Blue Earth, Inc. - FORM 8-K/A - EX-99.4 - PRO FORMA FINANCIAL INFORMATION

Attached files

file	filename
EX-99.2 - INTERIM FINANCIAL STATEMENTS - Blue Earth, Inc.	bblu_ex992.htm
EX-99.3 - INTERIM FINANCIAL STATEMENTS - Blue Earth, Inc.	bblu_ex993.htm
EX-99.1 - FINANCIAL STATEMENTS - Blue Earth, Inc.	bblu_ex991.htm
8-K/A - CURRENT REPORT - Blue Earth, Inc.	bblu_8ka.htm

EXHIBIT 99.4


BLUE EARTH, INC.
Pro forma Consolidated Balance Sheet
June 30, 2013

							Global
			Blue Earth, Inc.		IPS		Renewable							Adjusted
			and		Power		Energy		Combined		Pro Forma			Pro Forma
			Subsidiaries		Engineering, Inc.		Group, Inc.		Totals		Adjustments		REF	Totals
ASSETS
CURRENT ASSETS
	Cash		$	3,813,318	$	2,733	$	221	$	3,816,272	$	-		$	3,816,272
	Accounts receivable, net			2,099,398		2,500		-		2,101,898		-			2,101,898
	Inventory			241,879		-		-		241,879		-			241,879
	Construction in progress			2,315,730						2,315,730		-			2,315,730
	Costs in excess of billings			2,400,407		-		-		2,400,407		-			2,400,407
	Other current assets			535,235		-		-		535,235		-			535,235
		Total Current Assets		11,405,967		5,233		221		11,411,421		-			11,411,421
PROPERTY AND EQUIPMENT, net				829,849		3,725		-		833,574		-			833,574
OTHER ASSETS
	Deposits			57,408		665		-		58,073		-			58,073
	Construction in progress											44,498,698	[3,4]		44,498,698
	Contracts and franchise, net			7,090,939		-		-		7,090,939		-			7,090,939
		Total Other Assets		7,148,347		665		-		7,149,012		44,498,698			51,647,710
		TOTAL ASSETS	$	19,384,163	$	9,623	$	221	$	19,394,007	$	44,498,698		$	63,892,705
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
	Accounts payable and accrued expenses		$	927,214	$	17,118	$	-	$	944,332	$	-		$	944,332
	Billings in excess of revenues			544,002		-		-		544,002		-			544,002
	Loans and notes payable			25,795		-		-		25,795		-			25,795
	Related party payables			1,564,125		6,424		-		1,570,549		-			1,570,549
	Other current liabilities			1,396,695		-		-		1,396,695		-			1,396,695
		Total Current Liabilities		4,457,831		23,542		-		4,481,373		-			4,481,373
		TOTAL LIABILITIES		4,457,831		23,542		-		4,481,373		-			4,481,373
STOCKHOLDERS' EQUITY (DEFICIT)
	Preferred stock			1,236		-		-		1,236		-			1,236
	Common stock			25,339		1,090,375		4,000		1,119,714		(1,090,375)	[1]		40,839
												(4,000)	[2]		-
												15,500	[3]		-
	Additional paid-in capital			56,852,907		-		12,928		56,865,835		1,090,375	[1]		101,322,407
												4,000	[2]		-
				-		-		-		-		44,469,500	[3]		-
												(1,107,303)	[4]
	Stock subscription receivable			(11,300)		-		-		(11,300)		-			(11,300)
	Retained earnings (deficit)			(41,941,850)		(1,104,294)		(16,707)		(43,062,851)		1,104,294	[4]		(41,941,850)
												16,707	[4]
		Total Stockholders' Equity (Deficit)		14,926,332		(13,919)		221		14,912,634		44,498,698			59,411,332
		TOTAL LIABILITIES AND
		STOCKHOLDERS' EQUITY (DEFICIT)	$	19,384,163	$	9,623	$	221	$	19,394,007	$	44,498,698		$	63,892,705


BLUE EARTH, INC.
Pro forma Consolidated Statements of Operations
For the Six Months Ended June 30, 2013

							Global							Pro-Forma
			Blue Earth, Inc.		IPS		Renewable							Adjusted
			and		Power		Energy		Combined		Pro Forma			Combined
			Subsidiaries		Engineering, Inc.		Group, Inc.		Totals		Adjustments		REF	Totals
REVENUES			$	6,078,040	$	2,500	$	-	$	6,080,540	$	-		$	6,080,540
COST OF SALES				4,276,804		-		-		4,276,804		-			4,276,804

GROSS PROFIT				1,801,236		2,500		-		1,803,736		-			1,803,736

OPERATING EXPENSES

	General and administrative			8,159,395		400,000		16,707		8,576,102		-			8,576,102
	Depreciation and amortization expense			1,198,682		5,194		-		1,203,876		-			1,203,876

		Total Costs and Expenses		9,358,077		405,194		16,707		9,779,978		-			9,779,978

		OPERATING LOSS		(7,556,841)		(402,694)		(16,707)		(7,976,242)		-			(7,976,242)

OTHER INCOME (EXPENSE)

	Gain on derivative valuation			-		-		-		-		-			-
	Other income			637,097		-		-		637,097		-			637,097
	Other expense			(297,816)		-		-		(297,816)		-			(297,816)

		Total Other Income (Expense)		339,281		-		-		339,281		-			339,281

		LOSS BEFORE INCOME TAXES		(7,217,560)		(402,694)		(16,707)		(7,636,961)		-			(7,636,961)
		PROVISION FOR INCOME TAXES		-		-		-		-		-			-

NET LOSS				(7,217,560)		(402,694)		(16,707)		(7,636,961)		-			(7,636,961)

		PREFERRED DIVIDENDS		(658,341)		-		-		(658,341)		-			(658,341)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS			$	(7,875,901)	$	(402,694)	$	(16,707)	$	(8,295,302)	$	-		$	(8,295,302)


BLUE EARTH, INC.
Pro forma Consolidated Balance Sheet
December 31, 2012
								Global
						IPS		Renewable							Adjusted
				Blue		Power		Energy		Combined		Pro Forma			Pro Forma
				Earth, Inc.		Engineering, Inc.		Group, Inc.		Totals		Adjustments		REF	Totals
ASSETS
CURRENT ASSETS
	Cash			$	659,009	$	-	$	-	$	659,009	$	-		$	659,009
	Accounts receivable, net				1,749,827		23,625		-		1,773,452		-			1,773,452
	Costs in excess of billings				1,724,543		-		-		1,724,543		-			1,724,543
	Inventory				221,548		-		-		221,548		-			221,548
	Construction in progress				706,043						706,043		-			706,043
	Other current assets				921,917		-		-		921,917		-			921,917
		Total Current Assets			5,982,887		23,625		-		6,006,512		-			6,006,512
PROPERTY AND EQUIPMENT, net					661,156		-		-		661,156		-			661,156
OTHER ASSETS
	Deposits				52,408		665		-		53,073		-			53,073
	Construction in progress												44,491,225	[3,4]		44,491,225
	Contracts and franchise, net				8,250,495		-		-		8,250,495					8,250,495
		Total Other Assets			8,302,903		665		-		8,303,568		44,491,225			52,794,793
		TOTAL ASSETS		$	14,946,946	$	24,290	$	-	$	14,971,236	$	44,491,225		$	59,462,461
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES
	Accounts payable and accrued expenses		$		2,088,459	$	30,515	$	-	$	2,118,974	$	-		$	2,118,974
	Billings in excess of revenues				674,971		-		-		674,971		-			674,971
	Loans and notes payable				503,386		-		-		503,386		-			503,386
	Related party payables				1,976,995		-		-		1,976,995		-			1,976,995
	Other current liabilities				1,415,393		-		-		1,415,393		-			1,415,393
		Total Current Liabilities			6,659,204		30,515		-		6,689,719		-			6,689,719
		TOTAL LIABILITIES			6,659,204		30,515		-		6,689,719		-			6,689,719
STOCKHOLDERS' EQUITY (DEFICIT)
	Preferred stock				510		-		-		510		-			510
	Common stock				20,883		695,375		-		716,258		(695,375)	[1]		36,383
													-	[2]		-
													15,500	[3]
	Additional paid-in capital				42,332,298		-		-		42,332,298		695,375	[1]		86,801,798
													-	[2]
					-		-		-		-		44,469,500	[3]
													(695,375)	[4]
	Retained earnings (deficit)				(34,065,949)		(701,600)		-		(34,767,549)		701,600	[4]		(34,065,949)
		Total Stockholders' Equity (Deficit)			8,287,742		(6,225)		-		8,281,517		44,491,225			52,772,742
		TOTAL LIABILITIES AND
		STOCKHOLDERS' EQUITY (DEFICIT)	$		14,946,946	$	24,290	$	-	$	14,971,236	$	44,491,225		$	59,462,461


BLUE EARTH, INC.
Pro forma Consolidated Statements of Operations
For the Year Ended December 31, 2012

							Global							Pro-Forma
					IPS		Renewable							Adjusted
			Blue		Power		Energy		Combined		Pro Forma			Combined
			Earth, Inc.		Engineering Inc.		Group, Inc.		Totals		Adjustments		REF	Totals
REVENUES			$	9,966,073	$	23,625	$	-	$	9,989,698	$	-		$	9,989,698
COST OF SALES				6,383,645		-		-		6,383,645		-			6,383,645

GROSS PROFIT				3,582,428		23,625		-		3,606,053		-			3,606,053

OPERATING EXPENSES

	General and administrative			12,311,157		627,430		-		12,938,587		-			12,938,587
	Depreciation and amortization expense			2,541,961		-		-		2,541,961		-			2,541,961

		Total Costs and Expenses		14,853,118		627,430		-		15,480,548		-			15,480,548

		OPERATING LOSS		(11,270,690)		(603,805)		-		(11,874,495)		-			(11,874,495)

OTHER INCOME (EXPENSE)

	Gain on derivative valuation			2,037,325		-		-		2,037,325		-			2,037,325
	Other income			1		-		-		1		-			1
	Other expense			(373,770)		-		-		(373,770)		-			(373,770)

		Total Other Income (Expense)		1,663,556		-		-		1,663,556		-			1,663,556

		LOSS BEFORE INCOME TAXES		(9,607,134)		(603,805)		-		(10,210,939)		-			(10,210,939)
		PROVISION FOR INCOME TAXES		-		-		-		-		-			-

NET LOSS				(9,607,134)		(603,805)		-		(10,210,939)		-			(10,210,939)

		PREFERRED DIVIDENDS		(545,020)		-		-		(545,020)		-			(545,020)

NET LOSS ATTRIBUTABLE TO COMMON SHAREHOLDERS			$	(10,152,154)	$	(603,805)	$	-	$	(10,755,959)	$	-		$	(10,755,959)

Notes to Unaudited Pro Forma Consolidated Financial Statements

Effective July 15, 2013, IPS Acquisition Corp., “IPS”, a newly formed subsidiary of Blue Earth, Inc., entered into a merger agreement with IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc. wherein IPS purchased all of the issued and outstanding shares of IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.. for 15,500,000 shares of restricted common stock of Blue Earth, Inc. These shares were valued based on the quoted market price on the effective date of the transaction, at $2.87 per share, or $44,485,000. Blue Earth, Inc. also issued 50,000 shares of its common stock as a finder’s fee valued $1.18 which are included in the outstanding shares at June 30, 2013.

Immediately after the transaction, IPS ceased to exist and IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.. became the surviving corporations, wholly owned subsidiaries of Blue Earth, Inc.

The pro forma adjustments reflect the issuance of 15,500,000 shares of Blue Earth, Inc. common stock to shareholders of IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.. in exchange for all issued and outstanding shares of IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.. This entry also reflects the elimination of equity balances, including the common stock of IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc., retained earnings of both entities and the allocation of excess purchase price above the market value of the tangible assets acquired and liabilities assumed in the acquisition to construction in progress on the project contracts held by IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc. The cost of assets acquired will be capitalized and allocated to the several projects to be constructed rather than amortized.

The calculation of the $44,498,698 excess purchase price was calculated as shown in the table below.


Purchase Price	Shares	Price	Total
IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc.	15,500,000	$2.87	$	44,485,000

Total Purchase Price				44,485,000
Tangible Assets Acquired				(9,844)
Total Liabilities Assumed				23,542
Cost of Construction in Progress			$	44,498,698

The pro forma, consolidated balance sheets and statements of operations of Blue Earth, Inc. and IPS Power Engineering, Inc. and Global Renewable Energy Group, Inc. are presented here as of June 30, 2013 and December 31, 2012.

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