Attached files
| file | filename |
|---|---|
| EX-3.3 - Eco-Shift Power Corp. | ex3_3.htm |
| EX-3.1 - Eco-Shift Power Corp. | ex3_1.htm |
| EX-3.5 - Eco-Shift Power Corp. | ex3_5.htm |
| EX-2.2 - Eco-Shift Power Corp. | ex2_2.htm |
| EX-3.6 - Eco-Shift Power Corp. | ex3_6.htm |
| EX-3.7 - Eco-Shift Power Corp. | ex3_7.htm |
| EX-2.3 - Eco-Shift Power Corp. | ex2_3.htm |
| EX-4.1 - Eco-Shift Power Corp. | ex4_1.htm |
| EX-3.4 - Eco-Shift Power Corp. | ex3_4.htm |
| EX-3.2 - Eco-Shift Power Corp. | ex3_2.htm |
| EX-10.2 - Eco-Shift Power Corp. | ex10_2.htm |
| EX-10.1 - Eco-Shift Power Corp. | ex10_1.htm |
| EX-17.2 - Eco-Shift Power Corp. | ex17_2.htm |
| EX-17.1 - Eco-Shift Power Corp. | ex17_1.htm |
| EX-99.1 CHARTER - Eco-Shift Power Corp. | ex99_1.htm |
| EXCEL - IDEA: XBRL DOCUMENT - Eco-Shift Power Corp. | Financial_Report.xls |
| 8-K/A - Eco-Shift Power Corp. | smplepons8ka.htm |
| EX-2.1 - Eco-Shift Power Corp. | ex2_1.htm |
Simplepons, Inc. and Eco-Shift Power Corp.
Unaudited Pro Forma Balance Sheet
February 8, 2013
The following unaudited pro forma balance sheet gives effect to theShare Exchange effectuated by and among SimplePons, Inc., a Delaware corporation, along with its newly formed Canadian subsidiaries (collectively, “SimplePons”) and the stakeholders (“Stakeholders”) of Eco-Shift Power Corp., a Canada corporation (“Eco-Shift”). On the closing date, February 8, 2013, SimplePons issued an aggregate of 1,702,235,971 Exchangeable Shares (as defined below) to the Stakeholders valued at $4,000,244 in exchange for 10,864 shares of Eco-Shift’s common stock.
Also on February 8, 2013, SimplePons entered into the Voting and Exchange Trust Agreement pursuant to which the SimplePons issued one (1) share of the SimplePons’ Series B Preferred Stock, par value $0.01 (the “Series B Preferred”), to the Patriquin Law Professional Corporation, a Canada corporation, as trusteee (the “Trustee”) to be held on behalf of the Stakeholders, which entitles the Trustee to exercise the number of votes equal to the number of Exchangeable Shares issued and outstanding at that point in time. “Exchangeable Shares” shall mean non-voting shares of AcquisitionCo issued to a person or persons that have the right to be issued common stock of SimplePons on a one to one basis, subject to certain adjustment, in exchange for the redemption or cancellation of each Exchangeable Share. The Voting and Exchange Trust Agreement shall remain in force until the date that all the Exchangeable Shares are exchanged for shares of common stock in SimplePons.
Subsequent to the Share Exchange, the Stakeholders held approximately 95% of the voting rights of the SimplePons. Accordingly, the above transaction has been accounted for as a reverse merger (recapitalization) with SimplePons being deemed the legal acquirer and Eco-Shift being deemed the accounting acquirer. The historical financial information presented in the financial statements is that of Eco-Shift (since May 15, 2008, the date of inception) as adjusted to give effect to any difference in the par value of the issuer’s and the accounting acquirer’s stock with an offset to additional paid in capital and accumulated deficit. The basis of the assets and liabilities of Eco-Shift, the accounting acquirer, has been carried over in the recapitalization. The terms of the agreements were consummated on February 8, 2013 and SimplePons now owns 100% of the equity interests of Eco-Shift.
Management believes that the assumptions used provide a reasonable basis on which to present the unaudited pro forma financial data. The unaudited pro forma financial statement information has been provided for informational purposes only and should not be considered indicative of SimplePons’ financial position or results of operations. In addition, the unaudited pro forma financial statement information does not purport to represent the future financial position or results of operations of SimplePons. The unaudited pro forma financial statement information should be read in conjunction with the SimplePons’ audited financial statements as of December 31, 2012 and Eco-Shift’s audited financial statements as of December 31, 2012.
| SIMPLEPONS INC. | |||||||||||||||||||||
| Condensed Combined Pro Forma Balance Sheet | |||||||||||||||||||||
| Simplepons Inc. | Eco-Shift Power Corp. | Pro Forma Adjustments | Pro Forma Combined | ||||||||||||||||||
| February 8, 2013 | February 8, 2013 | Increase (Decrease) | February 8, 2013 | ||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Current assets | |||||||||||||||||||||
| Note | |||||||||||||||||||||
| Cash | $ | 1,558 | $ | 98,755 | $ | — | 100,313 | ||||||||||||||
| Accounts receivable, net | $ | 1,300 | $ | 314,183 | $ | — | $ | 315,483 | |||||||||||||
| Intercompany receivable | $ | 249,786 | $ | — | $ | (249,786 | ) | $ | — | (a) | |||||||||||
| Inventory, net | $ | — | $ | 166,428 | $ | — | $ | 166,428 | |||||||||||||
| Advances and deposits | $ | 9,283 | $ | 78,264 | $ | — | $ | 87,547 | |||||||||||||
| Income taxes recoverable | $ | — | $ | 25,030 | $ | — | $ | 25,030 | |||||||||||||
| Prepayments | $ | 1,452 | 3,015 | — | 4,467 | ||||||||||||||||
| Total current assets | 263,379 | 685,675 | (249,786 | ) | 699,268 | ||||||||||||||||
| Property and equipment, net | $ | 15,120 | $ | 13,993 | $ | — | $ | 29,113 | |||||||||||||
| Total assets | $ | 278,499 | $ | 699,668 | $ | (249,786 | ) | $ | 728,381 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||
| Current Liabilities | |||||||||||||||||||||
| Accounts payable and accrued liabilities | $ | 420,193 | $ | 494,857 | $ | — | $ | 915,050 | |||||||||||||
| Customer deposits | $ | — | $ | 123,050 | $ | — | $ | 123,050 | |||||||||||||
| Liquidated damages payable | $ | 29,600 | $ | — | $ | — | $ | 29,600 | |||||||||||||
| Contingent liabilities | $ | 23,062 | $ | — | $ | — | $ | 23,062 | |||||||||||||
| Derivative liabilities | $ | 63,110 | $ | — | $ | — | $ | 63,110 | |||||||||||||
| Intercompany payable | $ | — | $ | 249,786 | $ | (249,786 | ) | $ | — | (a) | |||||||||||
| Advances from shareholders | $ | — | $ | 315,821 | $ | — | $ | 315,821 | |||||||||||||
| Promissory notes payable | $ | 76,449 |
$ | 554,600 | $ | — | $ | 631,049 | |||||||||||||
| Total current liabilities | 535,965 | 1,738,114 | (249,786 | ) | 2,100,742 | ||||||||||||||||
| Stockholders' equity | |||||||||||||||||||||
| Preferred stock | 1 | 1 | (b) | ||||||||||||||||||
| Common stock | $ | 941,709 | $ | 109 | $ | (109 | ) | $ | 17,964,069 | (c) | |||||||||||
| $ | 17,022,360 | (c) | |||||||||||||||||||
| Additional paid-in-capital | 2,157,673 | — | (2,157,673 | ) | $ | — | (d) | ||||||||||||||
| Accumulated other comprehensive loss | — | (26,744 | ) | — | (26,744 | ||||||||||||||||
| Accumulated deficit | (3,433,297 | ) | (1,011,811 | ) | (14,864,579 | ) | (19,309,687) | (d) | |||||||||||||
| Total stockholders' equity | (333,915 | ) | (1,038,446 | ) | (0 | ) | (1,372,361) | ||||||||||||||
| Total liabilities and stockholders' equity | $ | 278,499 | $ | 699,668 | $ | (249,786 | ) | $ | 728,381 | ||||||||||||
Notes to the Condensed Pro Forma Combined Balance Sheet
The following pro forma adjustments result from accounting for the Merger. The descriptions related to these preliminary adjustments are as follows:
| (a) | Elimination of intercompany balances. | |
| (b) | To reflect issuance of 1 share of SimplePons, Inc.’s Series B Preferred Stock. | |
| (c) | Effect of 1,702,235,971 Exchangeable shares after taking into effect common stock of Simplepons, Inc. | |
| (d) | Adjustment of additional paid in capital of Simplepons, Inc. and 1,702,235,971 exchangeable shares with the accumulated deficit of Simplepons, Inc. |