Attached files
| file | filename |
|---|---|
| EX-10.13 - PROMISSORY NOTE DATED MARCH 16, 2015 - Probility Media Corp | panther_8ka-ex1013.htm |
| EX-10.21 - AMENDMENT NO. 1 TO RESELLER AGREEMENT - Probility Media Corp | panther_8ka-ex1021.htm |
| EX-10.20 - RESELLER AGREEMENT - Probility Media Corp | panther_8ka-ex1020.htm |
| EX-10.19 - FORM OF COPYRIGHT LICENSE AGREEMENT - Probility Media Corp | panther_8ka-ex1019.htm |
| EX-10.18 - LOAN AGREEMENT - Probility Media Corp | panther_8ka-ex1018.htm |
| EX-10.17 - LOAN AGREEMENT - Probility Media Corp | panther_8ka-ex1017.htm |
| EX-10.16 - BUSINESS LOAN AND SECURITY AGREEMENT - Probility Media Corp | panther_8ka-ex1016.htm |
| EX-10.15 - LOAN AGREEMENT DATED 6-14-16 - Probility Media Corp | panther_8ka-ex1015.htm |
| EX-10.14 - LOAN AGREEMENT DATED 11-12-15 - Probility Media Corp | panther_8ka-ex1014.htm |
| EX-10.11 - COMMON STOCK SUBSCRIPTION AGREEMENT - Probility Media Corp | panther_8ka-ex1011.htm |
| 8-K/A - FORM 8-K AMENDMENT - Probility Media Corp | panther_8ka.htm |
Exhibit 99.3
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
The following unaudited pro forma combined balance sheet and statement of operations is derived from the historical consolidated financial statements of Panther Biotechnology, Inc. (“Panther”) and the historical consolidated financial statements of Brown Technical Media Corp. (“Brown”) that Panther acquired on November 8, 2016 in exchange for 32,000,000 shares of Panther common stock pursuant to the Share Exchange Agreement, dated as of October 31, 2016, between Panther, Brown and the shareholders of Brown (the “Share Exchange Agreement” and the “Brown Acquisition”). The following unaudited pro forma combined balance sheet and statement of operations has been adjusted to reflect the purchase of Brown by Panther and certain other events.
The unaudited pro forma combined balance sheet and statement of operations as of July 31, 2016 gives effect to the Brown Acquisition as if it had occurred on July 31, 2016. The combination is being accounted for as a reverse merger whereby Brown is the surviving entity.
The unaudited pro forma combined balance sheet and statement of operations is presented for illustrative purposes only to reflect the Brown Acquisition, and do not represent what our results of operations or financial position would actually have been had the Brown Acquisition occurred on the date noted above, or project our results of operations or financial position for any future periods. The unaudited pro forma combined financial statements are intended to provide information about the continuing impact of the Brown Acquisition as if it had been consummated earlier. The pro forma adjustments are based on available information and certain assumptions that management believes are factually supportable and are expected to have a continuing impact on our results of operations. In the opinion of management, all adjustments necessary to present fairly the unaudited pro forma combined balance sheet and statement of operations have been made. However, the final allocations of purchase price and effects on the results of operations may differ materially from the preliminary allocations and unaudited pro forma combined amounts included herein.
The following unaudited pro forma balance sheet and statement of operations should be read in conjunction with Panther’s consolidated financial statements and related notes and Brown’s consolidated financial statements and related notes. Panther’s financial statements and notes are included in Panther’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on September 13, 2016 and its Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 2016. The consolidated financial statements for Brown and related notes are included elsewhere in this filing.
| 1 |
PANTHER BIOTECHNOLOGY, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
AUGUST 31, 2016
| Historical Panther August 31, 2016 | Historical Brown July 31, 2016 | Eliminate Panther July 31, 2016 | Pro Forma | Pro Forma | ||||||||||||||||
| (Unaudited) | (Unaudited) | Historical | Adjustments | Combined | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash and cash equivalents | $ | 65,526 | $ | 39,750 | $ | – | $ | 250,000 | (B) | $ | 355,276 | |||||||||
| Accounts receivable, net | – | 51,941 | – | – | 51,941 | |||||||||||||||
| Inventory | – | 461,483 | – | – | 461,483 | |||||||||||||||
| Total current assets | 65,526 | 553,174 | – | 250,000 | 868,700 | |||||||||||||||
| Property and equipment, net | – | 59,343 | – | – | 59,343 | |||||||||||||||
| Long term investment | – | 43,466 | – | – | 43,466 | |||||||||||||||
| Other assets | 243,175 | 7,500 | – | 456,000 | (C) | 706,675 | ||||||||||||||
| Total assets | $ | 308,701 | $ | 663,483 | $ | – | $ | 706,000 | $ | 1,678,184 | ||||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Accounts payable and accrued liabilities | $ | 410,025 | $ | 189,528 | $ | – | $ | – | $ | 599,553 | ||||||||||
| Accounts payable - related parties | 15,612 | 130,612 | – | – | 146,224 | |||||||||||||||
| Stock payable | 33,668 | – | – | – | 33,668 | |||||||||||||||
| Stock payable - related party | 84,562 | – | – | – | 84,562 | |||||||||||||||
| Related party advances | 87,500 | – | – | – | 87,500 | |||||||||||||||
| Notes payable, net | – | 467,257 | – | – | 467,257 | |||||||||||||||
| Convertible note payable, net | 80,313 | – | – | – | 80,313 | |||||||||||||||
| Derivative liability | 558,403 | – | – | – | 558,403 | |||||||||||||||
| Current maturities of long term debt | – | 15,263 | – | – | 15,263 | |||||||||||||||
| – | ||||||||||||||||||||
| Total current liabilities | 1,270,083 | 802,660 | – | – | 2,072,743 | |||||||||||||||
| Long term debt | – | 149,786 | – | – | 149,786 | |||||||||||||||
| Other long term liabilities | – | 7,500 | – | – | 7,500 | |||||||||||||||
| Total liabilities | 1,270,083 | 959,946 | – | – | 2,230,029 | |||||||||||||||
| Commitments and contingencies | – | – | – | – | – | |||||||||||||||
| Stockholders’ deficit: | ||||||||||||||||||||
| Preferred stock, $.001 par value, 100,000,000 shares authorized, no shares issued and outstanding | – | – | – | – | – | |||||||||||||||
| Common stock, $.001 par value, 100,000,000 shares authorized, 7,784,717 shares issued and outstanding at August 31, 2016 | 7,950 | 22,000 | – | 1,667 | (B) | 31,617 | ||||||||||||||
| Additional paid-in capital | 10,636,450 | 20,000 | (11,595,043 | ) | (A) | 248,333 | (B) | (234,260 | ) | |||||||||||
| 456,000 | (C) | |||||||||||||||||||
| Accumulated deficit | (11,605,782 | ) | (336,616 | ) | 11,595,043 | (A) | – | (347,355 | ) | |||||||||||
| Total Brown Technical Media Corp. stockholders' deficit | (961,382 | ) | (294,616 | ) | – | 706,000 | (549,998 | ) | ||||||||||||
| Non-controlling interest | – | (1,847 | ) | – | – | (1,847 | ) | |||||||||||||
| Total stockholders’ deficit | (961,382 | ) | (296,463 | ) | – | 706,000 | (551,845 | ) | ||||||||||||
| Total liabilities and stockholders’ deficit | $ | 308,701 | $ | 663,483 | $ | – | $ | 706,000 | $ | 1,678,184 | ||||||||||
| 2 |
PANTHER BIOTECHNOLOGY, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDING OCTOBER 31, 2015
| Historical | Historical | Eliminate | ||||||||||||||||||
| Panther | Brown | Panther | ||||||||||||||||||
| May 31, | October 31, | May 31, | ||||||||||||||||||
| 2016 | 2015 | 2016 | Pro Forma | Pro Forma | ||||||||||||||||
| (Unaudited) | (Unaudited) | Historical | Adjustments | Combined | ||||||||||||||||
| Net Sales | $ | – | 2,137,858 | $ | – | $ | – | $ | 2,137,858 | |||||||||||
| Cost of Sales | – | 1,417,225 | – | – | 1,417,225 | |||||||||||||||
| Gross profit | – | 720,633 | – | – | 720,633 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative expenses | 5,976,053 | 645,323 | – | – | 6,621,376 | |||||||||||||||
| Professional fees | – | 234,027 | – | – | 234,027 | |||||||||||||||
| Impairment of intangible assets | 390,487 | – | – | – | 390,487 | |||||||||||||||
| Depreciation | 34,328 | 13,739 | – | – | 48,067 | |||||||||||||||
| Total operating expenses | 6,400,868 | 893,089 | – | – | 7,293,957 | |||||||||||||||
| Income (loss) from operations | (6,400,868 | ) | (172,456 | ) | – | – | (6,573,324 | ) | ||||||||||||
| Other income (expenses): | ||||||||||||||||||||
| Interest expense, net | (532,927 | ) | (69,238 | ) | – | – | (602,165 | ) | ||||||||||||
| Gain on extinguishment of debt | 67,457 | – | – | – | 67,457 | |||||||||||||||
| Gain on sale of intangible property | – | 60,100 | – | – | 60,100 | |||||||||||||||
| Loss on sale of subsidiary | (80,194 | ) | – | – | – | (80,194 | ) | |||||||||||||
| Change in derivative liability | (21,595 | ) | – | – | – | (21,595 | ) | |||||||||||||
| Total other income (expenses) | (567,259 | ) | (9,138 | ) | – | – | (576,397 | ) | ||||||||||||
| Income (loss) before income taxes | (6,968,127 | ) | (181,594 | ) | – | – | (7,149,721 | ) | ||||||||||||
| Income tax expense (benefit) | – | – | – | – | – | |||||||||||||||
| Net income (loss) | (6,968,127 | ) | (181,594 | ) | – | – | (7,149,721 | ) | ||||||||||||
| Net income (loss) attributable to non-controlling interests | – | 83,696 | – | – | 83,696 | |||||||||||||||
| Net income (loss) attributable to Brown Technical Media Corp. | $ | (6,968,127 | ) | (97,898 | ) | $ | – | $ | – | $ | (7,066,025 | ) | ||||||||
| 3 |
PANTHER BIOTECHNOLOGY, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED AUGUST 31, 2016
| Historical | Historical | Eliminate | ||||||||||||||||||
| Panther | Brown | Panther | ||||||||||||||||||
| August 31, | July 31, | July 31, | ||||||||||||||||||
| 2016 | 2016 | 2016 | Pro Forma | Pro Forma | ||||||||||||||||
| (Unaudited) | (Unaudited) | Historical | Adjustments | Combined | ||||||||||||||||
| Net Sales | $ | – | $ | 2,232,990 | $ | – | $ | – | $ | 2,232,990 | ||||||||||
| Cost of Sales | – | 1,638,398 | – | – | 1,638,398 | |||||||||||||||
| Gross profit | – | 594,592 | – | – | 594,592 | |||||||||||||||
| Operating expenses: | ||||||||||||||||||||
| General and administrative expenses | 78,902 | 545,723 | – | – | 624,625 | |||||||||||||||
| Professional fees | 22,760 | 140,729 | – | – | 163,489 | |||||||||||||||
| Depreciation | 6,850 | 9,331 | – | – | 16,181 | |||||||||||||||
| Total operating expenses | 108,512 | 695,783 | – | – | 804,295 | |||||||||||||||
| Income (loss) from operations | (108,512 | ) | (101,191 | ) | – | – | (209,703 | ) | ||||||||||||
| Other income (expenses): | ||||||||||||||||||||
| Interest expense, net | (33,612 | ) | (140,717 | ) | – | – | (174,329 | ) | ||||||||||||
| Loss on extinguishment of debt | (17,142 | ) | – | – | – | (17,142 | ) | |||||||||||||
| Change in derivative liability | (262,520 | ) | – | – | – | (262,520 | ) | |||||||||||||
| Total other income (expenses) | (313,274 | ) | (140,717 | ) | – | – | (453,991 | ) | ||||||||||||
| – | ||||||||||||||||||||
| Income (loss) before income taxes | (421,786 | ) | (241,908 | ) | – | – | (663,694 | ) | ||||||||||||
| Income tax expense (benefit) | – | – | – | – | – | |||||||||||||||
| Net income (loss) | (421,786 | ) | (241,908 | ) | – | – | (663,694 | ) | ||||||||||||
| Net income (loss) attributable to non-controlling interests | – | 108,995 | – | – | 108,995 | |||||||||||||||
| Net income (loss) attributable to Brown Technical Media Corp. | $ | (421,786 | ) | $ | (132,913 | ) | $ | – | $ | – | $ | (554,699 | ) | |||||||
| 4 |
| A | These adjustments reflect the fact that the ongoing business of the Company will be that of Brown. Accordingly, the equity accounts of Panther are eliminated. |
| B | Reflects the assumed sale of 1,666,667 shares of the Company’s common stock for gross proceeds of $250,000 in conjunction with the closing of the Share Exchange Agreement. The shares are anticipated to be sold in accordance with the terms of the Share Exchange Agreement. The Company expects to sell these shares at $0.15 per share. |
| C | These adjustments reflect the consideration paid by Panther to Brown shareholders. Panther’s acquisition of Brown was accounted for as a reverse merger. This amount represents the fair market value of the assets owned by Panther prior to the reverse merger. The liabilities of Panther were not adjusted because historical cost reflects fair market value. This valuation has been determined by Panther based upon an independent third party valuation of the patents owned by Panther. |
| 5 |