Attached files
| file | filename |
|---|---|
| 8-K/A - ENDEAVOR IP, INC. | q1101192_8ka-endeavorip.htm |
| EX-99.2 - ENDEAVOR IP, INC. | q1101192_ex99-2.htm |
| EX-99.1 - ENDEAVOR IP, INC. | q1101192_ex99-1.htm |
Endeavor IP, Inc.
Pro Forma Combined Financial Information
(Unaudited)
CONTENTS
Page(s)
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Unaudited Pro Forma Combined Balance Sheet – April 30, 2013
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2
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Unaudited Pro Forma Combined Statement of Operations and Comprehensive Loss
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April 30, 2013
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3
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Unaudited Pro Forma Combined Statement of Operations and Comprehensive Loss
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October 31, 2012
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4
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Notes to Unaudited Pro Forma Combined Financial Information
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5 - 6
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1
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Endeavor IP, Inc.
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Unaudited Pro Forma Combined Balance Sheet
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April 30, 2013
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April 30, 2013
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Endeavor IP, Inc.
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Mesh Comm, LLC
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Pro Forma
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Pro Forma
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(Acquiror)
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(Acquiree)
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Adjustments
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Combined
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Assets
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Current Assets
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Cash
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$ | 3,950 | $ | - | (1 | ) | $ | 1,500,000 | $ | 703,950 | |||||||||
| (2 | ) | (800,000 | ) | ||||||||||||||||
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Other assets
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1,011 | - | - | 1,011 | |||||||||||||||
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Total Current Assets
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4,961 | - | 700,000 | 704,961 | |||||||||||||||
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Goodwill
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(2 | ) | 800,000 | 800,000 | |||||||||||||||
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Total Assets
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$ | 4,961 | $ | - | $ | 1,500,000 | $ | 1,504,961 | |||||||||||
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Liabilities and Stockholders' Deficit
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Current Liabilities:
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Accounts payable
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$ | 57,536 | $ | - | $ | - | $ | 57,536 | |||||||||||
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Notes payable
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400,000 | - | (2 | ) | 1,500,000 | 1,900,000 | |||||||||||||
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Accrued compensation - officers
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877 | - | - | 877 | |||||||||||||||
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Accrued interest
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60,271 | - | - | 60,271 | |||||||||||||||
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Total Current Liabilities
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518,684 | - | 1,500,000 | 2,018,684 | |||||||||||||||
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Stockholders' Deficit
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Preferred stock, $0.0001 par value; 25,000,000 shares authorized,
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none issued and outstanding
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- | - | - | - | |||||||||||||||
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Common stock, $0.0001 par value; 200,000,000 shares authorized,
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9,000,000 shares issued and outstanding
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900 | - | - | 900 | |||||||||||||||
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Additional paid-in capital
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72,062 | - | - | 72,062 | |||||||||||||||
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Accumulated deficit
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(590,759 | ) | - | - | (590,759 | ) | |||||||||||||
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Accumulated other comprehensive income
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4,074 | - | - | 4,074 | |||||||||||||||
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Total Stockholders' Deficit
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(513,723 | ) | - | - | (513,723 | ) | |||||||||||||
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Total Liabilities and Stockholders' Deficit
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$ | 4,961 | $ | - | $ | 1,500,000 | $ | 1,504,961 | |||||||||||
See accompanying notes to unaudited pro forma combined financial statements
2
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Endeavor IP, Inc.
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Unaudited Pro Forma Combined Statement of Operations and Comprehensive Loss
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April 30, 2013
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April 30, 2013
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Endeavor IP, Inc.
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Mesh Comm, LLC
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Pro Forma
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Pro Forma
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(Acquiror)
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(Acquiree)
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Adjustments
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Combined
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Net Revenues
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$ | - | $ | - | $ | - | $ | - | ||||||||
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General and Administrative Expenses
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159,687 | 1,805 | - | 161,492 | ||||||||||||
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Loss from Operations
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(159,687 | ) | (1,805 | ) | - | (161,492 | ) | |||||||||
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Other Expense
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Interest expense
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35,899 | - | - | 35,899 | ||||||||||||
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Foreign currency transaction loss
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9,371 | - | - | 9,371 | ||||||||||||
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Total Other Expense
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45,270 | - | - | 45,270 | ||||||||||||
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Net Loss
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$ | (204,957 | ) | $ | (1,805 | ) | $ | - | $ | (206,762 | ) | |||||
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Other Comprehensive Income (Loss)
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Foreign currency translation gain
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6,792 | - | - | 6,792 | ||||||||||||
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Total Comprehensive Income (Loss)
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(198,165 | ) | (1,805 | ) | - | (199,970 | ) | |||||||||
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Net Loss Per Common Share - Basic and Diluted
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$ | (0.02 | ) | $ | - | $ | - | $ | (0.02 | ) | ||||||
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Weighted average number of common shares outstanding
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during the period - basic and diluted
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9,000,000 | - | - | 9,000,000 | ||||||||||||
See accompanying notes to unaudited pro forma combined financial statements
3
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Endeavor IP, Inc.
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Unaudited Pro Forma Combined Statement of Operations and Comprehensive Loss
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October 31, 2012
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October 31, 2012
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Endeavor IP, Inc.
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Mesh Comm, LLC
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Pro Forma
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Pro Forma
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(Acquiror)
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(Acquiree)
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Adjustments
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Combined
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Net Revenues
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$ | 23,500 | $ | - | $ | - | $ | 23,500 | ||||||||
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General and Administrative Expenses
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308,696 | 11,128 | - | 319,824 | ||||||||||||
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Loss from Operations
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(285,196 | ) | (11,128 | ) | - | (296,324 | ) | |||||||||
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Other Expense
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Interest expense
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24,373 | - | - | 24,373 | ||||||||||||
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Foreign currency transaction loss
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1,343 | - | - | 1,343 | ||||||||||||
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Total Other Expense
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25,716 | - | - | 25,716 | ||||||||||||
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Net Loss from Continuing Operations
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(310,912 | ) | (11,128 | ) | - | (322,040 | ) | |||||||||
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Discontinued Operations
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Loss from operation of discontinued operations, net of tax
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(16,364 | ) | - | - | (16,364 | ) | ||||||||||
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Gain on disposal of discontinued operations, net of tax
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2,508 | - | - | 2,508 | ||||||||||||
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Loss from Discontinued Operations
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(13,856 | ) | - | - | (13,856 | ) | ||||||||||
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Net Loss
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$ | (324,768 | ) | $ | - | $ | - | $ | (324,768 | ) | ||||||
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Other Comprehensive Income (Loss)
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Foreign currency translation loss
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(2,718 | ) | - | - | (2,718 | ) | ||||||||||
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Total Comprehensive Income (Loss)
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(327,486 | ) | - | - | (327,486 | ) | ||||||||||
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Net Loss Per Common Share - Basic and Diluted
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Continuing operations
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$ | (0.03 | ) | $ | - | $ | - | $ | (0.03 | ) | ||||||
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Discontinued operations
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$ | (0.01 | ) | $ | - | $ | - | $ | (0.01 | ) | ||||||
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Total net loss per common share
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$ | (0.04 | ) | $ | - | $ | - | $ | (0.04 | ) | ||||||
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Weighted average number of common shares outstanding
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during the period - basic and diluted
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9,000,000 | - | - | 9,000,000 | ||||||||||||
See accompanying notes to unaudited pro forma combined financial statements
4
Endeavor IP, Inc.
Notes to Unaudited Pro Forma Combined Financial Information
Notes to Unaudited Pro Forma Combined Financial Information
The following unaudited pro forma combined financial information is presented to illustrate the estimated effects of our acquisition of Mesh Comm, LLC (“Mesh Comm”).
On May 13, 2013, Endeavor IP, Inc. (“Endeavor”) (“the Company”), through its wholly owned subsidiary IP Acquisition Sub I, Inc. purchased certain intellectual property rights from Mesh Comm, LLC (“Mesh”) under the terms of a patent purchase agreement.
Under the terms of the asset purchase, in exchange for $800,000 and a 20% royalty on future net revenues associated with enforcement activities, Endeavor acquired from Mesh two U.S. patents and one pending patent application relating to wireless communication networks, as well as all right, title and interest in all related causes of actions and other enforcement rights under or on account of any of such acquired patents. Endeavor assumed all obligations of Mesh under that certain license agreement between Mesh and a third party licensor. Endeavor will now include these assets in its financial statements from the date of acquisition going forward.
The acquisition of assets, deemed to be a business, resulted in a business combination under ASC No. 805 “Business Combinations”, and the recording of goodwill.
The Unaudited Pro Forma Combined Financial Information has been prepared using the acquisition method of accounting for the acquisition of Mesh’s intellectual property.
The Company derived historical financial data for the six months ended April 30, 2013 from its unaudited financial statements file on Form 10Q as well as the historical financial data for the year ended October 31, 2012 filed on Form 10K.
The unaudited pro forma combined balance sheet is prepared as though the transactions occurred at the close of business on April 30, 2013. The pro forma combined statement of operations gives effect to the transactions as though they occurred on November 1, 2011.
The information presented in the unaudited pro forma combined financial information does not purport to represent what our financial position would have been had the transaction occurred as of the dates indicated, nor is it indicative of our future financial position for any period. You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been consolidated or the future results that the consolidated company will experience after the transaction.
The pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances. The unaudited pro forma combined financial information should be read in conjunction with the historical financial statements and related notes of the Company.
5
Endeavor IP, Inc.
Notes to Unaudited Pro Forma Combined Financial Information
Notes to Unaudited Pro Forma Combined Financial Information
Unaudited pro forma adjustments reflect the following transaction
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1)
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Cash
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1,500,000
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Note payable
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1,500,000
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This adjustment reflects debt raised by the Company in advance of executing the asset purchase with Mesh.
2)
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Goodwill
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800,000
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Cash
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800,000
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This adjustment reflects the effect of applying acquisition accounting for the acquisition of Mesh’s intellectual property.
6