4Cable TV International, Inc. - FORM 8-K - EX-99.2 - PRO FORMA FINANCIAL STATEMENTS - October 4, 2013

Attached files

file filename
8-K - FORM 8-K - 4Cable TV International, Inc.form8k.htm
EX-10.2 - RENT TO OWN CONTRACT BETWEEN 4CABLE TV, INC. AND SHIRLEY FAYE M. STRICKLAND, DATED AUGUST 7, 2012 - 4Cable TV International, Inc.ex102.htm
EX-16.1 - LETTER OF SILBERSTEIN UNGAR, PLLC - 4Cable TV International, Inc.ex161.htm
EX-10.1 - AMENDMENT TO SHARE EXCHANGE AGREEMENT - 4Cable TV International, Inc.ex101.htm
EX-99.1B - UNAUDITED FINANCIAL STATEMENTS OF 4CABLE TV INC. AS OF JUNE 30, 2013 AND JUNE 30, 2012 - 4Cable TV International, Inc.ex991b.htm
EX-99.1A - AUDITED FINANCIAL STATEMENTS OF 4CABLE TV INC. AS OF DECEMBER 31, 2012 AND 2011 - 4Cable TV International, Inc.ex991a.htm
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 
  Page
   
F-2
   
F-3
   
F-4
   
F-5
   
F-6
 
 
 
 
 
 
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
 
On September 30, 2013 (the “Closing Date”), 4Cable TV Int, closed a voluntary share exchange transaction (the “Exchange Transaction”) with 4Cable TV and the shareholders of 4Cable TV, pursuant to the terms of the Share Exchange Agreement, dated April 4, 2013  (the “Exchange Agreement”). As a result of the Exchange Transaction, the 4Cable TV, Inc. Stockholders acquired 20,900,000 of the issued and outstanding common stock of 4Cable TV International Inc.
 
The share exchange constitutes a reverse acquisition and is considered to be a capital transaction in substance, rather than a business combination, therefore no goodwill or other intangible assets have been recorded.
 
The following Unaudited Pro Forma Combined Financial Statements give effect to the aforementioned acquisition based on the assumptions and adjustments set forth in the accompanying notes to the Unaudited Pro Forma Combined Financial Statements which management believes are reasonable.  The Unaudited Pro Forma Combined Balance Sheet represents the combined financial position of 4Cable Tv International Inc and 4Cable Tv Inc. as of June 30, 2013 as if the merger occurred on June 30, 2013.  The Unaudited Pro Forma Combined Financial Statements of Operations give effect to the merger of 4Cable TV inc. and 4Cable TV International Inc. as if it  took place on the beginning of the first accounting period presented in these pro forma combined financial statements.  These unaudited Pro Forma Combined Financial Statements and accompanying notes should be read in conjunction with the audited historical financial statements and related notes of 4Cable Tv Inc., which are included in this document.
 
The Unaudited Pro Forma Combined financial information is presented for illustrative purposes only and is not necessarily indicative of the operating results that would have been achieved if the merger of 4Cable TV inc. and 4Cable TV International Inc. had been consummated as of the beginning of the period indicated, nor is it necessarily indicative of the results of future operations.
 
 
 
 
4Cable TV International, Inc.
Unaudited Proforma Combined Balance Sheet
 
       
June 30, 2013
                  
                             
   
4Cable TV
                        
   
International,
    
4Cable TV
  
 
   
 
   
Pro Forma
  
   
Inc
    
Inc
         Pro Forma     Combined  
   
(Unaudited)
    
(Unaudited)
   Note     Adjustments    
(Unaudited)
  
Assets
                            
                             
Current Assets
                            
Cash
     -     60           -       60  
Accounts receivable
     -     29,552                   29,552  
Advance to 4Cable TV Inc
     40,000         2 (a)     (40,000 )     -  
Inventory
     -     167,341                   167,341  
Prepaid expense and other
     690     2,879                   3,569  
Total Current Assets
     40,690     199,832           (40,000 )     200,522  
                                   
Property plant and equipment
     -     294,795           -       294,795  
                                   
Total assets
     40,690     494,627           (40,000 )     495,317  
                                   
LIABILITIES and STOCKHOLDERS' EQUITY
                                  
                                   
Current Liabilities
                                  
Accounts payable
     -     48,460           -       48,460  
Accrued salary payroll liabilities and taxes
     -     64,355                   64,355  
Other accrued
     -     36,822           -       36,822  
Advance from 4Cable TV Int.
     -     40,000   2 (a)     (40,000 )     -  
Credit card debt
     -     5,634                   5,634  
Notes payable
     -     69,575           -       69,575  
Loan payable to related parties
     126,195     51,744   2 (b)     (158,151 )     19,788  
Current portion of LT Debt
     -     23,434           -       23,434  
Total Current Liabilities
     126,195     340,024           (198,151 )     268,068  
                                   
Long Term Liabilities
                                  
Capital lease obligations
     -     207,794           -       207,794  
Notes payable
     -     3,226           -       3,226  
Total Long Term Liabilities
     -     211,020           -       211,020  
                                   
Total Liabilities
     126,195     551,044           (198,151 )     479,088  
                                   
STOCKHOLDERS' DEFICIENCY
                                  
Common shares
     2,150     25   2 c     42,375       44,550  
Additional paid in capital
     40,850     229,686   2 (b)     158,151          
                2 c     (42,375 )        
                2 d     (128,505 )     257,807  
retained earnings / (deficit)
           (286,128 )                 (286,128 )
Development stage accum loss
     (128,505 )   -           128,505       -  
                                   
Total Stockholders' equity / (deficit)
     (85,505 )   (56,417 )         158,151       16,229  
                                   
Total Liabilities and Stockholders' Equity/(Deficit)
     40,690     494,627           (40,000 )     495,317  
 
F-1
 
 
4Cable TV International, Inc.
Unaudited Proforma Combined Statements of Operations
   
For the Year ended December 31, 2011
        
                         
   
4Cable TV
          
 
   
 
 
   
International,
    
4Cable TV
 
 
 
   
Pro Forma
  
   
Inc
    
Inc
     Pro Forma     Combined  
   
(Unaudited)
    
(Unaudited)
 Note   Adjustments    
(Unaudited)
  
                         
Net Sales
     -       397,164       -       397,164  
Cost of Sales
     -       266,790       -       266,790  
              130,374               130,374  
                                 
Operating costs and expenses
                                
                                 
Selling, General and administrative
     20,135       138,223       (20,135 )     138,223  
Research and development
     -       35,008       -       35,008  
Total Operating Costs and Expenses
     20,135       173,231       (20,135 )     173,231  
                                 
Operating income / (loss)
     (20,135 )     (42,857 )      20,135       (42,857 )
                                 
Interest expense
     -       8,178       -       8,178  
                                 
Income (loss) before income taxes
     (20,135 )     (51,035 )     20,135       (51,035 )
                                 
Income taxes
     -       -       -       -  
                                 
Net income / (loss)
     (20,135 )     (51,035 )     20,135       (51,035 )
                                 
NET LOSS PER COMMON SHARE
                                
                                 
Basic and diluted
     (0.01 )     (25.52 )     -       (0.00 )
                                 
WEIGHTED AVERAGE
                                
OUTSTANDING SHARES
                                
                                 
Basic and diluted
     2,150,000       2,000       -       44,550,000  
 
 
F-2
 
4Cable TV International, Inc.
Unaudited Proforma Combined Statements of Operations

   
For the Year ended December 31, 2012
        
                         
   
4Cable TV
          
Pro Forma
    
Pro Forma
  
   
International,
    
4Cable TV
Note
  
Adjustments
    
Combined
  
   
Inc
    
Inc
              
   
(Unaudited)
    
(Unaudited)
          
(Unaudited)
  
                         
Net Sales
     -       632,172       -       632,172  
Cost of Sales
     -       411,328       -       411,328  
      -       220,844       -       220,844  
                                 
                                 
Operating costs and expenses
                                
                                 
Selling, General and administrative
     18,168       179,076       (18,168 )     179,076  
Research and development
     -       37,407       -       37,407  
Total Operating Costs and Expenses
     18,168       216,483       (18,168 )     216,483  
                                 
Operating income / (loss)
     (18,168 )     4,361       18,168       4,361  
                                 
Interest expense
     -       53,702       -       53,702  
                                 
Income (loss) before income taxes
     (18,168 )     (49,341       18,168       (49,341 )
                                 
Income taxes
     -       -       -       -  
                                 
Net income / (loss)
     (18,168 )     (49,341       18,168       (49,341 )
                                 
NET LOSS PER COMMON SHARE
                                
                                 
Basic and diluted
     (0.01 )     (22.43       -       0.00  
                                 
WEIGHTED AVERAGE
                                
OUTSTANDING SHARES
                                
                                 
Basic and diluted
     2,150,000       2,200       -       44,550,000  

 
F-3
 
4Cable TV International, Inc.
Unaudited Proforma Combined Statements of Operations
   
For the Six Months ended June 30, 2013
        
                         
   
4Cable TV
          
 
   
 
 
   
International,
    
4Cable TV
 
       
Pro Forma
  
   
Inc
    
Inc
     Pro Forma     Combined  
   
(Unaudited)
    
(Unaudited)
 Note   Adjustments    
(Unaudited)
  
                         
Net Sales
     -       476,926       -       476,926  
Cost of Sales
     -       326,478       -       326,478  
      -       150,448       -       150,448  
                                 
Operating costs and expenses
                                
Selling, General and administrative
     14,160       118,452       (14,160 )     118,452  
Research and development
     -       10,039       -       10,039  
Total Operating Costs and Expenses
     14,160       128,491       (14,160 )     128,491  
                                 
Operating income / (loss)
     (14,160 )     21,957       14,160       21,957  
                                 
Interest expense
     -       16,678       -       16,678  
                      -          
Income (loss) before income taxes
     (14,160 )     5,279       14,160       5,279  
                                 
Income taxes
     -       -       -       -  
                                 
Net income / (loss)
     14,160 )     5,279       14,160       5,279  
                                 
NET LOSS PER COMMON SHARE
                                
                                 
Basic and diluted
     (0.00 )     2.14               0.00  
                                 
WEIGHTED AVERAGE
                                
OUTSTANDING SHARES
                                
                                 
Basic and diluted
     23,650,000       2,470               44,550,000  
               
2(b)
     (2,470 )        
               
2(b)
     20,900,000          
 
 
 
F-4
 
4Cable TV International, Inc.
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
 (Amounts expressed in US dollars)
 
1.           BASIS OF PREPARATION
 
The Unaudited Pro Forma Combined Balance Sheet represents the combined financial position of 4Cable TV International, Inc and 4Cable TV, Inc. of June 30, 2013 as if the acquisition occurred on June 30, 2013.
 
The Unaudited Pro Forma Combined Statements of Operations represents the combined financial position of 4Cable TV International, Inc and 4Cable TV Inc. assuming that the reverse acquisition took place on the beginning of the first accounting period presented in these pro forma combined financial statements.
 
2.           PRO FORMA ADJUSTMENTS
 
     a)  As part of the acquistion of 4Cable TV though the share purchase agreement, the loans to a related party was considered to be capital contirbutions and the intercompany accounts aree eliminated.
 
    b)  Simultaneously with the closing of the Exchange Transaction, the shareholders of 4Cable TV Inc. received 20,900,000 common shares and surrendered their 2,470 shares which were cancelled.

 
F-5
 


4Cable TV International, Inc. Reports