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8-K/A - 8-K/A - ALTITUDE INTERNATIONAL HOLDINGS, INC.titancomputer8ka090617.htm

EXHIBIT 99.1 

TITAN COMPUTER SERVICES, INC.
UNAUDITED PRO-FORMA COMBINED FINANCIAL STATEMENTS

Basis of Presentation

On June 27, 2017, Titan Computer Services, Inc. (“Titan” or “the Company”) entered into a Share Exchange transaction (“Share Exchange”) with the shareholders of Altitude International, Inc, (“Altitude”) a Wisconsin corporation. Pursuant to the terms of the Share Exchange, the Company agreed to issue 6,102,000 shares of its common stock to all the individual shareholders of Altitude, holding 6,102,000 shares of Altitude stock, on a pro rata basis (one to one share exchange). In exchange for this stock issuance, the Company received 100% of the outstanding shares of Altitude. Following this Share Exchange, Altitude became a wholly-owned subsidiary of Titan. There was a cancellation of 14,700,000 shares of common stock of Titan that was held by Titan’s former majority stockholder as part of the share exchange agreement, which all had a net effect of a decrease of 8,598,000 shares in Titan outstanding shares.

This share exchange transaction resulted in those shareholders obtaining a majority voting interest in Titan and control of the Board of Directors of Titan. Generally accepted accounting principles require that the Company whose shareholders retain the majority interest and control in a combined business be treated as the acquirer for accounting purposes, resulting in a reverse acquisition with Altitude as the accounting acquirer and Titan as the acquired party. Accordingly, the share exchange transaction has been accounted for as a recapitalization of Altitude, whereby Altitude is deemed to be the continuing, surviving entity for accounting purposes but through reorganization, has deemed to have adopted the capital structure of Titan. The equity section of the accompanying unaudited consolidated financial statements has been restated to reflect the recapitalization of the Company due to the reverse acquisition.

The acquisition of Titan will be accounted for as a reverse merger effected by a share exchange, wherein Altitude is considered the acquirer for accounting and financial reporting purposes. Altitude adopted Titan’s December 31 year end. Pro- forma statements are presented for the six months ended June 30, 2017.

The unaudited pro-forma combined statements of operations reflects the results of operations of the Company had the merger occurred on January 1, 2017. The pro-forma combined statements of operations were prepared as if the transactions were consummated on January 1, 2017. These pro-forma combined statements of operations have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the transaction occurred on the date indicated and are not necessarily indicative of the results that may be expected in the future.



TITAN COMPUTER SERVICES, INC. AND SUBSIDIARIES
 
UNAUDITED PRO-FORMA COMBINED FINANCIAL DATA
 
PRO-FORMA BALANCE SHEET AS OF JUNE 30 , 2017
 
   
   
Titan
   
Altitude
               
Proforma
 
   
June 30,
   
June 30,
   
Adjustments
   
June 30,
 
ASSETS
 
2017
   
2017
   
Debit
   
Credit
   
2017
 
Current Assets
                             
 Cash and cash equivalents
 
$
87,500
   
$
-
               
$
87,500
 
 Prepaid expense
           
1,667
                 
1,667
 
Total Current Assets
   
87,500
     
1,667
                 
89,167
 
                                     
Property Plant and Equipment -net
                                   
Plant and equipment
   
-
     
10,455
                 
10,455
 
                                     
Intangible Assets
                                   
 Trademarks
   
-
     
7,520
                 
7,520
 
Total Intangible Assets
   
-
     
7,520
                 
7,520
 
                                     
Total Assets
 
$
87,500
   
$
19,642
               
$
107,142
 
                                     
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIENCY)
                                   
Current Liabilities
                                   
 Accounts payable - related party
 
$
-
   
$
1,667
               
$
1,667
 
 Accrued expenses
   
-
     
5,000
                 
5,000
 
 Shareholder’s advance
   
-
     
26,764
                 
26,764
 
Total Current Liabilities
   
-
     
33,431
                 
33,431
 
Commitment and Contingencies
                                   
Stockholders’ Equity (Deficiency) 
                                   
Preferred Stock - no par value, 5,000,000 shares authorized, no shares issued and outstanding
   
-
     
-
                 
-
 
Common stock - no par value, 70,000,000 shares authorized, at June 30, 2017
                                   
 21,728,659 shares issues and outstanding at June 30,2017
   
231,167
     
6,102
     
6,102
 (b)    
6,102
 (c)    
237,269
 
 Additional Paid In capital
   
151,097
     
(6,102
)
   
6,102
 (c)    
6,102
 (b)    
(77,582
)
                     
222,577
 (a)                
 Accumulated Deficits
   
(294,764
)
   
(13,789
)
           
222,577
 (a)    
(85,976
)
 Total Stockholders’ Equity (Deficiency)
   
87,500
     
(13,789
)
                   
73,711
 
                                         
Total Liabilities and Stockholders’ Equity   (Deficiency)
   
87,500
   
$
19,642
                   
$
107,142
 
                                         



Notes to Unaudited Pro-Forma Combined Financial Information:

On June 27, 2017, Titan Computer Services, Inc. (“Titan” or “the Company”) entered into a Share Exchange transaction (“Share Exchange”) with the shareholders of Altitude International, Inc, (“Altitude”) a Wisconsin corporation.  The acquisition of Titan will be accounted for as a reverse merger effected by a share exchange, wherein Altitude is considered the acquirer for accounting and financial reporting purposes. Altitude adopted Titan’s December 31 year end. Pro- forma statements are presented for the six months ended June 30, 2017.

Accordingly, all references to common shares of Altitude’s common stock have been restated to reflect the equivalent number of Titan’s common shares. In other words, the 6,102,000 Altitude shares outstanding at the time of the share exchange are restated to 21,228,659 common shares (prior to the 500,000-common share capital raise mentioned below that was conducted after the share exchange agreement), as of June 27, 2017. Each share of Altitude is accordingly restated at a multiple of approximately 3.48 shares of Titan for the weighted average shares outstanding for the loss per share calculations in the accompanying condensed consolidated statement of operations.

Assumptions and Adjustments:

(a) Adjustment to accumulated deficit balance of Titan to reflect the merger.
(b) Elimination of common stock outstanding of Altitude to reflect the merger and recapitalization of Altitude.
(c) Issuance of 6,102,000 shares of common stock of Titan to Altitude’s shareholders



TITAN COMPUTER SERVICES, INC. AND SUBSIDIARIES
 
PRO-FORMA STATEMENTS OF OPERATIONS
 
   
   
Titan
   
Altitude
         
Proforma
 
   
For the six months
ended June 30,
   
For the period from May 18, 2017 (Date of Inception)
   
Adjustments
   
For the six months
ended June 30,
 
   
2017
   
to June 30, 2017
   
Debit
   
Credit
   
2017
 
                               
                               
 Revenue
 
$
15,000
   
$
-
               
$
15,000
 
                                         
 Operating Expenses
                                       
 General and administrative expenses
   
148,667
     
13,789
                     
162,456
 
 Total operating expenses
   
148,667
     
13,789
                     
162,456
 
                                         
 Loss from operations
   
(133,667
)
   
(13,789
)
                   
(147,456
)
                                         
 Other Income (Expenses)
                                       
 Interest expense
   
(375
)
   
-
                     
(375
)
 Other Income
   
61,855
     
-
                     
61,855
 
 Total Other Income (Expenses), Net (Expenses), Net
   
61,480
     
-
                     
61,480
 
                                         
 Net loss before tax
   
(72,187
)
   
(13,789
)
                   
(85,976
)
                                         
 Provision for income taxes
   
-
     
-
                     
-
 
 Net loss
 
$
(72,187
)
 
$
(13,789
)
                 
$
(85,976
)
                                         
 Loss per share
                                       
 - basic and fully diluted
                                 
$
(0
)
                                         
 Weighted-average number of
                                       
 shares of common stock
                                       
 - basic and fully diluted
                                   
29,559,692