Attached files
| file | filename |
|---|---|
| 8-K/A - Ominto, Inc. | v216717_8ka.htm |
| EX-99.1 - Ominto, Inc. | v216717_ex99-1.htm |
| EX-23.1 - Ominto, Inc. | v216717_ex23-1.htm |
Exhibit 99.2
Pro Forma Condensed Combined Financial Statement
As described further in the section entitled “Pro Forma Adjustments” on P-6, these Pro Forma Condensed Combined Financial Statements include adjustments to reflect the results of the following events:
Effective October 19, 2009, CG Holdings Limited (“CG”) completed its Merger with MediaNet Group Technologies, Inc., (“MediaNet”) a publicly-held, United States of America based company. At closing (October 19, 2009), CG’s former Shareholder, Zen Holding Group Limited (“Zen”) was issued 5,000,000 shares of MediaNet Series A Convertible Preferred Stock that were automatically convertible into 90% of the shares of common stock of MediaNet, to be issued and outstanding after the conversion and that had 90% of the voting power of MediaNet’s, shareholders.
On May 24, 2010 Zen returned to MediaNet a total of 1,141,933 shares of Series A Preferred Stock which were convertible into 63,393,933 shares of Common Stock (the “Adjustment Shares”) pursuant to an agreement, dated May 24, 2010 (the “Post-Merger Agreement”). The Series A Preferred Stock Shares were returned to MediaNet so that it could:
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1.
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Use 62,679,116 of the Adjustment Shares in a tender offer for various outstanding interests in DubLi.com, LLC; and
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2.
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In the future use 714,817 of the Adjustment Shares as equity awards to employees.
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Accordingly, as of May 24, 2010, MediaNet had 3,858,067 and 28,621,680 issued and outstanding shares of Series A Preferred Stock and Common Stock, respectively. As of May 24, 2010, the 3,858,067 outstanding shares of Series A Preferred Stock were convertible into 214,178,946 shares of Common Stock (the “Conversion Shares”).
These Pro Forma Condensed Combined Financial Statements are included in an Information Statement that has been filed with the Security and Exchange Commission by MediaNet Group Technologies, Inc. for the purpose of informing its shareholders of certain actions taken by MediaNet, including the approval of an amendment to MediaNet's Articles of Incorporation to: (i) increase the number of authorized shares of Common Stock from 50 million shares to 500 million shares, and (ii) increase the number of authorized shares of Preferred Stock from 5 million shares to 25 million shares. Twenty calendar days after we made the Information Statement available to MediaNet's shareholders, or shortly thereafter, MediaNet implemented the Charter Amendments by filing a Certificate of Amendment with the Nevada Secretary of State. Upon the filing of the Certificate of Amendment, all of MediaNet's issued and outstanding shares of Series A Preferred Stock automatically converted into Common Stock (the "Conversion").
P. 1
MediaNet Group Technologies and Subsidiaries
Unaudited Pro Forma Consolidated Balance Sheet
September 30, 2009
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CG Holdings
Limited and
Subsidiaries
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MediaNet
Group
Technologies,
Inc.
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Notes
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Pro Forma
Adjustments
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Pro Forma
Combined
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|||||||||||||
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Restated
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Restated
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Assets
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Current Assets
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Cash and cash equivalents
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$ | 2,487,277 | $ | 46,372 | - | $ | 2,533,649 | ||||||||||
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Restricted cash
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721,987 | - | - | 721,987 | |||||||||||||
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Accounts receivable - net
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37,982 | 70,375 |
e
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(35,372 | ) | 72,985 | |||||||||||
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Inventories
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321,067 | 80,046 | - | 401,113 | |||||||||||||
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Interest receivable
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127,165 | - |
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- | 127,165 | ||||||||||||
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Prepaid Expenses
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3,038 | - | a | (3,038 | ) | - | |||||||||||
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Deferred customer acquisition costs
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2,577,168 | - | - | 2,577,168 | |||||||||||||
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Total Current Assets
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6,275,684 | 196,793 | (38,410 | ) | 6,434,067 | ||||||||||||
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Property and equipment, net
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88,083 | 6,026 | - | 94,109 | |||||||||||||
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Other Assets
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Note Receivable-MediaNet Group
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250,000 | - |
a
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(250,000 | ) | - | |||||||||||
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Other Assets
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30,612 | 1,600 | - | 32,212 | |||||||||||||
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Total Other Assets
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280,612 | 1,600 | (250,000 | ) | 32,212 | ||||||||||||
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Total Assets
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$ | 6,644,379 | $ | 204,419 | $ | (288,410 | ) | $ | 6,560,388 | ||||||||
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Liabilities and Stockholders' Equity
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Current Liabilities:
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Accounts payable
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$ | 116,812 | $ | 40,012 |
e
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$ | (35,372 | ) | $ | 121,452 | |||||||
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Accrued liabilities
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275,579 | 310,044 | - | 585,623 | |||||||||||||
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Accrued incentive
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644,075 | - | - | 644,075 | |||||||||||||
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Loyalty points payable
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- | 209,025 | - | 209,025 | |||||||||||||
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Commissions payable
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2,116,250 | - | - | 2,116,250 | |||||||||||||
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Customer deposits
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18,342 | - | - | 18,342 | |||||||||||||
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Deferred revenue
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5,511,095 | 49,667 | - | 5,560,762 | |||||||||||||
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Note payable - related party
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99,822 | 91,500 | - | 191,322 | |||||||||||||
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Accrued Interest - related party
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- | 3,038 |
a
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(3,038 | ) | - | |||||||||||
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Total Current Liabilities
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8,781,975 | 703,286 | (38,410 | ) | 9,446,851 | ||||||||||||
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Long Term Liabilities
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Note payable -CG Holdings Limited
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- | 250,000 |
a
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(250,000 | ) | - | |||||||||||
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Total Liabilities
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8,781,975 | 953,286 | (288,410 | ) | 9,446,851 | ||||||||||||
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Stockholders' Deficit
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Preferred stock- $0.01 par value, 50 million shares authorized, -0- and -0- outstanding, respectively
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- | - | - | - | |||||||||||||
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Common stock -$.001 par value, 500 million shares authorized 242,800,626 issued and outstanding
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2,928 | 27,304 |
b
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212,569 | 242,801 | ||||||||||||
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Additional paid-in capital
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4,715 | 6,098,715 |
b,d
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(7,087,455 | ) | (984,025 | ) | ||||||||||
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Accumulated other comprehensive loss
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(96,014 | ) | - | - | (96,014 | ) | |||||||||||
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Accumulated deficit
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(2,049,225 | ) | (6,874,886 | ) |
d
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6,874,886 | (2,049,225 | ) | |||||||||
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Total Stockholders' deficit
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(2,137,596 | ) | (748,867 | ) | - | (2,886,463 | ) | ||||||||||
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Total Liabilities and Stockholders' Equity
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$ | 6,644,379 | $ | 204,419 | $ | (288,410 | ) | $ | 6,560,388 | ||||||||
See Notes to Unaudited Pro Forma Consolidated Financial Statements
P. 2
MediaNet Group Technologies and Subsidiaries
Unaudited Pro Forma Consolidated Statements of Operations
For the Year Ended September 30, 2009
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CG Holdings
Limited and
Subsidiaries
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MediaNet
Group
Technologies,
Inc.
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Pro Forma
Adjustments(c)
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Pro Forma
Combined
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Restated
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Restated
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Net sales
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$ | 9,888,469 | $ | 2,609,107 | $ | (142,413 | ) | $ | 12,355,163 | |||||||
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Cost of Sales
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6,796,300 | 2,189,499 | (128,827 | ) | 8,856,972 | |||||||||||
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Gross Profit
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3,092,169 | 419,608 | (13,586 | ) | 3,498,191 | |||||||||||
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Selling, general and administrative expenses
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3,070,095 | 1,647,024 | - | 4,717,119 | ||||||||||||
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Operating income
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22,074 | (1,227,416 | ) | (13,586 | ) | (1,218,928 | ) | |||||||||
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Other income (expense):
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Interest Income
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2,858 | 9 | - | 2,867 | ||||||||||||
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Interest expense
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- | (6,292 | ) | - | (6,292 | ) | ||||||||||
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Total other income(expense)
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2,858 | (6,283 | ) | - | (3,425 | ) | ||||||||||
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Income(loss) before income taxes
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24,932 | (1,233,699 | ) | (13,586 | ) | (1,222,353 | ) | |||||||||
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Provision for income taxes
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- | - | ||||||||||||||
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Income (loss) from continuing operations
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24,932 | (1,233,699 | ) | (13,586 | ) | (1,222,353 | ) | |||||||||
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Discontinued operations
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(1,659,173 | ) | - | - | (1,659,173 | ) | ||||||||||
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Gains on sale of subsidiary
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- | 74,990 | - | 74,990 | ||||||||||||
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Net income (loss)
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$ | (1,634,241 | ) | $ | (1,158,709 | ) | $ | (13,586 | ) | $ | (2,806,536 | ) | ||||
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Net income (loss) per common share from
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Continuing Operations:
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Basic & Diluted
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$ | 24.93 | $ | (0.05 | ) | $ | - | $ | (0.01 | ) | ||||||
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Discontinued operation
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Basic & Diluted
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$ | (1,659.17 | ) | $ | - | $ | - | $ | (0.01 | ) | ||||||
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Net income
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Basic & Diluted
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$ | (1,634.24 | ) | $ | (0.05 | ) | $ | - | $ | (0.01 | ) | |||||
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Weighted average shares outstanding:
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Basic & Diluted
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1,000 | 22,909,781 | 219,889,845 | 242,800,626 | ||||||||||||
See Notes to Unaudited Pro Forma Consolidated Financial Statements
P. 3
MediaNet Group Technologies and Subsidiaries
Unaudited Pro Forma Consolidated Statements of Operations
For the Year Ended September 30, 2008
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CG Holdings
Limited and
Subsidiaries
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MediaNet
Group
Technologies,
Inc.
|
Pro Forma
Adjustments
|
Pro Forma
Combined
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Net sales
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$ | - | $ | 2,203,392 | $ | - | $ | 2,203,392 | ||||||||
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Cost of Sales
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- | 1,925,029 | - | 1,925,029 | ||||||||||||
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Gross Profit
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- | 278,363 | - | 278,363 | ||||||||||||
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Selling, general and administrative expenses
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3,250 | 1,173,702 | - | 1,176,952 | ||||||||||||
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Operating income
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(3,250 | ) | (895,339 | ) | - | (898,589 | ) | |||||||||
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Interest Income
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- | 360 | - | 360 | ||||||||||||
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Income(loss) before income taxes
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(3,250 | ) | (894,979 | ) | - | (898,229 | ) | |||||||||
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Provision for income taxes
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- | - | - | - | ||||||||||||
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Net loss
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$ | (3,250 | ) | $ | (894,979 | ) | $ | - | $ | (898,229 | ) | |||||
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Net loss per common share
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Basic & Diluted
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$ | (3.25 | ) | $ | (0.04 | ) | $ | - | $ | (0.00 | ) | |||||
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Weighted average shares outstanding:
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Basic & Diluted
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1,000 | 20,446,644 | 278,568,876 | 299,016,520 | ||||||||||||
See Notes to Unaudited Pro Forma Consolidated Financial Statements
P. 4
MediaNet Group Technologies and Subsidiaries
Unaudited Pro Forma Consolidated Statements
For the Years Ended September 30, 2009 and 2008
Pro Forma Adjustments
The preceding unaudited condensed combined consolidated pro forma balance sheets have been prepared as if the share exchange transaction was completed on October 19, 2009; the preceding unaudited condensed combined consolidated pro forma statements of operations have been prepared as if the share exchange transaction was completed, respectively, on September 30, 2009, and September 30, 2008. The following pro forma adjustments:
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(a)
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Eliminate the intercompany loan.
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(b)
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Adjust the accounts of the companies to reflect the share exchange resulting in CG Holdings Limited as the accounting acquirer. After the closing of the merger and the private placement, the company will have 242,800,626 shares of common stock outstanding.
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(c)
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Elimination of intercompany sales and cost of sales.
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(d)
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to reflect the recapitalization as a result of the share exchange.
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(e)
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Elimination of intercompany accounts receivable and payable.
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Income (loss) Per Share from Continuing Operations
Pro forma basic and diluted shares outstanding include the weighted average number of common shares outstanding for MediaNet Group Technologies, Inc. during the respective periods, in addition to the common stock issued as a result of the share exchange assuming they had been issued at the beginning of the period. The common stock issued in connection with the share exchange transaction is assumed to be outstanding for the entire period presented.
P. 5