Cloudweb, Inc. - FORM 8-K/A - EX-99.3 - UNAUDITED PROFORMA FINANCIALS - April 8, 2016

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8-K/A - FORM 8-K/A - Cloudweb, Inc.ex8ka.htm
EX-99.2 - UNAUDITED FINANCIAL STATEMENTS OF WEB HOSTING SOLUTIONS LIMITED AS OF SEPTEMBER 30, 2015 AND 2014 - Cloudweb, Inc.ex992.htm
EX-99.1 - AUDITED FINANCIAL STATEMENTS OF WEB HOSTING SOLUTIONS LIMITED AS OF MARCH 31, 2015 AND 2014 - Cloudweb, Inc.ex991.htm

The unaudited pro forma consolidated balance sheet and statement of operations reflects amounts as if the transaction had occurred on September 30, 2015.  As a result of this business combination, Data Cloud Inc. a Nevada corporation (“Data Cloud”) became a wholly owned subsidiary of Cloudweb, Inc., a Florida corporation (“Cloudweb” or the “Company”)
 
The information presented in the unaudited pro forma combined financial statements does not purport to represent what the financial position or results of operations would have been had the acquisition occurred as of September 30, 2015, nor is it indicative of future financial position or results of operations.  You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been combined, or the future result that the combined company will experience after the Exchange Transaction is consummated.
 
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 financial statements should be read in conjunction with the accompanying notes and assumptions and the historical financial statements of the Company, Data Cloud and Web Hosting Solutions Ltd., a United Kingdom company (“WHS”).

On January 28, 2016, Cloudweb entered into a Share Exchange Agreement (the “Share Exchange Agreement”) with Liao Zhi De, an individual residing in China, whereby Cloudweb issued 2,500,000 shares of its common stock in exchange for 100% of the issued and outstanding equity interests of Data Cloud Inc., a Nevada corporation (“Data Cloud”).
 
As a result of the Share Exchange Agreement, Liao Zhi De became the sole executive officer and sole member of the Board of Directors of Cloudweb.  Mr. Liao also controls Letterston Investments Ltd., which acquired 250,000,000 shares of common stock of Cloudweb on January 28, 2016.  Therefore, Mr. Liao controls approximately 81% of Cloudweb’s issued and outstanding shares of common stock.

On November 25, 2015, Data Cloud completed the purchase of 100% of the issued and outstanding equity interests of Web Hosting Solutions Ltd., a United Kingdom company (“WHS”) from James Holland, an individual residing in the United Kingdom, pursuant to the Share Purchase Agreement, dated October 23, 2015, by and among Data Cloud, James Holland and WHS (the “Purchase Agreement”) for $72,000 (GBP 47,000) and certain post-closing covenants. 

 
1
 

CLOUDWEB, INC.
PROFORMA CONSOLIDATED BALANCE SHEET
September 30, 2015
(UNAUDITED)

 
   
Cloud
Web
    
Data
Cloud
  
WHS
  
Adjustments
    
Pro Forma
  
                           
Assets
                          
Current
                          
Cash
  
$
52,890
    
$
-
    
$ 
10,897
    
$
- 
    
$
63,787
  
Deferred financing costs
    
10,000
      
-
      
-
      
(10,000
)
(d)
  
-
  
Total current assets
    
62,890
      
-
      
10,897
      
(10,000
)
    
63,787
  
                                         
Equipment, net
    
- 
      
-
      
464 
              
464 
  
Goodwill
                            
36,223
  
(a)
  
36,223
  
Total assets
  
$
62,890
    
$
-
    
$
11,361
    
$
26,223
    
$
100,474
  
                                         
Liabilities
                                        
Accounts payable and accrued liabilities
  
$
1,973
    
$
925
    
 $
-
    
$
5,024 
  
(d)
$
7,922
  
Taxed payable
    
-
      
-
      
4,959
      
-
      
4,959
  
Customer deposits
    
10,752
      
-
      
-
      
(10,752
)
(d)
  
-
  
Due to related party
    
134,000
      
-
      
13,619
      
72,000
  
(a)
  
219,619
  
Total current liabilities
    
146,725
      
925
      
18,578
      
66,272 
      
232,500
  
                                         
Stockholders’ Equity (Deficit)
                                        
Capital stock – no par value common shares
    
-
      
-
      
2
      
(2
)
(a)
  
-
  
                                         
Additional paid-in capital
    
89,514
      
-
      
-
      
(35,775
)
(a)
  
(123,882
)
                             
2,500
  
(b)
      
                             
(2,500
)
(b)
      
                             
(173,349
)
(c)
      
                             
(4,272
)
(d)
      
Related party receivable
    
-
      
-
      
(24,416
)
    
-
      
(24,416
)
Retained earnings (Deficit accumulated)
    
(173,349
)
    
(925
)
    
17,761
      
173,349
  
(c)
  
16,836
  
Accumulated other comprehensive income
            
-
      
(564
)
    
-
      
(564
)
Total stockholders’ equity (deficit)
    
(83,835
)
    
(925
)
    
(7,217
)
    
(40,049
)
    
(132,026
)
Total liabilities and stockholders’ equity (deficit)
  
$
62,890
    
$
-
    
$
11,361
    
 $
26,223
      
100,474
  

 
2
 

CLOUDWEB, INC.
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
For the period ended September 30, 2015
(UNAUDITED)

 
   
Cloud
Web
    
Data
Cloud
    
WHS
      
ADJ
(c)
    
Pro Forma
  
   
9M ended
          
6M ended
                
Revenues
  
$
49,969
    
$
-
    
$
22,229
    
$
(49,969
)
  
$
22,229
  
Cost of goods sold
  
25,636
    
-
    
4,723
      
(25,636
)
  
4,723
  
Gross profit
  
24,333
          
17,506
      
(24,333
)
  
17,506
  
                                 
Operating Expenses
                                
Depreciation
    
-
      
-
      
165
              
165
  
Management fees
    
90,000
      
-
      
-
      
(90,000
)
    
-
  
Professional fees
    
19,293
      
-
      
-
      
(19,293
)
    
-
  
Salaries and payroll
    
-
      
-
      
17,178
      
-
      
17,178
  
Other general and administrative expenses
    
23,015
      
925
      
3,175
      
(23,015
)
    
4,100
  
Total operating expenses
    
132,309
      
925
      
20,518
      
(132,309
)
    
21,443
  
                                         
(Loss) from operations
    
(107,977
)
    
(925
)
    
(3,012
)
    
107,977
      
(3,937
)
                                         
Net Loss
  
$
(107,977
)
  
$
(925
)
  
$
-
    
$
107,977
    
$
(3,937
)
                                         

 

 
3
 

CLOUDWEB, INC.
PROFORMA CONSOLIDATED STATEMENTS OF OPERATIONS
 (UNAUDITED)


   
Cloud
Web
    
 
    
WHS
      
 
    
 
  
   
Year ended
December 31, 2014 
    
Data
Cloud
    
Year ended
March 31, 2015 
       ADJ
(c)
    
 
Pro Forma
  
Revenues
  
$
61,426
    
$
-
    
$
64,073
    
$
(61,426
)
  
$
64,073
  
Cost of goods sold
  
46,452
    
-
    
12,394
      
(46,452
)
  
12,394
  
Gross profit
  
14,974
          
51,679
      
(14,974
)
  
51,679
  
                               
OPERATING EXPENSES
                              
Depreciation
    
-
      
-
      
329
              
329
  
Management fees
    
35,000
      
-
      
-
      
(35,000
)
    
-
  
Professional fees
    
10,288
      
-
      
604
      
(10,288
)
    
604
  
Salaries and payroll
    
-
      
-
      
12,414
      
-
      
12,414
  
Other general and administrative expenses
    
35,060
      
-
      
14,802
      
(35,060
)
    
14,802
  
Total operating expenses
    
80,348
      
-
      
28,149
      
(80,348
)
    
28,149
  
                                         
(Loss) Income from operations
    
(65,374
)
    
-
      
23,530
      
65,374
      
23,530
  
 Interest income
                    
2
              
2
  
                                         
Income before income taxes
                    
23,532
              
23,532
  
Provision for income taxes
                    
(3,359
)
            
(3,359
)
Net Income
  
$
(65,374
)
  
$
-
    
$
20,173
    
$
65,374
    
$
20,173
  
                                         


 
4
 

Pro Forma adjustments:

The business combination is deemed to be a reverse acquisition pursuant to SEC guidance, ASC 805-40-25-1, which provides that the merger of a private operating company into a public corporation with nominal net assets typically results in the owners and management of the private company having actual or effective operating control of the combined company after the transaction, with shareholders of the former public entity continuing only as passive investors. These transactions are considered to be capital transactions in substance, rather than business combinations. That is, the transaction is equivalent to the issuance of stock by the private company for the net monetary assets of the public corporation, accompanied by a recapitalization. The accounting is identical to that resulting from a reverse acquisition, except that no goodwill or other intangible should be recorded”.

Accordingly, Cloudweb (the legal acquirer) is considered the accounting acquiree and Data Cloud (the legal acquire) is considered the accounting acquirer. The consolidated financial statements of the combined entity will in substance be those of Data Cloud, with assets and liabilities, and revenues and expenses, of Cloudweb being included effective from the date of completion of the Share Exchange Transaction. Cloudweb is deemed to be a continuation of the business of Data Cloud. The outstanding stock of Cloudweb prior to the Share Exchange Transaction will be accounted for at its net book value and no goodwill will be recognized.
 
(a)
Reflects the effect of the business combination that Data Cloud completed including the purchase of 100% of the issued and outstanding equity interests of Web Hosting Solutions Ltd. via payment of $72,000.
(b)
Reflects the effect of the business combination on the acquisition of Data Cloud for the impact of the issuance of a total of 2,500,000 shares of Cloudweb common stock.
(c)
Transfer of the accumulated deficit to additional paid in capital as part of the recapitalization.
(d)
Adjustment on deferred financing costs and customer deposits prior to closing date to new business.

 

 
5
 

Cloudweb, Inc. Reports