Attached files
Exhibit 99.2
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
F-1
UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
On October 23, 2013 (the “Closing Date”), Gamzio Mobile, Inc, closed a voluntary share exchange transaction (the “Exchange Transaction”) with Gamzio, Inc. and the shareholders of Gamzio, Inc. As a result of the Exchange Transaction, the Gamzio, Inc. Stockholders acquired 30,000,000 of the issued and outstanding common stock of Gamzio Mobile, Inc. In addition, prior to the share exchange, the holder of the notes payable converted $1,250,000 of debt into 25,000,000 shares of common stock of Gamzio Mobile 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 and Combined Statement of Operations of Gamzio Mobile, Inc. and Gamzio, Inc. as of September 30, 2013 as if the merger occurred on January 1, 2012. 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 Gamzio Mobile, 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 Gamzio Mobile, Inc. and Gamzio, Inc. had been consummated as of the beginning of the period indicated, nor is it necessarily indicative of the results of future operations.
F-2
Gamzio Mobile, Inc.
Unaudited Pro Forma Combined Balance Sheet
September 30, 2013
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Gamzio
Mobile, Inc.
(Unaudited)
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Gamzio, Inc.
(Unaudited)
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Note
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Pro Forma
Adjustments
(Unaudited)
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Pro Forma
Combined
(Unaudited)
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Assets
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Current Assets
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Cash
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$ | 1,051 | $ | - | $ | - | $ | 1,051 | ||||||||||||
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Total Current Assets
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1,051 | - | - | 1,051 | ||||||||||||||||
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Property, plant and equipment
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5,745 | - | - | 5,745 | ||||||||||||||||
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Total Assets
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6,796 | - | - | 6,796 | ||||||||||||||||
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LIABILITIES and STOCKHOLDERS’ (DEFICIT)
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Current Liabilities
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Accounts payable
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35,393 | - | - | 35,393 | ||||||||||||||||
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Accrued Interest
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212,336 | - | - | 212,336 | ||||||||||||||||
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Loan payable to related parties
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27,523 | 257,159 | 2 | (a) | (257,159 | ) | 27,523 | |||||||||||||
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Imputed interest
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- | (7,066 | ) | 2 | (a) | 7,066 | ||||||||||||||
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Loan payable
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1,613,162 | - | 2 | (c) | (1,250,000 | ) | 363,162 | |||||||||||||
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Total Current Liabilities
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1,888,414 | 250,093 | (1,500,093 | ) | 638,414 | |||||||||||||||
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Total liabilities
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1,888,414 | 250,093 | (1,500,093 | ) | 638,414 | |||||||||||||||
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STOCKHOLDERS’ (DEFICIT)
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Common shares
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658 | - | 2 | (b) | 30,000 | |||||||||||||||
| 2 | (c) | 25,000 | 55,658 | |||||||||||||||||
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Additional paid-in capital
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2,997,738 | 8,538 | 2 | (a) | 250,093 | |||||||||||||||
| 2 | (d) | (4,880,014 | ) | |||||||||||||||||
| 2 | (b) | (30,000 | ) | |||||||||||||||||
| 2 | (c) | 1,225,000 | (428,645 | ) | ||||||||||||||||
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Deficit accumulated during exploration stage
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(137,569 | ) | 2 | (e) | 137,569 | |||||||||||||||
| 2 | (e) | (137,569 | ) | |||||||||||||||||
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Deficit accumulated during development stage
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(4,742,445 | ) | (258,631 | ) | 2 | (d) | 4,880,014 | (258,631 | ) | |||||||||||
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Total Stockholders’ (Deficit)
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(1,881,618 | ) | (250,093 | ) | 1,500,093 | (631,618 | ) | |||||||||||||
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Total Liabilities and Stockholders’ (Deficit)
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$ | 6,796 | $ | - | $ | - | $ | 6,796 | ||||||||||||
The accompanying notes are an integral part of these unaudited pro forma combined financial statements.
F-3
Gamzio Mobile, Inc.
Unaudited Pro Forma Combined Statement of Operations
For the nine month period ended September 30, 2013
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Gamzio
Mobile, Inc.
(Audited)
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Gamzio, Inc.
(Unaudited)
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Note
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Pro Forma
Adjustments
|
Pro Forma
Combined
(Unaudited)
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||||||||||||||||
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Revenues
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$ | - | $ | - | $ | - | $ | - | ||||||||||||
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Operating costs and expenses
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Impairment loss on software
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333,705 | 333,705 | ||||||||||||||||||
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Selling, General and administrative
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481,752 | 61,599 | - | 543,351 | ||||||||||||||||
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Research and development
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20,842 | - | - | 20,842 | ||||||||||||||||
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Total Expenses
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836,299 | 61,599 | - | 897,898 | ||||||||||||||||
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Operating loss
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(836,299 | ) | (61,599 | ) | - | (897,898 | ) | |||||||||||||
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Other
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Interest expense
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343,582 | - | 2 | (c) | (266,238 | ) | 77,344 | |||||||||||||
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Net Loss
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$ | (1,179,881 | ) | $ | (61,599 | ) | $ | 266,238 | $ | (975,242 | ) | |||||||||
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Net Loss Per Common Share
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- basic and diluted
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$ | (1.79 | ) | $ | (0.62 | ) | $ | (0.02 | ) | |||||||||||
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Weighted Average Outstanding shares
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- basic and diluted
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658,252 | 100,000 | 2 | (b) | (100,000 | ) | 55,658,252 | |||||||||||||
| 2 | (b) | 30,000,000 | ||||||||||||||||||
| 2 | (c) | 25,000,000 | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma combined financial statements.
F-4
Gamzio Mobile, Inc.
Unaudited Pro Forma Combined Statement of Operations
For the year ended December 31, 2012
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Gamzio
Mobile, Inc.
(Audited)
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Gamzio, Inc.
(Unaudited)
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Note
|
Pro Forma
Adjustments
|
Pro Forma
Combined
(Unaudited)
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Revenues
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$ | - | $ | - | $ | - | $ | - | ||||||||||||
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Operating costs and expenses
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Impairment loss on goodwill
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411,939 | 411,939 | ||||||||||||||||||
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Impairment loss on website development
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7,500 | 7,500 | ||||||||||||||||||
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Selling, General and administrative
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965,625 | 197,032 | - | 1,162,657 | ||||||||||||||||
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Research and development
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199,196 | - | - | 199,196 | ||||||||||||||||
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Total Expenses
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1,584,260 | 197,032 | - | 1,781,292 | ||||||||||||||||
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Operating loss
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(1,584,260 | ) | (197,032 | ) | - | (1,781,292 | ) | |||||||||||||
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Other
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Interest expense
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1,592,630 | - | 2 | (c) | (1,244,171 | ) | 348,459 | |||||||||||||
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Net Loss
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$ | (3,176,890 | ) | $ | (197,032 | ) | $ | 1,244,171 | $ | (2,129,751 | ) | |||||||||
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Net Loss Per Common Share
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- basic and diluted
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$ | (4.83 | ) | $ | (1.97 | ) | $ | (0.04 | ) | |||||||||||
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Weighted Average Outstanding shares
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- basic and diluted
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658,252 | 100,000 | 2 | (b) | (100,000 | ) | 55,658,252 | |||||||||||||
| 2 | (b) | 30,000,000 | ||||||||||||||||||
| 2 | (c) | 25,000,000 | ||||||||||||||||||
The accompanying notes are an integral part of these unaudited pro forma combined financial statements.
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS
(Amounts expressed in US dollars)
1. BASIS OF PRESENTATION
The Unaudited Pro Forma Combined Balance Sheet represents the combined financial position of Gamzio Mobile, Inc. and Gamzio, Inc. as of September 30, 2013 as if the acquisition occurred on January 1, 2012.
The Unaudited Pro Forma Combined Statements of Operations represents the combined financial position of Gamzio Mobile, Inc. and Gamzio, Inc., Inc. assuming that the acquisition took place on January 1, 2012.
2. PRO FORMA ADJUSTMENTS
a) Simultaneously with the closing of the Exchange Transaction the loans to related parties of Gamzio, Inc. is to be considered a capital contribution.
b) Simultaneously with the closing of the Exchange Transaction, the shareholders of Gamzio, Inc. received 30,000,000 common shares and surrendered their 100,000 shares.
c) Simultaneously with the closing of the Exchange Transaction, Gamzio Mobile, Inc. converted $1,250,000 of its debt to 25,000,000 common shares.
d) These are adjustments to paid in capital and retained deficit to eliminate the Gamzio Mobile, Inc. additional paid-in capital based on the related exchange ratio inherent in the share exchange agreement.
e) Reclassification entry related to the deficit accumulated in the exploration stage of Gamzio Mobile, Inc.
F-6