Attached files
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| 8-K/A - FORM 8-K - AUTRIS | aut0520148ka.htm |
BIG SKY PRODUCTIONS, INC AND NITRO HEAT, LLC
NOTES TO UNAUDITED PROFORMA FINANCIAL STATEMENTS
1. BASIS OF PRESENTATION FOR PRO-FORMA FINANCIAL STATEMENTS
On October 1, 2013, Big Sky Productions, Inc., a Nevada Corporation, (“BGSI”) acquired 100% of the membership interests of Nitro Heat, LLC., a California Limited Liability Corporation, (“Nitro”) in exchange for a total of 20,000,000 restricted shares of BGSI’s common stock. The Company issued 20,000,000 shares upon closing of acquisition.
The unaudited pro forma financial statements have been developed from the audited records of BGSI for the year ended June 30, 2013 and the unaudited records of Nitro for the year ended June 30, 2013.
The unaudited pro forma financial statements for the three months ended September 30, 2013 was have been developed from the unaudited records of BGSI for the three months ended September 30, 2013 and the unaudited records of Nitro for the three months ended September 30, 2013.
The unaudited pro-forma condensed consolidated statement of operations is based upon the historical financial statements of BGSI and Nitro, after giving effect to the acquisition. The unaudited pro-forma condensed consolidated statement of operations is presented as if the acquisition had occurred at the beginning of the period.
2. PRO-FORMA ADJUSTMENTS
The pro-forma adjustments included in the unaudited condensed consolidated financial statements are as follows:
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(1)
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Net effect of the elimination of all of the assets, liabilities, equity, operations and retained earnings of BGSI.
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(2)
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Issuance of the 20,000,000 shares of BGSI in exchange for 100% of the membership interests in Nitro.
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| BIG SKY PRODUCTIONS, INC. | ||||||||||||||||
| NITRO HEAT, LLC | ||||||||||||||||
| UNAUDITED PRO FORMA COMBINED BALANCE SHEET | ||||||||||||||||
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Big Sky
Productions,
Inc.
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Nitro Heat,
LLC
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Pro Forma
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Pro Forma
Big Sky
Productions, |
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June 30, 2013
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December 31, 2012
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Adjustments
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Inc.
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ASSETS
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Current assets:
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Cash
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$‐
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$ | 2,084 |
$‐
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$ | 2,084 | ||||||||||
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Accounts receivable
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‐
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‐
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‐
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‐
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||||||||||||
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Inventory
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‐
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14,738 |
‐
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14,738 | ||||||||||||
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Total current assets
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‐
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16,822 |
‐
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16,822 | ||||||||||||
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Equipment, net of accumulated depreciation
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463 | 23,732 | (463 | )(1) | 23,732 | |||||||||||
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Total assets
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$ | 463 | $ | 40,554 | $ | (463 | ) | $ | 40,554 | |||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||||||||||
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Current liabilities:
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||||||||||||||||
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Bank overdraft
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$ | 120 | $ | 4,356 | $ | (120 | )(1) | $ | 4,356 | |||||||
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Accounts payable and accrued liabilities
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44,823 |
‐
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(44,823 | )(1) |
‐
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|||||||||||
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Notes payable, related party, net of discount of $913
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12,432 |
‐
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(12,432 | )(1) |
‐
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|||||||||||
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Total current liabilities
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57,375 | 4,356 | (57,375 | ) | 4,356 | |||||||||||
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Stockholders' equity:
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Common stock, $0.001 par value; 75,000,000 shares authorized; 32,063,381 issued and outstanding
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12,063 | 4,074 | 15,926 | (1) | 32,063 | |||||||||||
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Additional paid in capital
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83,413 |
‐
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(111,402 | )(1)(2) | (27,989 | ) | ||||||||||
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Accumulated deficit
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(152,388 | ) | 32,124 | 152,388 | (1) | 32,124 | ||||||||||
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Total stockholders' equity
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(56,912 | ) | 36,198 | 56,912 | 36,198 | |||||||||||
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Total liabilities and stockholders' equity
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$ | 463 | $ | 40,554 | $ | (463 | ) | $ | 40,554 | |||||||
BIG SKY PRODUCTIONS, INC.
NITRO HEAT, LLC
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
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Big Sky
Productions, Nitro Heat,
Inc.
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Nitro Heat,
LLC
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For the year ended
June 30, 2013
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For the year ended
June 30, 2013
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Pro‐Forma
Adjustments
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Pro‐Forma
Consolidated
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Revenue
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$ | 12,213 | $ | 652,809 | $ | (12,213 | )(1) | $ | 652,809 | |||||||
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Cost of sales
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6,883 | 340,037 | (6,883 | )(1) | 340,037 | |||||||||||
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Gross profit
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5,330 | 312,772 | (5,330 | ) | 312,772 | |||||||||||
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Operating expenses:
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Depreciation and amortization
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5,016 | 2,603 | (5,016 | )(1) | 2,603 | |||||||||||
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Promotional and marketing
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‐
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5,419 |
‐
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5,419 | ||||||||||||
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Consulting
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‐
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‐
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‐
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‐
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Share based compensation
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‐
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‐
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‐
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‐
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Software and internet costs
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‐
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‐
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‐
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‐
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Salaries, wages and benefits
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‐
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‐
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‐
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‐
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Professional fees
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3,290 | 3,798 | (3,290 | )(1) | 3,798 | |||||||||||
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Travel
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‐
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28,516 |
‐
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28,516 | ||||||||||||
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Research and development
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‐
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82,990 |
‐
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82,990 | ||||||||||||
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General and administrative expenses
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2,544 | (2,534 | ) | (2,544 | )(1) | (2,534 | ) | |||||||||
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Total expenses
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10,850 | 120,792 | (10,850 | ) | 120,792 | |||||||||||
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Net operating (loss)
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(5,520 | ) | 191,980 | 5,520 | 191,980 | |||||||||||
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Other expense:
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Interest income
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‐
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20 |
‐
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20 | ||||||||||||
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Other income
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500 |
‐
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(500 | )(1) |
‐
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Interest expense
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(833 | ) |
‐
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833 | (1) |
‐
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Total other expense
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(333 | ) | 20 | 333 | 20 | |||||||||||
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Net (loss) before provision for income tax
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(5,853 | ) | 192,000 | 5,853 | 192,000 | |||||||||||
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Provision for income taxes
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‐
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‐
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‐
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‐
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Net (loss)
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$ | (5,853 | ) | $ | 192,000 | $ | 5,853 | $ | 192,000 | |||||||
| BIG SKY PRODUCTIONS, INC. | ||||||||||||||||||
| NITRO HEAT, LLC | ||||||||||||||||||
| UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS | ||||||||||||||||||
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Big Sky
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Productions,
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Nitro Heat,
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Inc.
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LLC
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For the three months ended
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For the three months ended
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Pro‐Forma
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Pro‐Forma
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|||||||||||||||
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September 30, 2013
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September 30, 2013
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Adjustments
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Consolidated
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Revenue
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$ |
‐
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$ | 392,589 | $ |
‐
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$ | 392,589 | ||||||||||
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Cost of sales
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‐
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236,549 |
‐
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236,549 | ||||||||||||||
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Gross profit
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‐
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156,040 |
‐
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156,040 | ||||||||||||||
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Operating expenses:
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Depreciation and amortization
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256 | 1,517 | (256 | )(1) | 1,517 | |||||||||||||
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Promotional and marketing
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‐
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3,698 |
‐
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3,698 | ||||||||||||||
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Consulting
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‐
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‐
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‐
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‐
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||||||||||||||
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Share based compensation
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‐
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‐
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‐
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‐
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Software and internet costs
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‐
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‐
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‐
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‐
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Salaries, wages and benefits
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‐
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‐
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‐
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‐
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Professional fees
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25,432 | 13,353 | (25,432 | )(1) | 13,353 | |||||||||||||
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Travel
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‐
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26,242 |
‐
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26,242 | ||||||||||||||
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Research and development
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‐
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30,034 |
‐
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30,034 | ||||||||||||||
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General and administrative expenses
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3,292 | 53,911 | (3,292 | )(1) | 53,911 | |||||||||||||
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Total expenses
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28,980 | 128,755 | (28,980 | ) | 128,755 | |||||||||||||
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Net operating (loss)
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(28,980 | ) | 27,285 | 28,980 | 27,285 | |||||||||||||
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Other expense:
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Interest income
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‐
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14 |
‐
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14 | ||||||||||||||
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Other income
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788 |
‐
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(788 | )(1) |
‐
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Interest expense
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(115 | ) |
‐
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115 | (1) |
‐
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Total other expense
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673 | 14 | (673 | ) | 14 | |||||||||||||
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Net (loss) before provision for income tax
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(28,307 | ) | 27,299 | 28,307 | 27,299 | |||||||||||||
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Provision for income taxes
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‐
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‐
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‐
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‐
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Net (loss)
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$ | (28,307 | ) | $ | 27,299 | $ | 28,307 | $ | 27,299 | |||||||||