Attached files
| file | filename |
|---|---|
| EX-99.3 - EXHIBIT 99.3 - Leo Motors, Inc. | exhibit99_3.htm |
| EX-99.1 - EXHIBIT 99.1 - Leo Motors, Inc. | exhibit99_1.htm |
| EX-99.2 - EXHIBIT 99.2 - Leo Motors, Inc. | exhibit99_2.htm |
| 8-K/A - 8-K/A - Leo Motors, Inc. | leomotors8ka06162015.htm |
Exhibit 99.4
|
Leo Motors , Inc.
|
Pro Forma
|
|||||||||||||||||||||||||||||||
|
Pro Forma Balance Sheet
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trading
|
ELIM
|
Consolidated
|
||||||||||||||||||||||||
|
March 31, 2015
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
|||||||||||||||||||||||||
|
All numbers shown in US Dollars
|
3/31/2015
|
|||||||||||||||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 374 | 67853 | 211,957 | 92,352 | 30361 | 93354 | 0 | $ | 496,251 | ||||||||||||||||||||||
|
Accounts receivable
|
0 | 0 | 476,777 | 8,866 | 0 | 37,154 | 0 | 522,797 | ||||||||||||||||||||||||
|
Inventories
|
0 | 0 | 295,159 | 0 | 0 | 423,776 | 0 | 718,935 | ||||||||||||||||||||||||
|
Prepayment to suppliers
|
0 | 137,236 | 160,484 | 0 | 0 | 0 | 0 | 297,720 | ||||||||||||||||||||||||
|
Other current assets
|
0 | 7,297 | 57,403 | 1,908 | 149,254 | 0 | 0 | 215,862 | ||||||||||||||||||||||||
|
Total Current Assets
|
374 | 212,386 | 1,201,780 | 103,126 | 179,615 | 554,284 | 2,251,565 | |||||||||||||||||||||||||
|
Fixed assets, net
|
6,744 | 10,530 | 16,846 | 63,683 | 80,168 | 0 | 0 | 177,971 | ||||||||||||||||||||||||
|
Deposit
|
0 | 46,234 | 22,637 | 4,804 | 150,235 | 9,025 | 0 | 232,935 | ||||||||||||||||||||||||
|
Intangible assets
|
0 | 63,831 | 0 | 0 | 0 | 0 | 0 | 63,831 | ||||||||||||||||||||||||
|
Goodwill
|
0 | 0 | 0 | 0 | 0 | 0 | 2,926,091 | 2,926,091 | ||||||||||||||||||||||||
|
Investment in subsidiaries
|
8,089,368 | 0 | 0 | 0 | 0 | 0 | -8,089,368 | 0 | ||||||||||||||||||||||||
|
Total Non-Current Assets
|
8,096,112 | 120,595 | 39,483 | 68,487 | 230,403 | 9,025 | 3,400,828 | |||||||||||||||||||||||||
|
Total Assets
|
$ | 8,096,486 | 332,981 | 1,241,263 | 171,613 | 410,018 | 563,309 | -5,163,277 | 5,652,393 | |||||||||||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||
|
Current Liabilities:
|
||||||||||||||||||||||||||||||||
|
Accounts payable and accrued expenses
|
$ | 1,139,889 | 1,060,342 | 291,900 | 102,060 | 200,720 | 777,160 | 0 | $ | 3,572,071 | ||||||||||||||||||||||
|
Short term borrowings
|
0 | 256,392 | 183,245 | 5,559 | 0 | 0 | 0 | 445,196 | ||||||||||||||||||||||||
|
Advance from customers
|
0 | 30,381 | 9,141 | 0 | 4,570 | 0 | 0 | 44,092 | ||||||||||||||||||||||||
|
Due to related parties
|
0 | 116,617 | 0 | 0 | 0 | 0 | 0 | 116,617 | ||||||||||||||||||||||||
|
Taxes payable
|
0 | 137,780 | 10,673 | 13,732 | 79,791 | 0 | 0 | 241,976 | ||||||||||||||||||||||||
|
Notes Payable current portion
|
0 | 0 | 0 | 8,620 | 77,151 | 0 | 0 | 85,771 | ||||||||||||||||||||||||
|
Total Current Liabilities
|
1,139,889 | 1,601,512 | 494,959 | 129,971 | 362,232 | 777,160 | 4,505,723 | |||||||||||||||||||||||||
|
Long Term Notes
|
0 | 36,698 | 117,075 | 18,284 | 88,565 | 0 | 0 | 260,622 | ||||||||||||||||||||||||
|
Accrued severance benefits
|
0 | 2,075 | 0 | 0 | 0 | 0 | 0 | 2,075 | ||||||||||||||||||||||||
|
Total Liabilities
|
1,139,889 | 1,640,285 | 612,034 | 148,255 | 450,797 | 777,160 | 4,768,420 | |||||||||||||||||||||||||
|
Stockholders' Equity:
|
||||||||||||||||||||||||||||||||
|
Common stock
|
154,144 | 2,831,276 | 284,870 | 181,661 | 138,356 | 180,505 | (3,616,668 | ) | 154,144 | |||||||||||||||||||||||
|
Additional paid-in capital
|
21,253,084 | 1,831,184 | 1,285,902 | 0 | 0 | 0 | (4,973,230 | ) | 19,396,940 | |||||||||||||||||||||||
|
Accumulated other comprehensive income
|
277,678 | 225,403 | 4,893 | 0 | 0 | 0 | 0 | 507,974 | ||||||||||||||||||||||||
|
Accumulated loss
|
(14,728,309 | ) | (6,195,167 | ) | (946,436 | ) | (158,303 | ) | (179,135 | ) | (394,356 | ) | 717,743 | (21,883,963 | ) | |||||||||||||||||
|
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
|
6,956,597 | (1,307,304 | ) | 629,229 | 23,358 | (40,779 | ) | (213,851 | ) | (1,824,905 | ) | |||||||||||||||||||||
|
Non-controlling interest
|
0 | 0 | 0 | 0 | 0 | 0 | 2,708,878 | 2,708,878 | ||||||||||||||||||||||||
|
Total Stockholders' Deficit
|
6,956,597 | (1,307,304 | ) | 629,229 | 23,358 | (40,779 | ) | (213,851 | ) | 883,973 | ||||||||||||||||||||||
|
Total Liabilities and Stockholders' Deficit
|
$ | 8,096,486 | 332,981 | 1,241,263 | 171,613 | 410,018 | 563,309 | (5,163,277 | ) | $ | 5,652,393 | |||||||||||||||||||||
|
Leo Motors, Inc.
|
||||||||||||||||||||||||
|
Pro forma Statement Operations
|
Pro Forma
|
|||||||||||||||||||||||
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Three months ended March 31, 2015
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trading
|
ELIM
|
Consolidated
|
||||||||||||||||
|
All numbers shown in US Dollars
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
|||||||||||||||||
|
Revenues
|
$ | 0 | 0 | 42,771 | 221,998 | 268,960 | 382,802 | 0 | $ | $916,531 | ||||||||||||||
|
Cost of Revenues
|
0 | 0 | 0 | 55,765 | 104,898 | 282,793 | 0 | 443,456 | ||||||||||||||||
|
Gross Profit
|
0 | 0 | 42,771 | 166,233 | 164,062 | 100,009 | 0 | 473,075 | ||||||||||||||||
|
Operating Expenses
|
66,822 | 130,608 | 160,981 | 239,685 | 640,536 | 484,918 | 0 | 1,723,550 | ||||||||||||||||
|
Income(loss) from Continuing Operations
|
(66,822 | ) | (130,608 | ) | (118,210 | ) | (73,452 | ) | (476,474 | ) | (384,909 | ) | 0 | (1,250,475 | ) | |||||||||
|
Other Income (Expenses)
|
||||||||||||||||||||||||
|
Interest expense
|
(275,176 | ) | (1,165 | ) | (4,634 | ) | (7 | ) | (1,725 | ) | 0 | (282,707 | ) | |||||||||||
|
Non-Operating (expense) income
|
0 | 1 | 1,196 | (339 | ) | 78,187 | 0 | 79,045 | ||||||||||||||||
|
Total Other Income (Expenses)
|
(275,176 | ) | (1,164 | ) | (3,438 | ) | (346 | ) | 76,462 | 0 | 0 | (203,662 | ) | |||||||||||
|
Income(loss) from Continuing Operations Before Income Taxes
|
(341,998 | ) | (131,772 | ) | (121,648 | ) | (73,798 | ) | (400,012 | ) | (384,909 | ) | 0 | (1,454,137 | ) | |||||||||
|
Income Tax Expense
|
0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||||||||||
|
Net Income(Loss)
|
(341,998 | ) | (131,772 | ) | (121,648 | ) | (73,798 | ) | (400,012 | ) | (384,909 | ) | 0 | (1,454,137 | ) | |||||||||
|
Income(loss) attributable to non-controlling interest
|
0 | (68,666 | ) | 0 | 0 | 0 | 0 | 0 | (68,666 | ) | ||||||||||||||
|
Net Income(Loss) Attributable To Leo Motors, Inc.
|
$ | (341,998 | ) | (63,106 | ) | (121,648 | ) | (73,798 | ) | (400,012 | ) | (384,909 | ) | 0 | $ | (1,385,471 | ) | |||||||
|
Other Comprehensive Income:
|
||||||||||||||||||||||||
|
Net Income(loss)
|
(341,998 | ) | (63,106 | ) | (121,648 | ) | (73,798 | ) | (400,012 | ) | (384,909 | ) | 0 | (1,385,471 | ) | |||||||||
|
Unrealized foreign currency translation gain(loss)
|
(3,255 | ) | 0 | 0 | 0 | 0 | 0 | 0 | (3,255 | ) | ||||||||||||||
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Comprehensive Income(loss) Attributable to Leo Motors, Inc.
|
$ | (345,253 | ) | (63,106 | ) | (121,648 | ) | (73,798 | ) | (400,012 | ) | (384,909 | ) | 0 | $ | (1,388,726 | ) | |||||||
|
Net Loss per Common Share:
|
||||||||||||||||||||||||
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Basic
|
0 | |||||||||||||||||||||||
|
Diluted
|
0 | |||||||||||||||||||||||
|
Weighted Average Common Shares Outstanding:
|
||||||||||||||||||||||||
|
Basic
|
149,069,490 | |||||||||||||||||||||||
|
Diluted
|
149,972,010 | |||||||||||||||||||||||
|
Leo Motors, Inc.
|
Pro Forma
|
||||||||||||||||||||||||
|
Pro forma Balance Sheet
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trading
|
ELIM
|
Consolidated
|
|||||||||||||||||
|
December 31, 2014
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
||||||||||||||||||
|
All numbers shown in US Dollars
|
12/31/2014
|
||||||||||||||||||||||||
|
ASSETS
|
|||||||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 432 | 1440 | 211,957 | 96,918 | 56,913 | 95,160 | 0 | $ | 462,820 | |||||||||||||||
|
Accounts receivable
|
0 | 0 | 542,210 | 3,625 | 0 | 38,491 | 0 | 584,326 | |||||||||||||||||
|
Inventories
|
0 | 0 | 279,783 | 0 | 0 | 481,199 | 0 | 760,982 | |||||||||||||||||
|
Prepayment to suppliers
|
0 | 142,072 | 164,897 | 0 | 4,676 | 0 | 0 | 311,645 | |||||||||||||||||
|
Other current assets
|
0 | 6,112 | 46,942 | 3,100 | 362,715 | 0 | 0 | 418,869 | |||||||||||||||||
|
Total Current Assets
|
432 | 149,624 | 1,245,789 | 103,643 | 424,304 | 614,850 | 2,538,642 | ||||||||||||||||||
|
Fixed assets, net
|
11,244 | 10,530 | 16,846 | 34,487 | 9,111 | 0 | 0 | 82,218 | |||||||||||||||||
|
Deposit
|
0 | 28,964 | 22,637 | 0 | 151,371 | 9,470 | 0 | 212,442 | |||||||||||||||||
|
Intangible assets
|
0 | 63,831 | 0 | 0 | 0 | 0 | 0 | 63,831 | |||||||||||||||||
|
Goodwill
|
0 | 0 | 0 | 0 | 0 | 0 | 2,444,558 | 2,444,558 | |||||||||||||||||
|
Investment in subsidiaries
|
5,798,589 | 0 | 0 | 0 | 0 | 0 | -5,798,589 | 0 | |||||||||||||||||
|
Total Non-Current Assets
|
5,809,833 | 103,325 | 39,483 | 34,487 | 160,482 | 9,470 | 2,803,049 | ||||||||||||||||||
|
Total Assets
|
$ | 5,810,265 | 252,949 | 1,285,272 | 138,130 | 584,786 | 624,320 | -3,354,031 | $ | 5,341,691 | |||||||||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||||||||||
|
Current Liabilities:
|
|||||||||||||||||||||||||
|
Accounts payable and accrued expenses
|
$ | 1,145,481 | 862,309 | 145,161 | 56,540 | 122,933 | 532,889 | 0 | $ | 2,865,313 | |||||||||||||||
|
Short term borrowings
|
0 | 248,574 | 200,227 | 25,569 | 0 | 0 | 0 | 474,370 | |||||||||||||||||
|
Advance from customers
|
0 | 31,480 | 9,471 | 0 | 0 | 0 | 0 | 40,951 | |||||||||||||||||
|
Due to related parties
|
0 | 150,637 | 0 | 0 | 0 | 0 | 0 | 150,637 | |||||||||||||||||
|
Taxes payable
|
0 | 143,652 | 15,826 | 3,913 | 49,438 | 0 | 0 | 212,829 | |||||||||||||||||
|
Derivative liability
|
819,922 | 0 | 0 | 0 | 0 | 0 | 0 | 819,922 | |||||||||||||||||
|
Notes Payable current portion
|
526,257 | 0 | 0 | 0 | 34,827 | 0 | 0 | 561,084 | |||||||||||||||||
|
Total Current Liabilities
|
2,491,660 | 1,436,652 | 370,685 | 86,022 | 207,198 | 532,889 | 5,125,106 | ||||||||||||||||||
|
Long Term Notes
|
0 | 0 | 145,316 | 0 | 18,355 | 0 | 0 | 163,671 | |||||||||||||||||
|
Accrued severance benefits
|
0 | 2,150 | 0 | 0 | 0 | 0 | 0 | 2,150 | |||||||||||||||||
|
Total Liabilities
|
2,491,660 | 1,438,802 | 516,001 | 86,022 | 225,553 | 532,889 | 5,290,927 | ||||||||||||||||||
|
Stockholders' Equity:
|
|||||||||||||||||||||||||
|
Common stock
|
138,624 | 2,831,276 | 284,870 | 137,113 | 138,356 | 100,878 | (3,492,493 | ) | 138,624 | ||||||||||||||||
|
Additional paid-in capital
|
17,997,472 | 1,831,184 | 1,285,902 | 0 | 0 | 0 | (2,888,538 | ) | 18,226,020 | ||||||||||||||||
|
Accumulated other comprehensive income
|
179,016 | 210,265 | 23,287 | 0 | 0 | 0 | 98,661 | 511,229 | |||||||||||||||||
|
Accumulated loss
|
(14,996,507 | ) | (6,058,578 | ) | (824,788 | ) | (85,005 | ) | 220,877 | (9,447 | ) | 396,237 | (21,357,211 | ) | |||||||||||
|
Total Stockholders' Deficit attributable to LEO MOTORS, INC.
|
3,318,605 | (1,185,853 | ) | 769,271 | 52,108 | 359,233 | 91,431 | (2,481,338 | ) | ||||||||||||||||
|
Non-controlling interest
|
0 | 0 | 0 | 0 | 0 | 0 | 2,532,102 | 2,532,102 | |||||||||||||||||
|
Total Stockholders' Deficit
|
3,318,605 | (1,185,853 | ) | 769,271 | 52,108 | 359,233 | 91,431 | 50,764 | |||||||||||||||||
|
Total Liabilities and Stockholders' Deficit
|
$ | 5,810,265 | 252,949 | 1,285,272 | 138,130 | 584,786 | 624,320 | (3,354,031 | ) | $ | 5,341,691 | ||||||||||||||
|
Leo Motors, Inc.
|
|||||||||||||||||||||||||||||||
|
Pro forma Statement Operations
|
Pro Forma
|
||||||||||||||||||||||||||||||
|
Year ended December 31, 2014
|
LEO Motors
|
LEO Motors
|
LGM
|
LEO Motors
|
LEO Motors
|
LEO Trading
|
ELIM
|
Consolidated
|
|||||||||||||||||||||||
|
All numbers shown in US Dollars
|
US
|
Korea
|
Factory 1
|
Factory 2
|
(f/k/a/ Erum)
|
ENTRIES
|
Statements
|
||||||||||||||||||||||||
|
Revenues
|
$ | 0 | 0 | 693,096 | 45,855 | 1,407,064 | 163,636 | 0 | $ | 2,309,651 | |||||||||||||||||||||
|
Cost of Revenues
|
0 | 0 | 379,066 | 19,049 | 373,902 | 120,796 | 0 | 892,813 | |||||||||||||||||||||||
|
Gross Profit
|
0 | 0 | 314,030 | 26,806 | 1,033,162 | 42,840 | 0 | 1,416,838 | |||||||||||||||||||||||
|
Operating Expenses
|
1,872,577 | 368,583 | 1,227,439 | 111,817 | 997,594 | 52,287 | 0 | 4,630,297 | |||||||||||||||||||||||
|
Income(loss) from Continuing Operations
|
(1,872,577 | ) | (368,583 | ) | (913,409 | ) | (85,011 | ) | 35,568 | (9,447 | ) | 0 | (3,213,459 | ) | |||||||||||||||||
|
Other Income (Expenses)
|
|||||||||||||||||||||||||||||||
|
Interest expense
|
(569,584 | ) | 0 | 0 | 0 | (3,377 | ) | 0 | (572,961 | ) | |||||||||||||||||||||
|
Non-Operating (expense) income
|
(1,140,588 | ) | 378,293 | 5,904 | 0 | 0 | 0 | (756,391 | ) | ||||||||||||||||||||||
|
Total Other Income (Expenses)
|
(1,710,172 | ) | 378,293 | 5,904 | 0 | (3,377 | ) | 0 | 0 | (1,329,352 | ) | ||||||||||||||||||||
|
Income(loss) from Continuing Operations Before Income Taxes
|
(3,582,749 | ) | 9,710 | (907,505 | ) | (85,011 | ) | 32,191 | (9,447 | ) | 0 | (4,542,811 | ) | ||||||||||||||||||
|
Income Tax Expense
|
0 | 0 | 0 | 0 | (9,213 | ) | 0 | 0 | (9,213 | ) | |||||||||||||||||||||
|
Net Income(Loss)
|
(3,582,749 | ) | 9,710 | (907,505 | ) | (85,011 | ) | 22,978 | (9,447 | ) | 0 | (4,552,024 | ) | ||||||||||||||||||
|
Income(loss) attributable to non-controlling interest
|
0 | 4,817 | 0 | 0 | 0 | 0 | 0 | 4,817 | |||||||||||||||||||||||
|
Net Income(Loss) Attributable To Leo Motors, Inc.
|
$ | (3,582,749 | ) | 4,893 | (907,505 | ) | (85,011 | ) | 22,978 | (9,447 | ) | 0 | $ | (4,556,841 | ) | ||||||||||||||||
|
Other Comprehensive Income:
|
|||||||||||||||||||||||||||||||
|
Net Income(loss)
|
(3,582,749 | ) | 4,893 | (907,505 | ) | (85,011 | ) | 22,978 | (9,447 | ) | 0 | (4,556,841 | ) | ||||||||||||||||||
|
Unrealized foreign currency translation gain(loss)
|
(42,899 | ) | 0 | 0 | 0 | 0 | 0 | 0 | (42,899 | ) | |||||||||||||||||||||
|
Comprehensive Income(loss) Attributable to Leo Motors, Inc.
|
$ | (3,625,648 | ) | 4,893 | (907,505 | ) | (85,011 | ) | 22,978 | (9,447 | ) | 0 | $ | (4,599,740 | ) | ||||||||||||||||
|
Net Loss per Common Share:
|
|||||||||||||||||||||||||||||||
|
Basic
|
(0 | ) | |||||||||||||||||||||||||||||
|
Diluted
|
(0 | ) | |||||||||||||||||||||||||||||
|
Weighted Average Common Shares Outstanding:
|
|||||||||||||||||||||||||||||||
|
Basic
|
97,393,209 | ||||||||||||||||||||||||||||||
|
Diluted
|
98,056,098 | ||||||||||||||||||||||||||||||
1. BASIS OF PRESENTATION
The accompanying unaudited pro forma consolidated balance sheet as at March 31, 2015 and the unaudited pro forma consolidated statements of operations for the three-month period ended March 31, 2015 and the year ended December 31, 2014 (the “Pro Forma Consolidated Financial Statements”) of Leo Motors, Inc have been prepared by management on the basis of United States Generally Accepted Accounting Principles (“US GAAP”) and in accordance with the rules and regulations of the United States Securities and Exchange Commission (“SEC”) from information derived from the financial statements of Leo Motors Inc. and the financial statements of Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc.. The unaudited Pro Forma Consolidated Financial Statements have been prepared for inclusion in the Form 8-K in conjunction with the acquisition of 50% of the target companies (the “Acquisition”).
The unaudited pro forma consolidated balance sheet as at March 31, 2015 gives effect to the acquisition of Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc. as if it had occurred on January 1, 2014. The unaudited pro forma consolidated statements of operations for the three months ended March 31, 2015 and for the year ended December 31, 2014 give effect to the Acquisition as if it had occurred on January 1, 2014.
The unaudited Pro Forma Consolidated Financial Statements have been derived from:
|
a)
|
the unaudited interim financial statements of Leo Motors Inc. for three month period ended March 31, 2015
|
|
|
b)
|
the unaudited financial statements of Leo Motors Inc. for the twelve month period ended December 31, 2014
|
|
|
c)
|
the unaudited interim financial statements of Leo Motors Factory, Inc. for three month period ended March 31, 2015
|
|
|
d)
|
the unaudited financial statements of Leo Motors Factory, Inc for the twelve month period ended December 31, 2014
|
|
|
e)
|
the unaudited interim financial statements of Leo Motors Factory 2, Inc. for three month period ended March 31, 2015
|
|
|
f)
|
the unaudited financial statements of Leo Motors Factory 2, Inc for the twelve month period ended December 31, 2014
|
|
|
g)
|
the unaudited interim financial statements of Leo Trading Inc. for three month period ended March 31, 2015
|
|
|
h)
|
the unaudited financial statements of Leo Trading Inc. for the twelve month period ended December 31, 2014
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The unaudited pro forma adjustments are based on currently available information and certain assumptions that management believes are reasonable. The unaudited Pro Forma Consolidated Financial Statements should be read in conjunction with the selected historical financial information and related financial statements and accompanying footnotes of Leo Motors Inc. and Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc.. The unaudited Pro Forma Consolidated Financial Statements are for informational purposes only and do not purport to reflect the financial position or results of operations that would have occurred if the Acquisition had been consummated on the dates indicated above; nor do they purport to represent or be indicative of the financial position or results of operations of Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc. for any future dates or periods. Unless otherwise stated, all amounts presented in these unaudited Pro Forma Consolidated Financial Statements are in U.S. dollars.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies used in the preparation of these unaudited pro forma consolidated financial statements are those set out in Leo Motors Inc’s audited financial statements as at December 31, 2014 and Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc.’s unaudited condensed interim financial statements for the three months ended March 31, 2015. Management has determined that no material adjustments are necessary to conform Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc.’s financial statements to the accounting policies used by Leo Motors Inc. in the preparation of these Pro Forma Consolidated Financial Statements.
3. DESCRIPTION OF THE TRANSACTION
a) Description of the Transaction
On March 31, 2015, Leo Motors, Inc., a Nevada Corporation (the “Company”) acquired 50% interest Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc., corporations operating in the Republic of Korea (“LGM”), for cash invested in exchange for additional common stock issued in each of the companies. Leo Motors, Inc. has demonstrated significant control of the combined entity and has determined that consolidating the results of operations would be the best way to present the results and financial position of the Company.
4. PRO FORMA ASSUMPTIONS AND ADJUSTMENTS
The unaudited Pro Forma Consolidated Financial Statements are presented as if all shares of Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc. have been issued to Leo Motors, Inc. at the date of the Acquisition
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a)
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The unaudited pro forma consolidated balance sheet as at March 31, 2015 reflects the following adjustment, which is directly attributable to the Acquisition, as if the Acquisition had occurred on January 1, 2014:
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|
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i)
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To eliminate the book value of Leo Motors Factory, Inc., Leo Motors Factory 2, Inc. and Leo Trading, Inc.’s equity accounts and to adjust the appropriate ownership.
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b)The unaudited pro forma consolidated statement of operations for the three months ended March 31, 2015 and the year ended December 31, 2014 is prepared as if the Acquisition had occurred on January 1, 2014. The Company does not anticipate any income or expense adjustments directly attributable to the Acquisition.
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5. PRO FORMA COMMON STOCK
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Pro forma common stock as at March 31, 2015 has been determined as follows:
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March 31, 2015
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||||||||
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Common Shares
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Amount ($)
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|||||||
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Common stock of Leo Motors, Inc. at March 31, 2015
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154,144,244
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154,144
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||||||
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Common Shares Issued
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0
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0
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|||||
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Pro forma common stock at March 31, 2015
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154,144,244
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154,144
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6. PRO FORMA INCOME/(LOSS) PER SHARE
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Pro forma income/(loss) per share has been determined as follows:
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Three months ended March 31, 2015
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Year ended December 31, 2014
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|||||
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Weighted average number of Leo Motors, Inc. common shares - basic
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149,069,490
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97,393,209
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||||
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Weighted average number of Leo Motors, Inc. common shares - diluted
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149,972,010
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98,056,098
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Pro forma weighted average number of shares outstanding - basic
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149,069,490
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97,393,209
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||||
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Pro forma weighted average number of shares outstanding - diluted
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149,972,010
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98,056,098
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||||
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Pro forma adjusted net income/(loss) - basic
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$
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(0.00
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) |
$
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(0.00
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)
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Pro forma adjusted earnings/(loss) per share - diluted
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$
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(0.00
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) |
$
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(0.00
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)
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