Attached files
| file | filename |
|---|---|
| EX-99.1 - EXHIBIT 99.1 - Praxsyn Corp | ex99-1.htm |
| EXCEL - IDEA: XBRL DOCUMENT - Praxsyn Corp | Financial_Report.xls |
| 8-K/A - AMENDMENT TO FORM 8K - Praxsyn Corp | form8ka.htm |
TABLE OF CONTENT
| Unaudited Pro Forma Condensed Combined Balance Sheet of Praxsyn and PDC as of December 31, 2013 | 3 | |
| Unaudited Pro Forma Condensed Combined Statement of Operations of Praxsyn and PDC for the year ended December 31, 2013 | 4 | |
| Notes to Unaudited Pro Forma Condensed Combined Financial Statements | 5 |
| 1 |
The following unaudited pro forma condensed combined balance sheet reflects the balance sheet of Praxsyn Corporation (an Illinois corporation) as of December 31, 2013 and Pharmacy Development Corp. (a California corporation), accounting for the acquisition as a recapitalization of PDC wherein PDC acquired the net assets of Praxsyn through the issuance of stock and using the assumptions described in the following notes, giving effect to the transaction, as if it had occurred as of the beginning of the period. The transaction was completed on March 31, 2014.
The following unaudited pro forma condensed combined statement of operations reflects the results of operations of Praxsyn and PDC for the year ended December 31, 2013 as if the transaction had occurred at the beginning of the period.
The unaudited pro forma condensed combined financial statements should be read in conjunction with the separate consolidated financial statements and related notes thereto of Praxsyn and PDC. These unaudited pro forma financial statements are not necessarily indicative of the combined financial position, had the acquisition occurred on the date indicated above, or the combined results of operations which might have existed for the period indicated or the results of operations as they may be in the future.
| 2 |
Unaudited Pro Forma Condensed Combined Balance Sheet
Praxsyn and PDC
December 31, 2013
| Praxsyn | PDC | Combined Totals | Pro Forma Adjustments | Pro Forma Combined | |||||||||||||||||
| ASSETS | |||||||||||||||||||||
| Cash | $ | 1,272 | $ | 37,494 | $ | 38,766 | $ | 38,766 | |||||||||||||
| Accounts receivable, net of allowance | - | 4,548,210 | 4,548,210 | 4,548,210 | |||||||||||||||||
| Inventories | - | 13,441 | 13,441 | 13,441 | |||||||||||||||||
| Prepaid expenses & other current assets | 400 | 20,230 | 20,630 | 20,630 | |||||||||||||||||
| Other assets | - | 278,695 | 278,695 | 278,695 | |||||||||||||||||
| Property and equipment, net | 11,220 | 27,782 | 39,002 | 39,002 | |||||||||||||||||
| TOTAL ASSETS | $ | 12,892 | $ | 4,925,852 | $ | 4,938,744 | - | $ | 4,938,744 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||||||||||||
| Accounts and accrued expenses payable | $ | 2,139,618 | $ | 3,508,822 | $ | 5,648,440 | $ | 5,648,440 | |||||||||||||
| Notes payable | 587,014 | 6,046,258 | 6,633,272 | 6,633,272 | |||||||||||||||||
| Derivative liability | 492,781 | - | 492,781 | 492,781 | |||||||||||||||||
| Accounts and accrued expenses payable, discontinued operations | 865,565 | - | 865,565 | 865,565 | |||||||||||||||||
| Total Liabilities | 4,084,978 | 9,555,080 | 13,640,058 | - | 13,640,058 | ||||||||||||||||
| Series D convertible preferred stock | - | - | - | [A] | 18,482,682 | 18,482,682 | |||||||||||||||
| Series B convertible preferred stock | - | - | - | ||||||||||||||||||
| Series C convertible preferred stock | - | - | - | ||||||||||||||||||
| Series A preferred stock | - | 12,307,257 | 12,307,257 | [A] | (12,307,257 | ) | - | ||||||||||||||
| Common stock | - | 6,175,425 | 6,175,425 | [A] | (6,175,425 | ) | - | ||||||||||||||
| Additional paid-in capital | 16,162,323 | 17,141,689 | 33,304,012 | [B] | (14,797,384 | ) | 18,506,628 | ||||||||||||||
| Accumulated deficit | (13,918,140 | ) | (40,053,599 | ) | (53,971,739 | ) | [B] | 8,481,115 | (45,490,624 | ) | |||||||||||
| Deficit accum. during development stage | (6,316,269 | ) | - | (6,316,269 | ) | [B] | 6,316,269 | - | |||||||||||||
| Treasury Stock | - | (200,000 | ) | (200,000 | ) | - | (200,000 | ) | |||||||||||||
| Total Stockholders’ Deficit | (4,072,086 | ) | (4,629,228 | ) | (8,701,314 | ) | - | (8,701,314 | ) | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 12,892 | $ | 4,925,852 | $ | 4,938,744 | - | $ | 4,938,744 | ||||||||||||
See accompanying notes.
| 3 |
Unaudited Pro Forma Condensed Combined Statement of Operations
Praxsyn and PDC
For Year End December 31, 2013
| Praxsyn | PDC | Combined Totals | Pro Forma Adjustments | Pro Forma Combined | ||||||||||||||||
| Revenues | $ | - | $ | 6,988,536 | $ | 6,988,536 | $ | 6,988,536 | ||||||||||||
| Cost of sales | - | (694,180 | ) | (694,180 | ) | (694,180 | ) | |||||||||||||
| Gross Profit | - | 6,294,356 | 6,294,356 | - | 6,294,356 | |||||||||||||||
| General and administrative | 988,480 | 1,304,002 | 2,292,482 | 2,292,482 | ||||||||||||||||
| Selling and marketing | - | 1,790,841 | 1,790,841 | 1,790,841 | ||||||||||||||||
| Total Operating Expenses | 988,480 | 3,094,843 | 4,083,323 | - | 4,083,323 | |||||||||||||||
| Income (Loss) from Operations | (988,480 | ) | 3,199,513 | 2,211,033 | 2,211,033 | |||||||||||||||
| Interest expense | 223,471 | 2,390,931 | 2,614,402 | 2,614,402 | ||||||||||||||||
| Loan default fee | 45,250 | - | 45,250 | 45,250 | ||||||||||||||||
| Loss on settlement of debt | 2,214,611 | - | 2,214,611 | 2,214,611 | ||||||||||||||||
| Acquisition costs | 1,720,000 | - | 1,720,000 | 1,720,000 | ||||||||||||||||
| Other gain or loss, net | - | 38,359 | 38,359 | 38,359 | ||||||||||||||||
| Change in derivative | 244,413 | - | 244,413 | 244,413 | ||||||||||||||||
| Total Other Expense | 4,447,745 | 2,429,290 | 6,877,035 | - | 6,877,035 | |||||||||||||||
| Income (Loss) before Income Taxes | (5,436,225 | ) | 770,223 | (4,666,002 | ) | (4,666,002 | ) | |||||||||||||
| Provision for Income Taxes | (800 | ) | (540,162 | ) | (540,962 | ) | (540,962 | ) | ||||||||||||
| Net Income (Loss) | $ | (5,437,025 | ) | $ | 230,061 | $ | (5,206,964 | ) | - | $ | (5,206,964 | ) | ||||||||
| Net Income (Loss) Per Share - Basic | $ | (0.05 | ) | $ | (0.05 | ) | ||||||||||||||
| Weighted Average Number of shares outstanding - basic | 99,543,062 | 99,543,062 | ||||||||||||||||||
See accompanying notes.
| 4 |
Notes to Unaudited Pro Forma Condensed Combined Financial Statements
NOTE 1 – RECAPITALIZATION
On March 31, 2014, Praxsyn and PDC closed a transaction wherein Praxsyn acquired PDC through a forward triangular merger into the Company’s wholly owned subsidiary PDC, Inc. in exchange for five hundred thousand (500,000) shares of the Company’s Series D Convertible Preferred Stock. The transaction has been accounted for as a recapitalization of PDC wherein PDC acquired the net assets of Praxsyn through the issuance of stock.
NOTE 2 – PRO FORMA ADJUSTMENTS
Pro forma adjustments on the attached financial statements include the following:
[A] To reflect the recapitalization of PDC.
[B] To record the acquisition of the net assets of Praxsyn through the issuance of stock.
NOTE 3 – PRO FORMA INCOME (LOSS) PER SHARE
The pro forma income (loss) per share is computed based on the number of shares outstanding, after adjustment for shares issued in the transaction, as though all shares issued in the transaction had been outstanding from the beginning of the year presented.
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