Attached files

file filename
8-K - CURRENT REPORT - Timberjack Sporting Supplies, Inc.f8k093010_timberjack.htm
EX-2.1 - SHARE EXCHANGE AGREEMENT BY AND BETWEEN THE COMPANY AND CHINE VICTORY - Timberjack Sporting Supplies, Inc.f8k093010ex2i_timberjack.htm
EX-4.1 - CERTIFICATE OF DESIGNATION OF RIGHTS AND PREFERENCES OF SERIES A PREFERRED STOCK - Timberjack Sporting Supplies, Inc.f8k093010ex4i_timberjack.htm
EX-10.5 - INVESTMENT ARRANGEMENT AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10v_timberjack.htm
EX-10.1 - SECURITIES PURCHASE AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10i_timberjack.htm
EX-16.1 - LETTER FROM CONNER & ASSOCIATES, PC - Timberjack Sporting Supplies, Inc.f8k093010ex16i_timberjack.htm
EX-4.4 - FORM OF PLACEMENT AGENT WARRANT - Timberjack Sporting Supplies, Inc.f8k093010ex4iv_timberjack.htm
EX-99.1 - THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS - Timberjack Sporting Supplies, Inc.f8k093010ex99i_timberjack.htm
EX-99.4 - PRESS RELEASE - Timberjack Sporting Supplies, Inc.f8k093010ex99iv_timberjack.htm
EX-99.2 - THE UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS - Timberjack Sporting Supplies, Inc.f8k093010ex99ii_timberjack.htm
EX-10.6 - DECLARATION OF TRUST - Timberjack Sporting Supplies, Inc.f8k093010ex10vi_timberjack.htm
EX-4.3 - FORM OF SERIES A WARRANT - Timberjack Sporting Supplies, Inc.f8k093010ex4iii_timberjack.htm
EX-10.4 - LOCK-UP AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10iv_timberjack.htm
EX-10.2 - REGISTRATION RIGHTS AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10ii_timberjack.htm
EX-10.3 - SECURITIES ESCROW AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10iii_timberjack.htm
EX-10.7 - INCENTIVE OPTION AGREEMENT - Timberjack Sporting Supplies, Inc.f8k093010ex10vii_timberjack.htm
EX-4.2 - CERTIFICATE OF DESIGNATION OF RIGHTS AND PREFERENCES OF SERIES M PREFERRED STOCK - Timberjack Sporting Supplies, Inc.f8k093010ex4ii_timberjack.htm
 
Exhibit 99.3
 
 
TIMBERJACK Sporting Supplies, Inc.
Pro-forma Consolidated Financial Statements (Unaudited)
For Three Month Period ended June 30, 2010
 
 
 
 
1

 
 
INTRODUCTION AND BASIS OF PRESENTATION
FOR PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
 
The following pro forma consolidated financial statements give effect to the acquisition of Chine Victory Profit Limited (“Target”) by TIMBERJACK Sporting Supplies, Inc. (“TIMBERJACK”), (hereafter refer to the “Enlarged Group”).  
.
Pursuant to a  Share Exchange Agreement , TIMBERJACK, a public corporation incorporated in Nevada, has acquired 100% of the issued and outstanding shares of Target Company, a private limited company incorporated in British Virgin Island on May 13, 2004,  of 20,000 shares of common stock, with an exchange of 788,708 shares of common stock of $0.544 par value and a recapitalization of 863.9651shares of Series M-Preferred stock, with each Series M Preferred stock being convertible into 10,000 shares of common stock of TIMBERJACK, which is automatically converted into 8,639,651 shares of common stock upon the effectiveness of the reverse stock split..

The share exchange transaction between Target and TIMBERJACK is considered as a recapitalization transaction which the legal acquirer, TIMBERJACK, is treated as the accounting acquiree whereas TARGET,   the legal acquiree is treated as the accounting acquirer.

TIMBERJACK has concurrently completed as placement of 1,267,250 shares of Series A-Preferred stock, at $4.00 per share with $0.001 par value, with deduction of placement commission and professional expenses, resulting in $4,031,319 net proceeds.
 
The following pro forma consolidated balance sheet includes the balance sheets of TIMBERJACK and Target as of June 30, 2010, as if the acquisition of Target occurred on that date.
 
The pro forma consolidated balance sheet and statement of operations should be read in conjunction with the separate historical audited financial statements for both TIMBERJACK and Target, as follows:
 
 
(i)
for TIMBERJACK, unaudited financial statements for the period ended June 30, 2010

 
(ii)
for Target, unaudited financial statements as of and for the period ended June30, 2010
 
.  The pro forma balance sheet and earnings (loss) per share data of TIMBERJACK and Target are indicative of their consolidated financial position, had the acquisition occurred at the June 30, 2010.
 

 
2

 

MBERJACK SPORTING SUPPLIES, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET (UNAUDITED)
FOR THREE MONTH PERIOD ENDED JUNE 30, 2010
                           
   
TIMBERJACK
June 30, 2010
 
Target
June 30, 2010
NOTE
Pro-Forma
Adjustments
June 30, 2010
 
Pro-forma Consolidated
June 30, 2010
 
                   
   
NOTE 2(B)
 
NOTE 2(A)
 
 
 
 
 
 
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
ASSETS
                 
                   
Current Assets
                         
Cash and cash equivalents
 
$
1,270
 
$
1,906,916
[C]
$
4,031,319
 
$
5,939,505
 
Accounts receivable, net
   
   
19,641,346
         
19,641,346
 
Other receivables
   
   
13,978
         
13,978
 
Advances to suppliers
   
   
5,788,794
         
5,788,794
 
Prepaid expenses
   
   
5,137
         
5,137
 
Inventories
   
   
8,089,040
         
8,089,040
 
TOTAL CURRENT ASSETS
   
1,270
   
35,445,211
   
4,031,319
   
39,477,880
 
                       
 
Plant and equipment, net
   
   
4,401,870
   
   
4,401,870
 
                           
TOTAL ASSETS
   
1,270
   
39,847,081
   
4,031,319
   
43,879,750
 
                           
LIABILITIES
                         
                           
Current Liabilities
                         
Accounts payable and accrued liabilities
   
1,750
   
7,862,324
         
7,864,074
 
Other payables
   
   
61,793
         
61,793
 
Advance from customers
   
   
35,053
         
35,053
 
Tax payable
   
   
11,673
       
11,673
 
                           
     
1,750
   
7,970,843
         
7,972,593
 
                           
STOCKHOLDERS’ EQUITY
                         
                           
Capital Stock
                         
20,000 ordinary shares at $1 each
                         
Preferred stock, $.001 par value 1,267,250 shares of Series A
   
   
20,000
[E]
 
(20,000
)
     
Preferred Stock issued and outstanding-series A 8,647,930 shares of Series M
   
   
[C]
 
1,267
   
1,267
 
Preferred Stock:
                         
8,647,930 shares issued and finally converted into common stock
   
   
   
   
1
 
Common stock, $.544 par value1, 352,071 shares of common stock issued and outstanding
   
429,000
     
[D]
 
306,527
   
735,527
 
Additional Paid-in Capital- Series
                         
A-Preferred stock
   
   
[C]
 
4,031,319
   
4,031,319
 
Additional Paid-in Capital-Series M
                         
Preferred stock
   
   
[E]
 
(20,000
)
 
(20,000
)
Additional Paid-in Capital-Common stock arising from the conversion of Series M Preferred stock
   
(28,225
)
 
127,572
   
(38,813
)
  (28,225 )
Statutory Reserve Retained Earnings (Deficit)
   
(401,255
)
 
30,467,150
(F)
 
401,255
   
30,467,150
 
             
[D]
 
(306,527
)
 
(306,527
)
                           
Accumulated other comprehensive income
   
   
1,261,516
[F]
 
(401,255
)
 
954,989
 
                           
TOTAL STOCKHOLDERS’EQUITY
   
(480
)
 
31,876,238
         
35,829,531
 
TOTAL LIABILITIES AND STOCKHOLDERS’EQUITY
   
1,270
   
39,847,081
         
43,879,750
 
 
                         
(a) – Refer to Note 2(C) to the proforma financial statements.
 
 
3

 
 
TIMBERJACK SPORTING SUPPLIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)\
FOR THREE-MONTH PERIOD ENDED JUNE 30, 2010

                   
Pro-Forma
     
Pro-Forma
Consolidated
 
   
TIMBERJACK
     
Target
     
Adjustments
         
   
June 30,
     
June 30,
     
June 30,
     
June 30,
 
   
2010
     
2010
     
2010
     
2010
 
   
(unaudited)
     
(unaudited)
     
(unaudited)
     
(unaudited)
 
                   
(Note 2 D)
           
Sales, net of tax
   $ -        $ 13,812,520        $ -        $ 13,812,520  
                                    -  
Cost of sales
    -  
 
    (10,014,539 )
 
    -  
 
    (10,014,539 )
                                       
                                       
Gross margin
    -         3,797,981         -         3,797,981  
                                       
Selling and distributing costs
    -         (16,453 )       -         (16,453 )
General and administrative expenses and professional fees
    (13,743 )       (400,579 )       (306,527 )       (720,789 )
Financial costs
    -  
 
    (1,475 )
 
    -  
 
    (1,475 )
                                       
                                       
Income/expenses from operations
    (13,743 )       3,379,474         (306,527 )       3,059,174  
                                       
Other income, net
                                     
Non-operating expenses, net
    -  
 
    (173 )
 
 
 
 
 
    (173 )
                                       
                                       
Income/(loss) before tax
    (13,743 )       3,379,301         (306,527 )       3,059,001  
                                       
Provision for income taxes
    -  
 
    (1,109 )
 
 
 
 
 
    (1,109 )
                                       
                                       
Net income/(loss)
    (13,743 )       3,378,192         (306,527 )       3,057,892  
                                       
Other comprehensive income
                                     
-Foreign currency translation adjustments
    -  
 
    (252,945 )
 
 
 
 
 
    (252,945 )
                                       
                                       
Total comprehensive income
    (13,743 )
 
    3,125,247  
 
    (306,527 )
 
    2,804,947  
                                       
                                       

The accompanying notes are an integral part of these pro forma financial statements.

 
4

 
 
TIMBERJACK SPORTING SUPPLIES, INC.
PRO FORMA CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
 
NOTE 1 – Share Exchange Transaction
 
On September 15, 2010,  TIMBERJACK, a public corporation incorporated in Nevada, has acquired 100% of the issued and outstanding shares of Chine Victory Profits Limited, (‘Target’), a private limited company incorporated in British Virgin Island on May 13, 2004,  of 20,000 shares of common stock, with an exchange of 788,708 shares of common stock of $0.544 par value and a recapitalization of 864 shares of Series M-Preferred stock, with each Series M Preferred stock, with $0.001 par value,  being convertible into 10,000 shares of common stock of TIMBERJACK.
 
NOTE 2 - Pro Forma Adjustments
 
The pro forma adjustments to the consolidated balance sheet give effect to the acquisition of Target as if the transactions had occurred at the companies’ respective balance sheet dates of their respective most recent audits.
A)           Derived from the audited balance sheet of Target as of March 31, 2010.

B)            Derived from the audited balance sheet of TIMBERJACK as of March 31, 2010.
 
C)           Being the gross proceed of private placement of 1,267,250 of Series A-Preferred stock of par value $0.001at $4 each,  less various expenses, including placement commission and professional fee of $1,037,681, with net proceeds of $4,031,319.

D)           The capital structure of TIMBERJACK has been altered with a reverse stock split of 544 to 1, resulting in issuance of 788,708 share of common stock with $0.544 par value per share to original common stock holder; with additional of 563,363 share of common sock at $0.544 par value being issued to Viking Investment as settlement of consulting expenses.

E)           Each share of Series M-Preferred Share can be converted to 10,000 share of common stock. For recapitalization purpose, Well Asia (BVI) and Ms Kahling Wong have been issued 790 and 74 share of Series M- Preferred Stock respectively and such Series M Preferred stock has been automatically converted into 8,639,651 shares of common stock.

(F) Being the reclassification of accumulated loss of the legal acquirer- TimberJack’s common stock into the accumulated Other Comprehensive Income of the pro-forma consolidated group as accounting acquiree.