Attached files
Exhibit 99.4
The following unaudited pro forma financial statements are based on, and should be read in conjunction with:
|
·
|
Our audited financial statements for the six month transition period ended December 31, 2010 filed in the Company's Transition Report on From 10-K, its unaudited financial statements for the quarter ended March 31, 2011 and the related notes thereto filed in Form 10-Q, which are incorporated by reference into this Current Report on Form 8-K/A;
|
|
·
|
The audited financial statements of Pingtan Lanhua School as of and for the year ended December 31, 2010 and the unaudited financial statements of Pingtan Lanhua School as of and for the three months ended March 31, 2011.
|
The pro forma financial statements give effect to the acquisition of China Education and the consolidation of Pingtan Lanhua School as a variable interest entity for which China Education is the primary beneficiary as if the transaction had taken place on the date or at the beginning of the period presented.
The unaudited pro forma financial statements are for informational purposes only, are not indications of future performance, and should not be considered indicative of actual results that would have been achieved had the acquisition of Pingtan Lanhua School actually been consummated on the dates or at the beginning of the periods presented.
- 1 -
|
CHINA EDUCATION INTERNATIONAL INC. AND SUBSIDIARIES
|
|||||||||||||||||||
|
UNAUDITED PROFORMA CONSOLIDATED BALANCE SHEET
|
|||||||||||||||||||
|
March 31, 2011
|
|||||||||||||||||||
|
China Education
|
Pingtan
|
||||||||||||||||||
|
International, Inc.
|
Lanhua School
|
Proforma
|
Proforma
|
Proforma
|
|||||||||||||||
|
Historical
|
Historical
|
Adjustments
|
Adjustments
|
Consolidated
|
|||||||||||||||
|
ASSETS
|
|||||||||||||||||||
|
CURRENT ASSETS:
|
|||||||||||||||||||
|
Cash and cash equivalents
|
$ | 154,936 | $ | 226,091 | $ | - | $ | 381,027 | |||||||||||
|
Due from related parties
|
359,291 | - | - | 359,291 | |||||||||||||||
|
Accounts receivable
|
- | 235,468 | - | 235,468 | |||||||||||||||
|
Prepaid expense - related parties
|
610,678 | - | - | 610,678 | |||||||||||||||
|
Prepaid expense and other current assets
|
146,104 | 7,771 | - | 153,875 | |||||||||||||||
|
Total current assets
|
1,271,009 | 469,330 | - | 1,740,339 | |||||||||||||||
|
Restricted cash
|
78,042 | 153,201 | - | 231,243 | |||||||||||||||
|
Prepaid expense - related parties
|
5,343,430 | - | - | 5,343,430 | |||||||||||||||
|
Goodwill
|
193,840 | - | 2,412,126 |
(b)
|
2,605,966 | ||||||||||||||
|
Intangible, net
|
786,776 | - | 988,677 | (b) | 1,775,453 | ||||||||||||||
|
Property and equipment, net
|
467,474 | 602,992 | - | 1,070,466 | |||||||||||||||
|
Total assets
|
$ | 8,140,571 | $ | 1,225,523 | 3,400,803 | $ | 12,766,897 | ||||||||||||
|
LIABILITIES AND EQUITY
|
|||||||||||||||||||
|
CURRENT LIABILITIES:
|
|||||||||||||||||||
|
Accounts payable and accrued expenses
|
$ | 439,410 | $ | - | $ | - | $ | 439,410 | |||||||||||
|
Other payable
|
153,168 | 131,310 | - | 284,478 | |||||||||||||||
|
Taxes payables
|
- | 1,633 | - | 1,633 | |||||||||||||||
|
Due to related parties
|
202,593 | - | - | 202,593 | |||||||||||||||
|
Deferred revenue
|
1,652,938 | 493,383 | - | 2,146,321 | |||||||||||||||
|
Total current liabilities
|
2,448,109 | 626,326 | - | 3,074,435 | |||||||||||||||
|
Deferred revenue - long term
|
513,052 | - | - | 513,052 | |||||||||||||||
|
Total liabilities
|
2,961,161 | 626,326 | - | 3,587,487 | |||||||||||||||
|
SHAREHOLDERS' EQUITY:
|
|||||||||||||||||||
|
Common stock: $.001 par value, 20,806,150 shares issued and outstanding
|
20,806 | - | 2,000 | (a) | 22,806 | ||||||||||||||
|
Additional paid-in capital
|
20,668,211 | 1,775,735 | 3,998,000 | (a) |
(1,775,735)
|
(c)
|
24,666,211 | ||||||||||||
|
Shares subscribed
|
1,800,000 | 1,800,000 | |||||||||||||||||
|
Accumulated deficit
|
(17,361,855 | ) | (1,193,022 | ) |
1,193,022
|
(c)
|
(17,361,855 | ) | |||||||||||
|
Other comprehesive income - foreign currency
|
35,284 | 16,484 |
(16,484)
|
(c)
|
35,284 | ||||||||||||||
|
Total China Education International, Inc. shareholders' equity
|
5,162,446 | 599,197 | 4,000,000 |
(599,197)
|
9,162,446 | ||||||||||||||
|
Noncontrolling intrest
|
16,964 | - | - | - | 16,964 | ||||||||||||||
|
Total shareholders' equity
|
5,179,410 | 599,197 | 4,000,000 |
(599,197)
|
9,179,410 | ||||||||||||||
|
Total liabilities and stockholders' equity
|
$ | 8,140,571 | $ | 1,225,523 | $ | 12,766,897 | |||||||||||||
(a) Denotes the issuance of 2,000,000 shares of common stock at a fair value of $2.00 per share as of March 31, 2011.
(b) Denotes the recognition of favorable lease intangible and the excess of the purchase price, on a pro forma basis, of the net assetsacquired or controlled as of the balance sheet date.
(c) Denotes elimination of equity in Lanhua School at date of acquisition
The foregoing pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisition of control of Lanhua School taken place on March 31, 2011
- 2 -
|
CHINA EDUCATION INTERNATIONAL INC. AND SUBSIDIARIES
|
||||||||||||||||
|
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
FOR THE YEAR ENDED DECEMBER 31, 2010
|
||||||||||||||||
|
(Unaudited)
|
||||||||||||||||
|
China Education
|
Pingtan
|
|||||||||||||||
|
International, Inc.
|
Lanhua School
|
Proforma
|
Proforma
|
|||||||||||||
|
Historical (a)
|
Historical
|
Adjustments
|
Consolidated
|
|||||||||||||
|
Net revenues
|
$ | - | $ | 1,530,181 | $ | - | $ | 1,530,181 | ||||||||
|
Cost of sales
|
- | 1,441,694 | - | 1,441,694 | ||||||||||||
|
Gross profit
|
- | 88,487 | - | 88,487 | ||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
General and administrative
|
15,546,932 | 1,174,824 | - | 16,721,756 | ||||||||||||
|
Amortization of intangibles
|
197,735 | (b) | 197,735 | |||||||||||||
|
Total operating expenses
|
15,546,932 | 1,174,824 | 197,735 | 16,919,491 | ||||||||||||
|
Total operating loss
|
(15,546,932 | ) | (1,086,337 | ) | (197,735 | ) | (16,831,004 | ) | ||||||||
|
Other income:
|
||||||||||||||||
|
Other income
|
- | (27,155 | ) | - | (27,155 | ) | ||||||||||
|
Interest income
|
222 | 572 | - | 794 | ||||||||||||
|
Gain on investment
|
- | 466,571 | - | 466,571 | ||||||||||||
|
Subsidy income
|
- | 117,931 | - | 117,931 | ||||||||||||
|
Total other income
|
222 | 557,919 | - | 558,141 | ||||||||||||
|
Net loss
|
(15,546,710 | ) | (528,418 | ) | (197,735 | ) | (16,272,863 | ) | ||||||||
|
Net income attributable to noncontrolling interest
|
- | - | - | - | ||||||||||||
|
Net loss attributable to China Education International, Inc.
|
$ | (15,546,710 | ) | $ | (528,418 | ) | $ | (197,735 | ) | $ | (16,272,863 | ) | ||||
|
Net income (loss) per common share
|
||||||||||||||||
|
Basic & diluted
|
$ | (11.33 | ) | $ | (4.83 | ) | ||||||||||
|
Weighted average number of shares outstanding:
|
||||||||||||||||
|
Basic and diluted
|
1,371,655 | 2,000,000 | (c) | 3,371,655 | ||||||||||||
(a) Reflects the results of operations for the six-month Transition Period ended December 31, 2010 and the results of operations for the six months ended June 30, 2010
(b) Reflects amortization of favorable lease intangible recognized in the transaction
(c) Reflects the issuance of 2,000,000 shares in connection with the transaction effective, on a pro forma basis, as of January 1, 2010
The foregoing pro forma financial information is not necessarily indicative of the results that would have occurred had the acquisition of control of Lanhua School taken place on January 1, 2010
- 3 -