Attached files
| file | filename |
|---|---|
| EX-99.03 - VISION HYDROGEN Corp | ex99-03.htm |
| EX-99.02 - VISION HYDROGEN Corp | ex99-02.htm |
| 8-K/A - VISION HYDROGEN Corp | form8-ka.htm |
UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
On January 31, 2017 (the “Closing Date”), we entered into a share exchange agreement (the “Exchange Agreement”) by and among us, The Pride Group (QLD) Pty Ltd., an Australian corporation (“Pride”), Turquino Equity LLC (“Turquino”) and Stephen Paul Mullane and Marie Louise Mullane as Trustees of the Mullane Family Trust (the “Mullane Trust” and together with Turquino, the “Pride Shareholders”). Andrew Hidalgo and Matthew Hidalgo, our Chief Executive Officer and Chief Financial Officer, respectively, are each a managing partner of Turquino.
Pursuant to the exchange agreement, we acquired all of the issued and outstanding capital stock of Pride from the Pride Shareholders in exchange for an aggregate of 3,800,000 shares of our common stock (the “Acquisition Shares”).
The unaudited pro forma combined balance sheet as of December 31, 2016 giving effect to the contribution transactions as if they had occurred on the balance sheet date, and statements of operations for the year ended December 31, 2016 include the historical statements of operations of the combined companies, giving effect to the contribution transactions as if they had occurred at the beginning of the period. This information is only a summary, and you should read it in conjunction with the company’s historical financial statements and related notes and management’s discussion and analysis of financial condition and results of operations contained in H/Cell’s annual reports, quarterly reports and other information on file with the SEC. As a result, the combination of H/Cell and Pride pursuant to the exchange agreement is considered a business combination of companies under common control and will be accounted for in a manner similar to a pooling-of-interests.
We have prepared the unaudited pro forma combined financial statements based on available information, using assumptions that we believe are reasonable. These unaudited pro forma combined financial statements are being provided for informational purposes only. They do not purport to represent our actual financial position or results of operations had the exchange agreement occurred on the dates specified, nor do they project our results of operations or financial position for any future period or date.
The unaudited pro forma condensed combined statements of operations do not reflect any adjustments for non-recurring items or anticipated synergies resulting from the combination. Pro forma adjustments are based on certain assumptions and other information that are subject to change as additional information becomes available. Accordingly, the adjustments included in our financial statements published after the completion of the combination may vary from the adjustments included in these unaudited pro forma condensed combined financial statements below.
H/CELL ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
AS OF DECEMBER 31, 2016
| H/Cell | Pride | Pro Forma Adjustment | Pro Forma Combined | |||||||||||||
| December 31, 2016 | ||||||||||||||||
| ASSETS | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and Cash Equivalents | $ | 292,887 | $ | 244,980 | $ | - | $ | 537,867 | ||||||||
| Accounts and retainage receivable, net | - | 650,886 | - | 650,886 | ||||||||||||
| Prepaid Expenses | 13,329 | 839 | - | 14,168 | ||||||||||||
| Costs in Excess of Billings | 247 | 91,657 | - | 91,904 | ||||||||||||
| Total Current Assets | 306,463 | 988,362 | - | 1,294,825 | ||||||||||||
| Property and equipment, net of accumulated depreciation | - | 99,816 | - | 99,816 | ||||||||||||
| Security deposits, and other non-current assets | 2,400 | 6,097 | - | 8,497 | ||||||||||||
| TOTAL ASSETS | $ | 308,863 | $ | 1,094,275 | $ | - | $ | 1,403,138 | ||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts Payable and Accrued Expenses | $ | 6,000 | $ | 707,237 | $ | - | $ | 713,237 | ||||||||
| Billings in Excess of Costs | 7,847 | 75,691 | - | 83,538 | ||||||||||||
| Sales Tax Payable | - | 114,086 | - | 114,086 | ||||||||||||
| Due to Stockholders | - | - | - | - | ||||||||||||
| Total Current Liabilities | 13,847 | 897,014 | - | 910,861 | ||||||||||||
| Stockholders’ Equity | ||||||||||||||||
| Common Stock | 313 | - | 380 | (a) | 693 | |||||||||||
| Preferred Stock | - | - | - | - | ||||||||||||
| Paid-in-Capital | 778,938 | 504,484 | (380 | )(a) | 1,283,042 | |||||||||||
| Retained Earnings | (484,235 | ) | (307,223 | ) | - | (791,458 | ) | |||||||||
| Total Stockholders’ Equity | 295,016 | 197,261 | - | 492,277 | ||||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 308,863 | $ | 1,094,275 | $ | - | $ | 1,403,138 | ||||||||
(a) To reflect 3,800,000 common shares issued as consideration in the share exchange agreement.
H/CELL ENERGY CORPORATION
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2016
| H/Cell | Pride (AUD to USD) | Pro Forma Adjustment | Pro Forma Combined | |||||||||||||
| December 31, 2016 | ||||||||||||||||
| Revenue | ||||||||||||||||
| Contracts | $ | 8,553 | $ | 5,060,904 | $ | - | $ | 5,069,457 | ||||||||
| Related Party | 12,374 | - | - | 12,374 | ||||||||||||
| Total Revenue | 20,927 | 5,060,904 | - | 5,081,831 | ||||||||||||
| Cost of Goods Sold | ||||||||||||||||
| Contracts | 9,882 | 3,334,976 | - | 3,344,858 | ||||||||||||
| Related Party | 10,627 | - | - | 10,627 | ||||||||||||
| Total Cost of Goods Sold | 20,509 | 3,334,976 | - | 3,355,485 | ||||||||||||
| Gross Profit | $ | 418 | $ | 1,725,928 | $ | - | $ | 1,726,346 | ||||||||
| Operating Expenses | ||||||||||||||||
| Research and Development | 2,000 | - | - | 2,000 | ||||||||||||
| General and Administrative Expenses | 476,833 | 1,901,430 | - | 2,378,263 | ||||||||||||
| Total Operating Expenses | 478,833 | 1,901,430 | - | 2,380,263 | ||||||||||||
| Loss before other income and expense | $ | (478,415 | ) | $ | (175,502 | ) | $ | - | $ | (653,917 | ) | |||||
| Income Tax Provision (Benefit) | - | - | - | - | ||||||||||||
| Other Income | ||||||||||||||||
| Gain on disposition of equipment | - | (25,350 | ) | - | (25,350 | ) | ||||||||||
| Other income | - | 1,391 | - | 1,391 | ||||||||||||
| Total Other Income | - | (23,959 | ) | - | (23,959 | ) | ||||||||||
| Net Income (Loss) | $ | (478,415 | ) | $ | (199,461 | ) | $ | - | $ | (677,876 | ) | |||||
| Other Comprehensive Loss | ||||||||||||||||
| Foreign currency translation difference | - | (25,695 | ) | - | $ | (25,695 | ) | |||||||||
| Total Comprehensive Gain (Loss) | - | (225,156 | ) | - | (225,156 | ) | ||||||||||
| Stockholders Equity, Beginning of Year | 453,581 | 249,193 | - | 702,774 | ||||||||||||
| Stockholders Equity, End of Year | $ | 295,016 | $ | 197,261 | $ | - | $ | 492,277 | ||||||||