Attached files
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8-K/A - America Greener Technologies, Inc. | agt_8ka.htm |
EX-99.1 - EXHIBIT 99.1 - America Greener Technologies, Inc. | ex99_1.htm |
EX-99.2 - America Greener Technologies, Inc. | ex99_2.htm |
Exhibit 99.3
AMERICA GREENER TECHNOLOGIES INC.
PRO FORMA COMBINED FINANCIAL INFORMATION
(UNAUDITED)
AMERICA GREENER TECHNOLOGIES INC.
Index to Unaudited Pro Forma Combined Financial Information
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AMERICA GREENER TECHNOLOGIES INC.
Introduction to Unaudited Pro Forma Combined Financial Information
The following unaudited Pro Forma Combined Financial information is presented to illustrate the estimated effects of the transaction under the terms of an asset purchase agreement (the “Asset Purchase Agreement”). On October 31, 2014 AGT Soft Wave, Inc. (“AGT Soft Wave”), a newly formed Nevada corporation that is a wholly-owned subsidiary of the Company, acquired certain assets from Soft Wave Innovations, Inc., an Arizona corporation (“Soft Wave”), in exchange for 775,000 shares of the Company’s common stock valued at $767,250 or $0.99 per share under the terms of the Asset Purchase Agreement by and among the Company, AGT Soft Wave and Soft Wave. The fair value of the shares of the common stock were based on the quoted trading price on the date of grant. The assets that were acquired included customer contracts, trade names, inventory, tools and parts, and demonstration contracts related to the prior joint venture with Soft Wave. The purchase price paid by the Company had been allocated to assets acquired on the records of the Company as follows:
Inventory | $ | 8,373 | ||
Customer and demonstration contracts | 758,877 | |||
Purchase price | $ | 767,250 |
The unaudited Pro Forma Combined Financial information assumes the Asset Purchase Agreement was consummated as of January 1, 2014. The financial statements of the Company included in the following unaudited pro forma combined financial statements are derived from the audited financial statements of the Company for the six months ended June 30, 2014 as filed in the Company’s 10-K for the period ended June 30, 2014 and unaudited financial statements of the Company for the three months ended September 30, 2014 as filed in the Company’s 10-Q for the period ended September 30, 2014. The financial statements of Soft Wave included in the following unaudited pro forma combined financial statements are derived from the unaudited financial statements of Soft Wave for the three months ended September 30, 2014 contained elsewhere in this Form 8-K/A. The unaudited pro forma balance sheet is prepared as though the transactions occurred at the close of business on January 1, 2014.
The information presented in the unaudited Pro Forma Combined Financial information does not purport to represent what our financial position would have been had the Asset Purchase Agreement occurred as of the dates indicated, nor is it indicative of our future financial position for any period. You should not rely on this information as being indicative of the historical results or the future results that the Company will experience after the Asset Purchase Agreement transaction.
The pro forma adjustments are based upon available information and certain assumptions that the Company believes is reasonable under the circumstances. The unaudited Pro Forma Combined Financial information should be read in conjunction with the historical financial statements and related notes of the Company.
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AMERICA GREENER TECHNOLOGIES, INC.
UNAUDITED PRO FORMA BALANCE SHEET
AMERICA GREENER TECHNOLOGIES, INC. | ||||||||||||||||
September 30, | ||||||||||||||||
2014 | Pro Forma Adjustments | Pro Forma | ||||||||||||||
Historical | Dr | Cr. | Balances | |||||||||||||
(see Note) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS: | ||||||||||||||||
Cash | $ | 27,679 | $ | — | $ | — | $ | 27,679 | ||||||||
Inventory | 111,619 | (a) | 8,373 | — | 119,992 | |||||||||||
Prepaid expenses and other current assets | 10,259 | — | — | 10,259 | ||||||||||||
Total Current Assets | 149,557 | 8,373 | — | 157,930 | ||||||||||||
Other assets: | ||||||||||||||||
Property and equipment, net | 46,304 | — | — | 46,304 | ||||||||||||
Trademark | 1,601 | — | — | 1,601 | ||||||||||||
Intangible assets, net | — | (a) | 758,877 | (b) | 113,832 | 645,045 | ||||||||||
Deposit | 3,500 | — | — | 3,500 | ||||||||||||
Total other assets | 51,405 | 758,877 | 113,832 | 696,450 | ||||||||||||
Total Assets | $ | 200,962 | $ | 767,250 | $ | 113,832 | $ | 854,380 | ||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||
CURRENT LIABILITIES: | ||||||||||||||||
Accounts payable and accrued expenses | $ | 96,604 | $ | — | $ | — | $ | 96,604 | ||||||||
Convertible notes payable - related party | 100,000 | — | — | 100,000 | ||||||||||||
Notes payable | 275,131 | — | — | 275,131 | ||||||||||||
Notes payable - related party | 223,359 | — | — | 223,359 | ||||||||||||
Due to related party | 3,000 | — | — | 3,000 | ||||||||||||
Total Current Liabilities | 698,094 | — | — | 698,094 | ||||||||||||
COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
STOCKHOLDERS’ DEFICIT: | ||||||||||||||||
Preferred stock $0.001 par value; 5,000,000 shares authorized; none issued and outstanding | — | — | — | — | ||||||||||||
Common stock ($0.001 par value; 75,000,000 shares authorized; 19,005,014 shares issued and outstanding prior to asset purchase; $0.001 par value; 75,000,000 shares authorized; 19,780,014 issued and outstanding after the asset purchase) | 19,005 | — | (a) | 775 | 19,780 | |||||||||||
Additional paid-in capital | 2,676,160 | — | (a) | 766,475 | 3,442,635 | |||||||||||
Accumulated deficit | (3,192,297 | ) (b) | 113,832 | — | (3,306,129 | ) | ||||||||||
Total Stockholders’ Deficit | (497,132 | ) | 113,832 | 767,250 | 156,286 | |||||||||||
Total Liabilities and Stockholders’ Deficit | $ | 200,962 | $ | 113,832 | $ | 767,250 | $ | 854,380 |
See accompanying notes to unaudited pro forma combined financial statements.
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AMERICA GREENER TECHNOLOGIES, INC.
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
AMERICA
GREENER TECHNOLOGIES, INC. | SOFT
WAVE INNOVATIONS, INC. | |||||||||||||||||||
FOR THE THREE MONTHS | FOR THE THREE MONTHS | |||||||||||||||||||
ENDED | ENDED | Pro Forma Adjustments | Pro Forma | |||||||||||||||||
SEPTEMBER 30, 2014 | SEPTEMBER 30, 2014 | Dr | Cr. | Balances | ||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||
Net revenues | $ | — | $ | 101,164 | $ | — | $ | — | $ | 101,164 | ||||||||||
Cost of revenues | — | 39,102 | — | — | 39,102 | |||||||||||||||
Gross profit | 62,062 | — | — | 62,062 | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||
Amortization and depreciation | 3,337 | — | (b) | 113,832 | — | 117,169 | ||||||||||||||
Marketing, selling and advertising expenses | 55,124 | 50,884 | — | — | 106,008 | |||||||||||||||
Compensation expense | 1,308,456 | — | — | — | 1,308,456 | |||||||||||||||
Professional fees | 58,494 | 5,076 | — | — | 63,570 | |||||||||||||||
Consulting fees | 124,500 | — | — | — | 124,500 | |||||||||||||||
General and administrative | 39,196 | 26,726 | — | — | 65,922 | |||||||||||||||
Total operating expenses | 1,589,107 | 82,686 | 113,832 | — | 1,785,625 | |||||||||||||||
Loss from operations | (1,589,107 | ) | (20,624 | ) | (113,832 | ) | — | (1,723,563 | ) | |||||||||||
Other expense | ||||||||||||||||||||
Interest expense | (4,358 | ) | — | — | — | (4,358 | ) | |||||||||||||
Total other expense | (4,358 | ) | — | — | — | (4,358 | ) | |||||||||||||
Loss before provision for income taxes | (1,593,465 | ) | (20,624 | ) | (113,832 | ) | — | (1,727,921 | ) | |||||||||||
Net loss | $ | (1,593,465 | ) | $ | (20,624 | ) | $ | (113,832 | ) | $ | — | $ | (1,727,921 | ) | ||||||
WEIGHTED AVERAGE COMMON SHARES | ||||||||||||||||||||
Basic and Diluted | 19,780,014 | |||||||||||||||||||
NET LOSS PER COMMON SHARE: | ||||||||||||||||||||
OUTSTANDING - Basic and Diluted | (0.09 | ) |
See accompanying notes to unaudited pro forma combined financial statements.
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AMERICA GREENER TECHNOLOGIES, INC.
UNAUDITED PRO FORMA COMBINED STATEMENTS OF OPERATIONS
AMERICA
GREENER TECHNOLOGIES, INC. | SOFT
WAVE INNOVATIONS, INC. | |||||||||||||||||||
FOR THE SIX MONTHS | FOR THE SIX MONTHS | |||||||||||||||||||
ENDED | ENDED | Pro Forma Adjustments | Pro Forma | |||||||||||||||||
JUNE 30, 2014 | JUNE 30, 2014 | Dr | Cr. | Balances | ||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Net revenues | $ | 114,619 | $ | 224,028 | $ | — | $ | — | $ | 338,647 | ||||||||||
Cost of revenues | 36,511 | 135,071 | — | — | 171,582 | |||||||||||||||
Gross profit | 78,108 | 88,957 | — | — | 167,065 | |||||||||||||||
Operating expenses: | ||||||||||||||||||||
Amortization and depreciation | 4,787 | — | (c) | 75,888 | — | 80,675 | ||||||||||||||
Marketing, selling and advertising expenses | 4,200 | 79,043 | — | — | 83,243 | |||||||||||||||
Compensation expense | 135,250 | — | — | — | 135,250 | |||||||||||||||
Professional fees | 128,612 | 5,076 | — | — | 133,688 | |||||||||||||||
Consulting fees | 248,876 | — | — | — | 248,876 | |||||||||||||||
General and administrative | 109,463 | 54,214 | — | — | 163,677 | |||||||||||||||
Total operating expenses | 631,188 | 138,333 | 75,888 | — | 845,409 | |||||||||||||||
Loss from operations | (553,080 | ) | (49,376 | ) | (75,888 | ) | — | (678,344 | ) | |||||||||||
Other expense | ||||||||||||||||||||
Interest expense | (2,222 | ) | — | — | — | (2,222 | ) | |||||||||||||
Total other expense | (2,222 | ) | — | — | — | (2,222 | ) | |||||||||||||
Loss before provision for income taxes | (555,302 | ) | (49,376 | ) | (75,888 | ) | — | (680,566 | ) | |||||||||||
Net loss | $ | (555,302 | ) | $ | (49,376 | ) | $ | (75,888 | ) | $ | — | $ | (680,566 | ) | ||||||
WEIGHTED AVERAGE COMMON SHARES | ||||||||||||||||||||
Basic and Diluted | 19,780,014 | |||||||||||||||||||
NET LOSS PER COMMON SHARE: | ||||||||||||||||||||
OUTSTANDING - Basic and Diluted | (0.03 | ) |
See accompanying notes to unaudited pro forma combined financial statements.
5 |
NOTES TO UNAUDITED PRO FORMA BALANCE SHEET
Unaudited pro forma adjustments reflect the following transaction:
a) | ||
Inventory | 8,373 | |
Intangible assets (Customer and Demo Contracts) | 758,877 | |
Common stock, at par | 775 | |
Additional paid in capital | 766,475 | |
To record the effect of the Asset Purchase Agreement. On October 31, 2014 AGT Soft Wave, Inc. acquired certain assets from Soft Wave in exchange for 775,000 shares of the Company’s common stock valued at $767,250 or $0.99 per share under the terms of the Asset Purchase Agreement by and among the Company, AGT Soft Wave and Soft Wave. The fair value of the shares of the common stock were based on the quoted trading price on the date of grant. The assets that were acquired included customer contracts, trade names, inventory, tools and parts, and demonstration contracts related to the prior joint venture with Soft Wave. | ||
b) | ||
Accumulated Amortization | 113,832 | |
Amortization | 113,832 | |
To amortize intangible assets for 9 months based on 5 years of useful life. | ||
c) | ||
Accumulated Amortization | 75,888 | |
Amortization | 75,888 | |
To amortize intangible assets for 6 months based on 5 years of useful life. | ||
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