ZAPNAPS, INC. - FORM 8-K - EX-99.4 - November 22, 2010

Attached files

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8-K - ZAPNAPS, INC.v203568_8k.htm
EX-3.5 - ZAPNAPS, INC.v203568_ex3-5.htm
EX-2.2 - ZAPNAPS, INC.v203568_ex2-2.htm
EX-3.2 - ZAPNAPS, INC.v203568_ex3-2.htm
EX-2.1 - ZAPNAPS, INC.v203568_ex2-1.htm
EX-3.4 - ZAPNAPS, INC.v203568_ex3-4.htm
EX-10.3 - ZAPNAPS, INC.v203568_ex10-3.htm
EX-10.1 - ZAPNAPS, INC.v203568_ex10-1.htm
EX-10.4 - ZAPNAPS, INC.v203568_ex10-4.htm
EX-10.2 - ZAPNAPS, INC.v203568_ex10-2.htm
EX-21.1 - ZAPNAPS, INC.v203568_ex21-1.htm
EX-10.6 - ZAPNAPS, INC.v203568_ex10-6.htm
EX-10.9 - ZAPNAPS, INC.v203568_ex10-9.htm
EX-10.5 - ZAPNAPS, INC.v203568_ex10-5.htm
EX-10.7 - ZAPNAPS, INC.v203568_ex10-7.htm
EX-10.8 - ZAPNAPS, INC.v203568_ex10-8.htm
EX-99.3 - ZAPNAPS, INC.v203568_ex99-3.htm
EX-10.13 - ZAPNAPS, INC.v203568_ex10-13.htm
EX-10.14 - ZAPNAPS, INC.v203568_ex10-14.htm
EX-10.12 - ZAPNAPS, INC.v203568_ex10-12.htm
EX-10.11 - ZAPNAPS, INC.v203568_ex10-11.htm
EX-10.10 - ZAPNAPS, INC.v203568_ex10-10.htm

Exhibit 99.4

FusionTech, Inc.
and Dalian Heavy Mining Equipment Manufacturing Co., Ltd.
 Pro Forma Combined Financial Statements
(unaudited)

Contents

   
Page
     
Pro Forma Combined Financial Statements:
    
     
Pro Forma Combined Balance Sheets
    
as of October 31, 2010 (unaudited)
  
F-1
     
Pro Forma Combined Statements of Operations
    
for the nine months October 31, 2010 (unaudited)
  
F-2
     
Pro Forma Combined Statements of Operations
    
for the year ended January 31, 2010 (unaudited)
  
F-3
     
Notes to Pro Forma Combined Financial Statements (unaudited)
  
F-4

 
 

FusionTech, Inc.
and Dalian Heavy Mining Equipment Co., Ltd.
 Pro Forma Combined Balance Sheets
October 31, 2010
(unaudited)

         
Dalian Heavy
                  
         
Mining Equipment
    
Pro forma
        
Pro forma
  
   
FusionTech, Inc. (1)
    
Manufacturing Co., Ltd (2)
    
Adjustments
        
Combined
  
   
(historical)
    
(historical)
                  
                             
ASSETS
                            
                             
CURRENT ASSETS
                            
Cash & cash equivalents
   $ -     $ 1,001,213     $ (80,000 )
b
     $ 921,213  
Restricted cash
     -       56,542       -           56,542  
Accounts receivable, net of allowance for doubtful
     -       2,969,880       -           2,969,880  
Inventory, net
     -       3,424,052       -           3,424,052  
Other receivables
     -       718,845       -           718,845  
Due from related party
             50,289       -           50,289  
Advances to suppliers
             485,600       -           485,600  
Notes receivable
             386,226       -           386,226  
Prepaid expenses
             29,513       -           29,513  
                                     
TOTAL CURRENT ASSETS
     -       9,122,160       (80,000 )         9,042,160  
                                     
Property and equipment, net
     -       396,483       -           396,483  
Retention receivable-non current
     -       568,164       -           568,164  
Long-term deposit
     -       598,351       -           598,351  
Other assets
     -       23,204       -           23,204  
                                     
TOTAL ASSETS
   $ -     $ 10,708,362     $ (80,000 )       $ 10,628,362  
                                     
 
                                    
                                     
CURRENT LIABILITIES
                                    
Other payables
   $ 9,649     $ 3,223,694     $ -         $ 3,233,343  
Unearned revenue
     -       784,571       -           784,571  
Advances from shareholder
     -       2,684,647       -           2,684,647  
Short-term loan
     -       1,497,000       -           1,497,000  
                                     
TOTAL CURRENT LIABILITIES
     9,649       8,189,912       -           8,199,561  
                                     
STOCKHOLDERS' EQUITY
                                 -  
Common Stock
     10,550       -       73,850  
a
       29,390  
                      (80,000 )
b
          
                      24,990  
c
          
Additional paid in capital
     17,413       1,371,916       (73,850 )
a
       1,252,877  
                      (24,990 )
c
          
                      (37,612 )
d
          
Accumulated other comprehensive income
    -       128,304       -           128,304  
Statutory reserve
     -       173,238       -           173,238  
Retained Earnings (accumulated deficit)
     (37,612 )     844,992       37,612  
d
       844,992  
                                     
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
     (9,649 )     2,518,450       (80,000 )         2,428,801  
                                     
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
   $ -     $ 10,708,362     $ (80,000 )       $ 10,628,362  

(1) 
Source: unaudited financial statements of FusionTech, Inc. as of October 31, 2010 included in Form 10Q
(2) 
Source:  unaudited financial statements of Dalian Heavy Mining Equipment Manufacturing Co., Ltd. as of September 30, 2010 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

 
F-1
 

FusionTech, Inc.
and Dalian Heavy Mining Equipment Co., Ltd.
Pro Forma Combined Statements of Operations
For the Period Ended October 31, 2010
(unaudited)

         
Dalian Heavy
              
         
Mining Equipment
    
Pro forma
    
Pro forma
  
   
FusionTech, Inc. (1)
    
Manufacturing Co., Ltd (2)
    
Adjustments
    
Combined
  
   
(historical)
    
(historical)
              
                         
Net Revenue
   $ -     $ 9,877,237     $ -     $ 9,877,237  
                                 
Cost of Revenue
     -       7,724,279       -       7,724,279  
                                 
Gross Profit
     -       2,152,958       -       2,152,958  
                                 
Operating expenses:
                                
Selling expenses
     -       174,661       -       174,661  
General and administrative expenses
     (655 )     673,279       -       672,624  
                                 
Total operating expenses
     (655 )     847,940       -       847,285  
                                 
Income from operations
     655       1,305,018       -       1,305,673  
                                 
Non-operating income (expense):
                                
Other income (expense), net
     -       93,627       -       93,627  
Interest income
     -       3,096       -       3,096  
Interest expense
     -       (95,992 )     -        (95,992 )
                                 
Total non-operating (expense) income
     -       731       -       731  
                                 
Income before provision for income taxes
     655       1,305,749       -       1,306,404  
                                 
Income tax
     -       326,437       -       326,437  
                                 
Net income
  $ 655     $ 979,312       -       979,967  
                                 
Earnings per common share
   $ 0.00                     $ 0.03  
                                 
Weighted average shares outstanding
     10,550,000                       29,390,000  

(1) 
Source: unaudited financial statements of FusionTech, Inc. included in Form 10Q for the nine months ended October 31, 2010.
(2) 
Source:  unaudited financial statements of Dalian Heavy Mining Equipment Manufacturing Co., Ltd for the nine months ended September 30, 2010 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

 
F-2
 

FusionTech, Inc.
and Dalian Heavy Mining Equipment Co., Ltd.
Pro Forma Combined Statements of Operations
For the Period Ended January 31, 2010

         
Dalian Heavy
              
         
Mining Equipment
    
Pro forma
    
Pro forma
  
   
FusionTech, Inc. (1)
    
Manufacturing Co., Ltd (2)
    
Adjustments
    
Combined
  
   
(historical)
    
(historical)
              
                         
Net Revenue
   $ -     $ 9,947,893     $ -     $ 9,947,893  
                                 
Cost of Revenue
     -       7,817,162       -       7,817,162  
                                 
Gross Profit
     -       2,130,731       -       2,130,731  
                                 
Operating expenses:
                                
Selling expenses
     -       382,671       -       382,671  
General and administrative expenses
     14,940       732,735       -       747,675  
                                 
Total operating expenses
     14,940       1,115,406       -       1,130,346  
                                 
Income (loss) from operations
     (14,940 )     1,015,325       -       1,000,385  
                                 
Non-operating income (expense):
                                
Other income (expense), net
     -       83,086       -       83,086  
Interest income
     -       6,746       -       6,746  
Interest expense
     -       (31,223 )     -       (31,223 )
                                 
Total non-operating (expense) income
     -       58,609       -       58,609  
                                 
Income (loss) before provision for income taxes
     (14,940 )     1,073,934       -       1,058,994  
                                 
Income tax
     -       204,632       -       204,632  
                                 
Net income (loss)
   $ (14,940 )   $ 869,302       -       854,362  
                                 
Earnings (loss) per common share
   $ (0.00 )                   $ 0.03  
                                 
Weighted average shares outstanding
     10,550,000                       29,390,000  

(1) 
Source: audited financial statements of FusionTech, Inc. for the year ended January 31, 2010 included in Form 10K.
(2) 
Source:  audited financial statements of Dalian Heavy Mining Equipment Manufacturing Co., Ltd. for the year ended December 31, 2009 included elsewhere in this Form 8K.

See accompanying notes to pro forma combined financial statements

 
F-3
 

FusionTech, Inc.
and Dalian Heavy Mining Equipment Co., Ltd.
Notes to Pro form Combined Financial Statements

NOTE 1 - BASIS OF PRESENTATION

The accompanying pro forma combined balance sheets presents the accounts of FusionTech, Inc. and Dalian Heavy Mining Equipment Manufacturing Co., Ltd. as if the acquisition of Dalian by FusionTech occurred on October 31, 2010.  The accompanying pro forma combined statements of operations presents the accounts of FusionTech and Dalian for the year ended January 31, 2010, and for the nine months ended October 31, 2010 as if the acquisition occurred on January 1, 2009.  For accounting purposes, the transaction is being accounted for as a recapitalization of Dalian.

The following adjustments would be required if the acquisition occurred as indicated above:

a.
To record the eight for 1 (8 for 1) forward stock split for FusionTech;

b.
To record the purchase of 80,000,000 shares from a FusionTech shareholder for $80,000;

c.
To record the issuance of an aggregate of 24,990,000 common shares of FusionTech common stock for the purchase of Dalian;

d.
To eliminate pre-acquisition accumulated deficit of FusionTech.

 
F-4
 

ZAPNAPS, INC. Reports