SaveDaily Inc - FORM 8-K - EX-99.1 - November 4, 2011

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8-K - SaveDaily Incv239265_8k.htm
Exhibit 99.1
 
SAVEDAILY.COM, INC. AND NINE MILE SOFTWARE, INC.
 
UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
 
 
SAVEDAILY.COM, INC. AND NINE MILE SOFTWARE, INC.
Unaudited Pro forma Condensed Balance Sheets
June 30, 2011
 
   
Savedaily.com, Inc.
    
Nine Mile Software, Inc.
    
Combined
      
Pro Forma Adjustments
    
Pro Forma Results
  
ASSETS
                                
Current assets:
                                
Cash
     242,356     $ 56,919     $ 299,275  
(a)
     (20,038 )   $ 142,356  
                         
(b)
     (136,881 )        
Cash - held in trust
     88,018       -       88,018         -       88,018  
Marketable securities - held in trust
     82,352,905       -       82,352,905         -       82,352,905  
Other receivables
     67,742       -       67,742         -       67,742  
Note receivable, related party
     50,312       -       50,312         -       50,312  
Prepaid expenses and other assets
     131,057       -       131,057         -       131,057  
Total current assets
     82,932,391       56,919       82,989,310         (156,919 )     82,832,391  
                                           
Property and equipment, net
     7,027       1,490       8,517  
(b)
     (1,490 )     7,027  
                                           
Deposits
     20,874               20,874         -       20,874  
Software development, net
     -       3,831       3,831  
(b)
     (3,831 )     -  
Total assets
   $ 82,960,292     $ 62,240     $ 83,022,532       $ (162,240 )   $ 82,860,292  
                                           
LIABILITIES AND STOCKHOLDERS’ DEFICIT
                                          
Current liabilities:
                                          
                                           
Client investments - held in trust
   $ 82,352,905     $ -     $ 82,352,905       $ -     $ 82,352,905  
Client deposits - held in trust
     88,018       -       88,018         -       88,018  
Unearned revenues
     184,873       20,417       205,290  
(b)
     (20,417 )     184,873  
Accounts payable and accrued expenses
     815,173       24,498       839,671  
(b)
     (24,498 )     815,173  
Accrued expenses, related party
     275,000       -       275,000         -       275,000  
Accrued interest, related party
     3,349       -       3,349                 3,349  
Related party debt, current portion
     -       75,000       75,000  
(b)
     (75,000 )     -  
Total current liabilities
     83,719,319       119,915       83,839,234         (119,915 )     83,719,319  
                                           
Related party debt, net of current portion
     200,000       -       200,000         -       200,000  
Other long-term liabilities
             48,143       48,143                 48,143  
Total long-term liabilities
     -       -       -                 -  
                                           
Total liabilities
     83,919,319       168,058       84,087,377         (119,915 )     83,967,462  
                                           
Commitments and Contingencies
     -       -       -                 -  
                                           
Stockholders’ deficit:
                                          
Preferred Stock: 5,000,000 shares authorized at $0.001 par value, no shares issued and outstanding
     -       -       -         -       -  
Common stock; 50,000,000 shares authorized, at $0.001 par value, 36,084,566 shares issued and outstanding
     10,060,699       700       10,061,399  
(b)
     (10,025,314 )     36,085  
Additional paid-in capital
     5,796,999       796,734       6,593,733  
(b)
     9,099,775       15,693,508  
Accumulated deficit
     (16,816,724 )     (903,252 )     (17,719,976 )
(a)
     (20,038 )     (16,836,762 )
                         
(b)
     903,252          
Total stockholders' deficit
     (959,027 )     (105,818 )     (1,064,845 )       (42,325 )     (1,107,170 )
Total liabilities and stockholders' deficit
   $ 82,960,292     $ 62,240     $ 83,022,532       $ (162,240 )   $ 82,860,292  
 
 
 
 
 
NOTES TO PRO FORMA ADJUSTMENTS
June 30, 2011

Pro forma adjustments on the attached financial statements include the following:
 
(a) To reverse revenue related to TradeWarrior, Inc. in connection with the "Trade Warrior Sale" to Damon Deru.
 
(b) To record Stock purchase agreement of TradeWarrior, Inc. with Damon Deru to include the assumption of assets and liabilities associated with Nine Mile and the return of 100,000 shares for cancellation of Nine Mile common stock.  To record the payment of $100,000  and issuance of 1,600,000 shares related to the extinguishment of Nine Mile liabilities, and to record the recapitalization of SaveDaily with Nine Mile common stock issued pursuant to the Merger, whereby 33,000,000 shares were issued to former SaveDaily shareholders and 975,000 shares to Nine Mile shareholders.
 
 
 
 
 
SAVEDAILY.COM, INC. AND NINE MILE SOFTWARE, INC.
Unaudited Pro forma Condensed Statements of Operations
For the year ended December 31, 2010
 
   
Savedaily.com, Inc.
  
Nine Mile Software, Inc.
      
Pro Forma Adjustments
    
Pro Forma Results
  
REVENUES
   $ 901,630   $ 11,735  
(a)
   $ (11,735 )   $ 901,630  
OPERATING EXPENSES
                                
Research and development
     -     80,122                 80,122  
General and administrative
     1,344,964     195,759                 1,540,723  
Total Operating Expenses
     1,344,964     275,881         -       1,620,845  
                                 
LOSS FROM OPERATIONS
     (443,334 )   (264,146 )       (11,735 )     (719,215 )
                                 
OTHER INCOME(EXPENSE)
                                
Other income
     24,576     -                 24,576  
Interest income
     -     304                 304  
Interest expense
     (98,665 )   (3,425 )               -102,090  
Total Other Income(Expense)
     (74,089 )   (3,121 )       -       (77,210 )
LOSS BEFORE INCOME TAXES
     (517,423 )   (267,267 )       (11,735 )     (796,425 )
PROVISION FOR INCOME TAXES
     -     -         -       -  
                                 
NET LOSS
   $ (517,423 ) $ (267,267 )     $ (11,735 )     (796,425 )
                                 
BASIC AND DILUTED LOSS PER COMMON SHARE
   $ (0.05 ) $ (0.41 )     $ (0.00 )   $ (0.02 )
                                 
WEIGHTED AVERAGE NUMBER
                                
  OF COMMON SHARES OUTSTANDING
     9,442,938     649,700         23,457,062       33,549,700  
 
 
 
 
 
SAVEDAILY.COM, INC. AND NINE MILE SOFTWARE, INC.
Unaudited Pro forma Condensed Statements of Operations
For the Six Months Ended June 30, 2011
 
   
Savedaily.com, Inc.
    
Nine Mile Software, Inc.
      
Pro Forma Adjustments
    
Pro Forma Results
  
REVENUES
   $ 458,954     $ 20,038  
(a)
   $ (20,038 )   $ 458,954  
OPERATING EXPENSES
                                  
Research and development
     -       31,078                 31,078  
General and administrative
     815,021       122,921                 937,942  
Total Operating Expenses
     815,021       153,999         -       969,020  
                                   
LOSS FROM OPERATIONS
     (356,067 )     (133,961 )       (20,038 )     (510,066 )
                                   
OTHER INCOME(EXPENSE)
                                  
Other income
     12,464       -                 12,464  
Interest income
     12,769       77                 12,846  
Interest expense
     -       (12,533 )               (12,533 )
Forgiveness of debt
     113,629       -                 113,629  
Forgiveness of accrued interest
     6,218       -                 6,218  
Total Other Income(Expense)
     145,080       (12,456 )       -       132,624  
LOSS BEFORE INCOME TAXES
     (210,987 )     (146,417 )       (20,038 )     (377,442 )
PROVISION FOR INCOME TAXES
     (73 )     -         -       -  
                                   
NET LOSS
   $ (211,060 )   $ (146,417 )     $ (20,038 )   $ (377,442 )
                                   
BASIC AND DILUTED LOSS PER COMMON SHARE
   $ (0.02 )   $ (0.22 )     $ (0.00 )   $ (0.01 )
                                   
WEIGHTED AVERAGE NUMBER
                                  
  OF COMMON SHARES OUTSTANDING
     11,964,967       671,819         20,962,770       33,599,556  
 
 
 
 

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