Attached files
| file | filename |
|---|---|
| EX-99.1 - AUDITED FINANCIAL STATEMENTS - GROW CAPITAL, INC. | exhibitninetyone.htm |
| 8-K/A - FANATIC FANS AMENDED 8-K FILED JUL 7, 2014 - GROW CAPITAL, INC. | calbamendedeightk.htm |
FANATIC FANS INC. and WCS ENTERPRISES, LLC
UNAUDITED CONDENSED COMBINED PROFORMA BALANCE SHEET
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ASSETS
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Historical
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WCS
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Pro forma
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Fanatic Fans Inc.
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Enterprises, LLC
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Pro forma
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Combined
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June 30, 2014
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June 30, 2014
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Adjustments
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June 30, 2014
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Current Assets
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Cash and cash equivalents
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$ | 76,774 | $ | 78,379 | $ | 155,153 | ||||||||||||||
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Lease receivable
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- | 950 | 950 | |||||||||||||||||
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Prepaid expenses
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- | 404 | 404 | |||||||||||||||||
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Total Current Assets
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76,774 | 79,733 | 156,507 | |||||||||||||||||
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Property and equipment, net
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350 | 1,201,500 | 1,201,850 | |||||||||||||||||
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Deposits
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818 | - | 818 | |||||||||||||||||
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Total Assets
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$ | 77,942 | $ | 1,281,233 | $ | 1,359,175 | ||||||||||||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
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Current Liabilities
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Related party notes payable
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250,000 | - | 250,000 | |||||||||||||||||
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Mortgages payable, current portion
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- | 29,841 | 29,841 | |||||||||||||||||
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Accounts payable - trade
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32,046 | 3,805 | 35,851 | |||||||||||||||||
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Accrued liabilities
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9,664 | 3,842 | 13,506 | |||||||||||||||||
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Total Current Liabilities
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291,710 | 37,488 | 329,198 | |||||||||||||||||
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Mortgages payable
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- | 997,948 | 997,948 | |||||||||||||||||
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Customer deposits
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- | 3,600 | 3,600 | |||||||||||||||||
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Deferred option revenue
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- | 3,900 | 3,900 | |||||||||||||||||
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Total Liabilities
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291,710 | 1,042,936 | 1,334,646 | |||||||||||||||||
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Stockholders’ Equity (Deficit)
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Preferred stock
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- | - | - | |||||||||||||||||
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Common stock
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20,026 | - | [A | ] | 20,410 | 40,436 | ||||||||||||||
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Members’ equity
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- | 1,161,121 | [B | ] | (1,161,121 | ) | - | |||||||||||||
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Additional paid-in capital
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11,725,286 | - | [A | ] | (20,410 | ) | 10,933,282 | |||||||||||||
| [B | ] | 1,161,121 | ||||||||||||||||||
| [C | ] | (11,959,080 | ) | |||||||||||||||||
| [D | ] | 10,026,365 | ||||||||||||||||||
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Accumulated deficit
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(11,959,080 | ) | (922,824 | ) | [C | ] | 11,959,080 | (10,949,189 | ) | |||||||||||
| [D | ] | (10,026,365 | ) | |||||||||||||||||
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Total Stockholders’ Equity (Deficit)
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(213,768 | ) | 238,297 | 24,529 | ||||||||||||||||
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Total Liabilities and Equity (Deficit)
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$ | 77,942 | $ | 1,281,233 | $ | 1,359,175 | ||||||||||||||
See Notes to Unaudited Condensed Combined Pro forma Financial Information
F-14
FANATIC FANS INC. and WCS ENTERPRISES, LLC
UNAUDITED CONDENSED COMBINED PROFORMA STATEMENT OF OPERATIONS
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Historical
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Fanatic Fans Inc.
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WCS Enterprises, LLC
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Pro forma
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For the Year Ended
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For the Period from
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Pro forma
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Combined for the
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June 30, 2014
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Inception to June 30, 2014
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Adjustments
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Year Ended June 30, 2014
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Rental revenues
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$ | - | $ | 11,750 | $ | - | $ | 11,750 | ||||||||||||
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Cost of revenues
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- | - | - | - | ||||||||||||||||
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Gross profit
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- | 11,750 | - | 11,750 | ||||||||||||||||
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Impairment of goodwill
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- | - | [D | ] | 10,026,365 | 10,026,365 | ||||||||||||||
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General and administrative expenses
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1,345,386 | 927,361 | - | 2,272,747 | ||||||||||||||||
| (1,345,386 | ) | (915,611 | ) | (10,026,365 | ) | (12,287,362 | ) | |||||||||||||
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Other Income (Expense):
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Gain on settlement of debt
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78,738 | - | - | 78,738 | ||||||||||||||||
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Interest expense
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(261,097 | ) | (7,213 | ) | - | (268,310 | ) | |||||||||||||
| (182,359 | ) | (7,213 | ) | - | (189,572 | ) | ||||||||||||||
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Loss from continued operations
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(1,527,745 | ) | (922,824 | ) | (10,026,365 | ) | (12,476,934 | ) | ||||||||||||
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Income from discontinued operations
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988,111 | - | [E | ] | (988,111 | ) | - | |||||||||||||
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Loss before income taxes
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(539,634 | ) | (922,824 | ) | (11,014,476 | ) | (12,476,934 | ) | ||||||||||||
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Income taxes
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- | - | - | - | ||||||||||||||||
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Net loss
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$ | (539,634 | ) | $ | (922,824 | ) | $ | (11,014,476 | ) | $ | (12,476,934 | ) | ||||||||
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Basic loss per share
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$ | (0.03 | ) | $ | (0.31 | ) | ||||||||||||||
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Pro forma number of shares outstanding
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20,025,710 | 40,435,710 | ||||||||||||||||||
See Notes to Unaudited Condensed Combined Pro forma Financial Information
F-15
FANATIC FANS INC. and WCS ENTERPRISES, LLC
NOTES TO UNAUDITED CONDENSED COMBINED FINANCIAL INFORMATION
Fanatic Fans Inc.
FFI (formerly known as Calibrus, Inc.) was incorporated on October 22, 1999, in the State of Nevada. Most recently, FFI made a decision to focus on its Social Networking operations which currently include Fanatic Fans, a mobile smartphone application centered around live sporting and entertainment events, and JabberMonkey, a social expression website centered around gathering public opinion on current events.
Pro Forma Adjustments (Unaudited)
[A] To record the acquisition of 100% of the ownership interest of WCS through the issuance of 20,410,000 shares of FFI’s common stock.
[B] To record the elimination of the Member’s equity of WCS on the date of acquisition.
[C] To record the elimination of the accumulated deficit of FFI prior to the date of the acquisition. The ownership interests of the former owners of WCS in the combined enterprise is greater than the ongoing shareholders of FFI and, accordingly, the management of WCS assumes operating control of the combined enterprise. Consequently, the acquisition is accounted for with the retroactive adjustment of WCS legal capital to the legal capital of FFI and the simultaneous WCS purchase and recording at fair value of the assets of FFI; thereby, recording the transaction as a “Reverse Acquisition” for accounting and financial reporting purposes.
[D] To record the impairment of goodwill generated as a result of the reverse acquisition of FFI. Goodwill was recorded as the excess of (i) the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition date fair value of any previous equity interest in the acquired over the (ii) fair value of the net identifiable assets acquired. We determined that goodwill was impaired and the impairment loss was the amount by which the carrying value of the assets exceeded fair value.
[E] To remove discontinued operations from the pro forma presentation as they are not expected to be recurring in the future continued operations of the combined entities.
Pro Forma Loss Per Share (Unaudited)
Shares issued and outstanding prior to acquisition 20,025,710
Shares issued in acquisition 20,410,000
Pro forma shares issued and outstanding (denominator) 40,435,710
F-16