GENIE GATEWAY - FORM 8-K/A - EX-99.3 - EXHIBIT 99.3 - PRO FORMA FINANCIALS - February 7, 2012

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8-K/A - WWA 8 K AMENDMENT ACQUIRE IDVC - GENIE GATEWAYkaacquireidvc.htm

Exhibit 99.3

 

WWA GROUP, INC.

 

UNAUDITED PRO FORMA COMBINED INFORMATION

For the nine months ended September 30, 2011 and for the year ended December 31, 2010

 

 

 

TABLE OF CONTENTS

 

 

Page

 

Basis of presentation                                                                                                                       F-2

 

Unaudited pro forma condensed balance sheets for the nine months ended September 30, 2011           F-3

 

Unaudited pro forma condensed statements of operations for the nine months ended

September 30, 2011                                                                                                                         F-5

 

Unaudited pro forma condensed statements of operations for the year ended December 31, 2010         F-7

 

Schedule A – Reconciliation of Infrastructure Consolidated Statements of Operations for the

year ended December 31, 2010                                                                                                        F-8

 

Schedule B – Reconciliation of Infrastructure Consolidated Statements of Operations for the

nine months ended September 30, 2011                                                                                             F-9

 

Notes to pro forma combined balance sheets and statements of operation                                           F-10

F-1

 

Basis of presentation

 

The following unaudited pro forma financial information of WWA Group, Inc. ("WWA Group") is based on the historical financial statements of WWA Group.  The combined balance sheet and statement of operations of WWA Group for the nine months ended September 30, 2011, have been prepared as if the acquisition of an aggregate of sixty three and one half percent (63.5%) of Infrastructure Developments Corp. (“Infrastructure”) had occurred on January 1, 2010, the first day of the fiscal year of the registrant.

 

Such unaudited pro forma financial information should be read in conjunction with the historical financial statements of WWA Group for the years ended December 31, 2010 and 2009, including the notes thereto, which were filed as part of WWA Group’s Form 10-K/A-2, filed with the Securities and Exchange Commission on February 6, 2012.  This unaudited pro forma financial information is for informational purposes only and is not necessarily indicative of the results of operations of WWA Group that would have occurred if the consolidation of Infrastructure had been completed on the dates indicated, nor does it purport to represent WWA Group’s results of operations as of any future date or for any future period. The pro forma combined balance sheet and statement of operations of WWA Group only include the consolidation of Infrastructure. In addition, the pro forma combined financial statements are based upon fair value of the assets and liabilities consolidated from Infrastructure.  Management believes all material adjustments necessary to reflect the effect of the consolidation have been made to the unaudited pro forma financial information.  

F-2

 

Exhibit 99.3

 

                                                         Consolidated Balance Sheets as on September 30, 2011

WWA Group

Adjustment to WWA Group

WWA Group Adjusted

Infrastructure

Adjustment to Infrastructure

Infrastructure Adjusted

Inter Company Elimination

Consolidated

Assets

 

 

 

 

 

 

 

 

 

 

 

Current assets:

Cash

 $          710

 $              -  

 $          710

 $         95,056

 $                  -  

 $          95,056

 $               -  

 $         95,766

Notes receivable

-

-

 $               -  

-

-

  $                    -  

-

 $                 -  

Prepaid Expenses

-

-

 $               -  

40,740

-

 $          40,740

-

 $         40,740

Other current assets

313,180

(48,345)

A

 $   264,835

21,053

-

 

 $          21,053

-

 

 $       285,888

Total current assets

313,890

(48,345)

 $   265,545

156,849

-

 $        156,849

-

 $       422,394

Investment in equity interests

814,263

3,449,281

B

4,263,544

-

-

  $                    -  

(4,263,544)

N

 $                  -

Notes receivable

1,188,001

(1,188,001)

C

-

-

-

  $                    -  

-

                     -

Investment in related party entity

-

-

-

-

  $                    -  

-

                     -

Total Assets

 $2,316,154

 $ 2,212,935

 

 $4,529,088

 $       156,849

 $                  -  

 

 $        156,849

 $(4,263,544)

 

 $       422,393

Liabilities and Stockholders' Equity

Current liabilities:

Accounts Payable

-

-

-

27,856

-

27,856

-

 $         27,856

Accrued expenses

73,470

-

73,470

233,171

(48,345)

E

184,826

-

 $       258,296

Short Term Debt - Notes Payable

9,144

-

9,144

364,226

-

364,226

-

 $       373,370

Current maturities of long-term debt

-

-

 

-

-

-

 

-

-

 

 $                 -  

Total current liabilities

82,614

-

82,614

625,254

(48,345)

576,909

-

 $       659,523

Long-term debt

-

 

 

 

2,409,003

(2,409,003)

F

-

-

 

 $                 -  

Total liabilities

82,614

-

 

82,614

3,034,257

(2,457,348)

 

576,909

-

 

 $       659,523

Commitments and contingencies

-

-

-

-

-

-

-

                     -

Stockholders' equity:

Common stock, $0.001 par value, 50,000,000   shares authorized; 22,591,922 issued and outstanding

22,592

-

22,592

-

-

-

-

$           22,592

Common stock, $0.001 par value, 124,406,360 shares issued and outstanding

-

-

-

124,406

(124,406)

G

-

-

 $                  -

     Majority stock (WWA)

-

-

-

-

186,994

H

186,994

(186,994)

O

 $                  -  

 Minority stock

-

-

-

-

103,112

I

103,112

-

 $       103,112

Additional paid-in capital

4,449,080

-

4,449,080

6,011,789

(6,011,789)

J

-

 

 $    4,449,080

Additional paid-in capital- Minority share

-

-

-

4,247,083

K

4,247,083

-

 $    4,247,083

Additional paid-in capital- Majority (WWA) share

-

-

-

4,076,550

L

4,076,550

(4,076,550)

P

 $                  -  

Retained earnings

(2,238,133)

2,212,935

D

(25,198)

(9,013,603)

(20,196)

M

(9,033,799)

-

 

 $   (9,058,997)

Total stockholders' equity:

2,233,539

2,212,935

 

4,446,474

(2,877,408)

2,457,348

 

(420,060)

(4,263,544)

 

 $      (237,130)

 $2,316,154

 $ 2,212,935

 

 $4,529,088

 $       156,849

 $                  -  

 

 $        156,849

 $(4,263,544)

 

 $       422,393

 

Notes to the Adjustments on the following page

 

The accompanying notes are an integral part of these pro forma consolidated financial statements

F-3

 

Exhibit 99.3

 

Notes to Adjustments

 

A.      Other current assets of WWA Group adjusted to $48,345 due to reversal of accrued income on notes receivable from Infrastructure at September 30, 2011.

B.       Investment in equity interest adjusted by net figure of $3,449,281 comprised of $404,955.54 due to reversal of share in the profit and loss of Infrastructure, $566,781 on account of extraordinary gain on restatement of investment in Infrastructure from its present value of $1,219,218.83 to its original value of $1,786,000 and $2,477,544 being the increase on investment as a result of the shares issued by Infrastructure to WWA Group on conversion of its notes receivable from Infrastructure.

C.       Notes receivable of WWA Group adjusted by net figure of $1,188,001 comprised of $1,221,002 due to the reversal of the 50% impairment recorded at March 31, 2011 by WWA Group and $2,409,003 being the total amount then converted into shares of Infrastructure.

D.      Retained earnings of WWA Group adjusted by net figure of $2,212,935 comprised of reversals on account of impairment, share of profit and loss in Infrastructure, extraordinary gain and interest income.

E.       Accrued Expenses of IDVC is adjusted with $ 48,345 being reversal of accrued interest expense on long term debt till September 30, 2011

F.       Infrastructure issued 165,699,842 shares for $2,477,544 on conversion of long term debt of $2,409,003 as of December 31, 2010 due to WWA Group.

G.      Common stock of Infrastructure is reversed to give effect to majority and minority interest.

H.      Existing common stock of $124,406 of Infrastructure is increased by new issuance of shares of $165,700 resulting in total common stock of $290,106 of which WWA Group holds common stock of $186,994 and is categorized under majority interest.

I.         Common stock of $103,112 represents minority interest.

J.        Additional paid in capital of Infrastructure is reversed to give effect of majority and minority interest.

K.      Additional paid in capital of $4,247,083 represents minority interest.

L.       Additional paid in capital of $4,076,550 represents majority interest.

M.     Retained earnings of Infrastructure adjusted by $20,196 being interest expenses due to conversion of long term debt into equity.

N.      Investment of WWA Group in Infrastructure is eliminated on consolidation.

O.      Majority common stock of Infrastructure eliminated due to consolidation.

P.       Majority additional paid up capital of Infrastructure eliminated due to consolidation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these pro forma consolidated financial statements

 

 

 

F-4

 

Exhibit 99.3

 

WWA Group Pro Forma Consolidated Statements of Income for the Nine Months ended September 30, 2011

WWA Group

Adjustments to WWA Group

 

Adjusted WWA Group

Infrastructure

Adjustments to Infrastructure

 

Adjusted Infrastructure

Consolidated

Revenues from commissions and services

 $                       -  

 $                         -  

 

$                          -  

 $                        -  

$                         -  

 

  $                         -  

   $                      -  

Revenues from sales of equipment

 $                       -  

 $                         -  

 

$                          -  

 $                        -  

$                         -  

 

  $                         -  

$                       -  

Revenues from contracts

 $                       -  

 $                         -  

 

$                          -  

 $            571,443

$                         -  

 

  $            571,443

$           571,443

Revenues from Ship Charter

 $                       -

 $                         -

 

$                          -  

 $                        -

$                         -

 

  $                         -  

$                       -

Total revenues

-

-

 

$                          -  

571,443

-

 

  $             571,443

571,443

Direct costs - commissions and services

-

-

 

$                          -  

636,894

-

 

  $             636,894

636,894

Direct costs - sales of equipment

-

-

 

$                          -  

-

-

 

  $                         -  

-

Gross profit

-

-

 

$                          -  

(65,451)

-

 

  $             (65,451)

(65,451)

Operating expenses:

 

 

 

 

 

 

 

 

 

General, selling and administrative expenses

19,517

-

 

  $                19,517

642,473

-

 

  $             642,473

661,990

Salaries and wages

-

-

 

$                          -  

200,486

-

 

  $             200,486

200,486

Selling expenses

-

-

 

$                          -  

-

-

 

  $                        -  

-

Bad debt expenses

-

-

 

$                          -  

524,685

-

 

  $             524,685

524,685

Depreciation and amortization expense

-

-

 

$                          -  

-

-

 

  $                        -  

-

Total operating expenses

19,517

-

 

$                19,517

1,367,644

-

 

  $          1,367,644

1,387,161

(Loss) income from operations

(19,517)

-

 

$               (19,517)

(1,433,095)

-

 

  $        (1,433,095)

(1,452,612)

Other income (expense):

 

 

 

 

 

 

 

 

 

Interest expense

-

-

 

$                          -

(55,713)

(20,196)

E 

  $             (75,909)

(75,909)

Impairment of Notes receivables

(1,711,003)

1,221,003

A

$             (490,000)

-

-

 

  $                        -  

(490,000)

Loss on Equity investment

(404,956)

404,956

B

$                          -

-

-

 

  $                        -  

-

Extraordinary gain/loss on restatement of investments in Infrastructure

-

566,781

C

$               566,781

-

-

 

  $                        -  

566,781

Interest income

48,345

20,196

D

$                 68,541

-

-

 

  $                        -  

68,541

Other income (expense)

(2)

-

 

$                        (2)

(3,979,003)

-

 

  $        (3,979,003)

(3,979,005)

Total other income (expense)

(2,067,615)

2,212,935

 

$              145,320

(4,034,716)

(20,196)

 

  $        (4,054,912)

(3.909,592)

(Loss) income before income taxes

(2,087,132)

2,212,935

 

$              125,803

(5,467,811)

             (20,196)

 

  $        (5,488,007)

(5,362,204)

Provision for income taxes

 $                    -  

 $                     -  

 

$                          -

 $                        -  

                     -  

 

  $                        -  

 $                      -  

Net (Loss) income from continued operations

    $  (2,087,132)

  $      2,212935

 

$               125,803

$      (5,467,811)

             (20,196)         

 

  $        (5,488,007)

 $     (5,362,204)

Discontinued operations

 

 

 

 

 

 

 

 

 

Loss for the period from discontinued operations net of tax

   $                    -

     $                     -

 

  $                          -

   $                       -

   $                     -

 

  $                        -

 $                      -  

Profit/(Loss) for the period

   $    (2,087,132)

     $      2,212,935

 

  $               125,803

   $      (5,467,811)

   $         (20,196)

 

  $       (5,488,007)

  $     (5,362,204)

 

 

Notes to the Adjustments on the following page

 

 

 

 

The accompanying notes are an integral part of these pro forma consolidated financial statements

F-5

 

Exhibit 99.3

 

 

Notes to Adjustments

 

A.      Adjustment for reversal of 50% impaired amount of $1,221,002.65 recorded for the three months ended March 31, 2011 by WWA Group.

B.          Loss of equity investment on income statement is adjusted by the net figure of $404,955.54 being the share of profit and loss of Infrastructure recorded by WWA Group for the nine months ended September 30, 2011.

C.          Infrastructure investment recorded by WWA Group is restated at its original value of $1,786,000 from its present value of $1,219,218 as of January 1, 2011. The difference of $566,781 between original value and investment value as of January 1, 2011 has been treated as extraordinary profit on restatement.

D.         WWA Group Inc has converted $2,409,003.39 being the notes receivable and interest accrual of $48,345 as on September 30, 2011 to 165,699,842 shares of Infrastructure for $2,477,544.The difference of $20,196 between notes receivables amount and share issuance amount is treated as interest income in WWA Group income statement.

E.          Infrastructure has issued 165,699,842 shares for $2,477,544 against conversion of long term debt of $ 2,409,003 plus accrued interest of $48,345 as of September 30, 2011 to WWA Group. The difference of $20,196 between long term debt amount and share issuance amount is treated as interest expense in the Infrastructure income statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these pro forma consolidated financial statements

F-6

 

Exhibit 99.3

 

            WWA Group, Inc., Pro Forma Consolidated Statements of Income for the year ended December 31, 2010

WWA Group

Adjustments to WWA Group

Adjusted WWA Group

Infrastructure

Adjustments to Infrastructure

Adjusted Infrastructure

Consolidated

Revenues from commissions and services

 $                12,170

   $                      -  

$             12,170

 $                      -  

 $                      -  

 $                        -  

 $            12,170

Project Management

 $                        -  

   $                      -  

$                       -  

 $        1,921,139

 $                      -  

$        1,921,139

 $       1,921,139

Revenues from sales of equipment

 $                72,600

 $                      -  

 

$             72,600

 $                      -  

 $                      -  

 

$                       -  

$            72,600

Total revenues

84,770

-

 $             84,770

1,921,139

0

 $        1,921,139

2,005,909

Direct costs - commissions and services

9,646

-

 $               9,646

2,185,667

0

 $        2,185,667

2,195,313

Direct costs - sales of equipment

68,371

-

 

 $             68,371

-

0

 

 $                       -  

68,371

Gross profit

6,753

 $               6,753

(264,528)

0

 $         (264,528)

(257,775)

Operating expenses:

General, selling and administrative expenses

143,733

-

 $           108,876

260,364

0

 $           260,364

369,240

Salaries and wages

42,201

-

 $             42,201

327,836

0

 $           327,836

370,037

Selling expenses

2,878

-

 $               2,878

-

0

 $                       -  

2,878

Depreciation and amortization expense

18,827

-

 

 $             18,827

28,037

0

 

 $             28,037

46,864

Total operating expenses

207,638

-

 

 $           172,782

616,237

0

 

 $           616,237

789,018

Income (Loss) from operations

(200,884)

-

 

 $         (166,028)

(880,764)

0

 

 $         (880,764)

(1,046,792)

Other income (expense):

Interest expense

(318,282)

-

 $         (318,282)

-

(35,541)

D

 $           (35,541)

(353,823)

Other Income

-

-

 $                       -  

141,687

0

 $           141,687

141,687

Interest Income

-

35,541

A

 $             35,541

-

0

 $                      -  

35,541

Extraordinary gain/loss on restatement of investments in Infrastructure

-

523,334

B

 $           523,334

-

0

 $                       -  

523,334

Loss on equity investment

47,353

43,447

C

 $             90,800

-

0

 

 $                       -  

90,800

Total other expense

(270,929)

602,322

 

 $           331,393

141,687

(35,541)

 

 $           106,146

437,539

Loss before income taxes

(471,813)

602,322

 $           165,365

(739,077)

(35,541)

 $         (774,618)

(609,253)

Provision for income taxes

 $                         -  

 $                       -  

 

 $                       -  

 $                      -  

 

 

$-

 $                      -  

Loss for the year from continuing operations

 $          (471,813)

 $           602,322

 

 $           165,365

  $        (739,077)

 $          (35,541)

 

 $         (774,618)

 $       (609,253)

Discontinued operations

Loss for the year from discontinued operations net of tax

            (439,531)

-

 $                       -

-

-

$

          (439,531)

Loss recognized on sale of World Wide

 Auctioneers, and Crown Diamond Holdings

(749,227)

-

 $         (784,083)

-

-

 $                       -  

(784,083)

Loss for the year

(1,660,570)

602,322

 

 $      (1,058,249)

(739,076)

(35,541)

 

 $         (774,618)

(1,832,866)

A.      WWA Group has converted $2,442,033.39 in notes receivable as of December 31, 2010 to 165,699,842 shares of Infrastructure for $2,477,544. The difference of $35,541 between the notes receivable amount and the share issuance amount treated as interest income in WWA Group’s income statement.

B.       Infrastructure investment recorded by WWA Group is restated at its original value of $1,786,000 from its present value of $1,262,665.62 as on January 1st, 2010. The difference of $523,334 between original value and investment value as on January 1st, 2010 is treated as extraordinary profit on restatement.

C.       Loss on equity investment in IDVC on the income statement is reversed by a net figure of $43,446.79 being the share of profit and loss of IDVC recorded by WWA Group for  the three and six months ended March 31, 2010 $4,883.54 and June 30, 2010 ($48,330.33) respectively.

D.      Infrastructure has issued 165,699,842 shares for $2,477,544 against conversion of long term debt of $2,442,033.39 as of December 31, 2010 due to WWA Group. The difference of $35,541 between long term debt amount and share issuance amount is treated as interest expense in Infrastructure’s income statement.

The accompanying notes are an integral part of these pro forma consolidated financial statements

F-7

 

Exhibit 99.3

 

Infrastructure

Consolidated Statements of Operations

SCHEDULE A

 

For Year Ending 

June 30,

Minus Six Months Ending June 30,

Plus Six Months Ending June 30,

For Year Ended December 31,

 

2011

 2011

2010

2010

Revenues:

 

 

 

 

Contract Income

                                       300,492

                            300,492

                            320,093

                               320,093

Revenue from Material Sales

 -

-                                         

                          982,688

                             982,688

Equipment Rental

 -

                                     -  

                       (491,132)

                           (491,132)

Project Management Contracts

                                     301,945

                           (8,777)

                          798,768

                          1,109,490

Total revenues

                                     602,437

                          291,715

                       1,610,417

1,921,139

Direct costs - commissions and services

                                     877,866

                          380,369

                       1,688,170

                          2,185,667

Gross loss

                                   (275,429)

                         (88,654)

                         (77,753)

(264,528)

Operating expenses:

 

 

 

 

General, selling and administrative expenses

                                     762,055

                          607,630

                          105,939

                             260,364

Salaries and wages

                                     318,444

                          133,788

                          143,180

                             327,836

Bad debt expenses (Power Track)

                                     524,685

                          524,685

                                    -  

                                         -  

Depreciation and amortization expense

                                                 -  

- 

                            28,037

                               28,037

Total operating expenses

                                  1,605,184

                       1,266,103

                          277,155

616,236

Loss from operations

                                (1,880,613)

                    (1,354,757)

                       (354,908)

(880,764)

Other income (expense):

 

 

 

 

Interest expense/(expense)

                                     (16,577)

                         (16,577)

 -

                                         -  

Loss of Inventory Write Down

                                (1,981,604)

                    (1,981,604)

-

                                         -  

Loss in Sale of Fixed Assets

                                (1,091,071)

                    (1,091,071)

 -

                                         -  

Loss of Assets due to closure of quarry

                                (1,244,703)

                    (1,244,703)

- 

                                         -  

Other income (expense)

                                     338,544

                          338,713

                          141,856

                            141,687

Total other income (expense)

                                (3,995,411)

                    (3,995,242)

                          141,856

141,687

Loss before Income taxes

                                (5,876,024)

                    (5,349,999)

                       (213,052)

(739,076)

Provision for income taxes

 -

 -

 -

                                         -  

NET INCOME/(LOSS)

                                (5,876,024)

                    (5,349,999)

                       (213,052)

(739,076)

 

 

 

 

 

 

 

 

 

F-8

 

Exhibit 99.3

 

Infrastructure

Consolidated Statements of Operations

SCHEDULE B

 

For Year Ending

June 30,

Plus Three Months Ending September 30,

Minus Six Months Ending  December 30,

For Nine Months Ended September 30,

 

2011

2011

2010

2011

Revenues:

 

 

 

 

Contract Income

                            300,492

                                       -

                                     -  

                              300,492

Revenue from Material Sales

                                          -

 - 

                - 

                                         -  

Equipment Rental

                                        -  

 

                                      -  

                                         -  

Project Management Contracts

                            301,945

279,728

                            310,722

                              270,951

Total revenues

                            602,437

279,728

                            310,722

571,443

Direct costs - commissions and services

                            877,866

256,525

                            497,497

                              636,894

Gross profit

                          (275,429)

23,203

                          (186,775)

(65,451)

Operating expenses:

 

 

 

 

General, selling and administrative expenses

                            762,055

34,809

                            154,425

                              642,473

Salaries and wages

                            318,444

66,698

                            184,656

                              200,486

Bad debt Expenses (Power Track)

                            524,685

                                    -  

                                      -  

                              524,685

Depreciation and amortization expense

                                      -  

 -

                                      -  

- 

Total operating expenses

                         1,605,184

101,508

                            339,081

1,367,644

Income (Loss) from operations

                       (1,880,613)

(78,305)

                          (525,856)

(1,433,095)

Other income (expense):

 

 

 

 

Interest expense/(Expense)

                            (16,577)

(39,136)

- 

                             (55,713)

Loss of Inventory Write Down

                       (1,981,604)

                                    -  

                                        -

                        (1,981,604)

Loss in Sale of Fixed Assets

                       (1,091,071)

                                    -  

 

                        (1,091,071)

Loss of Assets due to closure of Quarry

                       (1,244,703)

                                    -  

- 

                        (1,244,703)

Other income (expense)

                            338,544

-

                                 (169)

                              338,375

Total other income (expense)

                       (3,995,411)

(39,136)

                                 (169)

(4,034,716)

(Loss) Income before Income Taxes

                       (5,876,024)

(117,441)

                          (526,025)

(5,467,811)

Provision for income taxes

                                      -  

                                    -  

                                      -  

                                         -  

NET INCOME/(LOSS)

                       (5,876,024)

(117,441)

                          (526,025)

(5,467,811)

F-9

 

Notes to Pro Forma combined Balance Sheets and Statements of Operations:

 

Share Acquisitions

 

On April 14, 2010, Intelspec International, Inc. (“Intelspec”), WWA Group's then minority owned unconsolidated subsidiary, concluded an agreement with Infrastructure, a publicly traded company, pursuant to which Intelspec became a subsidiary of Infrastructure. WWA Group acquired 21,294,218 shares of Infrastructure's common stock, an approximately 22% interest, as a result of the transaction. In July 2010, WWA Group sold four million shares of Infrastructure's common stock at a value of $320,000 reducing WWA Group’s investment to 17.75%.

 

On May 17, 2011, Infrastructure executed a convertible promissory note (“Note”) with WWA Group for amounts lent to Infrastructure and its subsidiaries, including Intelspec, since 2007 totaling an aggregate of $2,442,000, at an interest rate of 6% per annum, to be paid in full within five years of the execution of the Note, with the option to convert all or part of the principal and accrued interest into shares of common stock of Infrastructure, par value $0.001, at $0.07 per share at any time prior to maturity.

 

On November 21, 2011, WWA Group was authorized the issuance of 165,699,842 shares of Infrastructure's common stock valued at $2,477,544 or $0.014952 per share on conversion of the Note, as amended as of the date of conversion to permit a conversion price of approximately $0.015 per share constituting a premium to the $0.013 average price of Infrastructure’s common stock over the ten day period preceding the date of conversion.

 

Following the transaction on November 21, 2011, WWA Group owned 186,994,060 shares or 63.5% of Infrastructure's common stock.

 

Principles of Consolidation

 

The accompanying consolidated pro forma financial statements include the accounts of WWA Group and Infrastructure, its majority-owned subsidiary. All material intercompany accounts and transactions between the companies for the periods presented have been eliminated in consolidation.

 

Accounting Acquirer

 

WWA Group evaluated its investment in Infrastructure in accordance with ASC805, Business Combinations, according to WWA Group's evaluation of 805-10-55-12 it concluded that the accounting acquirer was WWA Group for this pro forma presentation because after the close of this transaction the shareholders of WWA Group held a majority voting power of Infrastructure. So WWA Group has eliminated the equity accounts and accumulated deficit of Infrastructure and left the accumulated deficit of WWA Group in its pro forma balance sheet presentation.

 

 

 

 

 

 

 

 

F-10

 

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