Attached files
file | filename |
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8-K/A - NEW CENTURY COMPANIES INC | v171684_8ka.htm |
EX-99.2 - NEW CENTURY COMPANIES INC | v171684_ex99-2.htm |
Exhibit 99.1
New
Century Companies and Subsidiaries
Pro
Forma Combined Balance Sheets
June
30, 2009
(Unaudited)
NCC
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PAI
|
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||||||||||||||
June 30,
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June 30,
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Pro Forma
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Pro Forma
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|||||||||||||
2009
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2009
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Adjustments
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Combined
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|||||||||||||
ASSETS
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||||||||||||||||
Current
assets:
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||||||||||||||||
Cash
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$ | - | $ | 3,798 | $ | - | $ | 3,798 | ||||||||
Contract and
accounts receivable, net
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11,906 | 146,791 | - | 158,697 | ||||||||||||
Inventories
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422,856 | 19,955 | - | 442,811 | ||||||||||||
Costs
in excess of billings
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60,790 | - | - | 60,790 | ||||||||||||
Other
current assets
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160,182 | 450 | - | 160,632 | ||||||||||||
Deferred
financing costs
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283,433 | - | - | 283,433 | ||||||||||||
Total
current assets
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939,167 | 170,994 | - | 1,110,161 | ||||||||||||
Property
and equipment, net
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152,225 | 980,597 | - | 1,132,822 | ||||||||||||
Deferred
financing costs, net
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113,862 | - | - | 113,862 | ||||||||||||
Goodwill
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- | - | 3,188,374 | (a) | 3,378,910 | |||||||||||
$ | 1,205,254 | $ | 1,151,591 | $ | 3,188,374 | $ | 5,735,755 |
NCC
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PAI
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|||||||||||||||
June 30,
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June 30,
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Pro Forma
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Pro Forma
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|||||||||||||
2009
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2009
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Adjustments
|
Combined
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|||||||||||||
LIABILITIES
AND STOCKHOLDERS'
DEFICIT
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||||||||||||||||
Current
liabilities:
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||||||||||||||||
Bank
overdraft
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$ | 44,553 | $ | - | $ | - | $ | 44,553 | ||||||||
Accounts
payable and accrued expenses
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1,643,751 | 1,002,414 | - | 2,646,165 | ||||||||||||
Dividends
payable
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500,550 | - | - | 500,550 | ||||||||||||
Billings
in excess of costs
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84,402 | - | - | 84,402 | ||||||||||||
Accrued
payroll and related
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- | 1,320,523 | - | 1,320,523 | ||||||||||||
Line
of credit
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- | 50,047 | - | 50,047 | ||||||||||||
Capital
lease obligation, current
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24,044 | 431,358 | - | 455,402 | ||||||||||||
Derivative
liability
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4,080,953 | - | - | 4,080,953 | ||||||||||||
Note
payable to related party
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- | 20,000 | - | 20,000 | ||||||||||||
Notes
payable, current
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- | 262,445 | - | 262,445 | ||||||||||||
CAMOFI
convertible notes payable, net
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2,008,662 | - | - | 2,008,662 | ||||||||||||
CAMHZN
convertible notes payable, net
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660,369 | - | - | 660,369 | ||||||||||||
Total
current liabilities
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9,047,284 | 3,086,787 | - | 12,134,071 | ||||||||||||
Deferred
tax liability
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- | - | - | - | ||||||||||||
Capital
lease obligation, net of current portion
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- | 203,178 | - | 203,178 | ||||||||||||
Notes
payable, net of current portion
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- | - | 500,000 | (b) | 500,000 | |||||||||||
Total
liabilities
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9,047,284 | 3,289,965 | 500,000 | 12,837,249 | ||||||||||||
Stockholders
deficit:
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||||||||||||||||
Series
B preferred stock,$1 par value
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- | - | - | - | ||||||||||||
Series
C preferred stock,$1 par value
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26,880 | - | - | 26,880 | ||||||||||||
Series
D preferred stock,$1 par value
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291,000 | - | - | 291,000 | ||||||||||||
Common
stock, $1.00 par value
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- | 1,000 | (1,000 | )(c) | - | |||||||||||
Common
stock, $0.10 par value
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1,534,466 | - | 500,000 | (d) | 2,034,466 | |||||||||||
Notes
receivable from stockholders
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(564,928 | ) | - | - | (564,928 | ) | ||||||||||
Deferred
equity compensation
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(64,167 | ) | - | - | (64,167 | ) | ||||||||||
Additional
paid-in capital
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7,390,021 | 96,575 | (96,575 | )(c) | ||||||||||||
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(150,000 | )(d) | ||||||||||||||
200,000 | (e) | 7,440,021 | ||||||||||||||
Accumulated
deficit
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(16,455,302 | ) | (2,235,949 | ) | 2,235,949 | (c) | (16,455,302 | ) | ||||||||
Total
stockholders' deficit
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(7,842,030 | ) | (2,138,374 | ) | 2,688,374 | (7,292,030 | ) | |||||||||
$ | 1,205,254 | $ | 1,151,591 | $ | 3,188,374 | $ | 5,545,219 |
See notes
to unaudited pro forma combined financial statements.
Pro
Forma Combined Statement of Operations
For
the Year Ended December 31, 2008
(Unaudited)
NCC
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PAI
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|||||||||||||||
For the Year Ended
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For the Year Ended
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Pro Forma
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Pro Forma
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|||||||||||||
December 31, 2008
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December 31, 2008
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Adjustments
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Combined
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|||||||||||||
Net
sales
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$ | 4,822,026 | $ | 3,403,073 | $ | - | $ | 8,225,099 | ||||||||
Cost
of sales
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5,498,196 | 2,274,153 | - | 7,772,349 | ||||||||||||
Gross
profit / (loss)
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(676,170 | ) | 1,128,920 | - | 452,750 | |||||||||||
Operating
expenses
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2,516,717 | 4,349,748 | - | 6,866,465 | ||||||||||||
Income/(loss)
from operations
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(3,192,887 | ) | (3,220,828 | ) | - | (6,413,715 | ) | |||||||||
Gain
on writeoff of accounts payable
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66,194 | 66,194 | ||||||||||||||
Gain
on forgiveness of debt
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2,872,133 | 2,872,133 | ||||||||||||||
Other
income
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- | 6,375 | 6,375 | |||||||||||||
Interest
expense, net
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(1,729,263 | ) | (70,522 | ) | (25,000 |
) (f)
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(1,824,785 | ) | ||||||||
Gain
on valuation of liabilities
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4,168,415 | - | - | 4,168,415 | ||||||||||||
Income
(loss) before provision for income taxes
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2,184,592 | (3,284,975 | ) | (25,000 | ) | (1,125,383 | ) | |||||||||
Provision
(benefit) for income taxes
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3,200 | (722,272 | ) | - | (719,072 | ) | ||||||||||
Net
income/ (loss)
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2,181,392 | (2,562,703 | ) | (25,000 | ) | (406,311 | ) | |||||||||
Preferred
stock dividends
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(82,550 | ) | - | - | (82,550 | ) | ||||||||||
Net
income/ (loss) applicable to common stockholders
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$ | 2,098,842 | $ | (2,562,703 | ) | $ | (25,000 | ) | $ | (488,861 | ) | |||||
Income
(loss) available to common stockholders per common share
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||||||||||||||||
Basic
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$ | 0.14 | $ | (0.02 | ) | |||||||||||
Diluted
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$ | 0.03 | $ | (0.02 | ) | |||||||||||
Weighted
average shares outstanding
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||||||||||||||||
Basic
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14,696,227 | 5,000,000 |
(g)
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19,696,227 | ||||||||||||
Diluted
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62,101,547 | 5,000,000 |
(g)
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19,696,227 |
See notes
to unaudited pro forma combined financial statements.
Pro
Forma Combined Statement of Operations
For
the Six Months Ended June 30, 2009
(Unaudited)
NCC
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PAI
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|||||||||||||||
For the Six Months Ended
|
For the Six Months Ended
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Pro Forma
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Pro Forma
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|||||||||||||
June 30, 2009
|
June 30, 2009
|
Adjustments
|
Combined
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|||||||||||||
Net
sales
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$ | 2,414,332 | $ | 436,784 | $ | - | $ | 2,851,116 | ||||||||
Cost
of sales
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2,012,623 | 563,842 | - | 2,576,465 | ||||||||||||
Gross
profit / (loss)
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401,709 | (127,058 | ) | - | 274,651 | |||||||||||
Operating
expenses
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744,257 | 287,404 | - | 1,031,661 | ||||||||||||
Loss
from operations
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(342,548 | ) | (414,462 | ) | - | (757,010 | ) | |||||||||
Gain
on writeoff of accounts payable
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5,681 | 5,681 | ||||||||||||||
Other
income
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- | 5,772 | - | 5,772 | ||||||||||||
Interest
expense, net
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(1,620,856 | ) | (25,326 | ) | (12,500 | )(f) | (1,658,682 | ) | ||||||||
Loss
on valuation of liabilities
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(1,575,903 | ) | - | - | (1,575,903 | ) | ||||||||||
Loss
before provision for income taxes
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(3,533,626 | ) | (434,016 | ) | (12,500 | ) | (3,980,142 | ) | ||||||||
Provision
for income taxes
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- | - | - | - | ||||||||||||
Net
loss
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(3,533,626 | ) | (434,016 | ) | (12,500 | ) | (3,980,142 | ) | ||||||||
Preferred
stock dividends
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(41,275 | ) | - | - | (41,275 | ) | ||||||||||
Net
loss applicable to common stockholders
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$ | (3,574,901 | ) | $ | (434,016 | ) | $ | (12,500 | ) | $ | (4,021,417 | ) | ||||
Basic
and diluted loss available to common stockholders
per common share
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$ | (0.23 | ) | $ | (0.20 | ) | ||||||||||
Weighted
average shares outstanding
|
15,344,654 | 5,000,000 |
(g)
|
20,344,654 |
See notes
to unaudited pro forma combined financial statements.
Note
1 - Basis of Presentation
The
unaudited pro forma combined balance sheet gives effect to the acquisition of
Precision Aerostructures, Inc. (“PAI”) as if the
acquisition had occurred as of June 30, 2009. The unaudited pro forma
combined statement of operations for the year ended December 31, 2008 assumes
the acquisition took place as of January 1, 2008 and the unaudited pro forma
combined statement of operations for the six months ended June 30, 2009 assumes
the acquisition took place as of January 1, 2009.
The pro
forma information has been prepared for comparative purposes only, and does not
purport to be indicative of the results of operations of New Century that would
have actually occurred had the transaction been in effect as of the date or for
the periods presented, or of results that may occur in the future. The unaudited
pro forma combined financial statements should be read in conjunction with the
Registrant's historical financial statements and related
notes.
Note
2 - Pro Forma Adjustments
The pro
forma adjustments are based on the Registrant's management's preliminary
estimates of the value of the tangible and intangible assets acquired. A
detailed valuation of the fair value of the net assets acquired in the
acquisition will be performed during 2010. As a result, the actual adjustments
may differ materially from those presented in these unaudited pro forma combined
financial statements and may include additional expense incurred in connection
with the amortization of intangible assets.
Description of pro forma
adjustments :
Pro Forma Adjustments to
Combined Balance Sheet :
a)
|
To
record goodwill. The pro forma adjustments are based on the
Registrant's management's preliminary estimates of the fair value of the
tangible and intangible assets acquired. Management will perform a
detailed valuation of the fair value of the net assets acquired. As
a result, the actual adjustments may differ materially from those
presented in these unaudited pro forma combined financial
statements.
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b)
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To
record the $500,000 note payable.
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c)
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To
eliminate the historical equity of
PAI.
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d)
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To
record the issuance of 5,000,000 shares of the Registrant’s common stock
at closing.
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e)
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To
record the estimated fair value of the warrant issued as acquisition
consideration.
|
Pro Forma Adjustments to
Combined Statement of Operations :
f)
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Record
interest expense on the $500,000 note
payable.
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g)
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Record
issuance of 5,000,000 shares of Registrant's common stock in connection
with the acquisition.
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