Attached files
file | filename |
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8-K - 8-K - Annec Green Refractories Corp | v210578_8k.htm |
EX-2.1 - EX-2.1 - Annec Green Refractories Corp | v210578_ex2-1.htm |
EX-3.3 - EX-3.3 - Annec Green Refractories Corp | v210578_ex3-3.htm |
EX-10.2 - EX-10.2 - Annec Green Refractories Corp | v210578_ex10-2.htm |
EX-10.1 - EX-10.1 - Annec Green Refractories Corp | v210578_ex10-1.htm |
EX-10.5 - EX-10.5 - Annec Green Refractories Corp | v210578_ex10-5.htm |
EX-21.1 - EX-21.1 - Annec Green Refractories Corp | v210578_ex21-1.htm |
EX-10.4 - EX-10.4 - Annec Green Refractories Corp | v210578_ex10-4.htm |
EX-10.3 - EX-10.3 - Annec Green Refractories Corp | v210578_ex10-3.htm |
E-BAND MEDIA,
INC.
|
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(SUCCESSOR OF ZHENGZHOU ANNEC
INDUSTRIAL CO., LTD)
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UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED BALANCE SHEET
|
|||||||||||||||||
SEPTEMBER 30,
2010
|
|||||||||||||||||
(Amounts expressed in US
Dollars)
|
|||||||||||||||||
Historical Zhengzhou
Annec |
Historical E-Band
Media |
Pro
Forma Adjustments |
Note
|
Combined Pro
Forma |
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||||
ASSETS
|
|||||||||||||||||
Current
assets:
|
|||||||||||||||||
Cash
|
$ | 1,657,584 | $ | - | $ | 1,657,584 | |||||||||||
Restricted
cash
|
2,246,158 | - | 2,246,158 | ||||||||||||||
Bank
notes receivable
|
1,114,735 | - | 1,114,735 | ||||||||||||||
Accounts
receivable, net
|
22,912,105 | - | 22,912,105 | ||||||||||||||
Prepaid
expenses and deposits
|
9,863,752 | - | 9,863,752 | ||||||||||||||
Other
receivable
|
3,280,906 | - | 3,280,906 | ||||||||||||||
Inventories
|
24,314,715 | - | 24,314,715 | ||||||||||||||
Total
current assets
|
65,389,955 | - | 65,389,955 | ||||||||||||||
Plant
and equipment, net
|
11,417,316 | - | 11,417,316 | ||||||||||||||
Land
use rights, net
|
2,193,324 | - | 2,193,324 | ||||||||||||||
Long-term
investment
|
149,744 | - | 149,744 | ||||||||||||||
Total
assets
|
$ | 79,150,339 | $ | - | $ | 79,150,339 | |||||||||||
LIABILITIES AND
STOCKHOLDERS' EQUITY
(DEFICIT)
|
|||||||||||||||||
Liabilities
|
|||||||||||||||||
Short-term
loans
|
$ | 8,819,914 | $ | - | $ | 8,819,914 | |||||||||||
Bank
notes payable
|
2,246,158 | - | 2,246,158 | ||||||||||||||
Accounts
payable and accrued expenses
|
10,578,218 | - | 10,578,218 | ||||||||||||||
Advances
from customers
|
24,201,746 | - | 24,201,746 | ||||||||||||||
Salaries
payable
|
220,693 | - | 220,693 | ||||||||||||||
Taxes
payable
|
635,921 | - | 635,921 | ||||||||||||||
Deferred
income
|
2,711,185 | - | 2,711,185 | ||||||||||||||
Related
party payable
|
905,052 | - | 905,052 | ||||||||||||||
Loans
payable to employees
|
1,915,598 | - | 1,915,598 | ||||||||||||||
Loans
payable to other individuals
|
1,946,670 | - | 1,946,670 | ||||||||||||||
Other
payable
|
1,817,808 | - | 1,817,808 | ||||||||||||||
Total
liabilities
|
55,998,963 | - | 55,998,963 | ||||||||||||||
Shareholders'
equity (Deficit)
|
|||||||||||||||||
Common
stock, $0.0001 par value, 100,000,000 shares authorized,
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|||||||||||||||||
11,150,000
issued and outstanding
|
- | 1,115 | 1,115 | ||||||||||||||
Series
A Preferred stock, $0.0001 par value, 100,000,000 shares
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|||||||||||||||||
authorized,
19,220 shares issued and outstanding
|
- | 2 |
(a)
|
2 | |||||||||||||
Owners’
capital
|
2,612,769 | - | (2,612,769 | ) |
(a)
|
- | |||||||||||
Additional
paid in capital
|
- | - | 2,612,769 |
(a)
|
4,047,875 | ||||||||||||
1,436,223 |
(b)
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(1,117 | ) |
(a)
|
|||||||||||||||
Capital
Surplus
|
1,436,223 | - | (1,436,223 | ) |
(b)
|
- | |||||||||||
Retained
earnings (Accmulated deficit)
|
18,849,566 | - | - |
(a)
|
18,849,566 | ||||||||||||
Accmulated
(deficit) during development stage
|
- | (1,115 | ) | 1,115 |
(a)
|
- | |||||||||||
Accumulated
other comprehensive income
|
252,818 | - | 252,818 | ||||||||||||||
Total
shareholders' equity
|
23,151,376 | - | 23,151,376 | ||||||||||||||
Total
liabilities and stockholders' equity
|
$ | 79,150,339 | $ | - | $ | 79,150,339 |
(SUCCESSOR OF ZHENGZHOU ANNEC
INDUSTRIAL CO., LTD)
|
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UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
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NINE MONTHS ENDED SEPTEMBER 30,
2010
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(Amounts expressed in US
Dollars)
|
||||||||||||||||||
Historical Zhengzhou
Annec |
Historical E-Band
Media |
Pro
Forma Adjustments |
Note
|
Combined Pro
Forma |
||||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
|||||||||||||||
Revenues
|
$ | 39,542,035 | $ | - | $ | 39,542,035 | ||||||||||||
- | ||||||||||||||||||
Cost
of revenues
|
24,330,617 | - | 24,330,617 | |||||||||||||||
- | ||||||||||||||||||
Gross
profit
|
15,211,418 | - | 15,211,418 | |||||||||||||||
Operating
expenses:
|
||||||||||||||||||
Selling
|
4,454,006 | - | 4,454,006 | |||||||||||||||
General
and administrative
|
4,220,129 | 1,115 | (1,115 | ) |
(a)
|
4,220,129 | ||||||||||||
Total
operating expenses
|
8,674,135 | 1,115 | 8,674,135 | |||||||||||||||
- | ||||||||||||||||||
Income
from operations
|
6,537,283 | (1,115 | ) | 6,537,283 | ||||||||||||||
Other
income (expense):
|
||||||||||||||||||
Interest
expense, net
|
(855,435 | ) | - | (855,435 | ) | |||||||||||||
Other
income (expense), net
|
(56,326 | ) | - | (56,326 | ) | |||||||||||||
Total
other income (expense)
|
(911,761 | ) | - | (911,761 | ) | |||||||||||||
- | ||||||||||||||||||
Income
before provision for income taxes
|
5,625,522 | (1,115 | ) | 5,625,522 | ||||||||||||||
Provision
for income taxes
|
686,313 | - | 686,313 | |||||||||||||||
Net
income (loss)
|
$ | 4,939,209 | $ | (1,115 | ) | $ | 4,939,209 |
E-BAND MEDIA,
INC.
|
|||||||||||||||||
(SUCCESSOR OF ZHENGZHOU ANNEC
INDUSTRIAL CO., LTD)
|
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UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
|
|||||||||||||||||
YEAR ENDED DECEMBER 31,
2009
|
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(Amounts expressed in US
Dollars)
|
|||||||||||||||||
Historical Zhengzhou
Annec |
Historical E-Band
Media |
Pro
Forma Adjustments |
Note
|
Combined Pro
Forma |
|||||||||||||
(unaudited)
|
(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||||
Revenues
|
$ | 32,405,360 | $ | - | $ | 32,405,360 | |||||||||||
Cost
of revenues
|
20,793,942 | - | 20,793,942 | ||||||||||||||
Gross
profit
|
11,611,418 | - | 11,611,418 | ||||||||||||||
Operating
expenses:
|
|||||||||||||||||
Selling
|
3,704,000 | - | 3,704,000 | ||||||||||||||
General
and administrative
|
4,155,987 | - | 4,155,987 | ||||||||||||||
Total
operating expenses
|
7,859,987 | - | 7,859,987 | ||||||||||||||
Income
(loss) from operations
|
3,751,431 | - | 3,751,431 | ||||||||||||||
Other
income (expense):
|
|||||||||||||||||
Interest
expense, net
|
(996,067 | ) | - | (996,067 | ) | ||||||||||||
Other
income (expense), net
|
(40,009 | ) | - | (40,009 | ) | ||||||||||||
Total
other expense
|
(1,036,076 | ) | - | (1,036,076 | ) | ||||||||||||
Income
(loss) before provision for income taxes
|
2,715,355 | - | 2,715,355 | ||||||||||||||
Provision
for (benefit from) income taxes
|
331,010 | 331,010 | |||||||||||||||
Net
income (loss)
|
$ | 2,384,345 | $ | - | $ | 2,384,345 |
e-band
media, Inc.
(Successor
of Zhengzhou Annec Industrial Co., Ltd.)
Notes
to Unaudited Pro Forma Condensed Consolidated
Financial
Information
The
following unaudited pro forma condensed consolidated financial information has
been prepared to give effect to the proposed merger of Zhengzhou Annec
Industrial Co., Ltd. and E-Band Media, Inc. as a reverse acquisition of assets
and a recapitalization in accordance with accounting principles generally
accepted in the United States. For accounting purposes Zhengzhou
Annec Industrial Co., Ltd. is considered to be acquiring E-Band Media, Inc. in
the merger.
Note
1 – Share Exchange Agreement
The
foregoing description of the terms of the Share Exchange Agreement is qualified
in its entirety by reference to the provisions of the agreements filed as
Exhibit 2.1 to this report, which are incorporated by reference
herein.
On
February 11, 2011, E-Band Media, Inc. (“E-Band Media”) entered and closed
a Share Exchange Agreement (“Share Exchange Agreement”), with
certain shareholders and warrant holders, Dean Konstantine, Muzeyyen
Balaban, Bernieta Masters, and Linda Masters, and with China Green Refractories
(“China Green”), a BVI corporation, and its shareholders, New-Source Group
Limited, a BVI company, High-Sky Assets Management Limited, a BVI company, Joint
Rise Investments Limited, a BVI company, Giant Harvest Investment Limited, a BVI
company, and Mr. QIAN Yun Ting (collectively the “China Green
Shareholders”), pursuant to which E-Band Media acquired 100% of the issued and
outstanding capital stock of China Green in exchange for 19,220
shares of E-Band Media's Series A Convertible Preferred Stock (“Series A
Preferred Stock”). Pursuant to the terms of the Share Exchange Agreement, E-Band
Media will effect a 1-for-14.375 reverse stock split (“Reverse Split”) of its
outstanding common stock. In addition, pursuant to the Share Exchange Agreement,
the China Green Shareholders acquired all 10,000,000 shares of E-Band Media’s
common stock from Dean Konstantine (“Controlled Shares”) and all outstanding
warrants of E-Band Media from Muzeyyen Balaban, Bernieta Masters, and Linda
Masters (“Warrants”) for an aggregate purchase price of $250,000 and 100 shares
of Series A Preferred Stock held by China Green Shareholders. The
Warrants were cancelled by the China Green Shareholders pursuant to the Share
Exchange Agreement. As a result of the Share Exchange Agreement, the China Green
Shareholders will own 98% of our issued and outstanding common stock on an
as-converted common stock basis as of and immediately after the effectiveness of
the Reverse Split as contemplated by the Share Exchange Agreement.
As a
result the share exchange, (i) E-Band Media indirectly control through
subsidiaries, Annec, which is engaged in the business of design, manufacturing
of and selling of medium and high level refractory materials for top combustion
type, internal combustion type, and external combustion type hot blast
stoves, and (ii) through its variable interest entity (“VIE”),
Beijing Annec, E-Band Media provides turnkey service for large hot blast stove
projects, integrating the structural design, equipment purchase, construction,
refractory production/sale and after-sale service of hot blast
stoves.
Accounting
principles generally accepted in the United States of America require that the
company whose shareholders retain the majority interest in a combined business
be treated as the acquirer for accounting purpose, resulting in a reverse
acquisition. Accordingly, the stock exchange transaction has been accounted for
as a recapitalization effected by a share exchange, wherein Zhengzhou Annec
Industrial Co., Ltd. is considered the acquirer for accounting and financial
reporting purposes. The assets and liabilities of the acquired entity have been
brought forward at their book value and no goodwill has been
recognized.
The
unaudited pro forma condensed consolidated financial information gives effect to
the reverse acquisition as if it had occurred at the earliest date in these pro
forma statements.
Note
2 – Accounting Period Change
To
coincide with the accounting cycle of our acquired subsidiary Zhengzhou Annec
Industrial Co. Ltd., we have changed our fiscal year end from June 30th to
December 31st. This change is reflected in the pro forma financial
information.
Note
3 – Adjustments to unaudited Pro Forma Condensed Consolidated Financial
Information
The
accompanying unaudited pro forma condensed consolidated financial information
gives effect to the Exchange Agreement as if it had occurred at an earlier date,
and has been prepared for illustrative purposes only and is not necessarily
indicative of the condensed consolidated financial position or results of
operations in future periods or the results that actually would have been
realized had Zhenzhou Annec Industrial Co., Ltd. and E-Band Media, Inc. been a
combined company during the specified periods. The pro forma adjustments are
based on the preliminary information available at the time of the preparation of
this document. In addition, the unaudited pro forma condensed consolidated
financial information gives effect only to the adjustments set forth in the
accompanying notes and does not reflect any restructuring or acquisition related
costs, or any potential cost savings or other synergies that management expects
to realize as a result of the acquisition. The unaudited pro forma condensed
consolidated financial information, including the notes thereto, are qualified
in their entirety by reference to, and should be read in conjunction with, the
historical consolidated financial statements found in this Form
8-K.
The
adjustments to the unaudited pro forma condensed consolidated financial
information as of and for the nine months ended September 30, 2010 and the year
ended December 31, 2009 in connection with the proposed acquisition are
presented below:
(a)
|
This
adjustment reflects the issuance of shares of E-Band Media, Inc.’s common
stock and Series A Preferred stock for the reverse acquisition of all
issued and outstanding shares of Zhengzhou Annec Industrial Co., Ltd., the
cancellation of common shares of E-Band Media, Inc.’s common stock held by
the pre-acquisition principal shareholder of E-Band Holdings, Inc.,
reversal of non-recurring administrative expenses and the elimination of
pre-acquisition accumulated
deficit.
|
(b)
|
This
adjustment reflects the equity reclassification from Capital surplus to
Additional paid in capital to conform with standard US GAAP
presentation.
|