Attached files
file | filename |
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8-K/A - Blue Earth, Inc. | bblu_8ka.htm |
EX-99.1 - Blue Earth, Inc. | bblu_ex99-1.htm |
Exhibit 99.2
BLUE EARTH, INC.
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Proforma Consolidated Balance Sheet
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December 31, 2010
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Castrovilla, Inc.
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Adjusted
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and Humitech
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Combined
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Pro Forma
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ProForma
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Blue Earth, Inc.
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of NC, LLC
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Totals
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Adjustments
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REF
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Totals
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ASSETS
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CURRENT ASSETS
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Cash
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$ | 3,900,096 | $ | 466,620 | $ | 4,366,716 | $ | (150,000 | ) | [1] | $ | 4,216,716 | ||||||||||
Accounts receivable, net
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- | 308,939 | 308,939 | - | 308,939 | |||||||||||||||||
Inventory
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- | 125,627 | 125,627 | - | 125,627 | |||||||||||||||||
Prepaid expenses
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38,039 | - | 38,039 | - | 38,039 | |||||||||||||||||
Other current assets
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- | 1,220 | 1,220 | - | 1,220 | |||||||||||||||||
Total Current Assets
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3,938,135 | 902,406 | 4,840,541 | (150,000 | ) | 4,690,541 | ||||||||||||||||
PROPERTY AND EQUIPMENT, net
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10,932 | 100,187 | 111,119 | - | 111,119 | |||||||||||||||||
OTHER ASSETS
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Deposits
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3,000 | 33,831 | 36,831 | - | 36,831 | |||||||||||||||||
Distributorship and customer base
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- | 74,914 | 74,914 | 2,458,250 | [1] | 2,533,164 | ||||||||||||||||
Total Other Assets
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3,000 | 108,745 | 111,745 | 2,458,250 | 2,569,995 | |||||||||||||||||
TOTAL ASSETS
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$ | 3,952,067 | $ | 1,111,338 | $ | 5,063,405 | $ | 2,308,250 | $ | 7,371,655 | ||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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$ | 37,339 | $ | 432,858 | $ | 470,197 | $ | - | $ | 470,197 | ||||||||||||
Warrant derivative liability
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1,288,159 | - | 1,288,159 | - | 1,288,159 | |||||||||||||||||
Loans and notes payable
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- | 253,107 | 253,107 | - | 253,107 | |||||||||||||||||
Total Current Liabilities
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1,325,498 | 685,965 | 2,011,463 | - | 2,011,463 | |||||||||||||||||
LONG TERM LIABILITIES
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Loans and notes payable-related parties
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- | 250,899 | 250,899 | - | 250,899 | |||||||||||||||||
Loans and notes payable
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- | 52,715 | 52,715 | - | 52,715 | |||||||||||||||||
Long term liabilities
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- | 303,614 | 303,614 | - | 303,614 | |||||||||||||||||
TOTAL LIABILITIES
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1,325,498 | 989,579 | 2,315,077 | - | 2,315,077 | |||||||||||||||||
STOCKHOLDERS' EQUITY
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Preferred stock
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- | - | - | - | - | |||||||||||||||||
Common stock
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11,855 | 3,000 | 14,855 | 1,011 | [1] | 13,134 | ||||||||||||||||
268 | [1] | - | ||||||||||||||||||||
(3,000 | ) | [1] | - | |||||||||||||||||||
Additional paid-in capital
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11,259,953 | - | 11,259,953 | 1,920,070 | [1] | 13,688,683 | ||||||||||||||||
508,660 | [1] | - | ||||||||||||||||||||
Partner Equity
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- | (168,588 | ) | (168,588 | ) | 168,588 | [1] | - | ||||||||||||||
Retained earnings (deficit)
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(8,645,239 | ) | 287,347 | (8,357,892 | ) | (287,347 | ) | [1] | (8,645,239 | ) | ||||||||||||
Total Stockholders' Equity
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2,626,569 | 121,759 | 2,748,328 | 2,308,250 | 5,056,578 | |||||||||||||||||
TOTAL LIABILITIES AND
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STOCKHOLDERS' EQUITY (DEFICIT)
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$ | 3,952,067 | $ | 1,111,338 | $ | 5,063,405 | $ | 2,308,250 | $ | 7,371,655 |
F-12
BLUE EARTH, INC.
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Proforma Consolidated Statements of Operations
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For the Year Ended December 31, 2010
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Pro-Forma
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Castrovilla, Inc.
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Adjusted
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and Humitech
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Combined
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Pro Forma
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Combined
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Blue Earth, Inc.
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of NC, LLC
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Totals
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Adjustments
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REF
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Totals
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REVENUES
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$ | - | $ | 3,433,145 | $ | 3,433,145 | $ | - | $ | 3,433,145 | |||||||||||
COST OF SALES
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- | 1,228,133 | 1,228,133 | - | 1,228,133 | ||||||||||||||||
GROSS PROFIT
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- | 2,205,012 | 2,205,012 | - | 2,205,012 | ||||||||||||||||
OPERATING EXPENSES
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General and administrative
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1,042,107 | 2,125,725 | 3,167,832 | - | 3,167,832 | ||||||||||||||||
Depreciation expense
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- | 61,284 | 61,284 | - | 61,284 | ||||||||||||||||
Total Costs and Expenses
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1,042,107 | 2,187,009 | 3,229,116 | - | 3,229,116 | ||||||||||||||||
OPERATING LOSS
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(1,042,107 | ) | 18,003 | (1,024,104 | ) | - | (1,024,104 | ) | |||||||||||||
OTHER INCOME (EXPENSE)
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Change in fair value of warrant liability
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(483,441 | ) | - | (483,441 | ) | - | (483,441 | ) | |||||||||||||
Interest income
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15,311 | - | 15,311 | - | 15,311 | ||||||||||||||||
Interest expense
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- | (56,544 | ) | (56,544 | ) | - | (56,544 | ) | |||||||||||||
Total Other Income (Expense)
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(468,130 | ) | (56,544 | ) | (524,674 | ) | - | (524,674 | ) | ||||||||||||
LOSS BEFORE INCOME TAXES
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(1,510,237 | ) | (38,541 | ) | (1,548,778 | ) | - | (1,548,778 | ) | ||||||||||||
PROVISION FOR INCOME TAXES
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(12,781 | ) | - | (12,781 | ) | - | (12,781 | ) | |||||||||||||
LOSS FROM CONTINUING OPERATIONS
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(1,523,018 | ) | (38,541 | ) | (1,561,559 | ) | - | (1,561,559 | ) | ||||||||||||
GAIN ON DISPOSAL OF DISCONTINUED OPERATIONS
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66,292 | - | 66,292 | - | 66,292 | ||||||||||||||||
LOSS FROM DISCONTINUED OPERATIONS
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(970,614 | ) | - | (970,614 | ) | - | (970,614 | ) | |||||||||||||
NET LOSS
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$ | (2,427,340 | ) | $ | (38,541 | ) | $ | (2,465,881 | ) | $ | - | $ | (2,465,881 | ) |
F-13
Notes to Unaudited Pro Forma Consolidated Financial Statements
Effective January 1, 2011, Castrovilla Energy, Inc., “Energy”, a newly formed subsidiary of Blue Earth Energy Management Services, Inc., which is a subsidiary of Blue Earth, Inc, entered into a merger agreement with Castrovilla, Inc. wherein Energy purchased all of the issued and outstanding shares of Castrovilla, Inc. for 1,011,095 shares of restricted common stock of Blue Earth, Inc. These shares were valued based on the quoted market price on the effective date of the transaction, January 1, 2011, at $1.90 per share, or $1,921,081.
Immediately after the transaction, Energy ceased to exist and Castrovilla, Inc. became the surviving corporation, a wholly owned subsidiary of Blue Earth Energy Management Services, Inc.. Simultaneous with this purchase, Energy entered into an asset purchase agreement with Humitech of NC, LLC, “Humitech”, whereby the assets of Humitech and certain related liabilities were sold to Energy for $150,000 cash and 267,857 restricted common shares of Blue Earth, Inc. valued based on the quoted market price on the effective date of the transaction, January 1, 2011, at $1.90 per share or $528,928.
Proforma adjustment [1] reflects the issuance of 1,011,095 shares of Blue Earth, Inc. common stock to shareholders of Castrovilla, Inc. in exchange for all issued and outstanding shares of Castrovilla and the issuance of 267,857 shares of Blue Earth, Inc. for the net assets of Humitech of NC, LLC. This entry also reflects the elimination of equity balances, including the common stock of Castrovilla and the partner capital of Humitech, retained earnings of both entities and the allocation of excess purchase price above the market value of the fixed assets acquired and liabilities assumed in the acquisition to the Bay Area Gasket Guy distributorship held by Humitech.
The calculation of the $2,458,250 excess purchase price was calculated as shown in the table below.
Purchase Price
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Shares
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Price
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Total
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Castrovilla
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1,011,095 | $ | 1.90 | $ | 1,921,081 | |||||||
Humitech
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267,857 | $ | 1.90 | 508,928 | ||||||||
Cash
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150,000 | |||||||||||
Total Purchase Price
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2,580,009 | |||||||||||
Tangible Assets Acquired
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(1,036,424 | ) | ||||||||||
Total Liabilities Assumed
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989,579 | |||||||||||
Cost of Distributorship and Customer Base Acquired
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$ | 2,533,164 |
The proforma, consolidated balance sheets and statements of operations of Blue Earth, Inc. and Castrovilla, Inc. and Humitech of NC, LLC are presented here as of December 31, 2010.
F-14