Attached files
file | filename |
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8-K/A - FORM 8-K/A - Global Clean Energy Holdings, Inc. | gceh8k.htm |
EX-23.1 - EXHIBIT 23.1 - Global Clean Energy Holdings, Inc. | consent.htm |
EX-99.1 - EXHIBIT 99.1 - Global Clean Energy Holdings, Inc. | exhibit991.htm |
EX-10.2 - EXHIBIT 10.2 - Global Clean Energy Holdings, Inc. | facilitiesexh.htm |
EX-10.1 - EXHIBIT 10.1 - Global Clean Energy Holdings, Inc. | assetpurchagrmnt.htm |
Exhibit 99.2
PRO FORMA FINANCIAL STATEMENTS OF GLOBAL CLEAN ENERGY HOLDINGS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
On March 13, 2013, Global Clean Energy Holdings, Inc. (“GCEH”) completed a business purchase that included certain intellectual property, patents, equipment, and rights related to the development of Camelina sativa as a biofuels feedstock (the “Camelina Assets”) from Targeted Growth, Inc., a Washington based crop biotechnology company focused on developing products with enhanced yield and improved quality for the agriculture and energy industries. The Camelina Assets purchased from Targeted Growth, Inc. in March 2013 had been previously owned by and used in the operations of Sustainable Oils, LLC, which was an LLC formed by Targeted Growth, Inc. and another member. When Sustainable Oils, LLC ceased operations in 2012, those Camelina Assets were transferred back to its majority member, Targeted Growth, Inc. In consideration for those assets, GCEH paid to Targeted Growth, Inc. 40,000,000 shares of GCEH common stock and a note payable to Targeted Growth, Inc. of $1,300,000. Also on March 13, 2013, GCEH purchased for $100 all of the membership interests of Sustainable Oils, LLC, (SUSOIL) a Delaware limited liability company, from Targeted Growth, Inc. and the other, minority owner of that limited liability company. SUSOIL is a company that, since 2007, has been engaged in the development, production and commercialization of Camelina-based biofuels and FDA approved animal feed.
The accompanying unaudited pro forma condensed consolidated financial statements present the pro forma consolidated financial position and results of operations of Global Clean Energy Holdings, Inc. (“GCEH”) and Sustainable Oils, LLC (“SUSOIL”), after giving effect to the purchase and adjustments described in the accompanying footnotes. The accompanying unaudited pro forma condensed combined financial statements are based upon the historical financial statements and have been developed from the (1) audited consolidated financial statements of GCEH contained in its Annual Report on Form 10-K for the fiscal year ended December 31, 2012, and (2) audited consolidated financial statements of SUSOIL for the year ended December 31, 2012. The unaudited pro forma condensed consolidated balance sheet has been prepared as if the purchase of SUSOIL had been consummated on December 31, 2012. The unaudited pro forma condensed consolidated statement of operations for the year ended December 31, 2012 has been prepared as if the purchase of SUSOIL had occurred on January 1, 2012.
The accompanying unaudited pro forma condensed consolidated financial statements are provided for illustrative purposes only and do not purport to represent what the actual consolidated results of operations or the consolidated financial position of GCEH would have been had the SUSOIL purchase occurred on the dates assumed, nor are they necessarily indicative of future consolidated results of operations or consolidated financial position. The unaudited pro forma condensed consolidated financial statements should be read in conjunction with the separate historical consolidated financial statements and accompanying notes of GCEH and SUSOIL.
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UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
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As of December 31, 2012
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Pro Forma
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GCEH
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SUSOIL
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Adjustments
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Pro Forma
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ASSETS
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CURRENT ASSETS
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Cash and cash equivalents
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$ | 941,579 | $ | 60,163 | $ | (100 | ) | (a2 | ) | $ | - | |||||||
(27,500 | ) | (a11 | ) | 974,142 | ||||||||||||||
Accounts receivable
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2,100 | 5,043 | 7,143 | |||||||||||||||
Inventory
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1,564 | 107,023 | 321,554 | (a4 | ) | 430,141 | ||||||||||||
Other current assets
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298,586 | 360 | 298,946 | |||||||||||||||
Total Current Assets
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1,243,829 | 172,589 | 293,954 | 1,710,372 | ||||||||||||||
PROPERTY AND EQUIPMENT, NET
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14,559,002 | - | 190,500 | (a5 | ) | 14,749,502 | ||||||||||||
INVESTMENT HELD FOR SALE
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288,536 | - | 288,536 | |||||||||||||||
DEFERRED GROWING COST
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3,378,990 | - | 3,378,990 | |||||||||||||||
INTANGIBLE ASSETS, NET
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- | - | 3,859,079 | (a6 | ) | 3,859,079 | ||||||||||||
OTHER NONCURRENT ASSETS
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11,372 | - | 11,372 | |||||||||||||||
TOTAL ASSETS
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$ | 19,481,729 | $ | 172,589 | $ | 4,343,533 | $ | 23,997,851 | ||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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$ | 1,135,594 | $ | 2,330,262 | $ | 103,000 | (a7 | ) | $ | 3,568,856 | ||||||||
Accounts payable to related parties
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- | 835,582 | (835,582 | ) | (a8 | ) | - | |||||||||||
Accrued payroll and payroll taxes
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1,018,894 | 10,000 | 1,028,894 | |||||||||||||||
Accrued interest due to related party
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- | 287,385 | (287,385 | ) | (a8 | ) | - | |||||||||||
Capital lease liability - current portion
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42,829 | - | 42,829 | |||||||||||||||
Notes payable - current portion
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60,800 | - | 60,800 | |||||||||||||||
Convertible notes payable
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567,000 | - | 567,000 | |||||||||||||||
Note payable to related party
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- | 263,301 | (263,301 | ) | (a8 | ) | - | |||||||||||
Total Current Liabilities
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2,825,117 | 3,726,530 | (1,283,268 | ) | 5,268,379 | |||||||||||||
LONG-TERM LIABILITIES
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Accrued interest payable
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2,121,787 | - | 2,121,787 | |||||||||||||||
Accrued return on noncontrolling interest
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4,963,582 | - | 4,963,582 | |||||||||||||||
Notes payable - long term portion
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40,200 | - | 1,300,000 | (a1 | ) | 1,340,200 | ||||||||||||
Mortgage notes payable
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5,110,189 | - | 5,110,189 | |||||||||||||||
Total Long Term Liabilities
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12,235,758 | - | 1,300,000 | 13,535,758 | ||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT)
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Preferred stock, $0.001 par value, Series B
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13 | - | 13 | |||||||||||||||
Common stock, $0.001 par value
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293,683 | 40,000 | (a3 | ) | 333,683 | |||||||||||||
Members' contributions
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- | 9,000,000 | (9,000,000 | ) | (a9 | ) | - | |||||||||||
Additional paid-in capital
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24,588,022 | - | 760,000 | (a3 | ) | 25,348,022 | ||||||||||||
Accumulated deficit
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(26,599,007 | ) | (12,553,941 | ) | 12,526,801 | (a9 | ) | (26,626,147 | ) | |||||||||
Accumulated other comprehensive loss
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(56,121 | ) | - | (56,121 | ) | |||||||||||||
Total Global Clean Energy Holdings, Inc. Stockholders' Deficit
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(1,773,410 | ) | (3,553,941 | ) | 4,326,801 | (1,000,550 | ) | |||||||||||
Noncontrolling interests
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6,194,264 | - | 6,194,264 | |||||||||||||||
Total equity (deficit)
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4,420,854 | (3,553,941 | ) | 4,326,801 | 5,193,714 | |||||||||||||
TOTAL LIABILITIES AND EQUITY (DEFICIT)
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$ | 19,481,729 | $ | 172,589 | $ | 4,343,533 | $ | 23,997,851 | ||||||||||
See the accompanying notes to unaudited pro forma condensed consolidated financial statements.
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2
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
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For the year ended December 31, 2012
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Pro Forma
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GCEH
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SusOils
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Adjustments
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Pro Forma
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Revenue
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$ | 367,811 | $ | 2,843,917 | $ | 3,211,728 | |||||||||||
Subsidy Income
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768,272 | - | 768,272 | ||||||||||||||
Total Revenue
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1,136,083 | 2,843,917 | - | 3,980,000 | |||||||||||||
Cost of Goods Sold
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- | 3,191,323 | 3,191,323 | ||||||||||||||
Gross Profit (Loss)
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1,136,083 | (347,406 | ) | - | 788,677 | ||||||||||||
Operating Expenses
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General and administrative
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2,069,309 | 354,935 | 230,074 | (b1 | ) | - | |||||||||||
27,500 | (a11 | ) | 2,681,818 | ||||||||||||||
Write down of impaired long lived assets
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1,639,815 | 6,222 | 1,646,037 | ||||||||||||||
Research & development expenses
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- | 123,779 | 123,779 | ||||||||||||||
Plantation operating costs
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826,227 | - | 826,227 | ||||||||||||||
Total Operating Expenses
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4,535,351 | 484,936 | 257,574 | 5,277,861 | |||||||||||||
Loss from Operations
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(3,399,268 | ) | (832,342 | ) | (257,574 | ) | (4,489,184 | ) | |||||||||
Other Income (Expenses)
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Other income
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121 | - | 121 | ||||||||||||||
Interest Income
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- | 2,222 | 2,222 | ||||||||||||||
Interest expense
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(857,439 | ) | (49,636 | ) | (907,075 | ) | |||||||||||
Gain on extinguishment of liabilities
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1,013,387 | 1,184,330 | (2,197,717 | ) | (b2 | ) | - | ||||||||||
Foreign currency transaction loss
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(32,716 | ) | (777 | ) | (33,493 | ) | |||||||||||
Net Other Income (Loss)
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123,353 | 1,136,139 | (2,197,717 | ) | (938,225 | ) | |||||||||||
Net Income (Loss)
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(3,275,915 | ) | $ | 303,797 | $ | (2,455,291 | ) | (5,427,409 | ) | ||||||||
Less Net Loss Attributable to the Noncontrolling
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Interest
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3,339,202 | 3,339,202 | |||||||||||||||
Net Income (Loss) Attributable to Global Clean
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Energy Holdings, Inc. Shareholders
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$ | 63,287 | $ | (2,088,207 | ) | ||||||||||||
Amounts attributable to Global Clean Energy
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Holdings, Inc. common shareholders:
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Basic Income (Loss) per Common Share
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$ | - | $ | (0.01 | ) | ||||||||||||
Basic Weighted-Average Common Shares Outstanding
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292,244,373 | 332,244,373 | |||||||||||||||
Diluted Income (Loss) per Common Share
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$ | - | $ | (0.01 | ) | ||||||||||||
Diluted Weighted-Average Common Shares Outstanding
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318,962,355 | 332,244,373 | |||||||||||||||
See the accompanying notes to unaudited pro forma condensed consolidated financial statements.
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3
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
On March 13, 2013, Global Clean Energy Holdings, Inc. (“GCEH”) completed a business purchase that included certain intellectual property, patents, equipment, and rights related to the development of Camelina sativa as a biofuels feedstock (the “Camelina Assets”) from Targeted Growth, Inc., a Washington based crop biotechnology company focused on developing products with enhanced yield and improved quality for the agriculture and energy industries. The Camelina Assets purchased from Targeted Growth, Inc. in March 2013 had been previously owned by and used in the operations of Sustainable Oils, LLC, which was an LLC formed by Targeted Growth, Inc. and another member. When Sustainable Oils, LLC ceased operations in 2012, those Camelina Assets (no book value) were transferred back to its majority member, Targeted Growth, Inc. Between the date of that transfer to Targeted Growth, Inc. and the year ended December 31, 2012, there were no significant operations related to the Camelina Assets. Also on March 13, 2013, GCEH purchased all of the membership interests of Sustainable Oils, LLC, (SUSOIL) a Delaware limited liability company, from Targeted Growth, Inc. and the other, minority owner of that limited liability company. SUSOIL is a company that, since 2007, has been engaged in the development, production and commercialization of Camelina-based biofuels and FDA approved animal feed.
In consideration for the Camelina Assets and the SUSOIL limited liability company membership, GCEH paid $100 to the members of Sustainable Oils, LLC and issued to Targeted Growth, Inc. (i) a secured promissory note in the principal amount of $1,300,000 and (ii) an aggregate of 40,000,000 shares of GCEH common stock. The 40,000,000 shares were valued at the market price on March 14, 2013 of $0.02 per share.
Had the business purchase occurred on December 31, 2012, the acquired Pro Forma Amounts recognized, at fair value, for each major class of assets acquired and liabilities assumed would be as follows:
Pro Forma | ||||
Fair Values at
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December 31, 2012
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Cash | $ | 60,163 | ||
Prepaids and other assets
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5,043 | |||
Inventory
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428,577 | |||
Intangible Assets
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3,859,079 | |||
Equipment
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190,500 | |||
Accounts Payable to Major Vendor, Secured
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(2,286,727 | ) | ||
Commitment for field testing
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(103,000 | ) | ||
Other accounts payable and accrued liabilities
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(53,535 | ) | ||
Total net assets of Sustainable Oils
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$ | 2,100,100 | ||
(a)
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The pro forma condensed consolidated balance sheet has been adjusted to reflect the recognition of the fair values of the assets acquired and the consideration transferred. The pro forma adjustments related to the consideration transferred are as follows:
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(a1 | ) |
Note Payable to Targeted Growth, Inc.
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$ | 1,300,000 | |||
(a2 | ) |
Cash (paid out)
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100 | ||||
(a3 | ) |
Common stock issued
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800,000 | ||||
$ | 2,100,100 | ||||||
GCEH has recorded the assets and liabilities of SUSOIL based on management’s estimate of their respective fair values as of the date of the closing.
GCEH has estimated a fair value for SUSOIL’s intangible assets related to proprietary bio-technology, customer contracts, customer relationships and network/location based on the net present value of the projected income stream of those intangible assets. The intangibles are being amortized over an estimated useful life of seventeen years. The annual amortization expense, with a corresponding change in pro forma net income (loss) is $230,074 (see adjustment b1).
The table below summarizes the pro forma adjustments related to recording GCEH’s acquisition of SUSOIL at the estimated fair value of the assets and liabilities:
(a4 | ) |
Inventory adjustment to fair value
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$ | 321,554 | |||
(a5 | ) |
Equipment adjustment to fair value
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190,500 | ||||
(a6 | ) |
Intangible assets adjustment to fair value
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3,859,079 | ||||
(a7 | ) |
Commitments assumed at acquisition
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(103,000 | ) | |||
(a8 | ) |
Forgiveness of liabilities payable to former member
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1,386,268 | ||||
(a9 | ) |
Elimination of members' deficit of prior operations
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3,526,801 | ||||
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(a11) The cost incurred related to the acquisition of Sustainable Oils, LLC includes approximately $21,500 in legal and $6,000 in valuation fees, for a total of approximately $27,500.
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(b)
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The unaudited pro forma condensed consolidated statements of operations have been adjusted to reflect:
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(b1) The increase in amortization expense of $230,074 resulting from the fair value of the intangible assets acquired of approximately $3.9 million.
(b2) Nonrecurring transactions—consisting of gains on the extinguishment of liabilities of $2,197,717—are adjusted out of the pro form net income (loss).
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