Merion, Inc. - FORM 8-K/A - EX-99.2 - UNAUDITED COMBINED PRO FORMA FINANCIAL STATEMENTS

Attached files

file	filename
8-K/A - FORM 8-K/A - Merion, Inc.	eworld_8ka.htm
EX-99.1 - AUDITED COMBINED FINANCIAL STATEMENTS - Merion, Inc.	eworld_ex991.htm

EXHIBIT 99.2

E-World USA Holding, Inc.
Unaudited Combined Pro Forma Balance Sheet at
September 30, 2014

			E-World USA			Prime			Pro Forma			Adjusted Pro
			Holding, Inc.			Corporations			Adjustments			Forma Totals

Current assets:
	Cash and cash equivalents		$	4,500,878		$	954,866		$	(954,866	)	$	4,500,878
	Accounts receivable, net			71,802			1,092,920			-			1,164,722
	Inventory, net			320,821			2,841,828			93,512			3,256,161
	Prepaid expenses			29,397			30,308			-			59,705
	Other receivables			1,041			-			-			1,041

		Total current assets		4,923,939			4,919,922			(861,354	)		8,982,507

Property and equipment, net				144,655			3,139,694			846,427			4,130,776
Intangibles, net				-			154,415			15,801,453			15,955,868
Deposits and other assets				15,621			-			-			15,621
Goodwill				-			-			6,330,697			6,330,697

	Total Assets		$	5,084,215		$	8,214,031		$	22,117,223		$	35,415,469

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
	Accounts payable and accrued expenses		$	1,186,222		$	1,962,764		$	-		$	3,148,986
	Accrual salary			-			282,819			-			282,819
	Tax payable			-			1,552,730			-			1,552,730
	Deferred revenue			1,697,129			139,387			-			1,836,516
	Due to shareholder			156,010			-			-			156,010
	Advances from related parties			298,562			152,325			-			450,887
	Short term debt			28,613			47,796			21,957,062			22,033,471
	Type A warrant liabilities			7,165,413			-			-			7,165,413
	Type B warrant liabilities			249,111			-			-			249,111

		Total current liabilities		10,781,060			4,137,821			21,957,062			36,875,943

	Long term debt			53,522			601,436			-			654,958

		Total liabilities		10,834,582			4,739,257			21,957,062			37,530,901

Stockholders' equity (deficit)
	Common stock			142,829			85			(85	)		142,829
	Additional paid-in capital			3,583,702			-			3,634,935			7,218,637
	Retained earning			(9,476,898	)		3,876,892			(3,876,892	)		(9,476,898	)
	Other comprhensive income			-			(402,203	)		402,203			-

		Total shareholders' equity (deficit)		(5,750,367	)		3,474,774			160,161			(2,115,432	)

		Total Liabilities and Shareholders' Equity (Deficit)	$	5,084,215		$	8,214,031		$	22,117,223		$	35,415,469

E-World USA Holding, Inc.
Combined Pro Forma Statement of Operation
Year ended December 31, 2013

			E-World USA		Prime			Pro Forma		Adjusted Pro
			Holding, Inc.		Corporations			Adjustments		Forma Totals

Revenue
	Product sales		$	4,517,567	$	12,793,902		$		$	17,311,469
	Service revenue			163,611		35,001					198,612

		Total revenues		4,681,178		12,828,903					17,510,081

Cost of sales, net				654,788		6,004,161					6,658,949

	Gross profit			4,026,390		6,824,742					10,851,132

Operating expenses
	Selling expenses			344,959		326,288					671,247
	Depreciation and amortization expense			48,745		284,200					332,945
	General and administrative expenses			1,386,678		2,308,447					3,695,125

		Total operating expenses		1,780,382		2,918,935					4,699,317

		Income from operations		2,246,008		3,905,807					6,151,815

Other expenses
	Other expenses					(10,696	)				(10,696	)
	Interest expense					(53,603	)				(53,603	)

		Total other expenses		-		(64,299	)				(64,299	)

Net Income before Tax				2,246,008		3,841,508					6,087,516

Income tax				13,011		882,750					895,761

Net income			$	2,232,997	$	2,958,758				$	5,191,755

Foreign currency translation adjustments				-		(306,672	)				(306,672	)

Comprehensive income			$	2,232,997	$	2,652,086				$	4,885,083

Weighted average number of common shares outstanding
	Basic			142,828,993		200			47,609,464		190,438,657
	Diluted			168,607,489		200			47,609,464		216,217,153

Net income per common share - basic				0.02		14,794					0.03
Net income per common share - diluted				0.01		14,794					0.02

E-World USA Holding, Inc.
Unaudited Combined Pro Forma Statement of Operation
Nine months ended September 30, 2014

			E-World USA		Prime			Pro Forma		Adjusted Pro
			Holding, Inc.		Corporations			Adjustments		Forma Totals

Revenue
	Product sales		$	6,247,666	$	9,716,706		$		$	15,964,372
	Service revenue			150,760		33,894					184,654

		Total revenues		6,398,426		9,750,600					16,149,026

Cost of sales, net				523,682		5,501,726					6,025,408

	Gross profit			5,874,744		4,248,874					10,123,618

Operating expenses
	Selling expenses			320,160		227,227					547,387
	Depreciation and amortization expense			31,521		234,814					266,335
	General and administrative expenses			2,029,715		1,983,868					4,013,583

		Total operating expenses		2,381,396		2,445,909					4,827,305

		Income from operations		3,493,348		1,802,965					5,296,313

Other expenses
	Other expenses					(19,517	)				(19,517	)
	Interest expense					(26,761	)				(26,761	)

		Total other expenses		-		(46,278	)				(46,278	)

Net Income before Tax				3,493,348		1,756,687					5,250,035

Income tax				243,654		765,688					1,009,342

Net income			$	3,249,694	$	990,999		$		$	4,240,693

Foreign currency translation adjustments				-		(166,688	)				(166,688	)

Comprehensive income			$	3,249,694	$	824,311		$		$	4,074,005

Weighted average number of common shares outstanding
	Basic			142,828,993		200			47,609,464		190,438,657
	Diluted			168,607,489		200			47,609,464		216,217,153

Net income per common share - basic				0.02		4,955					0.02
Net income per common share - diluted				0.02		4,955					0.02

Notes to Unaudited Pro Forma Combined Financial Statements

On October 20, 2014 (the “Closing Date”), E-World USA Holding, Inc., a Nevada corporation (the “Company”), completed the acquisition of Prime Nutrisource, Inc., Prime Nutrisource, Inc. (New Jersey) and Nugale Pharmaceutical, Inc., custom contract manufacturers of nutritional and cosmeceutical products based in Toronto, Canada.

The Purchase Price was paid or to be paid by (i) C$1,000,000 on the Closing Date; (ii) C$1,000,000 within 60 days following the Closing Date; (iii) a secured promissory note issued by the Purchaser (the “Note”) with a principal amount of C$22,780,000, and (iv) the Purchaser Shares for 25% ownership of the Company.

The Company has determined that control of the acquired assets changed hands on October 20, 2014. In accordance with ASC 805-10-25-6 - purchase acquisition accounting, the company initially allocated the consideration to the net tangible and identifiable intangible assets, based on their estimated fair values as of the date of acquisition. Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and identifiable intangible assets.

The proforma combined balance sheets of E-World USA Holding, Inc. and Prime Corporation are presented here as of September 30, 2014. The proforma consolidated statements of operations for the E-World USA Holding, Inc. and Prime Corporation are presented as of the nine months ended September 30, 2014 and year ended December 31, 2013.

Merion, Inc. - FORM 8-K/A - EX-99.2 - UNAUDITED COMBINED PRO FORMA FINANCIAL STATEMENTS - February 27, 2015

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Merion, Inc. Reports