Attached files
| file | filename |
|---|---|
| 8-K/A - TEEN EDUCATION GROUP, INC. | v208786_8ka.htm |
| EX-2.1 - TEEN EDUCATION GROUP, INC. | v208786_ex2-1.htm |
| EX-10.1 - TEEN EDUCATION GROUP, INC. | v208786_ex10-1.htm |
| EX-99.3 - TEEN EDUCATION GROUP, INC. | v208786_ex99-3.htm |
| EX-10.9 - TEEN EDUCATION GROUP, INC. | v208786_ex10-9.htm |
| EX-10.3 - TEEN EDUCATION GROUP, INC. | v208786_ex10-3.htm |
| EX-10.4 - TEEN EDUCATION GROUP, INC. | v208786_ex10-4.htm |
| EX-16.1 - TEEN EDUCATION GROUP, INC. | v208786_ex16-1.htm |
| EX-10.5 - TEEN EDUCATION GROUP, INC. | v208786_ex10-5.htm |
| EX-10.6 - TEEN EDUCATION GROUP, INC. | v208786_ex10-6.htm |
| EX-10.8 - TEEN EDUCATION GROUP, INC. | v208786_ex10-8.htm |
| EX-10.2 - TEEN EDUCATION GROUP, INC. | v208786_ex10-2.htm |
| EX-99.2 - TEEN EDUCATION GROUP, INC. | v208786_ex99-2.htm |
| EX-99.1 - TEEN EDUCATION GROUP, INC. | v208786_ex99-1.htm |
| EX-10.7 - TEEN EDUCATION GROUP, INC. | v208786_ex10-7.htm |
| EX-14.1 - TEEN EDUCATION GROUP, INC. | v208786_ex14-1.htm |
| EX-10.10 - TEEN EDUCATION GROUP, INC. | v208786_ex10-10.htm |
Exhibit
99.4
TEEN
EDUCATION GROUP, INC.
UNAUDITED
PRO FORMA CONSOLODATED
FINANCIAL
STATEMENTS
JUNE 30, 2010
TEEN
EDUCATION GROUP, INC.
INDEX TO
UNAUDITED PRO FORMA CONSOLODATED
FINANCIAL
STATEMENTS
|
PAGE
(S)
|
||||
|
Pro
Forma Consolidated Balance Sheet as of June 30, 2010
(Unaudited)
|
1
|
|||
|
Pro
Forma Consolidated Statement of Operations for the Six Months
Ended June 30, 2010 (Unaudited)
|
2
|
|||
|
Pro
Forma Consolidated Statement of Operations for the Year Ended
December 31, 2009 Year Ended (Unaudited)
|
3
|
|||
|
Notes to Consolidated
Pro Forma Financial Statements (Unaudited)
|
4-5
|
|||
PRO
FORMA CONSOLIDATED BALANCE SHEETS
AS
OF JUNE 30, 2010
(UNAUDITED)
|
Hongkong
Charter
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||
|
Teen
Education
|
International
Group
Limited
|
Adjustments
|
Consolidated
Total
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
Current
assets:
|
||||||||||||||||
|
Cash
& cash equivalents
|
$
|
-
|
$
|
2,786,069
|
$
|
2,786,069
|
||||||||||
|
Accounts
receivable, net of allowance for doubtful accounts
|
-
|
1,148,177
|
1,148,177
|
|||||||||||||
|
Other
receivables, net of allowance for doubtful accounts
|
-
|
171,341
|
171,341
|
|||||||||||||
|
Inventories
|
-
|
3,676,681
|
3,676,681
|
|||||||||||||
|
Value
added tax recoverable
|
-
|
237,292
|
237,292
|
|||||||||||||
|
Advance
to vendors
|
-
|
1,037,363
|
1,037,363
|
|||||||||||||
|
Prepaid
expenses
|
-
|
52,037
|
52,037
|
|||||||||||||
|
Loan
to outside parties
|
|
1,327,159
|
1,327,159
|
|||||||||||||
|
Total
current assets
|
-
|
10,436,119
|
10,436,119
|
|||||||||||||
|
Property,
plant and equipment, net
|
-
|
310,280
|
310,280
|
|||||||||||||
|
Total
Assets
|
$
|
-
|
$
|
10,746,399
|
$
|
10,746,399
|
||||||||||
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||||||||
|
Current
liabilities:
|
||||||||||||||||
|
Short-term
loans
|
$
|
-
|
$
|
3,686,554
|
$
|
3,686,554
|
||||||||||
|
Accounts
payable
|
2,500
|
748,310
|
(2,500
|
)a
|
748,310
|
|||||||||||
|
Officers
advances
|
22,453
|
-
|
(22,453
|
)a
|
-
|
|||||||||||
|
Advance
from customers
|
-
|
103,978
|
103,978
|
|||||||||||||
|
Accrued
expenses and other liabilities
|
-
|
10,462
|
10,462
|
|||||||||||||
|
Taxes
payable
|
-
|
59,578
|
59,578
|
|||||||||||||
|
Due
to related parties
|
-
|
5,936,768
|
5,936,768
|
|||||||||||||
|
Total
current liabilities
|
24,953
|
10,545,650
|
10,545,650
|
|||||||||||||
|
Total
Liabilities
|
24,953
|
10,545,650
|
10,545,650
|
|||||||||||||
|
Stockholders'
equity
|
||||||||||||||||
|
Preferred
Stock, $0.01 par value, 5,000,000 shares authorized, none issued or
outstanding at June 30, 2010
|
-
|
-
|
-
|
|||||||||||||
|
Common
Stock, $0.001 par value, 100,000,000 shares authorized, 2,500,000 shares
issued and outstanding at June 30, 2010
|
2,250
|
-
|
250
|
a,b
|
2,500
|
|||||||||||
|
Additional
paid-in capital
|
27,750
|
144,697
|
(30,249
|
) a,b
|
142,197
|
|||||||||||
|
Retained
earnings (deficit)
|
(54,953
|
)
|
56,876
|
54,953
|
a,b
|
56,876
|
||||||||||
|
Accumulated
other comprehensive loss
|
-
|
(824
|
)
|
(824
|
)
|
|||||||||||
|
Total
stockholders' equity
|
(24,953
|
)
|
200,749
|
200,749
|
||||||||||||
|
Total
Liabilities and Stockholders' Equity
|
$
|
-
|
$
|
10,746,399
|
$
|
10,746,399
|
||||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements
1
TEEN
EDUCATION GROUP, INC
PRO
FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR
THE SIX MONTHS ENDED JUNE 30, 2010
(UNAUDITED)
|
Hongkong
Charter
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||
|
Teen
Education
|
International
Group Limited |
Adjustments
|
Consolidated
Total |
|||||||||||||
|
Revenues
|
$
|
-
|
$
|
2,988,534
|
$
|
2,988,534
|
||||||||||
|
Cost
of revenue
|
-
|
2,333,577
|
2,333,577
|
|||||||||||||
|
Gross
profit
|
-
|
654,957
|
654,957
|
|||||||||||||
|
Operating
expenses
|
||||||||||||||||
|
Selling,
general and administrative expenses
|
5,770
|
617,879
|
(5,770
|
) a
|
617,879
|
|||||||||||
|
Total
operating expenses
|
5,770
|
617,879
|
617,879
|
|||||||||||||
|
Operating
income (loss)
|
(5,770
|
)
|
37,078
|
37,078
|
||||||||||||
|
-
|
||||||||||||||||
|
Other
expenses
|
-
|
|||||||||||||||
|
Interest
expenses
|
-
|
(7,395
|
)
|
(7,395
|
)
|
|||||||||||
|
Other
expenses
|
-
|
46,201
|
46,201
|
|||||||||||||
|
Total
other expense
|
-
|
38,806
|
38,806
|
|||||||||||||
|
Income
before income taxes
|
(5,770
|
)
|
75,884
|
75,884
|
||||||||||||
|
Provision
for income taxes
|
-
|
(9,755
|
)
|
(9,755
|
)
|
|||||||||||
|
Net
income (loss)
|
$
|
(5,770
|
)
|
$
|
85,639
|
$
|
85,639
|
|||||||||
|
Other
comprehensive loss
|
||||||||||||||||
|
Foreign
currency translation adjustment
|
-
|
(824
|
)
|
(824
|
)
|
|||||||||||
|
Comprehensive
income (loss)
|
$
|
(5,770
|
)
|
$
|
84,815
|
$
|
84,815
|
|||||||||
|
Basic
and diluted income per common share
|
||||||||||||||||
|
Basic
|
$
|
(0.00
|
)
|
$
|
84.81
|
$
|
0.03
|
|||||||||
|
Diluted
|
$
|
(0.00
|
)
|
$
|
84.81
|
$
|
0.03
|
|||||||||
|
Weighted
average common shares outstanding
|
||||||||||||||||
|
Basic
|
2,250,000
|
1,000
|
2,500,000
|
|||||||||||||
|
Diluted
|
2,250,000
|
1,000
|
2,500,000
|
|||||||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements
2
TEEN
EDUCATION GROUP, INC
PRO
FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
FOR
THE YEAR ENDED DECEMBER 31, 2009
(UNAUDITED)
|
Hongkong
Charter
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||
|
Teen
Education
|
International
Group
Limited
|
Adjustments
|
Consolidated
Total
|
|||||||||||||
|
Revenues
|
$
|
-
|
$
|
2,683,808
|
$
|
2,683,808
|
||||||||||
|
Cost
of revenue
|
-
|
1,717,486
|
1,717,486
|
|||||||||||||
|
Gross
profit
|
-
|
966,322
|
966,322
|
|||||||||||||
|
Operating
expenses
|
||||||||||||||||
|
Selling,
general and administrative expenses
|
8,335
|
744,737
|
(8,335
|
) a
|
744,737
|
|||||||||||
|
Total
operating expenses
|
8,335
|
744,737
|
744,737
|
|||||||||||||
|
Operating
income (loss)
|
(8,335
|
)
|
221,585
|
221,585
|
||||||||||||
|
Other
expenses
|
||||||||||||||||
|
Interest
expenses
|
-
|
(2,239
|
)
|
(2,239
|
)
|
|||||||||||
|
Other
expenses
|
-
|
(55,788
|
)
|
(55,788
|
)
|
|||||||||||
|
Total
other expense
|
-
|
(58,027
|
)
|
(58,027
|
)
|
|||||||||||
|
Income
before income taxes
|
(8,335
|
)
|
163,558
|
163,558
|
||||||||||||
|
Provision
for income taxes
|
-
|
75,021
|
75,021
|
|||||||||||||
|
Net
income (loss)
|
$
|
(8,335
|
)
|
$
|
88,537
|
$
|
88,537
|
|||||||||
|
Other
comprehensive loss
|
||||||||||||||||
|
Foreign
currency translation adjustment
|
-
|
(438
|
)
|
(438
|
)
|
|||||||||||
|
Comprehensive
income (loss)
|
$
|
(8,335
|
)
|
$
|
88,099
|
$
|
88,099
|
|||||||||
|
Basic
and diluted income per common share
|
||||||||||||||||
|
Basic
|
$
|
(0.00
|
)
|
$
|
88.10
|
$
|
0.04
|
|||||||||
|
Diluted
|
$
|
(0.00
|
)
|
$
|
88.10
|
$
|
0.04
|
|||||||||
|
Weighted
average common shares outstanding
|
||||||||||||||||
|
Basic
|
2,250,000
|
1,000
|
2,500,000
|
|||||||||||||
|
Diluted
|
2,250,000
|
1,000
|
2,500,000
|
|||||||||||||
The
accompanying notes are an integral part of these condensed consolidated
financial statements
3
TEEN
EDUCATION GROUP, INC.
NOTES
TO THE UNAUDITED PRO FORMA
CONSOLIDATED
FINANCIAL STATEMENTS
NOTE
1-ORGANIZATION AND BASIS OF PRESENTATION
Teen
Education Group, Inc. was incorporated on April 16, 2007 in the State of
Delaware, primarily engaged in the business of providing a financial
literacy and money management educational program for teenagers on a
fee for service offered basis.
On
November 12, 2010, Teen Education Group, Inc., (“Teen Education”, “We”, “us”,
“our” or the “Company”) and its majority shareholder, Mr. Robert L. Wilson,
entered into a Share Exchange Agreement with Hongkong Charter International
Group Limited, (“Hongkong Limited”), a company incorporated in Hongkong Special
Administrative Region of the People’s Republic of China (the “PRC”), and Qun Hu,
the majority shareholder of Hongkong Limited.
Hongkong
Limited is engaged in automotive parts distribution and automotive maintenance
services in the PRC through its wholly-owned subsidiary, Shanghai Vomart Auto
Parts Co., Ltd.
Pursuant
to the terms of the Exchange Agreement, the Company acquired all of the
outstanding shares of Hongkong Limited from the Hongkong Limited Shareholder
(the “Hongkong Limited Shares”). In exchange, we issued to the Hongkong Limited
Shareholder, their designees or assigns, 2,250,000 shares of the Company’s
common stock (the “Exchange Shares”). The Exchange Shares represent
approximately 90% of the issued and outstanding shares of the Company’s common
stock on a fully diluted basis as of and immediately after the Closing (the
“Share Exchange”). In addition, Hongkong Limited agreed to pay $350,000 in cash to the
Company’s majority shareholder, Mr. Wilson.
Pursuant
to the terms of the Exchange Agreement, Robert L. Wilson, the majority
shareholder of the Company, cancelled a total of 2,000,000 shares of the
Company’s common stock, which represents 100% of his security interests in the
Company.
Pursuant
to the Exchange Agreement, Hongkong Limited became a wholly owned subsidiary of
the Company. The sole director of the Company approved the Exchange Agreement
and the transactions contemplated under the Exchange Agreement. The directors of
Hongkong Limited approved the Exchange Agreement and the transactions
contemplated hereunder.
As a
further condition of the Share Exchange, on the Closing Date, Robert L. Wilson
resigned as the sole director of the Company, effective on such date that is ten
(10) calendar days after the Company mails an Information Statement to the
Company’s shareholders prepared pursuant to Rule 14f-1 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), relating to the Exchange
Agreement, and further, appointed Qun Hu to the Company’s board of directors
(the “Board”). The following persons were appointed as officers of our Company:
Mr. Zhoufeng Shen was appointed as the Company’s President and Chief Executive
Officer and Ms. Xiaomei Wang was appointed as the Company’s Chief Financial
Officer.
4
TEEN
EDUCATION GROUP, INC.
NOTES
TO THE UNAUDITED PRO FORMA
CONSOLIDATED
FINANCIAL STATEMENTS
NOTE
2- SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The
accompanying unaudited pro forma consolidated balance sheet has been presented
at June 30, 2010. The unaudited pro forma consolidated statements of operations
for the six months ended June 30, 2010 and for the year ended December 31, 2009
have been presented as if the share exchange had occurred on the beginning of
the period.
The
acquisition will be accounted for as a reverse merge under the purchase method
of accounting since there was a change of control. In accordance with FASB 141R,
Hongkong Limited and its subsidiaries are the accounting acquirers. Accordingly,
Hongkong Limited and its subsidiaries will be treated as the continuing entity
for accounting purposes.
The
unaudited pro forma consolidated financial statements do not necessarily
represent the actual results that would have been achieved had the companies
been combined at the beginning of the year, nor may they be indicative of future
operations. These unaudited pro forma consolidated financial statements
should be read in conjunction with the companies’ respective historical
financial statements and notes included thereto. The following unaudited
pro forma adjustments are included in the accompanying unaudited pro forma
consolidated balance sheet as of June 30, 2010 and the unaudited pro forma
consolidated statement of operations for the six months ended June 30,
2010 and for the year ended December 31, 2009 to reflect the acquisition of
Hongkong Limited by Teen Education:
|
a.
|
To
record the spin-off of Teen Education ’ s assets and liabilities
prior to the Share Exchange;
|
|
b.
|
These
adjustments reflect the recapitalization as a result of the transactions
related to the Share Exchange.
|
5