Attached files
| file | filename |
|---|---|
| 8-K/A - 8-K/A - PREMIER HOLDING CORP. | premier_8ka.htm |
| EX-99.2 - FINANCIAL STATEMENTS - PREMIER HOLDING CORP. | premier_8ka-ex9902.htm |
| EX-99.1 - FINANCIAL STATEMENTS - PREMIER HOLDING CORP. | premier_8ka-ex9901.htm |
Exhibit 99.3
Lexington Power & Light, LLC
Summary of Unaudited Pro-Forma Condensed Consolidated Financial Statements
On October 22, 2014, Premier Holding Corporation (the “Company”) completed the purchase of Lexington Power & Light, LLC., a New York limited liability company (“LP&L”). On October 22, 2014, Premier entered a Membership Purchase Agreement (“Agreement”) to acquire 85% of the membership interests of Lexington Power & Light, LLC (“LP&L”) from its owners. Under the Agreement, Premier will acquire 85% of LP&L on the Closing Date for 7,500,000 shares of common stock and $500,000 in Promissory Notes, plus earn out payments based upon EBITDA milestones during the 12 months following the Closing Date. Under the Agreement, Premier has a contingent funding obligation of $1,000,000 of which $500,000 will be used as working capital for LP&L. Under the Agreement, Premier has the option to acquire the remaining 15% of LP&L until December 31, 2018 for $20,000,000 payable 1/2 in cash and 1/2 in common stock. Under the Agreement, Premier will limit its board of directors to five persons, with the members of LP&L having the right to appoint one board member.
The Company has estimated that the fair value of the assets purchased to be $5,183,828. The purchase price has been allocated to specific identifiable tangible and intangible assets at their fair value at the date of the purchase in accordance with Accounting Standards Codification 805, “Business Combinations”, as follows:
| Cash | $ | 985,798 | ||
| Accounts receivable | 383,819 | |||
| Inventory | 55,020 | |||
| Accrued revenue | 337,522 | |||
| Equipment | 35,342 | |||
| Goodwill | 2,859,151 | |||
| Other assets | 527,176 | (1) | ||
| Total assets acquired | 5,183,828 | |||
| Accounts payable and accrued liabilities | (1,960,176 | ) | ||
| Note payable | (1,175,268 | ) | ||
| Long term note payable | (200,000 | ) | ||
| Total liabilities assumed | (3,335,444 | ) | ||
| Non-Controlling interest | 151,616 | |||
| Net assets acquired | $ | 2,000,000 | ||
| The purchase price consists of the following: | ||||
| Note payable | $ | 500,000 | ||
| Earn out payment | 750,000 | |||
| Common stock | 750,000 | |||
| Total purchase price | $ | 2,000,000 |
Notes
| (1) | Other assets consist of Collateral Posting $286,997, Collateral Deposit $200,000 and unreconciled AR Balances $40,180 |
At the time of this filing the Company had retained the services of an independent third-party to perform a detailed valuation and purchase price allocation with regard to its purchase of LP&L. Should the results of the third party evaluation differ from those above; the Company will make the necessary financial adjustments at that time. The fair value of the assets and liabilities are the same as the carrying value due to short term maturity.
The unaudited pro forma balance sheet as of September 30, 2014 presented herein gives effect to the acquisition as if the transaction had occurred at September 30, 2014 and includes certain pro forma balance sheet adjustments as of September 30, 2014. The unaudited consolidated statement of operations for the nine months ended September 30, 2014 and 2013, and for the year ended December 31, and 2013 presented herein gives effect to the acquisition as if the transaction had occurred at the beginning of the respective period and includes certain pro forma statement of operations adjustments that are directly attributable to the transaction as if the transaction had occurred at the beginning of the respective period, which are expected to have a continuing impact on the Company, and are factually supportable, as summarized in the accompanying notes.
The unaudited pro forma condensed consolidated financial information is provided for illustrative purposes only. The unaudited pro forma condensed consolidated financial information presented herein is based on management’s estimate of the effects of the acquisition, had such transaction occurred on the dates indicated herein, based on currently available information and certain assumptions and estimates that the Company believes are reasonable under the circumstances. The unaudited pro forma condensed consolidated financial information is not necessarily indicative of the results of operations or financial position that actually would have been achieved had the acquisition been consummated on the dates indicated, or that may be achieved in the future.
The unaudited pro forma condensed consolidated financial information presented herein were derived from the historical financial statements of PRHL and LP&L, and should be read in conjunction with the audited financial statements of the Company contained elsewhere in this Current Report on Form 8-K, as filed with the Securities and Exchange Commission, The Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2013, as filed with the Securities and Exchange Commission on April 15, 2014, and Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, as filed with the Securities and Exchange Commission on November 14, 2013.
| 1 |
PREMIER HOLDING CORPORTATION
Consolidated Balance Sheets
(Unaudited)
| September 30, | September 30, | September 30, | ||||||||||||||
| 2014 | 2014 | Pro Forma | 2014 | |||||||||||||
| Assets | PRHL | LPL | Adjustments | Pro Forma | ||||||||||||
| Current Assets | ||||||||||||||||
| Cash | $ | 578,039 | $ | 193,098 | $ | – | $ | 771,137 | ||||||||
| Accounts receivable | 513,665 | 852,550 | – | 1,366,215 | ||||||||||||
| Accrued Revenue | – | 636,405 | – | 636,405 | ||||||||||||
| Inventory | – | 49,598 | – | 49,598 | ||||||||||||
| Collateral Postings | – | 265,900 | – | 265,900 | ||||||||||||
| Prepaid expenses | 12,524 | – | – | 12,524 | ||||||||||||
| Total Current Assets | 1,104,228 | 1,997,551 | – | 3,101,779 | ||||||||||||
| Other Assets | ||||||||||||||||
| Notes receivable | – | – | – | – | ||||||||||||
| Equipment, Net | 23,545 | 35,341 | – | 58,886 | ||||||||||||
| Goodwill | 4,555,750 | – | – | 4,555,750 | ||||||||||||
| Intangible assets, net | 149,905 | – | – | 149,905 | ||||||||||||
| Collateral Deposit | – | 200,000 | – | 200,000 | ||||||||||||
| Total Assets | $ | 5,833,428 | $ | 2,232,892 | $ | – | $ | 8,066,320 | ||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||
| Current Liabilities: | ||||||||||||||||
| Accounts payable and accrued liabilities | $ | 352,624 | $ | 849,535 | $ | – | $ | 1,202,159 | ||||||||
| Related party payable | 149,620 | – | – | 149,620 | ||||||||||||
| Deferred Supply Payable | – | 704,679 | – | 704,679 | ||||||||||||
| Convertible note, net | 386,000 | – | – | 386,000 | ||||||||||||
| Notes payable | 20,000 | 977,903 | 500,000 | (1a) | 1,497,903 | |||||||||||
| Notes payable, related parties | ` | 152,379 | – | 152,379 | ||||||||||||
| Taxes payable | ` | – | – | – | ||||||||||||
| Total Current Liabilities | 908,244 | 2,684,496 | 500,000 | 4,092,741 | ||||||||||||
| Long-Term Liabilities: | ||||||||||||||||
| Long-term debt | – | 200,000 | – | 200,000 | ||||||||||||
| Total Liabilities | 908,244 | 2,884,496 | 500,000 | 4,292,741 | ||||||||||||
| Commitments and Contingencies | ||||||||||||||||
| Lawsuit liability | 86,000 | – | – | 86,000 | ||||||||||||
| Stockholders’ Equity: | ||||||||||||||||
| Preferred Stock, 50,000,000 shares authorized, par value $.0001, 200,000, and null share issued or outstanding, respectively | 20 | – | – | 20 | ||||||||||||
| Common Stock, 450,000,000 shares authorized, par value $.0001, 157,319,610 and 151,003,328 shares issued and outstanding, respectively | 15,732 | – | 750 | (1b, 2) | 16,482 | |||||||||||
| Common stock to be issued | 256,958 | – | – | 256,958 | ||||||||||||
| Treasury stock | (869,000 | ) | – | – | (869,000 | ) | ||||||||||
| Additional paid in capital | 21,346,247 | – | (750 | )(2) | 21,345,497 | |||||||||||
| Accumulated deficit | (15,633,976 | ) | (651,604 | ) | (500,000 | ) | (16,785,580 | ) | ||||||||
| Total Premier Holding Corporation stockholders’ equity | 5,115,981 | (651,604 | ) | (500,000 | ) | 3,964,377 | ||||||||||
| Non-controlling interest | (276,797 | ) | – | – | (276,797 | ) | ||||||||||
| Total Stockholders’ Equity | 4,839,184 | (651,604 | ) | (500,000 | ) | 3,687,579 | ||||||||||
| Total Liabilities and Stockholders’ Equity | $ | 5,833,428 | $ | 2,232,892 | $ | – | $ | 8,066,320 | ||||||||
Notes
| (1) | Premier acquired 85% of LP&L for a) the issuance of $500,000 in Promissory Notes and b) 7,500,000 shares of common stock |
| (2) | The 7,500,000 shares of Premier issued are in exchanged for 85% of the shares of LPL, this pro forma assumes full consolidation of LPL's financial activities |
| 2 |
PREMIER HOLDING CORPORATION
Consolidated Statements of Operations
(Unaudited)
| Nine months ended September | Nine months ended September | Pro | Nine months ended September | Nine months ended September | Nine months ended September | Pro | Nine months ended September | |||||||||||||||||||||||||
| 30, | 0, | Forma | 30, | 30, | 30, | Forma | 30, | |||||||||||||||||||||||||
| 2014 | 2014 | Adjust- | 2014 | 2013 | 2013 | Adjust- | 2013 | |||||||||||||||||||||||||
| PRHL | LPL | ments | Pro Forma | PRHL | LPL | ments | Pro Forma | |||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||
| TPC Commission Revenue | $ | 2,223,789 | $ | – | $ | – | $ | 2,223,789 | $ | 1,437,746 | $ | – | $ | – | $ | 1,437,746 | ||||||||||||||||
| Lighting Product Selling Revenue | 59,420 | – | – | 59,420 | – | – | – | – | ||||||||||||||||||||||||
| LPL Sales | – | 8,634,731 | – | 8,634,731 | – | 7,140,120 | – | 7,140,120 | ||||||||||||||||||||||||
| Total Revenue | 2,283,209 | 8,634,731 | – | 10,917,940 | 1,437,746 | 7,140,120 | – | 8,577,866 | ||||||||||||||||||||||||
| Cost of Sales | 69,389 | 6,548,083 | – | 6,617,472 | 33,786 | 5,887,324 | – | 5,921,110 | ||||||||||||||||||||||||
| – | – | – | – | |||||||||||||||||||||||||||||
| Gross Profit | 2,213,820 | 2,086,648 | – | 4,300,468 | 1,403,960 | 1,252,796 | – | 2,656,756 | ||||||||||||||||||||||||
| Operating expenses: | ||||||||||||||||||||||||||||||||
| Selling, general and administrative | 4,681,150 | 1,249,229 | – | 5,930,379 | 4,934,351 | 1,286,122 | – | 6,220,473 | ||||||||||||||||||||||||
| Total operating expenses | 4,681,150 | 1,249,229 | – | 5,930,379 | 4,934,351 | 1,286,122 | – | 6,220,473 | ||||||||||||||||||||||||
| Loss from operations | (2,467,330 | ) | 837,419 | – | (1,629,911 | ) | (3,530,391 | ) | (33,326 | ) | – | (3,563,717 | ) | |||||||||||||||||||
| Other income (expenses): | ||||||||||||||||||||||||||||||||
| Interest expense | (7,202 | ) | (290,318 | ) | – | (297,520 | ) | – | (196,294 | ) | – | (196,294 | ) | |||||||||||||||||||
| Loss on settlement of lawsuit | (110,000 | ) | – | – | (110,000 | ) | – | – | – | – | ||||||||||||||||||||||
| Other income (expense) | – | 49,706 | – | 49,706 | – | (2,336 | ) | – | (2,336 | ) | ||||||||||||||||||||||
| Total non-operating expenses | (117,202 | ) | (240,612 | ) | – | (357,814 | ) | – | (198,630 | ) | – | (198,630 | ) | |||||||||||||||||||
| Loss from operations before income taxes, non-controlling interest, and discontinued operations | (2,584,533 | ) | 596,807 | – | (1,987,726 | ) | (3,530,391 | ) | (231,956 | ) | – | (3,762,347 | ) | |||||||||||||||||||
| Income taxes | – | – | – | – | – | – | – | |||||||||||||||||||||||||
| Loss before non-controlling interest and discontinued operations | (2,584,533 | ) | 596,807 | – | (1,987,726 | ) | (3,530,391 | ) | (231,956 | ) | – | (3,762,347 | ) | |||||||||||||||||||
| Net Loss attributable to non-controlling interest | 97,441 | – | – | 97,441 | 123,011 | – | – | 123,011 | ||||||||||||||||||||||||
| Income/ Loss from discontinued operations | – | – | – | – | 985,138 | – | – | 985,138 | ||||||||||||||||||||||||
| Net Profit (Loss) attributable to Premier Holding Corporation | $ | (2,487,091 | ) | $ | 596,807 | $ | (89,521 | ) | $ | (1,979,805 | ) | $ | (2,422,241 | ) | $ | (231,956 | ) | $ | 34,793 | $ | (2,619,405 | ) | ||||||||||
| Net loss from continuing operations | (2,487,091 | ) | 596,807 | (89,521 | ) | (1,979,805 | ) | (3,407,379 | ) | (231,956 | ) | 34,793 | (3,604,543 | ) | ||||||||||||||||||
| Net income (Loss) per common share — basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||||||||||||||||||
| Net income (Loss) attributable to Premier Holding Corporation per share - basic and diluted | $ | (0.02 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) | ||||||||||||||||||||
| Net income from discontinued operations | – | – | ||||||||||||||||||||||||||||||
| Net income (Loss) per common share from discontinued operations — basic and diluted | – | – | ||||||||||||||||||||||||||||||
| Weighted average common shares – basic and diluted | 146,423,036 | 146,423,036 | 103,449,884 | 103,449,884 | ||||||||||||||||||||||||||||
| 3 |
PREMIER HOLDING CORPORATION
Consolidated Statements of Operations
(Unaudited)
| Year ended | Year ended | Year ended | ||||||||||||||
| December 31, | December 31, | Pro | December 31, | |||||||||||||
| 2013 | 2013 | Forma | 2013 | |||||||||||||
| PRHL | LPL | Adjustments | Pro Forma | |||||||||||||
| Revenue | ||||||||||||||||
| TPC Commission Revenue | $ | 1,804,980 | $ | – | $ | – | $ | 1,804,980 | ||||||||
| Lighting Product Selling Revenue | – | – | – | – | ||||||||||||
| LPL Sales | – | 9,522,963 | – | 9,522,963 | ||||||||||||
| Total Revenue | 1,804,980 | 9,522,963 | – | 11,327,943 | ||||||||||||
| Cost of Sales | 39,214 | 8,296,610 | – | 8,335,824 | ||||||||||||
| – | – | – | – | |||||||||||||
| Gross Profit | 1,765,766 | 1,226,353 | – | 2,992,119 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 6,955,779 | 1,733,178 | – | 8,688,957 | ||||||||||||
| Total operating expenses | 6,955,779 | 1,733,178 | – | 8,688,957 | ||||||||||||
| Loss from operations | (5,190,013 | ) | (506,825 | ) | – | (5,696,838 | ) | |||||||||
| Other income (expenses): | ||||||||||||||||
| Interest expense | – | (270,988 | ) | – | (270,988 | ) | ||||||||||
| Loss on settlement of lawsuit | – | – | – | – | ||||||||||||
| Other income (expense) | – | (6,034 | ) | – | (6,034 | ) | ||||||||||
| Total non-operating expenses | – | (317,022 | ) | – | (317,022 | ) | ||||||||||
| Loss from operations before income taxes, non-controlling interest, and discontinued operations | (5,190,013 | ) | (783,847 | ) | – | (5,973,860 | ) | |||||||||
| Income taxes | – | – | – | |||||||||||||
| Loss before non-controlling interest and discontinued operations | (5,190,013 | ) | (783,847 | ) | – | (5,973,860 | ) | |||||||||
| Net Loss attributable to non-controlling interest | 199,918 | – | – | 199,918 | ||||||||||||
| Income/ Loss from discontinued operations | 985,138 | – | – | 985,138 | ||||||||||||
| Net Profit (Loss) attributable to Premier Holding Corporation | $ | (4,004,957 | ) | $ | (783,847 | ) | $ | 117,577 | $ | (4,671,227 | ) | |||||
| Net loss from continuing operations | (4,990,095 | ) | (783,847 | ) | – | (5,773,942 | ) | |||||||||
| Net income (Loss) per common share — basic and diluted | $ | (0.04 | ) | $ | (0.05 | ) | ||||||||||
| Net income (Loss) attributable to Premier Holding Corporation per share - basic and diluted | $ | (0.04 | ) | $ | (0.04 | ) | ||||||||||
| Net income from discontinued operations | – | |||||||||||||||
| Net income (Loss) per common share from discontinued operations — basic and diluted | 0.01 | 0.01 | ||||||||||||||
| Weighted average common shares – basic and diluted | 111,847,320 | 111,847,320 | ||||||||||||||
| 4 |