Attached files
| file | filename |
|---|---|
| EX-99.3 - PRO FORM FINANCIAL STATEMENTS - Zenovia Digital Exchange Corp | sstl_8k-ex9901.htm |
| EX-10.1 - STOCK OPTION PLAN - Zenovia Digital Exchange Corp | sstl_8k-ex1001.htm |
| 8-K - CURRENT REPORT - Zenovia Digital Exchange Corp | sstl_8k.htm |
| EX-3.1 - CERTIFICATE OF DESIGNATIONS - Zenovia Digital Exchange Corp | sstl_8k-ex0301.htm |
| EX-10.3 - EMPLOYMENT AGREEMENT - Zenovia Digital Exchange Corp | sstl_8k-ex1003.htm |
| EX-2.2 - AMENDED MERGER AGREEMENT - Zenovia Digital Exchange Corp | sstl_8k-ex0202.htm |
| EX-10.2 - EMPLOYMENT AGREEMENT - Zenovia Digital Exchange Corp | sstl_8k-ex1002.htm |
| EX-21.1 - SUBSIDIARY LIST - Zenovia Digital Exchange Corp | sstl_8k-ex2101.htm |
Exhibit 99.2
Consolidated Pro Forma Financial Statements
SSTL, Inc.,
and Zenovia Digital Exchange Corporation
Pro Forma Consolidated Balance Sheet
December 31, 2014
(unaudited)
| Pro forma | Pro forma | |||||||||||||||
| SSTL | Zenovia | Adjustments | Consolidated | |||||||||||||
| (Historical) | (Historical) | |||||||||||||||
| Assets | ||||||||||||||||
| Cash | $ | 45,360 | $ | 37,260 | $ | (45,360 | ) | a | $ | 37,260 | ||||||
| Accounts receivable, net | 5,168,446 | 5,168,446 | ||||||||||||||
| Accounts receivable - related party | 7,500 | – | (7,500 | ) | a | – | ||||||||||
| Deferred financing costs | 175,155 | 175,155 | ||||||||||||||
| Prepaid expenses and other current assets | 2,362 | 265,745 | (2,362 | ) | a | 265,745 | ||||||||||
| Total current assets | 55,222 | 5,646,606 | (55,222 | ) | 5,646,606 | |||||||||||
| – | – | |||||||||||||||
| Furniture, equipment and improvements, net | 32,500 | 2,665,058 | (32,500 | ) | a | 2,665,058 | ||||||||||
| Intangible assets, net | 9,450,691 | 9,450,691 | ||||||||||||||
| Goodwill | 4,516,440 | 4,516,440 | ||||||||||||||
| Other assets | 155,282 | 155,282 | ||||||||||||||
| Total assets | $ | 87,722 | $ | 22,434,077 | $ | (87,722 | ) | $ | 22,434,077 | |||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||
| Liabilities: | ||||||||||||||||
| Accounts payable | $ | 1,023 | $ | 14,662,703 | $ | (1,023 | ) | a | $ | 14,662,703 | ||||||
| Accrued expenses | 2,363 | 2,300,480 | (2,363 | ) | a | 2,300,480 | ||||||||||
| Accrued interest - related party | 2,948 | – | (2,948 | ) | a | – | ||||||||||
| Notes payable, net of discount | 4,607,243 | 4,607,243 | ||||||||||||||
| Capital lease obligation | – | 1,173,998 | 1,173,998 | |||||||||||||
| Related party note payable | 200,000 | – | (200,000 | ) | a | – | ||||||||||
| Total current liabilities | 206,334 | 22,744,424 | (206,334 | ) | 22,744,424 | |||||||||||
| Notes payable, net of current portion | 3,100,000 | 3,100,000 | ||||||||||||||
| Capital lease obligations, net of current portion | 577,388 | 577,388 | ||||||||||||||
| Derivative liability | 10,200,000 | 10,200,000 | ||||||||||||||
| Other long-term liabilities | – | 305,089 | 305,089 | |||||||||||||
| Total liabilities | 206,334 | 36,926,901 | (206,334 | ) | 36,926,901 | |||||||||||
| Stockholders' equity: | ||||||||||||||||
| Preferred stock | – | 121 | 121 | |||||||||||||
| Common stock | 16,254 | 11,525 | 17,494 | a,b | 45,273 | |||||||||||
| Additional paid in capital | 419,496 | 35,402,672 | (453,244 | ) | a,b | 35,368,924 | ||||||||||
| Other comprehensive loss | (832,542 | ) | (832,542 | ) | ||||||||||||
| Accumulated deficit | (554,362 | ) | (49,074,600 | ) | 554,362 | a | (49,074,600 | ) | ||||||||
| Total stockholders' equity | (118,612 | ) | (14,492,824 | ) | 118,612 | (14,492,824 | ) | |||||||||
| Total liabilities and stockholders' equity | $ | 87,722 | $ | 22,434,077 | $ | (87,722 | ) | $ | 22,434,077 | |||||||
See accompanying notes to pro forma consolidated financial statements
| 1 |
SSTL, Inc.,
and Zenovia Digital Exchange Corporation
Pro Forma Consolidated Statement of Operations and Other Comprehensive Loss
For the Year Ended December 31, 2014
(unaudited)
| Pro forma | Pro forma | |||||||||||||||
| SSTL | Zenovia | Adjustments | Consolidated | |||||||||||||
| (Historical) | (Historical) | |||||||||||||||
| Sales | $ | 52,500 | $ | 23,773,624 | $ | $ | 23,826,124 | |||||||||
| Cost of goods sold | – | 22,222,689 | 22,222,689 | |||||||||||||
| Gross profit | 52,500 | 1,550,935 | – | 1,603,435 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 906 | 906 | ||||||||||||||
| General and administrative expenses | 64,243 | 18,560,845 | 18,625,088 | |||||||||||||
| Total operating expenses | 64,243 | 18,561,751 | – | 18,625,994 | ||||||||||||
| Loss from operations | (11,743 | ) | (17,010,816 | ) | – | (17,022,559 | ) | |||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense and financing costs | (17,501 | ) | (6,698,676 | ) | (6,716,177 | ) | ||||||||||
| Other income | 12,000 | 346,980 | 358,980 | |||||||||||||
| Total other income (expense) | (5,501 | ) | (6,351,696 | ) | – | (6,357,197 | ) | |||||||||
| Loss before provision for income taxes | (17,244 | ) | (23,362,512 | ) | – | (23,379,756 | ) | |||||||||
| Provision for income taxes | – | – | – | – | ||||||||||||
| Net loss | (17,244 | ) | (23,362,512 | ) | – | (23,379,756 | ) | |||||||||
| Preferred stock dividend | – | 604,000 | 120,800 | c | 724,800 | |||||||||||
| Net loss attributed to common stockholder | $ | (17,244 | ) | $ | (23,966,512 | ) | $ | (120,800 | ) | $ | (24,104,556 | ) | ||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (17,244 | ) | $ | (23,362,512 | ) | $ | – | $ | (23,379,756 | ) | |||||
| Foreign currency translation loss | – | (832,542 | ) | (832,542 | ) | |||||||||||
| Comprehensive loss: | $ | (17,244 | ) | $ | (24,195,054 | ) | $ | – | $ | (24,212,298 | ) | |||||
| Earnings per share - basic and diluted: | $ | (0.00 | ) | $ | (0.56 | ) | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 16,254,167 | 42,811,735 | ||||||||||||||
See accompanying notes to pro forma consolidated financial statements
| 2 |
SSTL, Inc.,
and Zenovia Digital Exchange Corporation
Pro Forma Consolidated Statement of Operations and Other Comprehensive Loss
For the Year Ended December 31, 2013
| Pro forma | Pro forma | |||||||||||||||
| SSTL | Zenovia | Adjustments | Consolidated | |||||||||||||
| (Historical) | (Historical) | |||||||||||||||
| Sales | $ | 60,000 | $ | 8,371,496 | $ | $ | 8,431,496 | |||||||||
| Cost of goods sold | – | 7,028,972 | 7,028,972 | |||||||||||||
| Gross profit | 60,000 | 1,342,524 | – | 1,402,524 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 292,472 | 292,472 | ||||||||||||||
| General and administrative expenses | 125,524 | 21,559,317 | 21,684,841 | |||||||||||||
| Total operating expenses | 125,524 | 21,851,789 | – | 21,977,313 | ||||||||||||
| Loss from operations | (65,524 | ) | (20,509,265 | ) | – | (20,574,789 | ) | |||||||||
| Other income (expense) | ||||||||||||||||
| Interest expense and financing costs | (18,851 | ) | (1,206,125 | ) | (1,224,976 | ) | ||||||||||
| Other income | 16,555 | 185,845 | 202,400 | |||||||||||||
| Total other income (expense) | (2,296 | ) | (1,020,280 | ) | – | (1,022,576 | ) | |||||||||
| Loss before provision for income taxes | (67,820 | ) | (21,529,545 | ) | – | (21,597,365 | ) | |||||||||
| Provision for income taxes | – | – | – | – | ||||||||||||
| Net loss | (67,820 | ) | (21,529,545 | ) | – | (21,597,365 | ) | |||||||||
| Preferred stock dividend | – | 145,355 | 29,071 | c | 174,426 | |||||||||||
| Net loss attributed to common stockholder | $ | (67,820 | ) | $ | (21,674,900 | ) | $ | (29,071 | ) | $ | (21,771,791 | ) | ||||
| Comprehensive loss: | ||||||||||||||||
| Net loss | $ | (67,820 | ) | $ | (21,529,545 | ) | $ | – | $ | (21,597,365 | ) | |||||
| Foreign currency translation loss | – | – | – | |||||||||||||
| Comprehensive loss: | $ | (67,820 | ) | $ | (21,529,545 | ) | $ | – | $ | (21,597,365 | ) | |||||
| Earnings per share - basic and diluted: | $ | (0.00 | ) | $ | (0.87 | ) | ||||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic and diluted | 16,254,167 | 25,152,484 | ||||||||||||||
See accompanying notes to pro forma consolidated financial statements
| 3 |
SSTL, Inc.,
and Zenovia Digital Exchange Corporation
Notes to Pro form Consolidated Financial Statements
NOTE 1 - BASIS OF PRESENTATION
On October 30, 2014, Zenovia Digital Exchange Corporation, a Delaware corporation (“Zenovia”), entered into an Agreement of Merger and Plan of Reorganization (the “Agreement”) with SSTL, Inc., a Nevada corporation (“SSTL”), and SSTL Acquisition Corp., a Delaware corporation and a wholly owned subsidiary of Parent (“Merger Sub”), providing for the merger of Merger Sub with and into Zenovia (the “Merger”), with Zenovia surviving the Merger as a wholly-owned subsidiary of SSTL. The Merger Agreement was approved by Zenovia’s Board of Directors (the “Board”) and the sole Director of SSTL. Effective May [_], 2015, the parties to the Agreement entered into an Amended and Restated Merger Agreement. The Agreement as amended and restated is referred to herein as the “Merger Agreement”. The Merger closed on May [•], 2015. In connection with the Agreement, certain SSTL stockholder agreed to exchange 5,755,500 shares of SSTL common stock in exchange for all the assets and liabilities of SSTL and the Zenovia stockholders received three shares of SSTL common stock in exchange for each common share of Zenovia common stock.
The accompanying pro forma consolidated balance sheet presents the accounts of SSTL and Zenovia as if Merger occurred December 31, 2014. The accompanying pro forma consolidated statement of operations and other comprehensive loss presents the accounts of SSTL and Zenovia for the years ended December 31, 2014 and 2013 as if the Merger occurred on January 1, 2013.
The following adjustments would be required if the acquisition occurred as indicated above:
| a. | To show the exchange of 5,557,500 shares of SSTL common stock for all the assets and liabilities of SSTL and to remove the accumulated deficit balance of SSTL; |
| Debit | Credit | |||||||
| Accounts payable | $ | 1,023 | ||||||
| Accrued expenses | 2,363 | |||||||
| Accrued interest - related party | 2,948 | |||||||
| Related party note payable | 200,000 | |||||||
| Common stock | 5,556 | |||||||
| Additional paid in capital | 430,194 | |||||||
| Cash | $ | 45,360 | ||||||
| Accounts receivable - related party | 7,500 | |||||||
| Prepaid expenses and other current assets | 2,362 | |||||||
| Furniture, equipment and improvements, net | 32,500 | |||||||
| Accumulated deficit | 554,362 | |||||||
| 4 |
| b. | To record the $0.001 par value of the SSTL shares of common stock issued to the Zenovia stockholders; and |
| Debit | Credit | |||||||
| Additional paid in capital | $ | 23,050 | ||||||
| Common stock | $ | 23,050 | ||||||
| c. | To record the increase in the preferred stock dividend from 10% to 12% for the exchange of Zenovia preferred stock for SSTL preferred stock. |
The unaudited consolidated pro forma financial information is presented for informational purposes only and is subject to a number of uncertainties and assumptions and do not purport to represent what the company’s actual performance or financial position would have been had the transaction occurred on the dates indicated and does not purport to indicate the financial position or results of operations as of any future date or for any future period.
| 5 |