Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8-K/A - Bitzio, Inc. | bitzio_8ka.htm |
| EX-99.2 - FINANCIAL STATEMENTS - Bitzio, Inc. | bitzio_ex992.htm |
| EX-99.1 - FINANCIAL STATEMENTS - Bitzio, Inc. | bitzio_ex991.htm |
Exhibit 99.3
Introductory Statement to Unaudited Pro Forma Consolidated Financial Statements
Effective November 9, 2011, Bitzio Holdings, Inc., (“Bitzio Holdings”), a subsidiary of Bitzio, Inc. (“Bitzio Parent”) entered into an acquisition agreement with Thinking Drone, Inc.( “TDI”) wherein Bitzio Holdings purchased all of the issued and outstanding shares of TDI for 5,000,000 shares of restricted common stock of Bitzio Parent. Bitzio Holdings has an additional obligation pursuant to the acquisition agreement to pay $500,000 in cash by means of: (a) $50,000 on or before November 30, 2011, (b) not less than $25,000 on or before the last day of each month, beginning with December 31, 2011, and (c) the unpaid balance plus unpaid interest on or before October 31, 2012.
Pro forma adjustments reflect [1] the issuance of 5,000,000 shares of Bitzio Parent in exchange for all issued and outstanding shares of TDI valued at $0.15 per share, and [2] eliminate the accumulated deficit of TDI, resulting in a total of 44,312,500 shares outstanding.
The pro forma, consolidated balance sheets and statements of operations of Bitzio Parent and TDI are presented here as of September 30, 2011 and December 31, 2010.
1
BITZIO, INC.
Proforma Consolidated Balance Sheet
December 31, 2010
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Adjusted
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Bitzio
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Thinking Drone
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Combined
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Pro Forma
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ProForma
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Inc.
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Inc.
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Totals
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Adjustments
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Totals
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ASSETS
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CURRENT ASSETS
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Cash
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$ | 18,068 | $ | 10,000 | $ | 28,068 | $ | - | $ | 28,068 | ||||||||||
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Prepaid expenses
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108 | - | 108 | - | 108 | |||||||||||||||
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Accounts receivable, net
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- | 79,059 | 79,059 | - | 79,059 | |||||||||||||||
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Total Current Assets
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18,176 | 89,059 | 107,235 | - | 107,235 | |||||||||||||||
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PROPERTY AND EQUIPMENT, net
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1,706 | - | 1,706 | - | 1,706 | |||||||||||||||
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OTHER ASSETS
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Apps
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- | - | - | 880,000 | 880,000 | |||||||||||||||
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Total Other Assets
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- | - | - | 880,000 | 880,000 | |||||||||||||||
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TOTAL ASSETS
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$ | 19,882 | $ | 89,059 | $ | 108,941 | $ | 880,000 | $ | 988,941 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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$ | 146 | $ | 6,069 | $ | 6,215 | $ | - | $ | 6,215 | ||||||||||
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Related party payable
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- | - | - | - | - | |||||||||||||||
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Notes payable
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- | - | 500,000 | 500,000 | ||||||||||||||||
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Notes payable-related party
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392 | - | 392 | - | 392 | |||||||||||||||
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Total Current Liabilities
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538 | 6,069 | 6,607 | 500,000 | 506,607 | |||||||||||||||
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TOTAL LIABILITIES
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538 | 6,069 | 6,607 | 500,000 | 506,607 | |||||||||||||||
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STOCKHOLDERS' EQUITY
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Preferred stock
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- | - | - | - | - | |||||||||||||||
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Common stock
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8,250 | - | 8,250 | 5,000 | 13,250 | |||||||||||||||
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Additional paid-in capital
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233,200 | - | 233,200 | 677,990 | 911,190 | |||||||||||||||
| - | - | - | - | - | ||||||||||||||||
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Retained earnings (deficit)
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(222,106 | ) | 82,990 | (139,116 | ) | (82,990 | ) | (442,106 | ) | |||||||||||
| (220,000 | ) | |||||||||||||||||||
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Total Stockholders' Equity
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19,344 | 82,990 | 102,334 | 380,000 | 482,334 | |||||||||||||||
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) |
$ | 19,882 | $ | 89,059 | $ | 108,941 | $ | 880,000 | $ | 988,941 | ||||||||||
2
BITZIO, INC.
Proforma Consolidated Statements of Operations
For the Year Ended December 31, 2010
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Pro-Forma
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Thinking
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Adjusted
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Bitzio
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Drone
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Combined
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Pro Forma
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Combined
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Inc.
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Inc.
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Totals
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Adjustments
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Totals
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REVENUES
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$ | - | $ | 846,019 | $ | 846,019 | $ | - | $ | 846,019 | ||||||||||
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COST OF SALES
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- | - | - | - | - | |||||||||||||||
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GROSS PROFIT
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- | 846,019 | 846,019 | - | 846,019 | |||||||||||||||
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OPERATING EXPENSES
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General and administrative
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37,226 | 288,037 | 325,263 | - | 325,263 | |||||||||||||||
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Depreciation and amortizationexpense
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341 | - | 341 | 220,000 | 220,341 | |||||||||||||||
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Professional fees
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- | 57,234 | 57,234 | - | 57,234 | |||||||||||||||
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Total Costs and Expenses
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37,567 | 345,271 | 382,838 | 220,000 | 602,838 | |||||||||||||||
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OPERATING LOSS
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(37,567 | ) | 500,748 | 463,181 | (220,000 | ) | 243,181 | |||||||||||||
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OTHER INCOME (EXPENSE)
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Other income
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- | 300 | 300 | - | 300 | |||||||||||||||
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Interest expense
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(645 | ) | - | (645 | ) | - | (645 | ) | ||||||||||||
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Total Other Income (Expense)
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(645 | ) | 300 | (345 | ) | - | (345 | ) | ||||||||||||
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LOSS BEFORE INCOME TAXES
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(38,212 | ) | 501,048 | 462,836 | (220,000 | ) | 242,836 | |||||||||||||
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PROVISION FOR INCOME TAXES
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- | - | - | - | - | |||||||||||||||
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NET LOSS
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$ | (38,212 | ) | $ | 501,048 | $ | 462,836 | $ | (220,000 | ) | $ | 242,836 | ||||||||
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EARNINGS PER SHARE
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$ | (0.01 | ) | $ | 0.25 | $ | 0.03 | |||||||||||||
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BASIC AND DILUTED WEIGHTED AVERAGE
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NUMBER OF COMMON SHARES OUTSTANDING
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6,129,452 | 2,000,000 | 8,129,452 | |||||||||||||||||
3
BITZIO, INC.
Proforma Consolidated Balance Sheet
September 30, 2011
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Adjusted
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Bitzio
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Thinking Drone
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Combined
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Pro Forma
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ProForma
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Inc.
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Inc.
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Totals
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Adjustments
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Totals
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ASSETS
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CURRENT ASSETS
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Cash
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$ | 4,562 | $ | 16,728 | $ | 21,290 | $ | - | $ | 21,290 | ||||||||||
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Prepaid expenses
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341,522 | - | 341,522 | - | 341,522 | |||||||||||||||
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Accounts receivable, net
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- | 57,643 | 57,643 | - | 57,643 | |||||||||||||||
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Total Current Assets
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346,084 | 74,371 | 420,455 | - | 420,455 | |||||||||||||||
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PROPERTY AND EQUIPMENT, net
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1,196 | - | 1,196 | - | 1,196 | |||||||||||||||
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OTHER ASSETS
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Apps
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- | - | - | 715,000 | 715,000 | |||||||||||||||
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Total Other Assets
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- | - | - | 715,000 | 715,000 | |||||||||||||||
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TOTAL ASSETS
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$ | 347,280 | $ | 74,371 | $ | 421,651 | $ | 715,000 | $ | 1,136,651 | ||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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$ | 36,252 | $ | 1,692 | $ | 37,944 | $ | - | $ | 37,944 | ||||||||||
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Related party payable
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60,889 | - | 60,889 | - | 60,889 | |||||||||||||||
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Notes payable
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172,771 | 172,771 | 500,000 | 672,771 | ||||||||||||||||
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Notes payable-related party
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25,142 | - | 25,142 | - | 25,142 | |||||||||||||||
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Total Current Liabilities
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295,054 | 1,692 | 296,746 | 500,000 | 796,746 | |||||||||||||||
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TOTAL LIABILITIES
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295,054 | 1,692 | 296,746 | 500,000 | 796,746 | |||||||||||||||
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STOCKHOLDERS' EQUITY
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Preferred stock
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- | - | - | - | - | |||||||||||||||
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Common stock
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39,313 | - | 39,313 | 5,000 | 44,313 | |||||||||||||||
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Additional paid-in capital
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8,378,933 | - | 8,378,933 | 667,679 | 9,046,612 | |||||||||||||||
| - | - | - | - | - | ||||||||||||||||
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Retained earnings (deficit)
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(8,366,020 | ) | 72,679 | (8,293,341 | ) | (72,679 | ) | (8,751,020 | ) | |||||||||||
| 385,000 | ||||||||||||||||||||
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Total Stockholders' Equity
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52,226 | 72,679 | 124,905 | 215,000 | 339,905 | |||||||||||||||
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) |
$ | 347,280 | $ | 74,371 | $ | 421,651 | $ | 715,000 | $ | 1,136,651 | ||||||||||
4
BITZIO, INC.
Proforma Consolidated Statements of Operations
For the Nine Months Ended September 30, 2011
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Pro-Forma
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Adjusted
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Bitzio
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Thinking Drone
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Combined
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Pro Forma
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Combined
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Inc.
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Inc.
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Totals
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Adjustments
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Totals
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REVENUES
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$ | 3,104 | $ | 518,080 | $ | 521,184 | $ | - | $ | 521,184 | ||||||||||
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COST OF SALES
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- | - | - | - | - | |||||||||||||||
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GROSS PROFIT
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3,104 | 518,080 | 521,184 | - | 521,184 | |||||||||||||||
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OPERATING EXPENSES
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General and administrative
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151,230 | 287,617 | 438,847 | - | 438,847 | |||||||||||||||
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Impairment of goodwill
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2,350,800 | - | 2,350,800 | - | 2,350,800 | |||||||||||||||
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Depreciation and amortizationexpense
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511 | - | 511 | 165,000 | 165,511 | |||||||||||||||
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Professional fees
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5,643,731 | 4,582 | 5,648,313 | - | 5,648,313 | |||||||||||||||
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Total Costs and Expenses
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8,146,272 | 292,199 | 8,438,471 | 165,000 | 8,603,471 | |||||||||||||||
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OPERATING LOSS
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(8,143,168 | ) | 225,881 | (7,917,287 | ) | (165,000 | ) | (8,082,287 | ) | |||||||||||
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OTHER INCOME (EXPENSE)
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Loss on sale of assets
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- | - | - | - | - | |||||||||||||||
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Other income
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- | 1,230 | 1,230 | - | 1,230 | |||||||||||||||
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Interest expense
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(746 | ) | - | (746 | ) | - | (746 | ) | ||||||||||||
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Total Other Income (Expense)
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(746 | ) | 1,230 | 484 | - | 484 | ||||||||||||||
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LOSS BEFORE INCOME TAXES
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(8,143,914 | ) | 227,111 | (7,916,803 | ) | (165,000 | ) | (8,081,803 | ) | |||||||||||
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PROVISION FOR INCOME TAXES
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- | - | - | - | - | |||||||||||||||
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NET LOSS
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$ | (8,143,914 | ) | $ | 227,111 | $ | (7,916,803 | ) | $ | (165,000 | ) | $ | (8,081,803 | ) | ||||||
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EARNINGS PER SHARE
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$ | (0.24 | ) | $ | 0.11 | $ | (0.22 | ) | ||||||||||||
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BASIC AND DILUTED WEIGHTED AVERAGE
NUMBER OF COMMON SHARES OUTSTANDING |
34,566,071 | 2,000,000 | 36,566,071 | |||||||||||||||||
5