China Xuefeng Environmental Engineering Inc. - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - November 30, 2012

Attached files

file filename
8-K - NYC MODA INC 8-K - China Xuefeng Environmental Engineering Inc.nycm8k20121130.htm
EX-2.1 - EXHIBIT 2.1 - China Xuefeng Environmental Engineering Inc.exhibit2-1.htm
EX-3.2 - EXHIBIT 3.2 - China Xuefeng Environmental Engineering Inc.exhibit3-2.htm
EX-10.7 - EXHIBIT 10.7 - China Xuefeng Environmental Engineering Inc.exhibit10-7.htm
EX-99.1 - EXHIBIT 99.1 - China Xuefeng Environmental Engineering Inc.exhibit99-1.htm
EX-10.1 - EXHIBIT 10.1 - China Xuefeng Environmental Engineering Inc.exhibit10-1.htm
EX-10.2 - EXHIBIT 10.2 - China Xuefeng Environmental Engineering Inc.exhibit10-2.htm
EX-10.8 - EXHIBIT 10.8 - China Xuefeng Environmental Engineering Inc.exhibit10-8.htm
EX-10.3 - EXHIBIT 10.3 - China Xuefeng Environmental Engineering Inc.exhibit10-3.htm
EX-10.4 - EXHIBIT 10.4 - China Xuefeng Environmental Engineering Inc.exhibit10-4.htm
EX-10.9 - EXHIBIT 10.9 - China Xuefeng Environmental Engineering Inc.exhibit10-9.htm
EX-10.6 - EXHIBIT 10.6 - China Xuefeng Environmental Engineering Inc.exhibit10-6.htm
EX-10.5 - EXHIBIT 10.5 - China Xuefeng Environmental Engineering Inc.exhibit10-5.htm
EX-10.10 - EXHIBIT 10.10 - China Xuefeng Environmental Engineering Inc.exhibit10-10.htm
Exhibit 99.2



 
 
Unaudited Pro Forma Condensed Consolidated Financial Information
 
The following unaudited pro forma condensed consolidated income statements have been derived from the unaudited statement of operations of NYC Moda for the three months ended July 31, 2012, audited statement of operations of NYC Moda for the year ended April 30, 2012, the unaudited statement of operations of Inclusion for the three months ended August 31, 2012, the unaudited statement of operations of Inclusion for the period from May 2, 2011 (inception) to May 31, 2011, the unaudited statement of operations of Lotus International for the period ended August 31, 2012 and the audited statement of income and other comprehensive income of Jiangsu Xuefeng for the three months  ended August 31, 2012 and adjusts such information to give the effect as if the foregoing transactions occurred on June 1, 2012 and 2011 for the three months ended August 31, 2012 and for the year ended May 31, 2012, respectively.

The following unaudited pro forma consolidated balance sheet has been derived from the unaudited balance sheet of NYC Moda as of July 31, 2012, the unaudited balance sheet of Inclusion as of August 31, 2012, the unaudited balance sheet of Lotus International and the unaudited balance sheet of Jiangsu Xuefeng as of August 31, 2012 and adjusts such information to give the effect as if the foregoing transactions occurred on August 31, 2012.

Financial information for Baichuang Consulting has not been included since Baichuang Consulting did not have any assets or liabilities and, therefore, its omission would not materially change the pro forma.

All of the following financial statements are presented in U.S. dollars.

The pro forma does not give effect to the four for one stock split expected to occur in December 2012.

 
 
 

Unaudited Pro Forma Condensed Consolidated Income Statements
For the three months ended August31, 2012
(U.S. Dollars)
 
                   
                   
 
NYC Moda Inc
Inclusion Business Ltd (BVI)
Lotus Internation (HK)
Jiangsu Xuefeng
Pro Forma Adjustments
  
 
(A)
(B)
(C)
(D)
  
Debits
  
Credits
Pro Forma
                   
Sales
 $                -
 $                               -
 $                           -
 $    632,000
  
 $                -
  
 $                -
 $    632,000
Cost of Sales
                   -
                                  -
                              -
         85,357
  
                   -
  
                   -
         85,357
                   
   Gross profit
                   -
                                  -
                              -
       546,643
  
                   -
  
                   -
       546,643
                   
Operating expenses
                  
   Selling and marketing
                   -
    
           4,598
  
                   -
  
                   -
           4,598
   General and administrative
          16,875
  
                            41
       101,323
 (I)
         47,400
 (H)
         47,400
       101,364
             
 (L)
         16,875
  
                   
      Total operating expenses
          16,875
                                  -
                            41
       105,921
  
         47,400
  
         64,275
       105,962
                   
Other Income
                  
   Interest income
                   -
                                  -
                              -
           1,495
  
                   -
  
                   -
           1,495
   Lotus consulting fee
                   -
                                  -
                              -
                   -
 (H)
         47,400
 (I)
         47,400
                   -
                   
Income (loss) before provision for income taxes
        (16,875)
                                  -
                          (41)
       442,217
  
         94,800
  
       111,675
       442,176
Provision for income taxes
                   -
                                  -
                              -
       110,554
 (J)
         11,850
 (J)
         11,850
       110,554
                   
Net income (loss) before noncontrolling interests
        (16,875)
                                  -
                          (41)
       331,663
  
       154,050
      -
       170,925
       331,622
Noncontrolling interests
                   -
                                  -
                              -
                   -
  
                   -
 (K)
         14,806
         14,806
                   
Net income (loss) attributable to controlling interests
 $     (16,875)
 $                               -
 $                       (41)
 $    331,663
  
 $    154,050
  
 $    185,731
 $    283,066
                   
Net income (loss) per share, basic and diluted
 $         (0.00)
              
 $          0.03
                   
Weighted average shares outstanding, basic and diluted
   10,300,000
                                -
                            -
                 -
        
  10,300,000
 
 
 

Unaudited Pro Forma Condensed Consolidated Income Statements
For the year ended May 31, 2012
(U.S. Dollars)
 
 
NYC Moda Inc
Inclusion Business Ltd (BVI)
Lotus Internation (HK)
Jiangsu Xuefeng
Pro Forma Adjustments
  
 
(A)
(B)
(C)
(D)
  
Debits
  
Credits
Pro Forma
                   
Sales
 $                    -
 $            -
 $                  -
 $   314,248
  
 $              -
  
 $                  -
 $       314,248
Cost of Sales
                       -
               -
                     -
        21,495
  
                 -
  
                     -
            21,495
                   
   Gross profit
                       -
               -
                     -
      292,753
  
                 -
  
                     -
          292,753
                   
Operating expenses
                  
   Selling and marketing
                       -
               -
                     -
        10,904
  
                 -
  
                     -
            10,904
   General and administrative
             15,620
               -
                     -
      195,848
 (I)
      189,600
 (H)
          189,600
          195,848
             
 (L)
            15,620
  
                   
      Total operating expenses
             15,620
               -
                     -
      206,752
  
      189,600
  
          205,220
          206,752
                   
Other income
                  
   Interest income
                       -
               -
                     -
          6,018
  
                 -
  
                     -
              6,018
   Lotus consulting fee
                       -
               -
                     -
                  -
 (H)
      189,600
 (I)
          189,600
                     -
                   
Income (loss) before provision for income taxes
           (15,620)
               -
                     -
        92,019
  
                 -
  
          (15,620)
            60,779
Provision for income taxes
                       -
               -
                     -
        25,162
 (J)
        47,400
 (J)
            47,400
            25,162
                   
Net income (loss) before noncontrolling interests
           (15,620)
               -
                     -
        66,857
  
        47,400
  
            31,780
            66,857
Noncontrolling interests
                       -
               -
                     -
                  -
  
                 -
 (K)
            (3,767)
            (3,767)
                   
Net income (loss) attributable to controlling interests
 $        (15,620)
 $            -
 $                  -
 $     66,857
  
 $              -
  
 $       (35,547)
 $         70,624
                   
Net income (loss) per share, basic and diluted
 $            (0.00)
 $          -
 $                -
 $               -
  
 $            -
  
 $                -
 $             0.01
                   
Weighted average shares outstanding, basic and diluted
      10,300,000
               -
                     -
                  -
        
     10,300,000

 
 
 
Unaudited Pro Forma Consolidated Balance Sheet at August 31, 2012
(U.S. Dollars)
 
 
NYC Moda Inc
Inclusion Business Ltd (BVI)
Lotus Internation (HK)
Jiangsu Xuefeng
Pro Forma Adjustments
  
ASSETS
(A)
(B)
(C)
(D)
  
Debits
  
Credits
Pro Forma
                   
Current assets:
                  
   Cash
 $         2,079
 $                               -
 $                  78,990
 $ 4,536,525
  
 $                -
 ( E )
              600
    4,616,994
   Prepaid expenses and other current assets
               985
                                  -
                              -
           4,109
  
                   -
  
                   -
           5,094
                   
      Total current assets
            3,064
                                  -
                     78,990
    4,540,634
  
                   -
  
              600
    4,622,088
                   
Property, plant and equipment, net
                   -
                                  -
                              -
         29,020
  
                   -
  
                   -
         29,020
                   
Other assets:
                  
Prepayment for acquisistion of land use right
                   -
                                  -
                              -
       788,500
  
                   -
  
                   -
       788,500
Deferred income taxes
                   -
                                  -
                              -
                   -
  
                   -
  
                   -
                   -
                   
      Total other assets
                   -
                                  -
                              -
       788,500
  
                   -
  
                   -
       788,500
                   
      TOTAL ASSETS
 $         3,064
 $                               -
 $                  78,990
 $ 5,358,154
  
 $                -
  
 $           600
 $ 5,439,608
                   
                   
LIABILITIES AND  STOCKHOLDERS’ EQUITY
               
                   
Current liabilities:
                  
   Income taxes payable
 $                -
 $                               -
 $                           -
 $      66,431
  
 $                -
  
 $                -
 $      66,431
   Loans from stockholders
               600
                                  -
                     79,031
         35,000
(E)
              600
  
                   -
       114,031
   Accrued expenses and other payables
                   -
                                  -
  
         61,995
  
                   -
  
                   -
         61,995
                   
      Total current liabilities
               600
                                  -
                     79,031
       163,426
       -
              600
      -
                   -
       242,457
                   
Stockholders' equity
                  
   Common stock, $.001 Par; 75,000,000 shares
      authorized; 10,300,000 shares issued and outstanding
          10,300
                        50,000
                     10,000
  
 (F)
         50,000
  
                   -
         10,300
         
 (F)
         10,000
  
                   -
  
   Less: subscriptions receivable
                   -
                       (50,000)
                   (10,000)
    
                   -
 (F)
         50,000
  
           
                   -
 (F)
         10,000
                   -
   Registered capital
                   -
                                  -
                              -
    4,677,144
 (F)
    4,443,287
  
                   -
  
         
 (K)
       233,857
  
                   -
                   -
   Additional paid-in capital
          24,700
                                  -
                              -
  
 (G)
         15,661
      
         
 (L)
         16,875
 (F)
    4,443,287
    4,435,451
   Retained earnings(deficit)
        (32,536)
                                  -
                          (41)
       281,868
 (K)
         14,093
 (G)
         15,661
       267,734
             
 (L)
         16,875
  
   Statutory reserve fund
                   -
    
         30,661
 (K)
           1,533
  
                   -
         29,128
   Other comprehensive income
                   -
    
       205,055
 (K)
         10,253
  
                   -
       194,802
                   
      Stockholders' equity before
         noncontrolling interests
            2,464
                                  -
                          (41)
    5,194,728
  
    4,795,559
  
    4,535,823
    4,937,415
                   
   Noncontrolling interests
                   -
                                  -
                              -
                   -
  
                   -
 (K)
       259,736
       259,736
                 
                   -
      Total stockholders' equity
            2,464
                                  -
                          (41)
    5,194,728
  
    4,795,559
  
    4,795,559
    5,197,151
                   
      TOTAL LIABILITIES AND
         STOCKHOLDERS’ EQUITY
 $         3,064
 $                               -
 $                  78,990
 $ 5,358,154
  
 $ 4,796,159
  
 $ 4,795,559
 $ 5,439,608


 
 
 

Notes to Unaudited Pro Forma Condensed Consolidated Financial Information:

On November 27, 2012, NYC Moda entered into a Share Exchange Agreement with Inclusion, a British Virgin Islands company, and its shareholders. Pursuant to the terms of the Share Exchange Agreement, NYC Moda acquired 100% of the issued and outstanding capital stock of Inclusion in exchange for the transfer of 7,895,000 shares of NYC Moda’s common stock, constituting 76.65%% of its issued and outstanding stock.  As a result of the Share Exchange, Inclusion became NYC Moda’s wholly-owned subsidiary.  NYC Moda assumes the business and operations of Jiangsu Xuefeng, which Inclusion controls through an entrusting agreement.
 
Assumptions and Adjustments:
 
(A)
Historical financial statements of NYC Moda as of July 31, 2012 and for the year ended April 30, 2012.  Differences in value at July 31, 2012 and August 31, 2012 were immaterial.
(B)
Historical consolidated financial statements of Inclusion.
(C)
Historical financial statements of Lotus International.
(D)
Historical financial statements of Jiangsu Xuefeng.
(E)
Adjustments to reflect payment of liabilities by Inclusion prior to the reverse merger in accordance with the Share Exchange Agreement.
(F)
Adjustments to reflect Share Exchange in the reverse merger transaction.  On November 27, 2012, NYC Moda transferred 7,895,000 shares of common stock to Inclusion’s shareholders.  There were 10,300,000 shares of common stock outstanding after the Share Exchange transaction.
(G)
Adjustment to retained earnings to reflect the reverse merger.
(H)
Adjustments to reflect the consulting fee to be paid by Jiangsu Xuefeng to Baichuang Consulting per the VIE agreement.
(I)
Adjustments to reflect elimination of the intercompany consulting fee.
(J)
Adjustments to reflect the income tax effect of the consulting fee paid by Jiangsu Xuefeng to Baichuang Consulting per the VIE agreement.
(K)
Adjustment to record the noncontrolling interests.
(L)
Adjustment to operating expenses to reflect the reverse merger.
 

 


 
 
 

China Xuefeng Environmental Engineering Inc. Reports