Attached files
| file | filename |
|---|---|
| 8-K/A - LATITUDE 360, INC. - LATITUDE 360, INC. | l3608ka111414.htm |
| EX-99.1 - AUDITED FINANCIALS STATEMENTS - LATITUDE 360, INC. | ex99one.htm |
Exhibit 99.2
Unaudited Pro Forma Combined Financial Information
The following unaudited pro forma combined financial information of Latitude 360, Inc. (formerly Kingdom Koncrete) (“The Company”) and Latitude Global, Inc. (“L360”) has been prepared by applying pro forma adjustments to the Company’s historical financial statements appearing in Exhibit 99.1 in this Current Report on Form 8-K/A and to the Company historical financial statements appearing in our Annual Report on Form 10-K for the years ended December 31, 2013 and 2012, previously filed with the Securities and Exchange Commission. The unaudited pro forma combined balance Sheets of L360 and the Company give effect to the Agreement and Plan of Merger (the Merger) as if it occurred on January 1, 2012.
The unaudited pro forma combined financial information does not purport to represent what r the Company’s financial condition or results of operations would have been had the Merger actually occurred on the dates indicated, nor do they purport to project the Company's financial condition or results of operations as of any future date or for any future period. The unaudited pro forma combined financial information should be read in conjunction with the information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013, the audited financial statements of Global as included in Exhibit 99.1 of this Current Report on Form 8-K/A, and the assumptions underlying the pro forma adjustments as described in the accompanying notes.
The Merger will be accounted for in accordance with ASC 805, Business Combinations. The pro forma information presented is based on preliminary estimates, available information and certain assumptions. The unaudited pro forma combined income statements do not reflect any non-recurring charges or gains that we have recorded or may record in connection with the Merger. However, these non-recurring items have been reflected in the audited consolidated statements of income of L360 and the Company included in the Annual Report on Form 10-K for the year ended December 31, 2013.
The final purchase price allocation is dependent on, among other things, the finalization of asset and liability valuations. As of the date of this filing, we have not completed the valuation studies necessary to finalize the estimates of the fair values of the assets we acquired and liabilities we assumed and the related allocation of purchase price. We have allocated the total estimated purchase price based on preliminary estimates of their fair values as described in Note i of the unaudited pro forma combined balance sheets. Any final adjustment will change the allocations of purchase price, which could affect the fair value assigned to the assets and liabilities and could result in a change to the unaudited pro forma combined financial information, including a change to the amortization of tangible and identifiable intangible assets.
| 1 |
| Latitude 360, Inc | |||||||||
| (Formerly Kingdom Konkrete, Inc.) | |||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||
| Historical | |||||||||
| May 30, 2014 | Unaudited | ||||||||
| Pro forma | |||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | May 30, 2014 | ||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash | 6,320 | $ | 11,964 | $ | - | $ | 18,284 | ||
| Accounts receivable | - | 445,887 | - | 445,887 | |||||
| Other receivables | - | 2,013,196 | - | 2,013,196 | |||||
| Inventories | 2,000 | 277,333 | - | 279,333 | |||||
| Prepaid expenses | - | 18,702 | - | 18,702 | |||||
| Total current assets | 8,320 | 2,767,082 | - | 2,775,402 | |||||
| Property and equipment - net | 7,807 | 48,343,744 | - | 48,351,551 | |||||
| Idle Property and equipment - net | - | 2,010,083 | - | ||||||
| Resticted cash | - | 320,461 | - | ||||||
| Other assets | - | 586,812 | - | ||||||
| Assets of discontiued operations | - | - | - | - | |||||
| 7,807 | 51,261,100 | - | 48,351,551 | ||||||
| Total assets | $ | 16,127 | $ | 54,028,182 | $ | - | $ | 51,126,953 | |
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | - | $ | 12,540,311 | $ | - | $ | 12,540,311 | ||
| Accounts payable - construction related | - | - | - | - | |||||
| Accrued expenses | 2,866 | 3,305,827 | - | 3,308,693 | |||||
| Accrued compensation - related party | - | 1,621,437 | - | 1,621,437 | |||||
| Deferred rent | - | 19,700 | - | 19,700 | |||||
| Interest payable | 0 | 1,783,640 | - | 1,783,640 | |||||
| Obligations under capital leases | - | 2,784,115 | - | 2,784,115 | |||||
| Due to related parties | 67,374 | 84,935 | - | 152,309 | |||||
| Short term notes payable | - | 2,828,984 | - | 2,828,984 | |||||
| Total current liabilities | 70,240 | 24,968,949 | - | 25,039,189 | |||||
| Deferred rent | - | 243,360 | - | 243,360 | |||||
| Notes payable, net | - | 18,551,902 | - | 18,551,902 | |||||
| Obligations under capital leases | - | 20,215,641 | - | 20,215,641 | |||||
| Dividends payable | - | 2,669,742 | - | 2,669,742 | |||||
| - | 41,680,645 | - | 41,680,645 | ||||||
| Total liabilties | |||||||||
| Stockholders' equity: | |||||||||
| Series A Preferred Stock | - | 31,116,024 | - | 31,116,024 | |||||
| Common Stock | 24,554 | 42,463 | - | 67,017 | |||||
| Additional paid-in capital | - | 76,037,851 | - | 76,037,851 | |||||
| Retained earnings | (78,667) | (119,817,750) | - | (119,896,417) | |||||
| Total stockholders' equity | (54,113) | (12,621,412) | - | (12,675,525) | |||||
| Total liabilities and stockholders' equity | $ | 16,127 | $ | 54,028,182 | $ | - | $ | 54,044,309 | |
| 2 |
| Latitude 360, Inc | ||||||||||
| (Formerly Kingdom Konkrete, Inc.) | ||||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
| Historical | ||||||||||
| May 30, 2014 | Unaudited | |||||||||
| Pro forma | ||||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | May 30, 2014 | |||||||
| Net Sales | $ | 71,974 | $ | 7,529,692 | $ | (7,529,692) | i | $ | 71,974 | |
| Cost and Expenses: | ||||||||||
| Cost of Sales | 35,809 | 1,462,271 | (1,462,271) | i | 35,809 | |||||
| Labor | - | 2,551,456 | (2,551,456) | i | - | |||||
| Occupancy and relates costs | 8,529 | 1,828,337 | (1,828,337) | i | 8,529 | |||||
| Depreciation and Amortization | 2,320 | 956,778 | (956,778) | i | 2,320 | |||||
| Selling, general and administrative expenses | 32,422 | 6,235,403 | (6,235,403) | i | 32,422 | |||||
| Total operating expenses | 79,079 | 13,034,245 | (13,034,245) | 79,079 | ||||||
| Loss from operations | (7,104) | (5,504,553) | 5,504,553 | (7,104) | ||||||
| Other (income)/expense | ||||||||||
| Interest expense | - | (1,067,242) | 1,067,242 | i | - | |||||
| Gain from fixed assets sold | - | 357 | (357) | i | - | |||||
| Net loss from continued operations | (7,104) | (4,437,668) | 4,437,668 | (7,104) | ||||||
| Discontinued Operations | ||||||||||
| Loss from discontinued operations | - | 505,158 | (505,158) | i | - | |||||
| Net Loss | $ | (7,104) | $ | (4,942,826) | $ | 4,942,826 | $ | (7,104) | ||
| i | Adjustment to merge the companies | |||||||||
| 3 |
| Latitude 360, Inc | ||||||||||
| (Formerly Kingdom Konkrete, Inc.) | ||||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
| Historical | ||||||||||
| Dic 31, 2013 | Unaudited | |||||||||
| Pro forma | ||||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | Dic 31, 2013 | |||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 10,199 | $ | 170,950 | $ | - | $ | 181,149 | ||
| Accounts receivable | - | 143,538 | - | 143,538 | ||||||
| Other receivables | - | 781,820 | - | 781,820 | ||||||
| Inventory | 500 | 269,680 | - | 270,180 | ||||||
| Prepaid insurance | - | 23,447 | - | 23,447 | ||||||
| Total current assets | 10,699 | 1,389,435 | - | 1,400,134 | ||||||
| Property and equipment - net | 10,127 | 47,873,119 | - | 47,883,246 | ||||||
| Idle Property and equipment - net | - | 2,010,083 | - | |||||||
| Resticted cash | - | 318,646 | - | |||||||
| Other assets | - | 381,812 | - | 381,812 | ||||||
| Assets of discontiued operations | - | - | - | - | ||||||
| 10,127 | 50,583,660 | - | 48,265,058 | |||||||
| Total assets | $ | 20,826 | $ | 51,973,095 | $ | - | $ | 49,665,192 | ||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 3,609 | $ | 9,539,512 | $ | - | $ | 9,543,121 | ||
| Accounts payable - construction related | - | 8,213,599 | - | 8,214,058 | ||||||
| Accrued expenses | 459 | 3,888,155 | - | 3,888,155 | ||||||
| Accrued compensation - related party | - | 1,621,437 | - | 1,621,437 | ||||||
| Deferred rent | - | 19,700 | - | 19,700 | ||||||
| Interest payable | - | 3,555,745 | - | 3,555,745 | ||||||
| Obligations under capital leases | - | 2,784,115 | - | 2,784,115 | ||||||
| Due to related parties | - | 274,317 | - | 274,317 | ||||||
| Short term notes payable | - | 27,237,493 | - | 27,237,493 | ||||||
| Total current liabilities | 4,068 | 57,134,073 | - | 57,138,141 | ||||||
| Deferred rent | - | 239,854 | - | 239,854 | ||||||
| Notes payable, net | 67,689 | - | - | 67,689 | ||||||
| Capital leases | - | 20,584,091 | - | 20,584,091 | ||||||
| Dividends payable | - | 2,020,361 | - | 2,020,361 | ||||||
| 67,689 | 22,844,306 | - | 22,911,995 | |||||||
| Total liabilties | ||||||||||
| Stockholders' equity: | ||||||||||
| Series A Preferred Stock | - | 12,457,517 | - | 12,457,517 | ||||||
| Common Stock | 5,722 | 41,880 | - | 47,602 | ||||||
| Additional paid-in capital | 275,082 | 75,356,381 | - | 75,631,463 | ||||||
| Retained earnings | (331,735) | (115,861,062) | - | (116,192,797) | ||||||
| Total stockholders' equity | (50,931) | (28,005,284) | - | (28,056,215) | ||||||
| Total liabilities and stockholders' equity | $ | 20,826 | $ | 51,973,095 | $ | - | $ | 51,993,921 | ||
| 4 |
| Latitude 360, Inc | ||||||||||
| (Formerly Kingdom Konkrete, Inc.) | ||||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
| Historical | ||||||||||
| Dic 31, 2013 | Unaudited | |||||||||
| Pro forma | ||||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | Dic 31, 2013 | |||||||
| Net Sales | $ | 121,344 | $ | 18,429,900 | $ | (18,429,900) | i | $ | 121,344 | |
| Cost and Expenses: | ||||||||||
| Cost of Sales | 57,475 | 3,933,125 | (3,933,125) | i | 57,475 | |||||
| Compensation expenses | - | 10,681,992 | (10,681,992) | i | - | |||||
| Occupancy and relates costs | - | 1,955,020 | (1,955,020) | i | - | |||||
| Professional fees | 1,391,035 | (1,391,035) | i | - | ||||||
| Depreciation and Amortization | 4,639 | 4,264,771 | (4,264,771) | i | 4,639 | |||||
| Selling, general and administrative expenses | 94,072 | 10,750,027 | (10,750,027) | i | 94,072 | |||||
| Total operating expenses | 156,186 | 32,975,970 | (32,975,970) | 156,186 | ||||||
| Loss from operations | (34,842) | (14,546,070) | 14,546,070 | (34,842) | ||||||
| Other (income)/expense | ||||||||||
| Interest expense | - | (46,073,871) | 46,073,871 | i | - | |||||
| Loss on modification of indebtedness | - | (1,082,709) | 1,082,709 | i | - | |||||
| Loss on disposition of assets | (3,280) | 3,280 | i | - | ||||||
| Net loss from continued operations | (34,842) | (61,705,930) | 61,705,930 | (34,842) | ||||||
| Discontinued Operations | ||||||||||
| Loss from discontinued operations | - | (2,989,770) | 2,989,770 | i | - | |||||
| Net Loss | $ | (34,842) | $ | (64,695,700) | $ | 64,695,700 | $ | (34,842) | ||
| i | Adjustment to merge the companies | |||||||||
| 5 |
| Latitude 360, Inc | |||||||||
| (Formerly Kingdom Konkrete, Inc.) | |||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||
| Historical | |||||||||
| Dic 31, 2012 | Unaudited | ||||||||
| Pro forma | |||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | Dic 31, 2012 | ||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash | $ | 22,160 | $ | 138,374 | $ | - | $ | 160,534 | |
| Accounts receivable | - | 108,322 | - | 108,322 | |||||
| Other receivables | - | 1,261,270 | - | 1,261,270 | |||||
| Inventories | 2,464 | 312,937 | - | 315,401 | |||||
| Prepaid expenses | 1,150 | 11,975 | - | 13,125 | |||||
| Total current assets | 25,774 | 1,832,878 | - | 1,858,652 | |||||
| Property and equipment - net | 16,766 | 48,772,242 | - | 48,789,008 | |||||
| Idle Property and equipment - net | - | 1,622,154 | - | 1,622,154 | |||||
| Resticted cash | - | 2,320,326 | - | ||||||
| Other assets | - | 265,915 | - | ||||||
| Assets of discontiued operations | - | 1,231,876 | - | 1,231,876 | |||||
| 16,766 | 54,212,513 | - | 51,643,038 | ||||||
| Total assets | $ | 42,540 | $ | 56,045,391 | $ | - | $ | 53,501,690 | |
| LIABILITIES AND STOCKHOLDERS EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | - | $ | 8,214,553 | $ | - | $ | 8,214,553 | ||
| Accounts payable - construction related | - | 16,007,611 | - | 16,007,611 | |||||
| Accrued expenses | 41,295 | 829,930 | - | 871,225 | |||||
| Accrued compensation - related party | 678 | 1,600,000 | - | 1,600,678 | |||||
| Deferred rent | - | 19,700 | - | 19,700 | |||||
| Interest payable | - | 1,514,024 | - | 1,514,024 | |||||
| Obligations under capital leases | - | 1,538,372 | - | 1,538,372 | |||||
| Due to related parties | 32,745 | 168,612 | - | ||||||
| Short term notes payable | - | 18,523,894 | - | 18,523,894 | |||||
| Total current liabilities | 74,718 | 48,416,696 | - | 48,290,057 | |||||
| Deferred rent | - | 696,054 | - | 696,054 | |||||
| Capital leases | - | 20,204,913 | - | 20,204,913 | |||||
| Dividends payable | - | 996,100 | - | 996,100 | |||||
| - | 21,897,067 | - | 21,897,067 | ||||||
| Total liabilties | |||||||||
| Stockholders' equity: | |||||||||
| Series A Preferred Stock | - | 8,268,044 | - | 8,268,044 | |||||
| Common Stock | 5,722 | 34,644 | - | 40,366 | |||||
| Additional paid-in capital | 275,082 | 27,570,041 | - | 27,845,123 | |||||
| Retained earnings | (312,982) | (50,141,101) | - | (50,454,083) | |||||
| Total stockholders' equity | (32,178) | (14,268,372) | - | (14,300,550) | |||||
| Total liabilities and stockholders' equity | $ | 42,540 | $ | 56,045,391 | $ | - | $ | 55,886,574 | |
| 6 |
| Latitude 360, Inc | ||||||||||
| (Formerly Kingdom Konkrete, Inc.) | ||||||||||
| UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET | ||||||||||
| Historical | ||||||||||
| Dic 31, 2012 | Unaudited | |||||||||
| Pro forma | ||||||||||
| Kingdom Koncrete, Inc. | Latitude 360 | Proforma Adjustments | Dic 31, 2012 | |||||||
| Net Sales | $ | 140,833 | $ | 8,137,175 | $ | (8,137,175) | i | $ | 140,833 | |
| Cost and Expenses: | ||||||||||
| Cost of Sales | 66,621 | 2,272,304 | (2,272,304) | i | 66,621 | |||||
| Labor | - | 13,002,006 | (13,002,006) | i | - | |||||
| Occupancy and relates costs | - | 1,573,966 | (1,573,966) | i | - | |||||
| Professional fees | 1,572,691 | (1,572,691) | i | - | ||||||
| Depreciation and Amortization | 4,640 | 1,051,077 | (1,051,077) | i | 4,640 | |||||
| Selling, general and administrative expenses | 73,301 | 7,951,188 | (7,951,188) | i | 73,301 | |||||
| Total operating expenses | 144,562 | 27,423,232 | (27,423,232) | 144,562 | ||||||
| Loss from operations | (3,729) | (19,286,057) | 19,286,057 | (3,729) | ||||||
| Other (income)/expense | ||||||||||
| Interest expense | - | (16,108,755) | 16,108,755 | i | - | |||||
| Loss on modification of indebtedness | - | (294,219) | 294,219 | i | - | |||||
| Net loss from continued operations | (3,729) | (35,689,031) | 35,689,031 | (3,729) | ||||||
| Discontinued Operations | ||||||||||
| Loss from discontinued operations | - | (1,102,819) | 1,102,819 | i | - | |||||
| Net Loss | $ | (3,729) | $ | (36,791,850) | $ | 36,791,850 | $ | (3,729) | ||
| i | Adjustment to merge the companies | |||||||||
| 7 |