Phoenix Rising Companies, Inc. - FORM 8-K/A - EX-99.2 - February 4, 2016

Attached files

file filename
8-K/A - FORM 8-K/A - Phoenix Rising Companies, Inc.2016jan29-rssv_8ka.htm
EX-99.1 - EX-99.1 - Phoenix Rising Companies, Inc.ex-99_1.htm
Exhibit 99.2
 
Proforma

The following unaudited pro forma condensed combined financial statements which give effect to the business combination transaction (the "Acquisition") between Resort Savers, Inc. (the “Company”, “we”, “us”, “our”) and  Beijing Yandong Tieshan Oil Products Co., Ltd.  (“Beijing Yandong”), a company incorporated pursuant to the laws of the PRC.
 
 
Resort Savers, Inc.
Proforma
Balance Sheet – Unaudited
 
       
Beijing Yandong Tieshan
          
   
Resort Savers, Inc.
    
Oil Products Co., Ltd.
    
Proforma
    
Proforma
  
   
October 31, 2015
    
December 31, 2015
    
Adjustments
    
As adjusted
  
   
(Unaudited)
    
(Audited)
    
(a) & (b)
    
(Unaudited)
  
                 
 ASSETS
                
 Current Assets
                
    Cash and cash equivalents
  
$
3,148
    
$
213,516
    
$
-
    
$
216,664
  
    Accounts receivable
    
-
      
25,047,810
      
-
      
25,047,810
  
    Other receivable
    
-
      
4,129
      
-
      
4,129
  
    Prepayments
    
-
      
1,678,461
      
-
      
1,678,461
  
       Total Current Assets
    
3,148
      
26,943,916
      
-
      
26,947,064
  
 Equipment
    
200,996
      
30,295
      
-
      
231,291
  
 Investment
    
1,907,308
      
-
      
-
      
1,907,308
  
 Goodwill
    
-
      
-
      
1,979,787
      
1,979,787
  
 TOTAL ASSETS
  
$
2,111,452
    
$
26,974,211
    
$
1,979,787
    
$
31,065,450
  
                                 
 LIABILITIES AND STOCKHOLDERS' EQUITY
                                
 Current Liabilities
                                
    Short-term loan
   $
-
     $
3,080,000
     $
-
     $
3,080,000
  
    Accounts payable
  
 
223,821
      
5,629,306
    
 
-
    
 
5,853,127
  
    Deposits received
    
-
      
13,496,941
      
-
      
13,496,941
  
    Due to related parties
    
5,461
      
-
      
-
      
5,461
  
   Tax payable
    
-
      
11,163
      
-
      
11,163
  
    Other payable
    
-
      
1,294
      
-
      
1,294
  
 TOTAL LIABILITIES
    
229,282
      
22,218,704
      
-
      
22,447,986
  
                                 
 STOCKHOLDERS’ EQUITY
                                
 Preferred stock, $0.0001 par value; 15,000,000 shares authorized;
                                
    0 shares issued and outstanding
    
-
      
-
      
-
      
-
  
 Common stock, $0.0001 par value; 1,000,000,000 shares authorized;
                            
-
  
    70,176,241 and 62,121,360 shares issued and outstanding, respectively
    
7,017
      
-
      
600
      
7,617
  
 Registered share capital $4,727,000 as at December 31, 2015, fully paid
    
-
      
4,727,000
      
(4,727,000
)
    
-
  
 Additional paid-in capital
    
4,545,377
      
-
      
3,434,400
      
7,979,777
  
 Retained earnings (accumulated deficit)
    
(2,606,649
)
    
142,707
      
(142,707
)
    
(2,606,649
)
 Accumulated other comprehensive loss
    
(63,575
)
    
(114,200
)
    
114,200
      
(63,575
)
 Total Resort Savers, Inc. shareholders' equity
    
1,882,170
      
4,755,507
      
(1,320,507
)
    
5,317,170
  
 Noncontrolling interest
    
-
      
-
      
3,300,294
      
3,300,294
  
 Total equity
    
1,882,170
      
4,755,507
      
1,979,787
      
8,617,464
  
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
2,111,452
      
26,974,211
    
$
1,979,787
    
$
31,065,450
  
 
 
 
 
 
Resort Savers, Inc.
Proforma
Statement of Operations - Unaudited
 
       
Beijing Yandong Tieshan
          
   
Resort Savers, Inc.
    
Oil Products Co., Ltd.
          
   
Nine Months Ended
    
Year Ended
    
Proforma
    
Proforma
  
   
October 31, 2015
    
December 31, 2015
    
Adjustment
    
As adjusted
  
   
(Unaudited)
    
(Audited)
    
(b)
    
(Unaudited)
  
                 
Revenue
  
$
-
    
$
26,163,477
    
$
(26,163,477
)
  
$
-
  
Cost of sales
    
-
      
25,869,537
      
(25,869,537
)
    
-
  
GROSS PROFIT
    
-
      
293,940
      
(293,940
)
    
-
  
                                 
OPERATING EXPENSES
                                
Selling & distribution
    
-
      
35,288
      
(35,288
)
    
-
  
General and administrative
    
7,150
      
45,067
      
(45,067
)
    
7,150
  
Professional fees
    
71,932
      
-
      
-
      
71,932
  
      Total Operating Expenses
    
79,082
      
80,355
      
(80,355
)
    
79,082
  
                                 
PROFIT (LOSS) FROM OPERATIONS
    
(79,082
)
    
213,585
      
(213,585
)
    
(79,082
)
                                 
OTHER INCOME (EXPENSE)
                                
Other income
    
-
      
4,812
      
(4,812
)
    
-
  
Interest expense
    
-
      
(198,058
)
    
198,058
      
-
  
Goodwill impairment
    
(4,005,224
)
    
-
      
-
      
(4,005,224
)
Equity loss on unconsolidated affiliate investment
    
(30,692
)
    
-
      
-
      
(30,692
)
      Total Other Expense, Net
    
(4,035,916
)
    
(193,246
)
    
193,246
      
(4,035,916
)
                                 
PROFIT (LOSS) BEFORE INCOME TAXES
    
(4,114,998
)
    
20,339
      
(20,339
)
    
(4,114,998
)
Provision for income taxes
    
-
      
(5,085
)
    
5,085
      
-
  
                                 
NET PROFIT (LOSS)
    
(4,114,998
)
    
15,254
      
(15,254
)
    
(4,114,998
)
Net loss attributable to the noncontrolling interest
    
1,600,000
      
-
      
-
      
1,600,000
  
NET LOSS ATTRIBUTABLE TO THE SHAREHOLDERS OF RESORT SAVERS, INC.
  
$
(2,514,998
)
  
$
15,254
    
$
(15,254
)
  
$
(2,514,998
)
                                 
OTHER COMPREHENSIVE LOSS
                                
Unrealized gain on marketable securities
    
(62,000
)
    
-
      
-
      
(62,000
)
Foreign currency translation adjustments
    
(1,575
)
    
(114,200
)
    
114,200
      
(1,575
)
TOTAL COMPREHENSIVE LOSS
  
$
(2,578,573
)
  
$
(98,946
)
  
$
98,946
    
$
(2,578,573
)
                                 
Basic and Diluted Loss per Common Share
  
$
(0.06
)
  
$
-
    
$
-
    
$
(0.06
)
Basic and Diluted Weighted Average Common Shares Outstanding
    
67,011,378
      
-
      
-
      
67,011,378
  
 
 
 
 
Resort Savers, Inc.
NOTES TO THE UNAUDITED PROFORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(Unaudited)

January 29, 2016, the Company has entered into share exchange agreement with Beijing Yandong Tieshan Oil Products Co., Ltd. Pursuant to the agreement, the Company will issue 6,000,000 shares to exchange 51% interest of Beijing Yandong Tieshan Oil Products Co., Ltd.

NOTE 1 - BASIS OF PRO FORMA PRESENTATION

The unaudited pro forma condensed combined balance sheets have been derived from the historical December 31, 2015 balance sheet of Beijing Yandong after giving effect to the Acquisition. The pro forma balance sheet and statement of operations presents this transaction as if they had been consummated as of December 31, 2015, as required under Article 11 of Regulation S-X.

Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Acquisition; (2) factually supportable; and (3) expected to have a continuing impact on the Company’s results of operations. The pro forma adjustments presented in the proforma condensed combined balance sheet and statement of operations are described in Note 2.

NOTE 2 - PRO FORMA ADJUSTMENTS

The adjustments included in the pro forma balance sheet and statement of operations are as follows:

(a) To reflect the shares issued as consideration of the Acquisition
(b) To eliminate the retained earnings of Beijing Yandong incurred before the Acquisition.

 
 
 
 
 
 
 
 
 

Phoenix Rising Companies, Inc. Reports