Attached files

file filename
EX-99 - UNAUDITED INTERIM FINANCIALS, INTERLOK KEY MANAGEMENT, INC. - IRONCLAD ENCRYPTION Corpex996.htm
EX-3 - ARTICLES OF INCORPORATION, INTERLOK KEY MANAGEMENT, INC. - IRONCLAD ENCRYPTION Corpex33.htm
EX-99 - PROFORMA FINANCIALS - IRONCLAD ENCRYPTION Corpex997.htm
EX-99 - AUDITED FINANCIALS, INTERLOK KEY MANAGEMENT, INC. - IRONCLAD ENCRYPTION Corpex995.htm
EX-23 - AUDITOR CONSENT - IRONCLAD ENCRYPTION Corpex232.htm
EX-23 - AUDITOR CONSENT - IRONCLAD ENCRYPTION Corpex231.htm
EX-10 - SHARE EXCHANGE AGREEMENT - IRONCLAD ENCRYPTION Corpex101.htm
EX-3 - BYLAWS, INTERLOK KEY MANAGEMENT, INC. - IRONCLAD ENCRYPTION Corpex34.htm
8-K - BUTTE HIGHLANDS MINING CO FORM 8-K - IRONCLAD ENCRYPTION Corpbutte8kjan516final.htm

Exhibit 99.8


Unaudited Pro Forma Condensed Financial Statements


Table of Contents


 

Index

 

 

 

 

 

 

Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2016

1

 

 

Unaudited Pro Forma Consolidated Statement of Operations

 

for the Year Ended December 31, 2015

2

 

 

Unaudited Pro Forma Consolidated Statement of Operations

 

for the Nine Months Ended September 30, 2016

3

 

 

Notes to the Unaudited Pro Forma Consolidated Financial Statements

4











InterLok Key Management Inc.

Unaudited Pro Forma Consolidated Balance Sheet

September 30, 2016

 

Butte Highlands Mining Company

InterLok Key Management Inc.

Combined Totals

Pro Forma Adjustments

Ref

Adjusted Pro Forma Totals

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

Cash and cash equivalents

$     70,926

$     161,238

$ 232,164

$      82,656

1, 2

$   314,820

 

TOTAL CURRENT ASSETS

70,926

161,238

232,164

82,656

 

314,820

 

 

 

 

 

 

 

 

 

OTHER ASSETS

 

 

 

 

 

 

 

 

Patents

-

75

75

 

 

75

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

$     70,926

$     161,313

$ 232,239

$      82,656

 

$   314,895

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

Accounts payable

$       9,174

$                 -

$     9,174

 

 

$       9,174

 

 

Accrued interest payable

-

1,525

1,525

 

 

1,525

 

 

Advances payable to related party

-

42,662

42,662

 

 

42,662

 

TOTAL CURRENT LIABILITIES

9,174

44,187

53,361

-

 

53,361

 

 

Convertible notes payable

-

210,000

210,000

 

 

210,000

 

TOTAL LIABILITIES

9,174

254,187

263,361

-

 

263,361

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 20,000,000 shares

 

 

 

 

 

 

 

 

 

authorized; none issued and outstanding

-

-

-

 

 

-

 

 

Common stock, Class A, $0.001 par value; 500,000,000 shares

 

 

 

 

 

 

 

 

 

authorized; 1,443,017 shares issued and outstanding

1,443

 

1,443

56,656

4

58,099

 

 

Common stock, Class B, $0.001 par value; 1,707,093 shares

 

 

 

 

 

 

 

 

 

authorized; 1,538,872 shares issued and outstanding

1,539

 

1,539

 

 

1,539

 

 

Common stock, $0.001 par value; 100,000,000 shares

 

 

 

 

 

 

 

 

 

authorized; 3,000,000 shares issued and outstanding

-

3,000

3,000

53,656

1, 2

-

 

 

 

 

(56,656)

3

 

 

 

Additional paid-in capital

269,469

 

269,469

29,000

2

87,770

 

 

 

 

 

 

56,656

3

 

 

 

 

 

 

 

(56,656)

4

 

 

 

 

 

 

 

(210,699)

5

 

 

 

Accumulated deficit

(210,699)

(95,874)

(306,573)

210,699

5

(95,874)

 

TOTAL STOCKHOLDERS' EQUITY (DEFICIT)

61,752

(92,874)

(31,122)

82,656

 

51,534

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$     70,926

$     161,313

$ 232,239

$      82,656

 

$   314,895




1





InterLok Key Management Inc.

Unaudited Pro Forma Consolidated Statements of Operations

For the Fiscal Year Ended December 31, 2015

 

 Butte Highlands Mining Company

 InterLok Key Management LLC

 Combined Totals

 Pro Forma Adjustments

 Ref

 Adjusted Pro Forma Totals

OPERATING EXPENSES

 

 

 

 

 

 

 

Professional fees & consulting

$          27,045

$              165

$        27,210

 

 

$          27,210

 

Amortization of patents

-

30

30

 

 

30

 

General and administrative

5,696

11,995

17,691

 

 

17,691

 

 

TOTAL OPERATING EXPENSES

32,741

12,190

44,931

-

 

44,931

 

 

 

 

 

 

 

OTHER INCOME (EXPENSES)

 

 

 

 

 

 

 

Interest income

1

-

1

 

 

1

 

Interest expense

(10)

-

(10)

 

 

(10)

 

 

TOTAL OTHER INCOME (EXPENSES)

(9)

-

(9)

-

 

(9)

 

 

 

 

 

 

 

LOSS BEFORE TAXES

 

 

 

 

 

 

 

Income tax expense

-

-

-

 

 

-

 

 

 

 

 

 

 

NET LOSS

$          32,750

$          12,190

$       44,940

$               -

 

$          44,940

 

 

 

 

 

 

 

PRO FORMA NET LOSS PER COMMON

 

 

 

 

 

 

 

SHARE, BASIC AND DILUTED

($0.01)

 

 

 

 

$(nil)

 

 

 

 

 

 

 

PRO FORMA WEIGHTED AVERAGE COMMON

 

 

 

 

 

 

 

SHARES OUTSTANDING, BASIC AND DILUTED

2,981,889

 

 

56,655,891

4

59,637,780




























2







InterLok Key Management Inc.

Unaudited Pro Forma Consolidated Statements of Operations

For the Nine Months Periods Ended September 30, 2016

 

Butte Highlands Mining Company

 InterLok Key Management Inc.

 Combined Totals

 Pro Forma Adjustments

Ref

 Adjusted Pro Forma Totals

OPERATING EXPENSES

 

 

 

 

 

 

 

Professional fees

$          27,296

$          13,800

$         41,096

 

 

$          41,096

 

Amortization of patents

-

23

23

 

 

23

 

General and administrative

9,554

32,458

42,012

 

 

42,012

 

 

TOTAL OPERATING EXPENSES

36,850

46,281

83,131

-

 

83,131

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

Interest expense

-

(1,541)

(1,541)

 

 

(1,541)

 

 

TOTAL OTHER INCOME (EXPENSE)

-

(1,541)

(1,541)

-

 

(1,541)

 

 

 

 

 

 

 

LOSS BEFORE TAXES

 

 

 

 

 

 

 

Income tax expense

-

-

-

 

 

-

 

 

 

 

 

 

 

 

 

NET LOSS

$          36,850

$          47,822

$         84,672

$                 -

 

$          84,672

 

 

 

 

 

 

 

PRO FORMA NET LOSS PER COMMON

 

 

 

 

 

 

 

SHARE, BASIC AND DILUTED

($0.01)

 

 

 

 

$(nil)

 

 

 

 

 

 

 

PRO FORMA WEIGHTED AVERAGE COMMON

 

 

 

 

 

 

 

SHARES OUTSTANDING, BASIC AND DILUTED

2,981,889

 

 

56,655,891

4

59,637,780













3



INTERLOK KEY MANAGEMENT INC.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


Note 1. Basis of Presentation


These unaudited pro forma consolidated financial statements do not contain all of the information required for annual financial statements.  Accordingly, they should be read in conjunction with the most recent annual financial statements of InterLok Key Management Inc. and Butte Highlands Mining Company.  Effective January 6, 2017, InterLok Key Management Inc. entered into a Share Exchange Agreement with Butte Highlands Mining Company, a United States publicly traded company registered with the Securities and Exchange Commission. Under the terms of the agreement, the shareholders of InterLok Key Management Inc. exchanged all 56,655,891 outstanding shares of its common stock to Butte Highlands Mining Company for 56,655,891 shares of Class “A” common stock of Butte Highlands Mining Company.


These pro forma consolidated financial statements have been compiled from and include:


a)

An unaudited pro forma consolidated balance sheet combining the unaudited balance sheet of InterLok Key Management Inc. as of September 30, 2016, with the unaudited balance sheet of Butte Highlands Mining Company as of September 30, 2016, giving the effect to the transaction is if it occurred on September 30, 2016.


b)

An unaudited pro forma consolidated statement of operations combining the audited statement of operations of InterLok Key Management Inc. for the year ended December 31, 2015, with the audited statement of operations of Butte Highlands Mining Company for the year ended December 31, 2015, giving effect to the transaction as if it occurred on January 1, 2015.


c)

An unaudited pro forma consolidated statement of operations combining the unaudited statement of operations of InterLok Key Management Inc. for the nine months ended September 30, 2016, with the unaudited statement of operations of Butte Highlands Mining Company for the nine months ended September 30, 2016, giving effect to the transaction as if it occurred on January 1, 2015.


The unaudited pro forma financial consolidated statements have been compiled using the significant accounting policies as set out in the audited financial statements of InterLok Key Management Inc. and Butte Highlands Mining Company for the year ended December 31, 2015, and the unaudited financial statements of InterLok Key Management Inc. and Butte Highlands Mining Company for the nine months ended September 30, 2016. Certain historical financial statement amounts of InterLok Key Management Inc. have been reclassified to conform to the Butte Highlands Mining Company presentation.  These reclassifications had no impact on net loss or accumulated deficit as previously presented.





4



Note 2. Proposed Transaction


On January 6, 2017 InterLok Key Management Inc. entered into a share exchange agreement ("Plan of Merger") with Butte Highlands Mining Company, a US publicly traded company registered with the Securities and Exchange Commission. Under the terms of the agreement, the shareholders of InterLok Key Management Inc. exchanged all 56,655,891 outstanding shares of its common stock to Butte Highlands Mining Company for 56,655,891 shares of Class “A” common stock of Butte Highlands Mining Company.


The Plan of Merger was treated as a reverse merger with InterLok Key Management Inc. deemed the accounting acquirer and Butte Highlands Mining Company deemed the accounting acquiree under the acquisition method of accounting.  The reverse merger is deemed a recapitalization and the unaudited pro forma consolidated financial statements represent the continuation of the financial statements of InterLok Key Management Inc., while the capital structure of Butte Highlands Mining Company remains intact.  Assets acquired and liabilities assumed are reported at their historical amounts.


Pro forma adjustments reflect the issuance of 56,655,891 shares of Class A Common Stock of Butte Highlands Mining Company in exchange for 56,655,891 shares of Common Stock of InterLok Key Management Inc.


The following is a detail of the pro forma adjustments:


Ref 1 – To reflect the sale of 52,655,891 common shares of InterLok Key Management Inc. for cash at $0.001 per share that occurred subsequent to September 30, 2016 but prior to the Plan of Merger.


Ref 2 – To reflect the sale of 1,000,000 common shares of InterLok Key Management Inc. for cash at $0.03 per share that occurred subsequent to September 30, 2016 but prior to the Plan of Merger.


Ref 3 – Exchange all outstanding common shares of InterLok Key Management Inc. for 56,655,891 Class A common shares of Butte Highlands Mining Company.


Ref 4 – Issue 56,655,891 Class A common shares of Butte Highlands Mining Company in exchange for all outstanding shares of InterLok Key Management Inc.


Ref 5 – Eliminate Butte Highlands Mining Company accumulated deficit.




5