Attached files
| file | filename |
|---|---|
| 8-K/A - HEVI FORM 8-K/A 08/29/13 - Heavy Earth Resources, Inc. | heviform8ka082913.htm |
Exhibit 99.4
HEAVY EARTH RESOURCES, INC.
(An Exploration Stage Company)
Pro Forma Balance Sheets
|
June 30,
2013
|
Adjustments
|
June 30,
2013
|
December 31,
2012
|
Adjustments
|
December 31,
2012
|
|||||||||||||||||||||
|
Assets
|
Historical
|
Pro Forma
|
Historical
|
Pro Forma
|
||||||||||||||||||||||
|
Current Assets
|
||||||||||||||||||||||||||
|
Cash and cash equivalents
|
$ | 1,434 | $ | (1,434 | ) | (1) | $ | - | $ | 178,136 | $ | (145 | ) | (1) | $ | 177,991 | ||||||||||
|
Restricted cash
|
444,316 | (444,316 | ) | (1) | - | 542,234 | (542,234 | ) | (1) | - | ||||||||||||||||
|
Short term investments
|
99,793 | (99,793 | ) | (1) | - | 103,211 | (103,211 | ) | (1) | - | ||||||||||||||||
|
Other receivables
|
900,863 | (898,913 | ) | (1) | 1,950 | 873,965 | (872,015 | ) | (1) | 1,950 | ||||||||||||||||
|
Inventory
|
45,420 | (45,420 | ) | (1) | - | 45,420 | (45,420 | ) | (1) | - | ||||||||||||||||
|
Total current assets
|
1,491,826 | (1,489,876 | ) | 1,950 | 1,742,966 | (1,563,025 | ) | 179,941 | ||||||||||||||||||
|
Oil and gas properties (full cost method)
|
||||||||||||||||||||||||||
|
Evaluated
|
11,197,464 | (11,197,464 | ) | (1) | - | 11,024,000 | (11,024,000 | ) | (1) | - | ||||||||||||||||
|
Participating interest in oil and gas contract
|
1,000,000 | (2) | 1,000,000 | 1,000,000 | (2) | 1,000,000 | ||||||||||||||||||||
|
Property, plant and equipment
|
||||||||||||||||||||||||||
|
Well machinery and equipment
|
234,453 | (234,453 | ) | (1) | - | 234,453 | (234,453 | ) | (1) | - | ||||||||||||||||
|
Furniture, fixtures and other
|
61,396 | (61,396 | ) | (1) | - | 61,396 | (61,396 | ) | (1) | - | ||||||||||||||||
|
Less: accumulated depletion, depreciation and amortization
|
(29,330 | ) | 29,330 | (1) | - | (27,078 | ) | 27,078 | (1) | - | ||||||||||||||||
|
Net oil and gas properties, plant and equipment
|
11,463,983 | (10,463,893 | ) | 1,000,000 | 11,292,771 | (10,292,771 | ) | 1,000,000 | ||||||||||||||||||
|
Total assets
|
$ | 12,955,809 | $ | (11,953,859 | ) | $ | 1,001,950 | $ | 13,035,737 | $ | (11,855,796 | ) | $ | 1,179,941 | ||||||||||||
|
Liabilities and Stockholders’ Equity
|
||||||||||||||||||||||||||
|
Current Liabilities:
|
||||||||||||||||||||||||||
|
Cash Overdraft
|
$ | 2,730 | $ | - | $ | 2,730 | $ | - | $ | - | $ | - | ||||||||||||||
|
Accounts payable and accrued liabilities
|
5,623,537 | (5,228,422 | ) | (1) | 395,115 | 6,456,722 | (5,951,329 | ) | (1) | 505,393 | ||||||||||||||||
|
Related party payables
|
128,041 | 128,041 | 59,470 | - | 59,470 | |||||||||||||||||||||
|
Total current liabilities
|
5,754,308 | (5,228,422 | ) | 525,886 | 6,516,192 | (5,951,329 | ) | 564,863 | ||||||||||||||||||
|
Convertible notes payable
|
2,500,000 | - | 2,500,000 | 1,500,000 | - | 1,500,000 | ||||||||||||||||||||
|
Total liabilities
|
8,254,308 | (5,228,422 | ) | 3,025,886 | 8,016,192 | (5,951,329 | ) | 2,064,863 | ||||||||||||||||||
|
Stockholders’ Equity:
|
||||||||||||||||||||||||||
|
Common stock, $0.001 par value 3,000,000 shares authorized,
71,038,253 and 70,509,331 shares issued and outstanding,
respectively
|
71,038 | - | 71,038 | 70,509 | - | 70,509 | ||||||||||||||||||||
|
Additional paid in capital
|
21,771,416 | - | 21,771,416 | 21,540,021 | - | 21,540,021 | ||||||||||||||||||||
|
Deficit accumulated during exploration stage
|
(15,677,548 | ) | (8,188,842 | ) | (23,866,390 | ) | (14,894,348 | ) | (7,601,104 | ) | (22,495,452 | ) | ||||||||||||||
|
Accumulated other comprehensive loss
|
(1,463,405 | ) | 1,463,405 | (1) | - | (1,696,637 | ) | 1,696,637 | (1) | - | ||||||||||||||||
|
Total stockholders’ equity (deficit)
|
4,701,501 | (6,725,437 | ) | (2,023,936 | ) | 5,019,545 | (5,904,467 | ) | (884,922 | ) | ||||||||||||||||
|
Total Liabilities and Stockholders’ Equity (Deficit)
|
$ | 12,955,809 | $ | (11,953,859 | ) | $ | 1,001,950 | $ | 13,035,737 | $ | (11,855,796 | ) | $ | 1,179,941 | ||||||||||||
|
The unaudited pro forma financial information gives effect to the following pro forma adjustments:
|
||||||||||||
|
(1) Sale of DEEP Core, Inc.
|
||||||||||||
|
(2) Participating interest in Morichito Block contract
|
||||||||||||
1
HEAVY EARTH RESOURCES, INC.
(At Exploration Stage)
Pro Forma Statements of Operations
|
Six Months Ended June 30,
|
Six Months Ended June 30,
|
Year Ended December 31,
|
Year Ended December 31,
|
|||||||||||||||||||||
|
2013
|
Adjustments
|
2013
|
2012
|
Adjustments
|
2012
|
|||||||||||||||||||
|
Historical
|
Pro Forma
|
Historical
|
Pro Forma
|
|||||||||||||||||||||
|
Oil and Gas Revenues
|
||||||||||||||||||||||||
|
Operating costs and expenses
|
||||||||||||||||||||||||
|
Exploration and lease operating costs
|
$ | 59,459 | (59,459 | ) | - | 107,584 | (107,584 | ) | - | |||||||||||||||
|
Depreciation and amortization
|
3,252 | (3,252 | ) | - | - | - | - | |||||||||||||||||
|
General and administrative
|
296,089 | - | 296,089 | 1,094,167 | - | 1,094,167 | ||||||||||||||||||
|
Legal and professional
|
288,652 | - | 288,652 | 1,248,406 | - | 1,248,406 | ||||||||||||||||||
|
Impairment of oil and gas properties
|
19,580 | (19,580 | ) | - | 5,239,268 | (5,239,268 | ) | - | ||||||||||||||||
|
Total operating expenses
|
667,032 | (82,291 | ) | 584,741 | 7,689,425 | (5,346,852 | ) | 2,342,573 | ||||||||||||||||
|
Loss from Operations
|
(667,032 | ) | 82,291 | (584,741 | ) | (7,689,425 | ) | 5,346,852 | (2,342,573 | ) | ||||||||||||||
|
Other Income (Expense)
|
||||||||||||||||||||||||
|
Loss on sale of DEEP Core, Inc.
|
- | (8,271,133 | ) | (8,271,133 | ) | - | (12,947,956 | ) | (12,947,956 | ) | ||||||||||||||
|
Late payment
|
(59,250 | ) | - | (59,250 | ) | - | - | - | ||||||||||||||||
|
Interest expense
|
(56,918 | ) | - | (56,918 | ) | (87,367 | ) | - | (87,367 | ) | ||||||||||||||
|
Interest expense, beneficial conversion feature
|
- | - | - | (1,500,000 | ) | - | (1,500,000 | ) | ||||||||||||||||
|
Foreign currency gain (loss)
|
- | - | - | 729,817 | - | 729,817 | ||||||||||||||||||
|
Other
|
- | - | - | 89,560 | - | 89,560 | ||||||||||||||||||
|
Total other income (expense)
|
(116,168 | ) | (8,271,133 | ) | (8,387,301 | ) | (767,990 | ) | (12,947,956 | ) | (13,715,946 | ) | ||||||||||||
|
Net Loss Before Income Taxes
|
(783,200 | ) | (8,188,842 | ) | (8,972,042 | ) | (8,457,415 | ) | (7,601,104 | ) | (16,058,519 | ) | ||||||||||||
|
Loss from Discontinued Operations, net of income taxes
|
- | - | - | - | - | - | ||||||||||||||||||
|
Net Loss
|
$ | (783,200 | ) | $ | (8,188,842 | ) | $ | (8,972,042 | ) | $ | (8,457,415 | ) | $ | (7,601,104 | ) | $ | (16,058,519 | ) | ||||||
2