EMAV Holdings, Inc. - FORM 8-K - EX-99.2 - PRO FORMA FINANCIAL STATEMENTS - December 31, 2013

Attached files

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EX-4.1 - FORM OF COMMON STOCK CERTIFICATE - EMAV Holdings, Inc.emavexh41.pdf
8-K - EMAV HOLDINGS, INC. 8K 2013-12-27 - EMAV Holdings, Inc.emav.htm
EX-4.1 - FORM OF COMMON STOCK CERTIFICATE - EMAV Holdings, Inc.emavexh41.htm
EX-3.2 - CERTIFICATE OF MERGER - EMAV Holdings, Inc.emavexh32.htm
EX-3.1 - AMENDMENT TO CERTIFICATE OF INCORPORATION - EMAV Holdings, Inc.emavexh31.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF EMAV HOLDINGS, INC. FOR THE YEARS ENDED OCTOBER 31, 2013 AND 2012, AND UNAUDITED CONDENSED FINANCIAL STATEMENTS OF EMAV HOLDINGS, INC. FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012 - EMAV Holdings, Inc.emavexh991.htm
EX-23.1 - REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM - EMAV Holdings, Inc.emavexh231.htm
EX-21.1 - SUBSIDIARIES - EMAV Holdings, Inc.emavexh211.htm
EX-2.1 - AGREEMENT AND PLAN OF MERGER DATED DECEMBER 27, 2013 BY AND AMONG EMAV HOLDINGS CORP., ELECTRIC MOTORS AND VEHICLES COMPANY INC., AND EV POP ACQUISITION COMPANY - EMAV Holdings, Inc.emavexh21.htm
Exhibit 99.2
EMAV HOLDINGS, INC.
  
PRO FORMA BALANCE SHEETS
  
OCTOBER 31, 2013
  
                                     
                                     
   
Historical
                          
   
Acquirer
    
Acquiree
    
Pro-forma Adjustments
        
   
EMAV Holdings,
Inc. (f/k/a
Popbig, Inc.)
    
EMAVC
 (Unaudited)
    
Debit
          
Credit
    
Pro-Forma
(Unaudited)
  
ASSETS
                                    
Current Assets:
                                    
Cash & cash equivalents
   $ -     $ 199,628                       $ 199,628  
Accounts receivable, net
     -       19,145             A1       9,145       10,000  
  Total current assets
     -       218,773                             209,628  
                                               
Property and equipment, net
     -       2,427                             2,427  
                                               
Total Assets
   $ -     $ 221,200                           $ 212,055  
                                               
LIABILITIES AND STOCKHOLDERS' EQUITY
                                        
                                               
Current Liabilities:
                                              
Accounts payable
   $ 2,000     $ 15,000             B1       10,000       27,000  
Accrued expenses
     13,250       1,262       9,145       A1               5,367  
Accrued stock payable
     -       30,000                               30,000  
Note payable, current portion, net of discount of $16,364
     -       14,978                               14,978  
Accrued interest
     -       -                               -  
  Total current liabilities
     15,250       61,240                               77,345  
                                                 
Note payable, net of current portion, net of debt discount of $6,918
     -       11,890                               11,890  
                                                 
Stockholders' Equity (Deficit):
                                                
Preferred stock, $0.001 par value, 10,000,000 shares authorized; none issued and outstanding at October 31, 2013
     -       -                               -  
Common stock, $0.001 par value, 300,000,000 shares authorized; 12,162,040 shares issued and outstanding at October 31, 2013
     12,162       -                                  
                                              50,929  
Common stock, $0.001 par value, 100,000,000 shares authorized; 38,767,222 shares issued and outstanding at October 31, 2013
     -       38,767                                  
                                                 
Additional paid in capital
     203,115       1,082,615                               1,285,730  
                                                 
Accumulated deficit
     (230,527 )     (973,313 )     10,000       B1               (1,213,840 )
                                                 
  Total stockholders' equity (deficit)
     (15,250 )     148,069                               122,819  
                                                 
Total Liabilities and Stockholders' Equity
   $ -     $ 221,200     $ 19,145             $ 19,145     $ 212,055  
 
See Unaudited Significant Notes and Assumptions to Pro Forma Financial Statements.
 
 
 
 
EMAV HOLDINGS, INC.
  
PRO FORMA STATEMENTS OF OPERATIONS
  
FOR THE TWELVE MONTHS ENDED OCTOBER 31, 2013
  
                                     
   
Historical
                          
   
Acquirer
    
Acquiree
    
Pro Forma Adjustments
  
   
EMAV Holdings,
 Inc. (f/k/a
Popbig, Inc.)
    
EMAVC (Unaudited)
    
Debit
          
Credit
    
Pro-Forma
(Unaudited)
  
                                     
Revenues
   $ -     $ -                       $ -  
                                           
Cost of goods sold
     -       -                         -  
                                           
Gross profit
     -       -                         -  
                                           
Operating expenses
                                          
  General & administrative
     33,255       258,240       10,000       B1             301,495  
                                               
  Depreciation
     -       69                             69  
                                               
Total operating expenses
     33,255       258,309                             301,564  
                                               
Income (loss) from operations
     (33,255 )     (258,309 )                           (301,564 )
                                               
Non-operating income (expense):
                                              
  Interest expense
     -       (8,132 )                           (8,132 )
Total non-operating income (expense)
     -       (8,132 )                           (8,132 )
                                               
Income (loss) from continuing operations before income tax
     (33,255 )     (266,441 )                           (309,696 )
                                               
Provision for income tax
     -       -                             -  
                                               
Net income (loss)
     (33,255 )     (266,441 )     10,000               -       (309,696 )
                                                 
Other comprehensive income (loss):
                                                
  Unrealized gain (loss) on marketable securities
     -       -                               -  
                                                 
Comprehensive income (loss)
   $ (33,255 )   $ (266,441 )   $ 10,000             $ -     $ (309,696 )
                                                 
Net loss per common share and equivalents -  basic and diluted loss from operations
   $ (0.00 )   $ (0.01 )                           $ (0.01 )
                                                 
Weighted average shares of share capital outstanding - basic and diluted
     12,162,040       37,780,255                               49,942,295  
                                                 
Weighted average number of shares used to compute basic and diluted loss per share for the year ended October 31, 2013 is the same since the effect of dilutive securities is anti-dilutive.
  
 
See Unaudited Significant Notes and Assumptions to Pro Forma Financial Statements.
 
 
 
 
 
EMAV HOLDINGS, INC.
Significant Notes and Assumptions to Pro-Forma Financial Statements
(Unaudited)
 
On December 27, 2013, EMAV Holdings, Inc., a Delaware corporation (sometimes referred to in this report as “EMAV Holdings” or the “Company”); EV Pop Acquisition Company, a Delaware corporation and a wholly-owned subsidiary of EMAV Holdings (sometimes referred to in this report as “Merger Sub”); and, Electric Motors and Vehicles Company, a Delaware corporation, entered into an Agreement and Plan of Merger and Reorganization, sometimes referred to in this report as the “Merger Agreement”. Pursuant to the Merger Agreement, Merger Sub merged with and into Electric Motors and Vehicles Company, and Electric Motors and Vehicles Company was the surviving corporation of the transaction, which is sometimes referred to in this report as the “Merger”. Following the closing of the Merger, Electric Motors and Vehicles Company became a wholly-owned subsidiary of EMAV Holdings, with the former stockholders of Electric Motors and Vehicles Company owning 97.3% of the outstanding shares of common stock of the combined company. At the closing of the Merger, EMAV Holdings issued 37,840,525 shares of common stock to the former stockholders of Electric Motors and Vehicles Company in exchange for all of the outstanding shares of capital stock of Electric Motors and Vehicles Company. In addition, EMAV Holdings assumed the obligation of Electric Motors and Vehicles Company to issue shares pursuant to all outstanding warrants.
 
The Merger closed concurrently with the execution and delivery of the Merger Agreement. Reference is hereby made to Item 2.01 regarding the completion of the Merger.
 
As used in this Current Report on Form 8-K, (i) all references to the “Combined Company” refer to EMAV Holdings, Inc. and its subsidiary (Electric Motors and Vehicles Company), following the closing of the Merger; and, (ii) unless the context otherwise indicates or requires, all references to “we,” “our” and “us” refer to the Combined Company from and after the closing of the Merger.
 
The accompanying unaudited pro-forma financial information reflects the financial statements of EMAV Holdings, Inc. and Electric Motors and Vehicles Company. The pro-forma adjustments to the balance sheet give effect to the acquisitions of Electric Motors and vehicles Company as if the transaction occurred on October 31, 2013. The pro-forma adjustments to the statements of operations give effect to the acquisitions as if the transaction occurred on November 1, 2012.
 
For the accounting treatment, the Merger is being accounted for as a reverse-merger and recapitalization. Electric Motors and Vehicles Company is the acquirer for financial reporting purposes and EMAV Holdings is the acquired company. Consequently, the assets and liabilities and the operations that will be reflected in the historical financial statements prior to the Merger will be those of Electric Motors and Vehicles Company and will be recorded at the historical cost basis of Electric Motors and Vehicles Company, and the consolidated financial statements after completion of the Merger will include the assets and liabilities of EMAV Holdings and Electric Motors and Vehicles Company, and the historical operations of Electric Motors and Vehicles Company and operations of the Combined Company from the closing date of the Merger.
 
Significant assumptions include:
 
We eliminated the accounts payable and accounts receivable due to or from EMAV Holdings, Inc. and Electric Motor and Vehicle Company when combining the two entities Balance Sheets at October 31, 2013.
 
We incurred a non-recurring $10,000 of professional fees for legal and accounting related to the acquisition which is reflected as adjustments to accumulated deficit at October 31, 2013.
 
Depreciation of property and equipment has been given effect to the acquisitions as if they occurred on October 1, 2012.
 
 
 
 
 
The following reflect the pro-forma adjustments as at October 31, 2013:
  
EMAV HOLDINGS, INC.
(F/K/A POPBIG, INC.)
  
PRO FORMA ADJUSTMENTS
  
OCTOBER 31, 2013
  
(UNAUDITED)
  
       
Debit
    
Credit
  
A1  
Accounts Payable
   $ 9,145        
   
  Accounts receivable
           $ 9,145  
   
To eliminate the payables and receivables due to or from each of the entities.
                
                     
B1  
Accumulated deficit
   $ 10,000          
   
  Accounts payable
           $ 10,000  
   
To record non-recurring professional fees (acquirer expense) incurred in the acquisitions.
                
                     
C1  
Additional paid in capital
   $ 197,272          
   
  Accumulated deficit
           $ 197,272  
   
To remove the accumulated deficit of the acquiree as a result of recapitalization.
                
                     
   
Total
   $ 216,417     $ 216,417  

See Unaudited Significant Notes and Assumptions to Pro Forma Financial Statements.
 
 
 

EMAV Holdings, Inc. Reports