Attached files

file filename
8-K - CURRENT REPORT - Perk International Inc.f8k010715_perkinternational.htm
EX-10.1 - CONSULTING AGREEMENT, DATED MAY 1, 2013 - Perk International Inc.f8k010715ex10i_perkinter.htm
EX-2.1 - SHARE EXCHANGE AGREEMENT - Perk International Inc.f8k010715ex2i_perkinter.htm
EX-10.2 - CONSULTING AGREEMENT, DATED MAY 1, 2013 - Perk International Inc.f8k010715ex10ii_perkinter.htm
EX-99.1 - BALANCE SHEETS OF TECH9 AS OF MAY 30, 2014 AND 2013 - Perk International Inc.f8k010715ex99i_perkinter.htm
EX-99.2 - BALANCE SHEETS OF TECH 9 - Perk International Inc.f8k010715ex99ii_perkinter.htm

Exhibit 99.3

 

Unaudited Pro Forma Condensed Financial Statements

As of August 31, 2014 and

For the Year Ended May 31, 2014 & the Three Months Ended August 31, 2014

 

On January 8, 2015 PERK INTERNATIONAL INC., a Nevada corporation ( “Perk” or the “Company” or the “Registrant”) entered into a Share Exchange Agreement with TECH 9 INC., a corporation existing under the laws of Ontario (“Tech9”). Pursuant to the share exchange, the Registrant acquired all of the outstanding common shares of Tech9 through the issuance of common shares of the Registrant to the shareholders of Tech9.

 

As a result of the share exchange, Tech9 has become a wholly-owned subsidiary of the Registrant and the Registrant issued shares of its common stock to shareholders of Tech9 at rate of 350,000 shares of the Registrant’s common stock for each Tech9 common share resulting in issue of a total of 70,000,000 common shares. Immediately prior to the share exchange, the Registrant had 75,133,132 shares of common stock outstanding.

 

Following the share exchange and the issuance of 70,000,000 common shares to the shareholders of Tech9, the Registrant has 145,133,132 shares of common stock outstanding.

 

At closing, the Registrant cancelled 45,000,000 common shares of the Registrant in accordance with the Transfer and Assumption Agreement between the Registrant and shareholders of the Registrant. Following the share exchange and the Transfer and Assumption Agreement, the Registrant has 100,133,132 shares of common stock outstanding.

 

The accompanying unaudited pro forma condensed financial statements have been prepared to present the balance sheet and statements of operations of the Registrant to indicate how the consolidated financial statements of the Registrant might have looked like if the share exchange with Tech9 and transactions related to the share exchange had occurred as of the beginning of the periods presented.

 

The transaction has been accounted for as a reverse merger, with Tech9 shareholders acquiring approximately 70% of the issued and outstanding shares of Registrant’s common stock immediately after the closing of the transactions contemplated herein, and also on the basis that Tech9’s senior management became the senior management of the merged entity and there is a change of control of the Company. In accordance with Accounting Standards Codification (“ASC”) 805-10-40, Business Combinations; Reverse Acquisitions, Tech9 was the acquiring entity for accounting purposes. While the transaction is accounted for using the purchase method of accounting, in substance the transaction was a recapitalization of the Tech9’s capital structure.

 

 
 

 

PERK INTERNATIONAL INC.

Unaudited Pro Forma Condensed Balance Sheet

August 31, 2014

 

   Historical   Pro Forma 
   Tech 9 Inc.   Perk International Inc.   Adjustments   Notes   Combined 
Assets                    
Current assets:                    
                     
Accounts Receivable  $133,172   $-   $-        $133,172 
Due from related party   570    -    -         570 
Website development, net        5,625    (5,625)   e    0 
Total assets   133,742    5,625    (5,625)        133,742 
                          
Liabilities                         
Current liabilities                         
Accounts payable and accrued liabilities  $219,124   $17,085   $(17,085)   e   $219,124 
Bank Indebtedness   3,471    25    (25)   e    3,471 
Shareholders loans   -    3,949    (3,949)   e    0 
Current portion of term loan   3,197    -              3,197 
Total Current Liabilities   225,792    21,059    (21,059)        225,792 
Term Loan   10,802                   10,802 
Total liabilities   236,594    21,059    (21,059)        236,594 
                          
Stockholders’ Deficiency                         
                          
Common stock, $0.0001 par value,             7,000    a      
250,000,000 shares authorized;             (200)   a      
100,133,132 shares issued and outstanding   200    7,513    (4,500)   b    10,013 
              (7,000)   a      
              200    a      
              4,500    b      
              6,115    d      
              25,247           
Additional paid-in capital   -    48,672    (77,734)   c    - 
Stock warrants   -    6,115    (6,115)   d      
              15,434    e      
              (25,247)          
Accumulated deficit   (103,667)   (77,734)   77,734    c    (113,480)
Accumulated other comprehensive income   615         -         615 
                          
Total stockholders’ deficiency   (102,852)   (15,434)   15,434         (102,852)
                          
Total liabilities and stockholders’ deficiency  $133,742   $5,625   $(5,625)       $133,742 

 

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PERK INTERNATIONAL INC.

Unaudited Pro Forma Condensed Statement of Operations

For the Three Months Ended August 31, 2014

 

   Historical   Pro Forma 
   Tech 9 Inc.   Perk International Inc.   Adjustments   Notes   Combined 
                     
Sales  $-   $-   $-        $- 
Products   96,909    -    -         96,909 
Services   60,752    -    -         60,752 
    157,661    -    -         157,661 
Cost of sales                         
Products   35,162    -    -         35,162 
Services   23,913    -    -         23,913 
    59,075    -    -         59,075 
                          
Gross profit   98,586    -    -         98,586 
Operating expenses                         
Consulting and professional   39,244    6,030    -         45,274 
General and administrative   20,437    (1,055)             19,382 
Amortization   -    375    -         375 
Total operating expenses   59,681    5,350    -         65,031 
                          
Operating profit (Loss)   38,905    (5,350)   -         33,555 
                          
Other income (expenses)                         
Miscellaneous   -    -    15,434    e    15,434 
Net (loss) before income taxes   38,905    (5,350)   15,434         48,989 
Income tax   -    -    -         - 
                          
Net income (loss)  $38,905   $(5,350)  $15,434        $48,989 
                          
Foreign exchange translation adjustment   116    -    -         116 
                          
Comprehensive income (loss)  $39,021   $(5,350)  $15,434        $49,105 
                          
Earnings per share-basic and diluted                      $0.0005 
                          
Weighted average number of shares outstanding                       100,133,132 

 

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PERK INTERNATIONAL INC.

Unaudited Pro Forma Condensed Statement of Operations

For the Year Ended May 31, 2014

 

   Historical   Pro Forma 
   Tech 9 Inc.   Perk International Inc.   Adjustments   Notes   Combined 
                     
Sales  $-   $-   $-        $- 
Products   151,311    -    -         151,311 
Services   165,740    -    -         165,740 
    317,051    -    -         317,051 
Cost of sales                         
Products   128,507    -    -         128,507 
Services   86,974    -    -         86,974 
    215,481    -    -         215,481 
                          
Gross profit   101,570    -    -         101,570 
Operating expenses                         
Consulting and professional   208,549    37,588    -         246,137 
General and administrative   99,653    22,217              121,870 
Amortization   4,308    1500    -         5,808 
Total operating expenses   312,510    61,305    -         373,815 
                          
Operating profit (Loss)   (210,940)   (61,305)   -         (272,245)
                          
Other income (expenses)                         
Miscellaneous revenue   17,510    -    20,084    e    37,594 
gain on disposition of equipment   13,227    -    -         13,227 
Net (loss) before income taxes   (180,203)   (61,305)   20,084         (221,424)
Income tax recovery   5,833    -    -         5,833 
                          
Net income (loss)  $(174,370)  $(61,305)  $20,084        $(215,591)
                          
Foreign exchange translation adjustment   1,530    -    -         1,530 
                          
Comprehensive income (loss)  $(172,840)  $(61,305)  $20,084        $(214,061)
                          
Loss per share-basic and diluted                      $(0.0022)
                          
Weighted average number of shares outstanding                       100,066,666 

 

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PERK INTERNATIONAL INC.

Notes to Unaudited Condensed Combined Pro Forma Financial Statements

 

1. Basis of Presentation.

 

These unaudited condensed combined pro forma financial Statements have been prepared in order to present combined financial position and results of operations of the Registrant and Tech9 as if the acquisition had occurred as of the beginning of the periods presented.

 

The unaudited pro forma condensed balance sheet has been prepared using the unaudited consolidated balance sheet of the Registrant and unaudited consolidated balance sheet of Tech9 as of August 31, 2014. The unaudited pro forma condensed statements of operations dated August 31, 2014, have been prepared using the unaudited historical statements of operations of the Registrant for the three month period ended August 31, 2014 and unaudited statements of operations of Tech9 for the three month period ended August 31, 2014. The unaudited pro forma condensed statements of operations dated May 31, 2014 have been prepared using the audited historical statements of operations of the Registrant for the year ended May 31, 2014 and audited statements of operations of Tech9 for the year ended May 31, 2014

 

The pro forma condensed financial statements should be read in conjunction with the financial statements of the Registrant as previously filed and the financial statements of Tech9 which can be found as attachments to the Form 8-K. These pro forma condensed financial statements are presented for illustrative purposes only and are not intended to be indicative of actual consolidated financial condition and consolidated results of operations had the share exchange been in effect during the periods presented, or of consolidated financial condition or consolidated results of operations that may be reported in the future.

 

2. Adjustments

 

The following pro forma adjustments are incorporated into the condensed combined pro forma balance sheet as of August 31, 2014 and the condensed combined pro forma statement of operations for the periods ended August 31, 2014 and May 31, 2014.

 

a) To adjust the 70,000,000 shares issuance to Tech 9 share capital from having no par value to having a par value of $0.0001.
   
b) To record the cancellation of 45,000,000 shares on close of the merger and transfer and assumption agreement.
   
c) To eliminate the Registrant’s accumulated deficit of $77,734.
   
d) To transfer $6,115 from stock warrants to additional paid in capital.
   
e) To record the cancellation of assets and liabilities of registrant on close of the transfer and assumption agreement.

 

 

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