Attached files
| file | filename |
|---|---|
| 8-K/A - AMENDMENT NO. 1 TO FORM 8-K - Cinnabar Ventures Inc | f8k012610a1_cinnebar.htm |
| EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF YIPPY, INC. FOR THE YEAR ENDED DECEMBER 31, 2009, AND ACCOMPANYING NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - Cinnabar Ventures Inc | f8k012610a1ex99i_cinnebar.htm |
Exhibit
99.2
CINNABAR
VENTURES, INC. AND SUBSIDIARIES
PRO
FORMA CONDENSED COMBINED FINANCIAL INFORMATION
(UNAUDITED)
Index to Pro Forma Condensed
Combined Financial Information
| Pages | |||
| Pro Forma Condensed Combined Balance Sheets as of November 30, 2009 | 1 | ||
| Pro Forma Condensed Combined Statements of Operations as of November 30, 2009 | 2 | ||
| Pro Forma Condensed Combined Balance Sheets as of May 31, 2009 | 3 | ||
| Pro Forma Condensed Combined Statements of Operations as of May 31, 2009 | 4 | ||
|
Notes
to Pro Forma Condensed Combined Financial Statements as of November
30, 2009 and May 31,
2009
|
5-6 |
Cinnabar
Ventures, Inc. and Subsidiary
(A
Development Stage Company)
Pro Forma Condensed Combined Balance
Sheet
|
November
30,
2009
|
November
30, 2009
|
|||||||||||||||
|
YIPPY,
Inc.
|
Cinnabar
Ventures, Inc.
|
|||||||||||||||
|
(Acquiree)
|
(Acquiror)
|
Pro
Forma
|
Pro
Forma
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
Adjustments
|
Combined
|
|||||||||||||
|
Assets
|
||||||||||||||||
|
Current
Assets
|
||||||||||||||||
|
Cash
|
$ | - | $ | 1,238 | - | $ | 1,238 | |||||||||
|
Total
Current Assets
|
- | 1,238 | - | 1,238 | ||||||||||||
|
Total
Assets
|
$ | - | $ | 1,238 | $ | - | $ | 1,238 | ||||||||
|
Stockholders' Equity
|
||||||||||||||||
|
Stockholders'
Equity
|
||||||||||||||||
|
Common
stock, $0.001 par value; 75,000,000 shares
authorized,
|
||||||||||||||||
|
22,185,000
shares issued and outstanding
|
900 | 19,845 | 2,340 | 22,185 | ||||||||||||
| (900 | ) | |||||||||||||||
|
Additional
paid-in capital
|
2,249,100 | 170,551 | (1,440 | ) | 2,418,211 | |||||||||||
|
Stock
subscription receivable
|
(500,000 | ) | - | - | (500,000 | ) | ||||||||||
|
Deficit
accumulated during the development stage
|
(1,750,000 | ) | (189,158 | ) | - | (1,939,158 | ) | |||||||||
|
Total
Stockholders' Equity
|
- | 1,238 | - | 1,238 | ||||||||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | - | $ | 1,238 | $ | - | $ | 1,238 | ||||||||
1
Cinnabar
Ventures, Inc. and Subsidiaries
(A
Development Stage Company)
Pro Forma Condensed Combined Statement of
Operations
|
For
the Period from
|
||||||||||||||||||||
|
November
30, 2009
|
November
30, 2009
|
May
24, 2006 (inception) to
|
||||||||||||||||||
|
YIPPY,
Inc.
|
Cinnabar
Ventures, Inc.
|
November
30, 2009
|
November
30, 2009
|
November
30, 2009
|
||||||||||||||||
|
(Acquiree)
|
(Acquiror)
|
Pro
Forma
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
Adjustments
|
Combined
|
Combined
|
||||||||||||||||
|
General
and administrative expense
|
1,750,000 | 85,019 | - | 1,835,019 | 1,939,158 | |||||||||||||||
|
Net
loss
|
$ | (1,750,000 | ) | $ | (85,019 | ) | $ | - | $ | (1,835,019 | ) | $ | (1,939,158 | ) | ||||||
|
Net
loss per common share
|
$ | (0.09 | ) | $ | (0.10 | ) | ||||||||||||||
|
Weighted
average number of common shares outstanding
|
||||||||||||||||||||
|
during
the year / period - basic and diluted
|
21,466,233 | 19,404,833 | ||||||||||||||||||
2
Cinnabar
Ventures, Inc. and Subsidiaries
(A
Development Stage Company)
Pro Forma Condensed Combined Balance
Sheet
|
May
31, 2009
|
May
31, 2009
|
|||||||||||||||
|
YIPPY,
Inc.
|
Cinnabar
Ventures, Inc.
|
|||||||||||||||
|
(Acquiree)
|
(Acquiror)
|
Pro
Forma
|
Pro
Forma
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
Adjustments
|
Combined
|
|||||||||||||
|
Assets
|
||||||||||||||||
|
Current
Assets
|
||||||||||||||||
|
Cash
|
$ | - | $ | 45 | - | $ | 45 | |||||||||
|
Total
Current Assets
|
- | 45 | - | 45 | ||||||||||||
|
Total
Assets
|
$ | - | $ | 45 | $ | - | $ | 45 | ||||||||
|
Liabilities and Stockholders'
Equity
|
||||||||||||||||
|
Current
Liabilities:
|
||||||||||||||||
|
Accounts
payable and accrued liabilities
|
$ | - | $ | 315 | - | $ | 315 | |||||||||
|
Loan
Payable- related party
|
- | 22,469 | - | 22,469 | ||||||||||||
|
Total
Current Liabilities
|
- | 22,784 | - | 22,784 | ||||||||||||
|
Stockholders'
Equity
|
||||||||||||||||
|
Common
stock, $0.001 par value; 75,000,000 shares
authorized,
|
||||||||||||||||
|
21,360,000
shares issued and outstanding
|
- | 19,020 | 2,340 | 21,360 | ||||||||||||
|
Additional
paid-in capital
|
- | 62,380 | (2,340 | ) | 60,040 | |||||||||||
|
Deficit
accumulated during the development stage
|
- | (104,139 | ) | - | (104,139 | ) | ||||||||||
|
Total
Stockholders' Equity
|
- | (22,739 | ) | - | (22,739 | ) | ||||||||||
|
Total
Liabilities and Stockholders' Equity
|
$ | - | $ | 45 | $ | - | $ | 45 | ||||||||
3
Cinnabar
Ventures, Inc. and Subsidiaries
(A
Development Stage Company)
Pro Forma Condensed Combined Statement of
Operations
|
For
the Period from
|
||||||||||||||||||||
|
May
31, 2009
|
May
31, 2009
|
May
24, 2006 (inception) to
|
||||||||||||||||||
|
YIPPY,
Inc.
|
Cinnabar
Ventures, Inc.
|
May
31, 2009
|
May
31, 2009
|
May
31, 2009
|
||||||||||||||||
|
(Acquiree)
|
(Acquiror)
|
Pro
Forma
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||||
|
(Unaudited)
|
(Unaudited)
|
Adjustments
|
Combined
|
Combined
|
||||||||||||||||
|
General
and administrative expense
|
- | 38,383 | - | 38,383 | 142,522 | |||||||||||||||
|
Net
loss
|
$ | - | $ | (38,383 | ) | $ | - | $ | (38,383 | ) | $ | (142,522 | ) | |||||||
|
Net
loss per common share
|
$ | (0.00 | ) | $ | (0.01 | ) | ||||||||||||||
|
Weighted
average number of common shares outstanding
|
||||||||||||||||||||
|
during
the year / period - basic and diluted
|
21,360,000 | 19,433,527 | ||||||||||||||||||
4
Cinnabar
Ventures, Inc. and Subsidiaries
Notes
to Pro Forma Condensed Combined Financial Statements
(Unaudited)
Note 1 Background
Information
On
January 26, 2010, Cinnabar Ventures, Inc. (“the Company”) acquired 100% of the
stock of YIPPY, Inc. (“YIPPY”). The unaudited pro forma condensed
combined financial statements are based on the historical financial statements
of the Company and YIPPY after giving effect to the purchase price - consisting
of the issuance of 2,340,000 shares of common stock, and the assumptions,
reclassifications and adjustments described in the accompanying notes to the
unaudited pro forma condensed combined financial statements.
The pro
forma condensed combined financial statements should be read in conjunction with
the historical financial statements and accompanying notes of YIPPY and the
historical consolidated financial statements and accompanying notes of Cinnabar
Ventures, Inc., included in our annual report in Form 10-K for the fiscal year
ended May 31, 2009, and the quarterly report on Form 10-Q for the quarter ended
November 30, 2009.
Note 2 Basis of Pro Forma
Presentation
The
unaudited pro forma condensed combined balance sheets and statements of
operations as of November 30, 2009 and May 31, 2009, are based on the historical
financial statements of the Company and YIPPY, after giving effect to the
Company’s acquisition of YIPPY on January 26, 2010.
The pro
forma financial statements give effect to the merger as if it had occurred
on:
● May
31, 2008 for presenting the May 31, 2009 pro forma financial statements, and
on
● November
30, 2008 for presenting the November 30, 2009 pro forma financial
statements
The
transaction has been treated similar to a pooling of interests due to these
entities being under common control; as a result, the application of ASC 805;
“Business Combinations”
is not applicable.
The
unaudited pro forma condensed combined financial statements are not intended to
represent or be indicative of our consolidated results of operations or
financial position that would have been reported had the YIPPY acquisition been
completed as of the dates presented, and should not be taken as a representation
of our future consolidated results of operations or financial
position.
5
Cinnabar
Ventures, Inc. and Subsidiaries
Notes
to Pro Forma Condensed Combined Financial Statements
(Unaudited)
Note 3 Pro Forma Financial
Statement Adjustment
The pro
forma basic and diluted earnings per share amounts presented in the unaudited
pro forma condensed combined statements of operations are based upon the
weighted average number of our common shares outstanding and are adjusted for
the 2,340,000 shares of common stock issued in connection with the
acquisition. The issuance of these shares is considered outstanding
as of May 31, 2009. Diluted earnings per share will not be presented
since the Company has a net loss; additionally, the Company does not have any
common stock equivalents.
|
Weighted Average Common Shares Outstanding
|
||||||||
|
Six
Months Ended November 30,
2009
|
Year
Ended
May 31, 2009
|
|||||||
|
Weighted
average common shares outstanding – basic and diluted
|
19,126,233 | 19,020,000 | ||||||
|
Effect
of common stock issued in merger
|
2,340,000 | 2,340,000 | ||||||
|
Weighted
average common shares outstanding – basic and diluted – pro
forma
|
21,466,233 | 21,360,000 | ||||||
|
Net
loss – pro forma
|
$ | ( 1,835,019 | ) | $ | ( 38,383 | ) | ||
|
Net
loss per common share – basic and diluted – pro forma
|
$ | ( 0.09 | ) | $ | ( 0.00 | ) | ||
6