Green Energy Management Services Holdings, Inc. - FORM 8-K - EX-99.3 - EXHIBIT 99.3 - August 26, 2010

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8-K - CDSS WIND DOWN INC. 8-K 8-20-2010 - Green Energy Management Services Holdings, Inc.form8k.htm
EX-3.3 - EXHIBIT 3.3 - Green Energy Management Services Holdings, Inc.ex3_3.htm
EX-2.5 - EXHIBIT 2.5 - Green Energy Management Services Holdings, Inc.ex2_5.htm
EX-3.2 - EXHIBIT 3.2 - Green Energy Management Services Holdings, Inc.ex3_2.htm
EX-10.5 - EXHIBIT 10.5 - Green Energy Management Services Holdings, Inc.ex10_5.htm
EX-99.1 - EXHIBIT 99.1 - Green Energy Management Services Holdings, Inc.ex99_1.htm
EX-10.7 - EXHIBIT 10.7 - Green Energy Management Services Holdings, Inc.ex10_7.htm
EX-10.8 - EXHIBIT 10.8 - Green Energy Management Services Holdings, Inc.ex10_8.htm
EX-99.2 - EXHIBIT 99.2 - Green Energy Management Services Holdings, Inc.ex99_2.htm
EX-10.4 - EXHIBIT 10.4 - Green Energy Management Services Holdings, Inc.ex10_4.htm
Exhibit 99.3
 
CDSS WIND DOWN INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AT JUNE 30, 2010
 
   
Historical GEM
  
Historical CDSS Wind Down, Inc.
    
Pro Forma Adjustments
    
Pro Forma Combined
  
Current assets:
                        
Cash
   $ 6,006     $ 431     $ 1,250,000 (F)   $ 1,156,437  
                      (100,000 )(H)        
Contract receivables
     75,963                       75,963  
Prepaid expenses
     -                       -  
Total current assets
     81,969       431       1,150,000       1,232,400  
                                 
Property and equipment - net
     71,493       -               71,493  
Tax asset and other
     6,878       -       139,120 (A)     145,998  
                                 
Total assets
   $ 160,340     $ 431     $ 1,289,120     $ 1,449,891  
                                 
Current liabilities:
                             -  
Line of credit
   $ 200,000                     $ 200,000  
Current portion note payable
     11,853                       11,853  
Accounts payable and accrued expenses
     294,438       129,657       (129,657 )(H)     294,438  
Sales tax liability
             28,367       (28,367 )(H)     -  
Income tax payable
                             -  
Billings in excess of costs and estimated earnings on uncompleted contracts
     -                       -  
Convertible promissory note and accrued interest payable to officer - net of discount
     -       42,490       (42,490 )(E)     -  
Advances from stockholders
     -       92,230       (92,230 )(H)     -  
Other accrued liabilities
     224,500                       224,500  
Total current liabilities
     730,791       292,744       (292,744 )     730,791  
                                 
Note payable - long term
     46,139                       46,139  
                                 
Stockholders' deficit
                                
Common stock
     1,000       963,056       (642,037 )(C)     43,939  
                      (317,809 )(D)        
                      4,866 (E)        
                      694 (F)        
                      34,169 (G)        
                                 
Additional paid-in capital
     -       29,843,797       (478,470 )(B)     629,022  
                      642,037 (C)        
                      317,809 (D)        
                      56,082 (E)        
                      1,249,306 (F)        
                      (34,169 )(G)        
                      (31,117,624 )(G)        
                      150,254 (H)        
                                 
Retained deficit
     (617,590 )     (31,099,166 )     139,120 (A)     -  
                      478,470 (B)        
                      (18,458 )(E)        
                      31,117,624 (G)        
                                 
Total stockholders' deficit
     (616,590 )     (292,313 )     1,581,864       672,961  
                                 
Total liabilities and stockholders' deficit
   $ 160,340     $ 431     $ 1,289,120     $ 1,449,891  
 
Notes to pro forma balance sheet at June 30, 2010
(A) 
To record pro forma tax asset and benefit on S-Corp loss for the six months ended June 30, 2010 assuming a 35% tax rate.
(B) 
To reclassify S-Corp undistributed losses of GEM to additional paid-in capital, net of adjustment (A).
(C) 
To record the effect of 1 for 3 reverse stock split.
(D) 
To record effect of change in par value of post split common stock from $0.01 per share to $0.0001 per share.
(E) 
To record the effect of the full conversion of the promissory note.
(F) 
To record effect of common shares issued for $1,250,000 in cash.
(G) 
To record effect of issuing 351,691,756 common shares share exchange with GEM and the recapitalization to post merger equity structure.
(H) 
To record effect of settlement of liabilities.
 
 
 
 
 
CDSS WIND DOWN INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2010
 
   
Historical GEM
    
Historical CDSS Wind Down, Inc.
    
Pro Forma Adjustments
    
Pro Forma Combined
  
                         
 Revenue
   $ 291,311                 $ 291,311  
 Cost of revenue
     270,163                   270,163  
 Gross profit
     21,148       -       -       21,148  
                                 
 General and adminitrative expenses
     410,360       48,097               458,457  
                                 
Loss from operations
     (389,212 )     (48,097 )     -       (437,309 )
                                 
 Other income
     8       -               8  
 Interest expense
     (8,282 )     (46,130 )     (18,458 )(E)     (72,870 )
 Interest income
     -       -               -  
                                 
 Loss before taxes
     (397,486 )     (94,227 )     (18,458 )     (510,171 )
 Provision for income taxes
                     (139,120 )(A)     (139,120 )
 Net income (loss)
   $ (397,486 )   $ (94,227 )   $ 120,662     $ (371,051 )
                                 
Basic and diluted loss per share
     N/A     $ (0.00 )     -     $ (0.00 )
                                 
Basic and diluted weighted average number of shares outstanding
     N/A     $ 55,543,186       -       439,389,695 (I)
 
Notes to pro forma statement of operations for the six months ended June 30, 2010
n/a – Not applicable for S-Corp
(A) 
To record pro forma tax asset and benefit on S-Corp loss for the six months ended June 30, 2010 assuming a 35% tax rate.
(E) 
To record the effect of the full conversion of the promissory note.
(I) 
Pro forma shares outstanding following the completion of the reverse split and the share exchange transaction.
 
 
 
 
 
CDSS WIND DOWN INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AT DECEMBER 31, 2009

 
  
Historical
GEM
    
Historical
CDSS Wind Down, Inc.
    
Pro Forma Adjustments
    
Pro Forma Combined
  
ASSETS
  
 
    
 
    
 
    
 
  
Current assets
  
 
    
 
    
 
    
 
  
Cash
   $ 18,241     $ 581     $ 1,250,000 (F)   $ 1,268,822  
Contract receivables
     220,652       -               220,652  
Prepaid expenses
     3,710       -               3,710  
Total current assets
     242,603       581       1,250,000       1,492,184  
 
                                
Property, plant & equipment, net
     79,339       -               79,339  
Tax asset
     –               31,215 (A)     31,215  
Total assets
   $ 321,942     $ 581     $ 1,281,215     $ 1,603,738  
 
                                
LIABILITIES
                                
Current liabilities
                                
Line of credit
   $ 195,000     $ –             $ 195,000  
Current portion of note payable
     10,877       –               10,877  
Accounts payable and accrued expenses
     222,370       117,033               339,403  
Sales tax liability
     –       26,722               26,722  
Convertible promissory note and accrued interest payable to officer – net of discount
     –       16,826     $ (16,826 )(E)     –  
Advances from stockholder
     38,550       56,907               95,457  
Other liabilities
     3,802       –               3,802  
Total current liabilities
     470,599       217,488       (16,826 )     671,261  
                                 
Long-term note payable
     52,351                       52,351  
                                 
STOCKHOLDERS' DEFICIT
                                
Preferred stock
     –       –       –       –  
Common stock
     1,000       343,056       (228,703 )(C)     43,939  
                      (113,209 )(D)        
                      6,932 (E)        
                      694 (F)        
                      34,169 (G)        
Additional paid-in capital
             30,444,976       (170,793 )(B)     836,187  
                      228,703 (C)        
                      113,209 (D)        
                      70,252 (E)        
                      1,249,306 (F)        
                      (34,169 )(G)        
                      (31,065,297 )(G)        
Accumulated deficit
     (202,008 )     (31,004,939 )     31,215 (A)     –  
                      170,793 (B)        
                      (60,358 )(E)        
                      31,065,297 (G)        
Total stockholders' deficit
     (201,008 )     (216,907 )     1,298,041       880,126  
Total liabilities and stockholders' deficit
   $ 321,942     $ 581     $ 1,281,215     $ 1,603,738  

Notes to pro forma balance sheet at December 31, 2009
(A)  To record pro forma tax asset and benefit on S-Corp loss for the year ended December 31, 2009 assuming a 35% tax rate.
(B)  To reclassify S-Corp undistributed losses of GEM to additional paid-in capital net of effect of adjustment (A).
(C)  To record the effect of 1 for 3 reverse stock split.
(D)  To record effect of change in par value of post split common stock from $0.01 per share to $0.0001 per share.
(E)  To record the effect of the full conversion of the promissory note.
(F)  To record assumed effect of 6,944,445 post split common shares assumed issued for $1,250,000 in cash.
(G)  To record effect of issuing 351,691,756 common shares share exchange for 1,000 shares of GEM and the recapitalization to post merger equity structure.

 
 
 

CDSS WIND DOWN INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECMBER 31, 2009

   
Historical
GEM
    
Historical
CDSS Wind Down, Inc.
    
Pro Forma Adjustments
    
Pro Forma Combined
  
                             
Revenue
   $ 1,697,321                 $ 1,697,321  
Cost of revenue
     1,456,506                   1,456,506  
Gross profit
     240,815                   240,815  
                             
General and administrative
     321,829     $ 82,264             404,093  
Operating loss
     (81,014 )     (82,264 )           (163,278 )
                               
Loss on sale of asset
     (3.750 )                   (3,750 )
Interest expense
     (4,421 )     (21,152 )     (60,358 )     (85,931 )
Loss before income tax benefit
     (89,185 )      (103,416 )     (60,358 )     (252,959 )
 
                                
Income tax benefit
     –       –     $ (31,215 )(A)     (31,215 )
 
                                
Net loss
   $ (89,185 )   $ (103,416 )   $ (29,143 )   $ (221,744 )
 
                                
Basic and diluted loss per share
     n/a     $ (0.00 )           $ (0.00 )
 
                                
Basic and diluted weighted average number of shares outstanding
     n/a       34,305,617               438,489,695 (B)

Notes to pro forma statement of operations for the year ended December 31, 2009
n/a – Not applicable for S-Corp
(A)  To record pro forma tax asset and benefit on S-Corp loss for the year ended December 31, 2009 assuming a 35% tax rate.
(B)  Pro forma shares outstanding following the completion of the reverse split and the share exchange transaction.
(E)  To record the effect of the full conversion of the promissory note by charging unamortized note discount to interest expense.
 
 

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