Attached files
| file | filename |
|---|---|
| 8-K - CREATIVE VISTAS INC | v235458_8k.htm |
| EX-99.2 - CREATIVE VISTAS INC | v235458_ex99-2.htm |
| EX-99.5 - CREATIVE VISTAS INC | v235458_ex99-5.htm |
| EX-99.4 - CREATIVE VISTAS INC | v235458_ex99-4.htm |
| EX-99.3 - CREATIVE VISTAS INC | v235458_ex99-3.htm |
Exhibit 99.1
Creative Vistas, Inc.
Pro Forma Combined Condensed Balance Sheet And Statements of Operations (Unaudited)
The unaudited pro forma data presented in the unaudited pro forma condensed consolidated financial statements is included in order to illustrate the effect on the Company’s financial statements of the transactions described in Item 1.01 in Form 8K.
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Creative Vistas, Inc.
Unaudited Pro Forma Condensed Consolidated Balance Sheet
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June 30, 2011
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Pro Forma Adjustments Increase (Decrease)
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Pro Forma Consolidated
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|||||||||||
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Assets
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|||||||||||||
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Current Assets
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|||||||||||||
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Cash and bank balances
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$ | 2,275,488 | $ | 1 |
(a)
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$ | 1,835,078 | ||||||
| (440,411 | ) |
(b)
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|||||||||||
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Accounts receivable, net of allowance for doubtful accounts
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3,744,378 | (2,137,489 | ) |
(b)
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1,606,889 | ||||||||
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Income tax receivable
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80,506 | - | 80,506 | ||||||||||
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Inventory and supplies
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634,916 | (213,052 | ) |
(b)
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421,864 | ||||||||
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Prepaid expenses
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223,891 | (154,922 | ) |
(b)
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68,969 | ||||||||
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Total current assets
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6,959,179 | (2,945,873 | ) |
(b)
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4,013,306 | ||||||||
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Property, plant and equipment, net of depreciation and amortization
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3,471,401 | (2,693,900 | ) |
(b)
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777,501 | ||||||||
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Deposits
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214,406 | (214,406 | ) |
(b)
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- | ||||||||
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Deferred financing costs, net
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151,755 | (151,755 | ) |
(b)
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- | ||||||||
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Intangible assets, net
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41,468 | (41,468 | ) |
(b)
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- | ||||||||
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Deferred income taxes
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37,788 | 37,788 | |||||||||||
| $ | 10,875,997 | $ | (6,047,402 | ) | $ | 4,828,595 | |||||||
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Liabilities and Shareholders' (Deficiency)
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Current Liabilities
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Bank indebtedness
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$ | 1,076,799 | $ | (639,175 | ) |
(b)
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$ | 437,624 | |||||
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Accounts payable and accrued liabilities
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4,344,779 | 1,774,576 |
(a)
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1,953,447 | |||||||||
| (4,165,908 | ) |
(b)
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|||||||||||
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Current portion of obligations under capital leases
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1,666,238 | (1,666,238 | ) |
(b)
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- | ||||||||
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Deferred income
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44,463 | - | 44,463 | ||||||||||
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Deferred income taxes
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25,858 | - | 25,858 | ||||||||||
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Current portion of term notes
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14,001,128 | (7,287,500 | ) |
(a)
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1,564,874 | ||||||||
| (5,148,754 | ) |
(b)
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Total current liabilities
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21,159,265 | (17,132,999 | ) | 4,026,266 | |||||||||
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Term notes
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1,819,553 | (1,819,553 | ) |
(b)
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- | ||||||||
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Notes payable to related parties
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1,500,000 | - | 1,500,000 | ||||||||||
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Obligations under capital lease, net of current portion
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899,966 | (899,966 | ) |
(b)
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- | ||||||||
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Due to related parties
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238,010 | - | 238,010 | ||||||||||
| 25,616,794 | (19,852,518 | ) | 5,764,276 | ||||||||||
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Shareholders' (deficiency)
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Share capital
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Preferred stock no par value, 50,000,000 shares authorized; none issued or outstanding
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Common stock, no par value 100,000,000 shares authorized; 37,488,714 shares issued and outstanding
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Common stock
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6,555,754 | - | 6,555,754 | ||||||||||
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Additional paid-in capital
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14,334,030 | - | 14,334,030 | ||||||||||
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Accumulated (deficit)
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(33,645,258 | ) | 2,409,368 |
(a)
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(21,457,980 | ) | |||||||
| 9,777,910 |
(b)
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||||||||||||
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Accumulated other comprehensive (losses)
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(1,985,323 | ) | 1,617,838 |
(b)
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(367,485 | ) | |||||||
| (14,740,797 | ) | 13,805,116 | (935,681 | ) | |||||||||
| $ | 10,875,997 | $ | 6,047,402 | $ | 4,828,595 | ||||||||
Exhibit 99.1
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Creative Vistas, Inc.
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Unaudited Pro Forma Condensed Consolidated Statement Of Operations
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For the year ended December 31, 2010
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2010
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Pro Forma Adjustments Increase (Decrease)
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Pro Forma Consolidated
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Contract and service revenue
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Contract
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$ | 5,683,974 | $ | - | $ | 5,683,974 | |||||||
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Service
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34,179,089 | (32,715,332 | ) |
(b)
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1,463,757 | ||||||||
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Other
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3,422 | - | 3,422 | ||||||||||
| 39,866,485 | (32,715,332 | ) | 7,151,153 | ||||||||||
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Cost of sales (excluding depreciation and amortization)
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Contract
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3,433,858 | - | 3,433,858 | ||||||||||
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Service
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25,997,384 | (25,501,588 | ) |
(b)
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495,796 | ||||||||
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Project expenses
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983,294 | - | 983,294 | ||||||||||
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Selling expenses
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911,514 | - | 911,514 | ||||||||||
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General and administrative expenses
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4,746,140 | (2,770,591 | ) |
(b)
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1,975,549 | ||||||||
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Depreciation expense
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2,225,631 | (2,143,167 | ) |
(b)
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82,464 | ||||||||
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Amortization of intangible assets
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231,247 | (31,247 | ) |
(b)
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- | ||||||||
| (200,000 | ) |
(d)
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| 38,529,068 | (30,646,593 | ) | 7,882,475 | ||||||||||
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Income (loss) from operations
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1,337,417 | 2,068,739 | (731,322 | ) | |||||||||
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Interest and other expenses (income)
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Net financing expenses
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2,287,879 | (937,806 | ) |
(b)
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172,362 | ||||||||
| (565,912 | ) |
(b)
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|||||||||||
| (517,208 | ) |
(c )
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| (94,591 | ) |
(e)
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Amortization of deferred charges
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173,438 | (147,460 | ) |
(b)
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25,978 | ||||||||
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Foreign currency translation (gain) loss
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(442,093 | ) | 381,320 |
(b)
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(60,773 | ) | |||||||
| 2,019,224 | (1,881,657 | ) | 137,567 | ||||||||||
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Income (Loss) before income taxes
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(681,807 | ) | 187,082 | (868,889 | ) | ||||||||
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Income taxes
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- | - | - | ||||||||||
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Net Income (loss)
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(681,807 | ) | 187,082 | (868,889 | ) | ||||||||
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Other comprehensive (loss):
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Foreign currency translation adjustment
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(582,203 | ) | 518,052 |
(b)
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(64,151 | ) | |||||||
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Comprehensive (loss)
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$ | (1,264,010 | ) | $ | 330,970 | $ | (933,040 | ) | |||||
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Basic and diluted weighted-average shares
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37,488,714 | 37,488,714 | |||||||||||
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Basic and diluted (loss) per share
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$ | (0.02 | ) | $ | (0.02 | ) | |||||||
Exhibit 99.1
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Creative Vistas, Inc.
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Unaudited Pro Forma Condensed Consolidated Statement Of Operations
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For the six months period ended June 30, 2011
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Six months ended June 30, 2011
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Pro Forma Adjustments Increase (Decrease)
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Pro Forma Consolidated
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Contract and service revenue
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Contract
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$ | 3,721,569 | $ | - | $ | 3,721,569 | |||||||
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Service
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15,231,545 | (14,508,049 | ) |
(b)
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723,496 | ||||||||
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Other
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1,459 | - | 1,459 | ||||||||||
| 18,954,573 | (14,508,049 | ) | 4,446,524 | ||||||||||
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Cost of sales (excluding depreciation and amortization)
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Contract
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1,976,688 | - | 1,976,688 | ||||||||||
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Service
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12,200,451 | (11,834,654 | ) |
(b)
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365,797 | ||||||||
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Project expenses
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587,082 | - | 587,082 | ||||||||||
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Selling expenses
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496,288 | - | 496,288 | ||||||||||
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General and administrative expenses
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1,956,621 | (1,273,412 | ) |
(b)
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683,209 | ||||||||
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Depreciation expense
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907,370 | (866,316 | ) |
(b)
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41,054 | ||||||||
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Amortization of intangible assets
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16,422 | (16,422 | ) |
(b)
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- | ||||||||
| 18,140,922 | (13,990,804 | ) | 4,150,118 | ||||||||||
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Income (loss) from operations
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813,651 | (517,245 | ) | 296,406 | |||||||||
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Interest and other expenses (income)
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Net financing expenses
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1,021,412 | (477,435 | ) |
(b)
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82,793 | ||||||||
| (191,198 | ) |
(b)
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|||||||||||
| (256,479 | ) |
(f)
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| (13,507 | ) |
(g)
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Amortization of deferred charges
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79,482 | (77,303 | ) |
(b)
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2,179 | ||||||||
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Foreign currency translation (gain) loss
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(280,907 | ) | 242,557 |
(b)
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(38,350 | ) | |||||||
| 819,987 | (773,365 | ) | 46,622 | ||||||||||
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Income (Loss) before income taxes
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(6,336 | ) | (256,120 | ) | 249,784 | ||||||||
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Income taxes
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- | - | - | ||||||||||
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Net income (loss)
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(6,336 | ) | (256,120 | ) | 249,784 | ||||||||
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Other comprehensive income (loss):
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|||||||||||||
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Foreign currency translation adjustment
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(375,835 | ) | 335,158 |
(b)
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(40,677 | ) | |||||||
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Comprehensive income (loss)
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$ | (382,171 | ) | $ | 591,278 | $ | 209,107 | ||||||
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Basic and diluted weighted-average shares
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37,488,714 | 37,488,714 | |||||||||||
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Basic and diluted earnings (loss) per share
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$ | (0.00 | ) | $ | 0.01 | ||||||||
Exhibit 99.1
Creative Vistas, Inc. And Subsidiaries
Notes To Unaudited Pro Forma Condensed Consolidated Financial Statements
1. BASIS OF PRESENTATION
The accompanying unaudited pro forma consolidated condensed balance sheet as of June 30, 2011 present the historical results of operations for Creative Vistas, Inc. and subsidiaries as of June 30, 2011 with pro forma adjustments as if the disposal of Cancable Holding Corp., Cancable Inc., Cancable, Inc. Cancable XL Inc., XL Digital Services Inc. and 2141306 Ontario Inc. (“Cancable”) had taken place on June 30, 2011 in a transaction accounted for as a sale in accordance with accounting principles generally accepted in the United States of America.
The accompanying unaudited pro forma consolidated condensed statements of operations for the six months ended June 30, 2011 present the historical results of operations for Creative Vistas, Inc. and subsidiaries for the six months period ended June 30, 2011 with pro forma adjustments as if the disposal of Cancable had taken place on January 1, 2011 in a transaction accounted for as a sales in accordance with accounting principles generally accepted in the United States of America.
The accompanying unaudited pro forma consolidated condensed statements of operations for the year ended December 31, 2010 present the historical results of operations for Creative Vistas, Inc. and subsidiaries for the year ended December 31, 2010 with pro forma adjustments as if the disposal of Cancable and its subsidiaries had taken place on January 1, 2010 in a transaction accounted for as a sales in accordance with accounting principles generally accepted in the United States of America.
Certain reclassifications have been made to the historical financial statements to condense and conform to the pro forma consolidated condensed financial statement presentation.
2. PRO FORMA ADJUSTMENTS
The following adjustments give pro forma effect to the transaction:
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(a)
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To reflect the selling price of US$1and the liabilities assumed by the purchaser
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$ | 2,409,368 | |
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(b)
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To eliminate Stockholder's Deficiency of the disposed company
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$ | 9,777,910 | |
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(c )
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To reflect the elimination of interest cost on term loans assumed by the purchaser for the year ended December 31, 2010
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$ | 517,208 | |
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(d )
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To reflect the elimination of amortization of intangible assets for the year ended December 31, 2010
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$ | 200,000 | |
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(e)
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To reflect the elimination of interest on deferred principal repayment on term loans assumed by the purchaser for the year ended December 31, 2010.
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$ | 94,591 | |
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(f)
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To reflect the elimination of interest cost on term loans assumed by the purchaser for the six months ended June 30, 2011
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$ | 256,479 | |
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(g)
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To reflect the elimination of interest on deferred principal repayment on term loans assumed by the purchaser for the year ended December 31, 2010.
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$ | 13,507 |