Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - XERIANT, INC. | banjo_8k-111413.htm |
| EX-3.2 - ARTICLES OF MERGER - XERIANT, INC. | banjo_8k-ex302.htm |
| EX-3.1 - CERTIFICATE OF REGISTRATION - XERIANT, INC. | banjo_8k-ex301.htm |
| EX-10.1 - SHARE EXCHANGE AGREEMENT - XERIANT, INC. | banjo_8k-ex1001.htm |
| EX-10.2 - LEASE - XERIANT, INC. | banjo_8k-ex1002.htm |
| EX-10.4 - LOAN FACILITY AGREEMENT - XERIANT, INC. | banjo_8k-ex1004.htm |
| EX-10.6 - EMPLOYMENT AGREEMENT - XERIANT, INC. | banjo_8k-ex1006.htm |
| EX-10.3 - INTELLECTUAL PROPERTY SALE AGREEMENT - XERIANT, INC. | banjo_8k-ex1003.htm |
| EX-99.1 - FINANCIAL STATEMENTS - XERIANT, INC. | banjo_8k-ex9901.htm |
| EX-10.5 - LOAN AGREEMENT - XERIANT, INC. | banjo_8k-ex1005.htm |
| EX-10.7 - EMPLOYMENT AGREEMENT. - XERIANT, INC. | banjo_8k-ex1007.htm |
| EX-21.1 - SUBSIDIARIES OF THE REGISTRANT - XERIANT, INC. | banjo_8k-ex2101.htm |
| EX-3.3 - CERTIFICATE OF INCORPORATION - XERIANT, INC. | banjo_8k-ex303.htm |
Exhibit 99.2
BANJO AND MATILDA TRUST AND SUBSIDIARY
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
JUNE 30, 2013
| Banjo and Matilda Trust | Eastern World Solutions, Inc. | Combined Historical | Proforma Adjustments | Combined Pro Forma | |||||||||||||||||
| CURRENT ASSETS | |||||||||||||||||||||
| Cash and cash equivalents | $ | 11,104 | $ | – | $ | 11,104 | $ | 11,104 | |||||||||||||
| Trade and other receivables, net | 11,120 | – | 11,120 | 11,120 | |||||||||||||||||
| Inventory | 329,598 | – | 329,598 | 329,598 | |||||||||||||||||
| Deferred tax | – | – | – | – | |||||||||||||||||
| Other current assets | 78,505 | – | 78,505 | 78,505 | |||||||||||||||||
| TOTAL CURRENT ASSETS | 430,327 | – | 430,327 | 430,327 | |||||||||||||||||
| NON-CURRENT ASSETS | |||||||||||||||||||||
| Investment in subsidiary | 1 | 4,626,385 | – | ||||||||||||||||||
| 2 | (4,626,385 | ) | |||||||||||||||||||
| Intangible assets, net | 43,310 | – | 43,310 | 43,310 | |||||||||||||||||
| Other receivable | 142,658 | – | 142,658 | 142,658 | |||||||||||||||||
| Property and equipment, net | 7,324 | – | 7,324 | 7,324 | |||||||||||||||||
| TOTAL NON-CURRENT ASSETS | 193,292 | – | 193,292 | 193,292 | |||||||||||||||||
| TOTAL ASSETS | $ | 623,619 | $ | – | $ | 623,619 | $ | 623,619 | |||||||||||||
| CURRENT LIABILITIES | |||||||||||||||||||||
| Trade and other payables | $ | 395,802 | $ | 7,123 | $ | 402,925 | $ | 402,925 | |||||||||||||
| Line of credit | 93,968 | – | – | – | |||||||||||||||||
| Accrued interest | 13,063 | – | 13,063 | 13,063 | |||||||||||||||||
| Advances | – | 26,837 | 26,837 | - | 26,837 | ||||||||||||||||
| TOTAL CURRENT LIABILITIES | 502,833 | 33,960 | 536,793 | 536,793 | |||||||||||||||||
| NON-CURRENT LIABILITIES | |||||||||||||||||||||
| Loan from related party | 293,640 | – | 293,640 | 293,640 | |||||||||||||||||
| TOTAL NON-CURRENT LIABILITIES | 293,640 | – | 293,640 | 293,640 | |||||||||||||||||
| TOTAL LIABILITIES | 796,473 | 33,960 | 830,433 | 830,433 | |||||||||||||||||
| STOCKHOLDERS’ EQUITY | |||||||||||||||||||||
| Common stock | 246,581 | 115 | 246,696 | 1 | 185 | 300 | |||||||||||||||
| 2 | (246,581 | ) | |||||||||||||||||||
| Additional paid in capital | – | 76,304 | 76,304 | 1 | 4,626,200 | 246,281 | |||||||||||||||
| 2 | (4,456,223 | ) | |||||||||||||||||||
| Accumulated deficit | (492,293 | ) | (76,419 | ) | (568,712 | ) | 2 | 76,419 | (492,293 | ) | |||||||||||
| Current income (loss) | 21,752 | (33,960 | ) | (12,208 | ) | – | (12,208 | ) | |||||||||||||
| Accumulated other comprehensive income (loss) | 51,106 | – | 51,106 | 51,106 | |||||||||||||||||
| Treasury stock | – | – | – | – | |||||||||||||||||
| TOTAL STOCKHOLDERS’ EQUITY | (172,854 | ) | (33,960 | ) | (206,814 | ) | (206,814 | ) | |||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 623,619 | $ | – | $ | 623,619 | $ | 623,619 | |||||||||||||
Pro Forma Adjustments
| #1 | Investment in subsidiary | 4,626,385 | – | ||||||
| Common stock | 185 | ||||||||
| Additional paid in capital | 4,626,200 |
To record investment for Banjo. Issuance of 18,505,539 at $0.25 per share
| #2 | Investment in subsidiary | – | 4,626,385 | ||||||
| Common stock | 246,581 | – | |||||||
| Accumulated deficit | – | 76,419 | |||||||
| Additional paid in capital | 4,456,223 |
To remove investment during consolidation and adjust equity for reverse merger.
| 1 |
UNAUDITED PRO FORMA CONDENSED COMBINED INCOME STATEMENT
For the Fiscal Year Ended June 30, 2013
UNAUDITED
| Banjo and Matilda Trust | Eastern World Solutions, Inc. | Combined Historical | Proforma Adjustments | Pro Forma | ||||||||||||||||
| Revenue, net | $ | 1,724,181 | $ | – | $ | 1,724,181 | – | $ | 1,724,181 | |||||||||||
| Cost of sales | 977,086 | – | 977,086 | 977,086 | ||||||||||||||||
| Gross profit | 747,095 | – | 747,095 | 747,095 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Payroll expenses | 240,450 | – | 240,450 | 240,450 | ||||||||||||||||
| Administration expenses | 195,422 | 33,960 | 229,382 | – | 229,382 | |||||||||||||||
| Marketing expense | 88,826 | – | 88,826 | 88,826 | ||||||||||||||||
| Occupancy expenses | 47,518 | – | ||||||||||||||||||
| Depreciation and amortization expenses | 8,821 | – | 8,821 | 8,821 | ||||||||||||||||
| Total operating expenses | 581,037 | 33,960 | 567,479 | 567,479 | ||||||||||||||||
| Income (loss) from operations | 166,058 | (33,960 | ) | 132,098 | 132,098 | |||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest income | 1 | – | 1 | 1 | ||||||||||||||||
| Other income | 52,585 | – | 52,585 | 52,585 | ||||||||||||||||
| Finance costs | (196,892 | ) | – | (196,892 | ) | – | (196,892 | ) | ||||||||||||
| Total other income (expense) | (144,306 | ) | – | (144,306 | ) | (144,306 | ) | |||||||||||||
| Income (loss) before income tax provision | 21,752 | (33,960 | ) | (12,208 | ) | (12,208 | ) | |||||||||||||
| Income tax provision | – | – | – | – | ||||||||||||||||
| Net income (loss) | 21,752 | (33,960 | ) | (12,208 | ) | (12,208 | ) | |||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | 217.520 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||||||
| Diluted | $ | 185.915 | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | |||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||||
| Basic | 100 | 11,500,000 | 11,500,100 | 22,005,439 | 33,505,539 | |||||||||||||||
| Diluted | 117 | 11,500,000 | 11,500,117 | 22,005,422 | 33,505,539 | |||||||||||||||
Pro Forma Adjustments
| #1 | To effect shares issued upon reorganization |
| The Company did not include potentially dilutive shares issued or outstanding as the effect of those shares would have resulted in an antidilutive. |
| 2 |
UNAUDITED PRO FORMA CONDENSED COMBINED INCOME STATEMENT
For the Fiscal Year Ended June 30, 2012
UNAUDITED
| Banjo and Matilda Trust | Eastern World Solutions, Inc. | Combined Historical | Proforma Adjustments | Pro Forma | ||||||||||||||||
| Revenue, net | $ | 950,812 | $ | – | $ | 950,812 | – | $ | 950,812 | |||||||||||
| Cost of sales | 677,002 | – | 677,002 | 677,002 | ||||||||||||||||
| Gross profit | 273,810 | – | 273,810 | 273,810 | ||||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| Pay roll expenses | 131,896 | – | 131,896 | 131,896 | ||||||||||||||||
| Administration expenses | 165,286 | 19,942 | 185,228 | – | 185,228 | |||||||||||||||
| Marketing expense | 144,303 | – | 144,303 | 144,303 | ||||||||||||||||
| Occupancy expenses | 36,321 | – | – | – | ||||||||||||||||
| Depreciation and amortization expenses | 6,018 | – | 6,018 | 6,018 | ||||||||||||||||
| Total operating expenses | 483,824 | 19,942 | 467,445 | 467,445 | ||||||||||||||||
| Income (loss) from operations | (210,014 | ) | (19,942 | ) | (229,956 | ) | (229,956 | ) | ||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest income | 1 | – | 1 | 1 | ||||||||||||||||
| Other income | 59 | – | 59 | 59 | ||||||||||||||||
| Finance costs | (56,348 | ) | – | (56,348 | ) | – | (56,348 | ) | ||||||||||||
| Total other income (expense) | (56,288 | ) | – | (56,288 | ) | (56,288 | ) | |||||||||||||
| Income (loss) before income tax provision | (266,302 | ) | (19,942 | ) | (286,244 | ) | (286,244 | ) | ||||||||||||
| Income tax provision | – | – | – | – | ||||||||||||||||
| Net income (loss) | (266,302 | ) | (19,942 | ) | (286,244 | ) | (286,244 | ) | ||||||||||||
| Earnings per share: | ||||||||||||||||||||
| Basic | $ | (2,663.020 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
| Diluted | $ | (2,663.020 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||||||
| Weighted average number of shares outstanding: | ||||||||||||||||||||
| Basic | 100 | 11,500,000 | 11,500,100 | 22,005,439 | 33,505,539 | |||||||||||||||
| Diluted | 100 | 11,500,000 | 11,500,100 | 22,005,439 | 33,505,539 | |||||||||||||||
Pro Forma Adjustments
| #1 | To effect shares issued upon reorganization |
| The Company did not include potentially dilutive shares issued or outstanding as the effect of those shares would have resulted in an antidilutive. |
| 3 |
NOTES TO THE UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
Note 1 – Basis for Pro Forma Presentation
The accompanying condensed combined pro forma financial statements illustrate the effect of the acquisition effective June 30, 2013 between Eastern World Solutions, Inc. (Company), and Banjo and Matilda Trust (Banjo) on the Company's financial position and results of operations. The pro forma condensed combined balance sheet as of June 30, 2013 is based on the historical balance sheets of the Company and Banjo as of that date. The pro forma condensed combined balance sheet assumes the acquisition took place on July 1, 2012.
The pro forma condensed combined income statement for the year ended June 30, 2013 is based on the historical income statements of Banjo and the Company, and assumes the acquisition took place on July 1, 2012. The pro forma condensed combined income statements for the fiscal year ended June 30, 2012 is based on the historical income statements of the Company and Banjo and assumes the acquisition took place on July 1, 2011.
The pro forma condensed combined financial statements may not be indicative of the actual results of the acquisition and there can be no assurance that the foregoing results will be obtained. In particular, the pro form condensed combined financial statements are based on the Company’s acquisition on June 30, 2013. The actual may differ.
The accompanying pro forma condensed combined financial statements should be read in conjunction with the historical financial statements of the Company and Banjo.
Note 2 – Acquisition
Eastern World Group, Inc. is an early stage company and was organized to engage in creating, marketing and selling of proprietary engagement marketing technologies and or acquiring complementary technologies and or other companies focused on the development and marketing of such technologies.
Banjo & Matilda Trust was formed in 2009 as a chartered proprietary limited entity in New South Wales, Australia. Banjo designs, produces, markets, distributes and sells luxury cashmere fashion.
The Reorganization has been accounted for as a reverse merger with Banjo being treated as the accounting acquirer.
Note 3 – Pro Forma Adjustments
Certain adjustments have been made to the historical financial statements in order to prepare the pro forma financial information as if the transaction had occurred at the beginning of the fiscal periods presented.
The adjustments are as follows:
(1) To record stock issuance of 18,505,539 common shares for the acquisition of Banjo.
(2) To eliminate the investment in subsidiaries during consolidation and equity for reverse merger.
| 4 |