | 107,313 | - | 249,246 | ||||||||||
The accompanying notes are an integral part of these pro forma financial statements.
| F-1 |
MONSTER OFFERS
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2011
| Pro Forma | ||||||||||||||||
| Monster Offers | Ad Shark, Inc. | Adjustments | Combined | |||||||||||||
| Revenues | $ | 223,275 | $ | 2,494 | $ | - | $ | 225,769 | ||||||||
| Costs of Services | - | - | - | - | ||||||||||||
| Gross Margin | 223,275 | 2,494 | - | 225,769 | ||||||||||||
| Operating Expenses: | ||||||||||||||||
| Advertising | 10,123 | 29,819 | - | 39,942 | ||||||||||||
| Amortization | 24,565 | 9,851 | - | 34,416 | ||||||||||||
| Consulting | 324,560 | - | - | 324,560 | ||||||||||||
| Officer Compensation | 144,200 | 36,906 | - | 181,106 | ||||||||||||
| Professional Fees | 32,589 | 7,985 | - | 40,574 | ||||||||||||
| Selling, General and Administrative | 123,797 | 7,819 | - | 131,616 | ||||||||||||
| Operating Expenses | 659,834 | 92,380 | - | 752,214 | ||||||||||||
| Operating (Loss) | (436,559 | ) | (89,886 | ) | - | (526,445 | ) | |||||||||
| Other (Income) Expense: | ||||||||||||||||
| Interest Expense | 17,460 | 22 | - | 17,482 | ||||||||||||
| Financing Fees | 120,268 | - | - | 120,268 | ||||||||||||
| Debt Forgiveness | (846 | ) | - | - | (846 | ) | ||||||||||
| Loss on Impairment | 425,435 | - | - | 425,435 | ||||||||||||
| Other (Income) Expense | 562,317 | 22 | - | 562,339 | ||||||||||||
| Net Loss | $ | (998,876 | ) | $ | (89,908 | ) | $ | - | $ | (1,088,784 | ) | |||||
| Loss per Share, Basic & Diluted | $ | (0.04 | ) | |||||||||||||
| Weighted Average Shares Outstanding | 28,160,273 | |||||||||||||||
The accompanying notes are an integral part of these financial statements.
| F-2 |
MONSTER OFFERS
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
The Unaudited Pro Forma Combined Financial Statements give effect to the following adjustments:
(a.) In November of 2012, Monster Offers acquired all the outstanding shares of Ad Shark, Inc. pursuant to the acquisition agreement. The shares of Ad Shark, Inc were cancelled upon the execution of the agreement.
(b.) Effective November 9, 2012, Monster Offers and Ad Shark, Inc. completed the acquisition agreement as where Ad Shark, Inc. became a wholly-owned subsidiary of Monster Offers. The shareholders of Ad Shark, Inc. were issued a total of 27,939,705 shares of Monster Offers common stock in exchange for their shares.
| F-3 |