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WMX GROUP, INC.

UNAUDITED PRO-FORMA

COMBINED BALANCE SHEETS 

 

December 31, 2011 
WMX Group, Inc. Amount  Smart Kids Group, Inc. Amount  Adjustment Amounts  Pro-forma Combined
Financial Statements 
ASSETS           
Current assets:                   
Cash $8,272   $538   $—     $8,810 
Prepaid expenses  —      382,653    —      382,653 
Total current assets  8,272    383,191    —      391,463 
Property and equipment, net  2,807    227    —      3,034 
Software development costs, net  —      2,750    —      2,750 
   2,807    2,977    —      5,784 
Total assets $11,079   $386,168   $—     $397,247 
 LIABILITIES AND STOCKHOLDERS' DEFICIT                   
Current liabilities:                   
Accounts payable and accrued liabilities $2,000   $181,377   $—     $183,377 
Officer compensation payable  250,000    572,706    —      822,706 
Total current liabilities  252,000    754,083    —      1,006,083 
Total liabilities  252,000    754,083    —      1,006,083 
Stockholders' deficit:                   
Preferred stock; $1 CAD par value,
100,000,000 shares authorized and
                  
none issued and outstanding at December 31, 2011  —                  
Common stock; no par value,
500,000,000 shares authorized and
                  
105,279,638 issued and outstanding at
December 31, 2011
 830,380    1,055    (1,055)   830,380 
Additional paid-in capital  —      3,262,447    (3,262,447)   —   
Common stock payable  —      81,643    (81,643)   —   
Due from related party  (297,052)   —      —      (297,052)
Accumulated deficit  (774,249)   (3,713,060)   3,345,145    (1,142,164)
Total stockholders' deficit  (240,921)   (367,915)   —      (608,836)
Total liabilities and stockholders' deficit $11,079   $386,168   $—     $397,247 

 

On April 30, 2012, Smart Kids Group, Inc., a Florida corporation (the “Company”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) with WMX Group, Inc., a Nevada corporation (“WMX”) and SKGI Acquisition Corp., a Nevada corporation and wholly-owned subsidiary of the Company (“Acquisition Sub”), pursuant to which Acquisition Sub merged with and into WMX (the “Merger”). In accordance with the terms of the Merger Agreement, at the closing an aggregate of 104,042,523 shares of the Company’s common stock were issued to the holders of WMX’s common stock in exchange for their shares of WMX. Following this transaction, there were 148,796,380 shares outstanding including: (1) 104,042,523 shares held by WMX Shareholders (2) 44,753,857 shares held by Existing Company Shareholders.

 

The unaudited pro-forma information is based upon the historical financial statements of the Company and WMX. The objective of this pro-forma information is to show what the significant effects on the historical financial information might have been had the transactions occurred at an earlier date. This transaction have been accounted for as a reverse capitalization.

 

The pro-forma combined financial statements are not necessarily indicative of the results of operations or related effects on financial position that would have been attained had the above-mentioned transaction actually occurred earlier.

 
 

WMX GROUP, INC.
UNAUDTIED PRO-FORMA
COMBINED STATEMENTS OF OPERATIONS

 

For the year ended December 31, 2011 
WMX Group, Inc. Amount  Smart Kids
Group, Inc.
Amount
  Adjustment
Amount
  Pro-forma
Combined
Financial
Statements 
Revenues $—     $—     $—     $—   
Cost of revenues  —      —      —      —   
Gross profit  —      —      —      —   
Operating expenses:                   
General and administrative  199,377    637,545    —      836,922 
Salaries and wages  —      156,184    —      156,184 
Depreciation  833    —      —      833 
Software development  99,539    —      —      99,539 
Sub-licensing expense  —      85,757    —      85,757 
Officer compensation  250,000    —      —      250,000 
Stock-based compensation  204,500    —      —      204,500 
Allowance on subscription receivable  20,000    —      —      20,000 
Impairment of equity investment  —      13,273    —      13,273 
Total operating expenses  774,249    892,759    —      1,667,008 
Loss before other expenses and income taxes  (774,249)   (892,759)   —      (1,667,008)
Other expenses                   
Finance and interest expense  —      (21,732)   —      (21,732)
Loss on conversion of debt  —      (4,745)   —      (4,745)
Total other expenses  —      (26,477)   —      (26,477)
Loss before income taxes  (774,249)   (919,236)   —      (1,693,485)
Provision for income taxes  —      —      —      —   
Net loss $(774,249)  $(919,236)  $—     $(1,693,485)

 

 
 

SMART KIDS GROUP, INC.
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2011

 

Six months ended
December 31, 2011
  Six months ended
December 31, 2011
  Six months ended
December 31, 2010
  Year ended
December 31, 2011 
Revenues $—     $—     $—     $—   
Cost of goods sold  —      —      —      —   
Gross loss  —      —      —      —   
Operating expenses:                   
Salaries and wages  109,783    71,807    25,406    156,184 
Legal and professional fees  405,827    276,750    53,866    628,711 
General and administrative expenses  21,163    24,130    36,459    8,834 
Sub-licensing expense  59,835    30,000    4,078    85,757 
Allowance for stock receivable  57,040    —      57,040    —   
Impairment of equity investment  —      13,273    13,273      
Total operating expenses  653,648    415,960    176,849    892,759 
Loss before other expenses and income taxes  (653,648)   (415,960)   (176,849)   (892,759)
Other expenses                   
Finance and interest expense  (54,724)  $(7,221)  $(40,213)   (21,732)
Loss on conversion of debt  (4,745)   —      —      (4,745)
Total other expenses  (59,469)   (7,221)   (40,213)   (26,477)
Loss before provision for income taxes  (713,117)   (423,181)   (217,062)   (919,236)
Provision for income taxes  —      —      —      —   
Net loss $(713,117)  $(423,181)  $(217,062)  $(919,236)