Attached files
EXHIBIT 99.3
QUAMTEL INC.
UNAUDITED PROFORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited proforma condensed consolidated financial statements were derived from and should be read in conjunction with the historical consolidated financial statements and related notes of the Registrant for the year ended December 31, 2009 as contained in the Registrant’s Annual Report on Form 10-K filed on March 31, 2010, and for the six months ended June 30, 2010, as contained in the Registrant’s Quarterly Report on Form 10-Q filed on August 16, 2010.
On August 21, 2010, Registrant closed a Membership Interest Purchase Agreement entered into and effective August 18, 2010 (the “Purchase Agreement”) to acquire all of the outstanding membership interests of Syncpointe, LLC, a Missouri limited liability company (the “Company”) from Half A Minute, L.L.C., McPheeters Communication Group, LLC, and VKS, LLC (collectively, the “Sellers”).
The Registrant acquired the Company in exchange for 1,000,000 shares of Registrant’s unregistered common stock with piggyback registration rights. The Sellers may receive earn-out payments equal to 12.5% of the Company’s net income (as defined in the Purchase Agreement) as it operates as a division of the Registrant for 18 months.
The unaudited pro forma condensed consolidated financial statements assume that the Purchase Agreement was consummated as of the earliest dates presented in these statements.
The unaudited pro forma condensed consolidated financial statements have been prepared based on currently available information and assumptions that are deemed appropriate by the Registrant’s management. The pro forma information is for informational purposes only and is not intended to be indicative of the actual results that would have been reported had the transaction occurred on the dates indicated, nor does the information represent a forecast of the financial condition or results of operation of the Registrant for any future period.
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Quamtel, Inc.
Unaudited Proforma Condensed Consolidated Balance Sheet
As of June 30, 2010
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Syncpointe,
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Proforma
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Post-
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Quamtel, Inc
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LLC
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Adjustments
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Acquisition
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 136,026 | $ | - | $ | - | $ | 136,026 | ||||||||
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Accounts receivable, net
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18,031 | - | - | 18,031 | ||||||||||||
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Income tax receivable
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11,678 | - | - | 11,678 | ||||||||||||
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Inventory
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34,740 | - | - | 34,740 | ||||||||||||
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Prepaid expenses and deposits
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122,733 | - | - | 122,733 | ||||||||||||
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Total current assets
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323,208 | - | - | 323,208 | ||||||||||||
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Restricted cash
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150,000 | - | - | 150,000 | ||||||||||||
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Property and equipment, net
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387,288 | 92,437 | - | 479,725 | ||||||||||||
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Intangible assets
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2,722,351 | - | 2,840,241 | (1) | 5,562,592 | |||||||||||
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TOTAL ASSETS
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$ | 3,582,847 | $ | 92,437 | $ | 2,840,241 | $ | 6,515,525 | ||||||||
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Current liabilities:
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Accounts payable
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$ | 518,197 | $ | 390,261 | $ | - | $ | 908,458 | ||||||||
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Accrued expenses
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137,540 | 245,069 | (182,652 | ) | (2) | 199,957 | ||||||||||
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Unearned revenue
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309,203 | - | - | 309,203 | ||||||||||||
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Advances from related party
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665,298 | - | - | 665,298 | ||||||||||||
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Stock-based payable
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260,000 | - | - | 260,000 | ||||||||||||
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Current portion of notes payable
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326,774 | 1,854,360 | (1,854,360 | ) | (2) | 326,774 | ||||||||||
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Total current liabilities
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2,217,012 | 2,489,690 | (2,037,012 | ) | 2,669,690 | |||||||||||
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Noncurrent portion of notes payable
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1,075,236 | 500,000 | (500,000 | ) | (2) | 1,075,236 | ||||||||||
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TOTAL LIABILITIES
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3,292,248 | 2,989,690 | (2,537,012 | ) | 3,744,926 | |||||||||||
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Shareholders' equity:
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Common stock - $0.001 par value;
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200,000,000 shares authorized;
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19,031,175 shares issued and outstanding before
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acquisition; 20,031,175 shares after acquisition
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19,031 | - | 1,000 | (3) | 20,031 | |||||||||||
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Preferred stock - $0.001 par value; 50,000,000
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shares authorized; no shares issued
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or outstanding
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- | - | - | - | ||||||||||||
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Additional paid-in capital
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4,272,154 | - | 2,479,000 | (3) | 6,751,154 | |||||||||||
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Members' capital
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- | 66,024 | (66,024 | ) | (4) | |||||||||||
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Stock repurchase
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(100,000 | ) | - | (100,000 | ) | |||||||||||
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Retained earnings (deficit)
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(3,900,586 | ) | (2,963,277 | ) | 2,963,277 | (4) | (3,900,586 | ) | ||||||||
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Total shareholders' equity
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290,599 | (2,897,253 | ) | 5,377,253 | 2,770,599 | |||||||||||
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ | 3,582,847 | $ | 92,437 | $ | 2,840,241 | $ | 6,515,525 | ||||||||
See accompanying notes to unaudited proforma condensed consolidated balance sheet.
2
Quamtel, Inc.
Unaudited Proforma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 2009
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Proforma
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Post-
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Quamtel, Inc
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Syncpointe, LLC
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Adjustments
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Acquisition
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Revenues
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$ | 2,462,060 | $ | 89,000 | $ | - | $ | 2,551,060 | ||||||||
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Cost of sales
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1,638,895 | - | - | 1,638,895 | ||||||||||||
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Gross profit
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823,165 | 89,000 | - | 912,165 | ||||||||||||
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Operating expenses:
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Compensation, consulting and
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related expenses
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1,748,645 | 578,890 | - | 2,327,535 | ||||||||||||
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General and administrative expenses
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890,832 | 993,323 | - | 1,884,155 | ||||||||||||
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Depreciation and amortization
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89,756 | 2,623 | - | 92,379 | ||||||||||||
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Total operating expenses
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2,729,233 | 1,574,836 | - | 4,304,069 | ||||||||||||
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Loss from operations before income taxes
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(1,906,068 | ) | (1,485,836 | ) | - | (3,391,904 | ) | |||||||||
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Other expense:
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Interest and financing expense
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26,799 | 108,618 | (108,618 | ) | (2) | 26,799 | ||||||||||
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Total other expense
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26,799 | 108,618 | (108,618 | ) | 26,799 | |||||||||||
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Loss before income taxes
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(1,932,867 | ) | (1,594,454 | ) | 108,618 | (3,418,703 | ) | |||||||||
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Income tax expense (benefit)
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(971 | ) | - | - | (971 | ) | ||||||||||
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Net loss
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$ | (1,931,896 | ) | $ | (1,594,454 | ) | $ | 108,618 | $ | (3,417,732 | ) | |||||
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Basic and diluted loss per share:
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Loss from operations before income taxes
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$ | (0.12 | ) | $ | (0.19 | ) | ||||||||||
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Income tax expense (benefit)
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(0.00 | ) | (0.00 | ) | ||||||||||||
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Loss per share
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$ | (0.12 | ) | $ | (0.19 | ) | ||||||||||
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Weighted average number of
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shares outstanding
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16,676,668 | 1,000,000 | (5) | 17,676,668 | ||||||||||||
See accompanying notes to unaudited proforma condensed consolidated statement of operations.
3
Quamtel, Inc.
Unaudited Proforma Condensed Consolidated Statement of Operations
For the Six Months Ended June 30, 2010
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Proforma
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Post-
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Quamtel, Inc
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Syncpointe, LLC
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Adjustments
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Acquisition
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Revenues
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$ | 1,175,903 | $ | - | $ | - | $ | 1,175,903 | ||||||||
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Cost of sales
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936,598 | - | - | 936,598 | ||||||||||||
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Gross profit
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239,305 | - | - | 239,305 | ||||||||||||
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Operating expenses:
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Compensation, consulting and related expenses
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1,399,382 | 157,500 | - | 1,556,882 | ||||||||||||
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General and administrative expenses
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609,538 | 27,237 | - | 636,775 | ||||||||||||
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Depreciation and amortization
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62,648 | 1,400 | - | 64,048 | ||||||||||||
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Total operating expenses
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2,071,568 | 186,137 | - | 2,257,705 | ||||||||||||
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Loss from operations before income taxes
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(1,832,263 | ) | (186,137 | ) | - | (2,018,400 | ) | |||||||||
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Other expense:
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Loss on disposition of assets
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72,625 | - | - | 72,625 | ||||||||||||
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Interest and financing expense
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65,686 | 88,656 | (88,656 | ) | (2) | 65,686 | ||||||||||
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Total other expense
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138,311 | 88,656 | (88,656 | ) | 138,311 | |||||||||||
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Loss before income taxes
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(1,970,574 | ) | (274,793 | ) | 88,656 | (2,156,711 | ) | |||||||||
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Income tax expense (benefit)
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- | - | - | - | ||||||||||||
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Net loss
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$ | (1,970,574 | ) | $ | (274,793 | ) | $ | 88,656 | $ | (2,156,711 | ) | |||||
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Basic and diluted loss per share:
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Loss from operations before income taxes
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$ | (0.10 | ) | $ | (0.11 | ) | ||||||||||
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Income tax expense (benefit)
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- | - | ||||||||||||||
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Loss per share
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$ | (0.10 | ) | $ | (0.11 | ) | ||||||||||
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Weighted average number of shares outstanding
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18,913,495 | 1,000,000 | (5) | 19,913,495 | ||||||||||||
See accompanying notes to unaudited proforma condensed consolidated statement of operations.
4
QUAMTEL, INC.
NOTES TO UNAUDITED PROFORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENT
(1) Adjustment to Intangible Assets
The consideration paid by the Registrant in conjunction with the Membership Interest Purchase Agreement exceeded the value of Syncpointe’s tangible net assets plus identifiable intangible assets, so the excess has been reflected as goodwill.
(2) Adjustment to Notes Payable and Interest Expense
Syncpointe’s notes payable were eliminated in conjunctions with the Membership Interest Purchase Agreement. Related proforma interest expense and accrued interest was also eliminated as of the earliest period presented.
(3) Adjustment to Common Stock and Additional paid-In Capital
The Registrant’s proforma common shares were increased by the 1,000,000 shares issued in conjunction with the Membership Interest Purchase Agreement, valued at $2.48 per share market price at the closing date.
(4) Adjustments to Members’ Capital and Retained Earnings (Deficit)
Syncpointe’s proforma balances were eliminated, and used to adjust the goodwill in adjustment #1 above.
(5) Adjustments to Common Shares
The 1,000,000 common shares issued in conjunctions with the Membership Interest Purchase Agreement were added to the proforma weighted average number of shares outstanding.
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