Saint James CO - FORM 8-K - EX-99.2 - November 9, 2009

Attached files

file filename
8-K - Saint James COv165179_8k.htm
EX-2.1 - Saint James COv165179_ex2-1.htm
EX-10.5 - Saint James COv165179_ex10-5.htm
EX-10.2 - Saint James COv165179_ex10-2.htm
EX-99.1 - Saint James COv165179_ex99-1.htm
EX-10.8 - Saint James COv165179_ex10-8.htm
EX-10.6 - Saint James COv165179_ex10-6.htm
EX-10.9 - Saint James COv165179_ex10-9.htm
EX-10.7 - Saint James COv165179_ex10-7.htm
EX-10.1 - Saint James COv165179_ex10-1.htm
EX-10.4 - Saint James COv165179_ex10-4.htm
EX-10.3 - Saint James COv165179_ex10-3.htm
UNAUDITED CONDENSED CONSOLIDATED PRO FORMA
 
FINANCIAL INFORMATION

 
The following unaudited condensed pro forma balance sheet as of June 30, 2009 and the unaudited condensed pro forma statements of operations for the six month period ended June 30, 2009 and for the year ended December 31, 2008 give effect to the November 3, 2009 acquisition of the EOS Companies as if the acquisition occurred on December 31, 2007.  The Company agreed to issue up to 2,800,000 shares of its common stock, a note payable in the amount of $2,717,596 and cash of $300,000 in exchange for one hundred percent (100%) of the membership units of the EOS Companies.  As of the date of this transaction, The EOS Companies became a wholly owned subsidiary of The Saint James Company.
 
The pro forma adjustments are based upon available information and certain assumptions that the Company believe are reasonable under the circumstances.  The actual amounts could differ from these estimates.  The unaudited condensed pro forma financial information is for the informational purposes only and is not necessarily indicative of the operating results or of financial position that would have been achieved had the acquisition been consummated on the date indicated and should not be construed as representative of future results of operation of  financial position.  The pro forma results should be read in conjunction with the financial statements and notes thereto included elsewhere herein.
 
 
 
Pro Forma Financial Information
The following pro forma financial information reflects the acquisition of Sapphire Wines and Emerald Wines as if it had occurred on June 30, 2009.
 
                               
                               
                               
                               
   
Sapphire/
    
The Saint
                    
   
Emerald
    
James
          
Pro Forma
    
Pro Forma
  
         
Company
    
Total
    
Adjustments
    
Balance
  
                               
Assets                            
                               
Current assets
                              
Cash and cash equivalents
   $ 35,740     $ 61,259     $ 96,999     $ (335,740 )   $ (238,741 )
Accounts receivable, less allowance of $28,918-2009;
                                        
        $30,000-2008 and 2007
     1,401,670               1,401,670               1,401,670  
Other receivables
     -               -                  
Inventories
     14,162,979               14,162,979               14,162,979  
Prepaids and other current assets
     173,819               173,819               173,819  
Total current assets
     15,774,208       61,259       15,835,467       (335,400 )     15,499,727  
                                         
Property, plant & equipment, net
   20,801,581               20,801,581               20,801,581  
                                         
Other non-current assets
     33,088               33,088               33,088  
                                         
Intangibles
     1,325,000               1,325,000       14947333       16,272,333  
                                         
Total assets
   $ 37,933,877     $ 61,259     $ 37,995,136     $ 14,611,593     $ 52,606,729  
                                         
                                         
Liabilities and Members' Deficit
                                      
                                         
Current liabilities
                                        
Accounts payable and accrued liabilities
   $ 1,806,915     $ 195,751     $ 2,002,666     $ -     $ 2,002,666  
Guaranteed payment and contingent consideration
     3,446,768       -       3,446,768       -       3,446,768  
Line of credit
     7,489,619       -       7,489,619       -       7,489,619  
Notes payable
     3,358,104       215,510       3,573,614       2,717,596       6,291,210  
Current portion of long-term debt
     5,073,461       -       5,073,461       -       5,073,461  
Current portion of financing obligation
     22,776,546       -       22,776,546       -       22,776,546  
Current portion of capital lease obligations
     94,639       -       94,639       -       94,639  
Advances from shareholders
     -       188,054       188,054       -       188,054  
Total current liabilities
     44,046,052       599,315       44,645,367       2,717,596       47,362,963  
                                         
Long-term liabilities, net of current portion
                                        
Financing obligation arising from sale-leaseback
                                        
    transaction, net of current portion
     -       -       -       -          
Capital lease obligations, net of current portion
     181,822       -       181,822       -       181,822  
Total long-term liabilities, net of current portion
     181,822               181,822               181,822  
                                         
Common stock
             11,999       11,999       2,800       14,799  
Additional paid-in capital
             3,989,273       3,989,273       5,597,200       9,586,473  
Accumulaated deficit
             (4,539,328 )     (4,539,328 )             4,539,328  
Members' deficit
     6,293,997               (6,293,997 )     6,293,997       0  
      (6,293,997 )     (538,056 )     (6,832,053 )     11,893,997       5,061,944  
    $ 37,933,877     $ 61,259     $ 37,995,136     $ 14611593     $ 52,606,729  
 
1.  The proforma adjustment represents the purchase price.
    
 
 
 
Pro Forma Statement of operations for the six month period ended June 30, 2009
 
         
The Saint
    
Combined
    
Pro Forma
          
   
Sapphire/
    
James
                  
Pro Forma
  
   
Emerald
    
Company
          
Adjustments
      
Balance
  
                                 
Net sales
   $ 8,319,703    
-
     $ 8,319,703    
-
 
     $ 8,319,703  
Cost of sales
     5,085,652    
-
       5,085,652    
-
         5,085,652  
                                       
Gross Profit
     3,234,051    
-
       3,234,051               3,234,051  
                                    .  
Selling, general and administrative
     2,314,524       385,240       2,699,764       142,500   [a ]    2,842,264  
   expenses
                                                
                                           
Income (loss) from operations
     919,527       (385,240 )     534,287       142,500         391,787  
                                           
Other (income) and expense
                                          
Gain on bargain purchase of
     (1,835,928 )     -       (1,835,928 )     -         (1,835,928 )
  business
                                       -  
Income from solar power
 
   (128,758 )     -       (128,758 )               (128,758 )
  agreement
                             -         -  
Interest expense
     1,465,564       54,426       1,519,990       135,880   [b ]    1,655,870  
Other (income) expense
     (64,198 )     -       (64,198 )                  (64,198 )
Other (income) and expense - net
     (563,320 )     54,426       (508,894 )     135,880         (373,014 )
                                           
Net income (loss)
   $ 1,482,847     $ (439,666 )     1,043,181     $ 278,380       $ 764,801  
 
 
 
Pro Forma Adjustments
 
[a]  Consulting fee
 
[b]  Interest on note payable
 
 
 
Pro Forma Statement of Operations for the year ended December 31, 2008.
 
         
The Saint
    
Combined
              
   
Sapphire/
    
James
          
Pro Forma
      
Pro Forma
  
   
Emerald
    
Company
          
Adjustments
      
Balance
  
                                 
Net sales
   $ 13,611,015    
-
 
   $ 13,611,015    
-
       $ 13,611,015  
Cost of sales
     7,340,035    
-
       7,340,035    
-
         7,340,035  
                                       
Gross Profit
     6,270,980    
-
       6,270,980    
-
         6,270,980  
                                       
Selling, general and administrative
     3,506,517       410,402       3,916,919       285,000   [a]     4,201,919  
   expenses
                                          
                                           
Income (loss) from operations
     2,764,463       (410,402 )     2,354,061       285,000         2,069,061  
                                           
Other (income) and expense
                                          
Interest expense
     2,528,860       2,096       2,530,956       271,760   [a]     2,802,716  
Other (income) expense
     2,598       -       2,598                 2,598  
Other (income) and expense - net
     2,531,458       2,096       2,533,554       271,760         2,805,314  
                                           
Net income (loss)
   $ 233,005     $ (412,498 )   $ (179,493 )   $ 556,760       $ (736,253 )
 
Pro Forma Adjustments
 
[a]  Consulting fee
 
[b]  Interest on note payable