Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8-K/A - Bitzio, Inc. | bitzio_8ka.htm |
| EX-99.3 - PRO-FORMA FINANCIAL INFORMATION - Bitzio, Inc. | bitzio_ex993.htm |
| EX-99.1 - FINANCIAL STATEMENTS - Bitzio, Inc. | bitzio_ex991.htm |
Exhibit 99.2
THINKING DRONE , INC.
(FKA THINKING DRONE , LLC.)
Condensed Balance Sheets
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September 30,
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December 31,
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2011
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2010
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(Unaudited)
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ASSETS
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CURRENT ASSETS
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Cash
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$ | 16,728 | $ | 10,000 | ||||
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Accounts receivable
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57,643 | 79,059 | ||||||
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TOTAL CURRENT ASSETS
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74,371 | 89,059 | ||||||
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TOTAL ASSETS
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$ | 74,371 | $ | 89,059 | ||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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$ | 1,692 | $ | 6,069 | ||||
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TOTAL CURRENT LIABILITIES
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1,692 | 6,069 | ||||||
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STOCKHOLDERS' EQUITY
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Common stock, no par value, 2,000,000
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shares authorized and outstanding
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- | - | ||||||
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Additional paid-in capital
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- | - | ||||||
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Retained earnings
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72,679 | 82,990 | ||||||
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TOTAL STOCKHOLDERS' EQUITY
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72,679 | 82,990 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
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$ | 74,371 | $ | 89,059 | ||||
The accompanying notes are an integral part of these condensed financial statements.
1
THINKING DRONE, INC
(FKA THINKING DRONE, LLC)
Condensed Statements of Operations
(Unaudited)
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For the Three Months Ended
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For the Nine Months Ended
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September 30,
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September 30,
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2011
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2010
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2011
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2010
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REVENUES
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$ | 218,019 | $ | 319,412 | $ | 518,080 | $ | 630,392 | ||||||||
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OPERATING EXPENSES
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Advertising and marketing
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15,338 | 1,843 | 30,535 | 2,005 | ||||||||||||
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Payroll expense
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54,537 | 70,652 | 158,878 | 219,909 | ||||||||||||
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Contractors expense
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32,738 | 12,707 | 78,314 | 29,923 | ||||||||||||
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Professional fees
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4,582 | - | 4,582 | - | ||||||||||||
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General and administrative
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5,171 | 3,425 | 19,890 | 12,108 | ||||||||||||
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Total Operating Expenses
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112,366 | 88,627 | 292,199 | 263,945 | ||||||||||||
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INCOME FROM OPERATIONS
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105,653 | 230,785 | 225,881 | 366,447 | ||||||||||||
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OTHER INCOME
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Other income
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780 | - | 1,230 | 300 | ||||||||||||
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Total Other Income
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780 | - | 1,230 | 300 | ||||||||||||
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INCOME BEFORE INCOME TAXES
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106,433 | 230,785 | 227,111 | 366,747 | ||||||||||||
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PROVISION FOR INCOME TAXES
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- | - | - | - | ||||||||||||
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NET INCOME
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$ | 106,433 | $ | 230,785 | $ | 227,111 | $ | 366,747 | ||||||||
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EARNINGS PER SHARE
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$ | 0.05 | $ | 0.12 | $ | 0.11 | $ | 0.18 | ||||||||
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BASIC AND DILUTED WEIGHTED AVERAGE
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NUMBER OF COMMON SHARES OUTSTANDING
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2,000,000 | 2,000,000 | 2,000,000 | 2,000,000 | ||||||||||||
The accompanying notes are an integral part of these condensed financial statements.
2
THINKING DRONE, INC
(FKA THINKING DRONE, LLC)
Condensed Statements of Stockholders' Equity
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Additional
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Total
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Common Stock
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Paid-In
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Retained
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Stockholders'
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Shares
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Amount
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Capital
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Earnings
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Equity
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Balance, December 31, 2009
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2,000,000 | $ | - | $ | - | $ | 64,534 | $ | 64,534 | |||||||||||
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Net shareholder distributions
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- | - | - | (482,592 | ) | (482,592 | ) | |||||||||||||
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Net income for the year ended
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December 31, 2010
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- | - | - | 501,048 | 501,048 | |||||||||||||||
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Balance, December 31, 2010
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2,000,000 | - | - | 82,990 | 82,990 | |||||||||||||||
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Net shareholder distributions (unaudited)
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- | - | - | (237,422 | ) | (237,422 | ) | |||||||||||||
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Net income for the nine months ended
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September 30, 2011 (unaudited)
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- | - | - | 227,111 | 227,111 | |||||||||||||||
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Balance, September 30, 2011 (unaudited)
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2,000,000 | $ | - | $ | - | $ | 72,679 | $ | 72,679 | |||||||||||
The accompanying notes are an integral part of these condensed financial statements.
3
THINKING DRONE, INC
(FKA THINKING DRONE, LLC)
Condensed Statements of Cash Flows
(Unaudited)
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For the Nine Months Ended
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September 30,
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2011
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2010
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CASH FLOWS FROM OPERATING ACTIVITIES
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Net income
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$ | 227,111 | $ | 366,747 | ||||
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Changes in operating assets and liabilities:
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Accounts receivable
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21,416 | 64,522 | ||||||
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Accounts payable and accrued expenses
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(4,377 | ) | 4,010 | |||||
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Net Cash Provided by Operating Activities
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244,150 | 435,279 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES
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- | - | ||||||
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CASH FLOWS FROM FINANCING ACTIVITIES
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Shareholder distributions
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(237,422 | ) | (308,505 | ) | ||||
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Net Cash Used in Financing Activities
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(237,422 | ) | (308,505 | ) | ||||
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NET INCREASE IN CASH
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6,728 | 126,774 | ||||||
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CASH AT BEGINNING OF PERIOD
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10,000 | 12 | ||||||
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CASH AT END OF PERIOD
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$ | 16,728 | $ | 126,786 | ||||
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SUPPLEMENTAL DISCLOSURES OF
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CASH FLOW INFORMATION:
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CASH PAID FOR:
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Interest
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$ | - | $ | - | ||||
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Income Taxes
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- | - | ||||||
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NON-CASH FINANCING ACTIVITIES:
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$ | - | $ | - | ||||
The accompanying notes are an integral part of these condensed financial statements.
4
THINKING DRONE, LLC.
Notes to the Condensed Financial Statements
September 30, 2011 (Unaudited)
NOTE 1 - INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The accompanying condensed interim financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2011, and for all periods presented herein, have been made.
Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed interim financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2010 audited financial statements. The results of operations for the periods ended September 30, 2011 and 2010 are not necessarily indicative of the operating results for the full years.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates
Recent Accounting Pronouncements
The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position or statements.
NOTE 3 - SUBSEQUENT EVENTS
On November 9, 2011, Bitzio, Inc.’s wholly owned subsidiary, Bitzio Holdings, Inc., completed the purchase from the shareholders of all of the shares of the Company pursuant to a September 14, 2011 agreement, as amended. There is no material relationship between Bitzio, Inc. and the Sellers, other than the agreement.
As consideration for the acquisition, Bitzio Holdings, Inc. will pay the Sellers 5,000,000 shares of common stock of Bitzio, Inc. immediately and $500,000 cash, of which $50,000 is to be paid on or before November 30, 2011, not less than $25,000 is to be paid on or before the last day of each month commencing December 31, 2011 plus interest commencing from the closing date at 5.25 percent per annum computed monthly on the unpaid balance, if any, and the unpaid balance and unpaid interest, if any, is to be paid on or before October 31, 2012.
In accordance with ASC 855-10 Company management reviewed all material events through the date of this report. There are no material subsequent events to report.
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