Attached files
| file | filename |
|---|---|
| EX-99.1 - AUDITED CONSOLIDATED FINANCIAL STATEMENTS OF WUHAN HOST COATING MATERIALS CO., L - Code Chain New Continent Ltd | f8k0618a1ex99-1_tmsrholding.htm |
| 8-K/A - AMENDMENT NO. 1 TO CURRENT REPORT - Code Chain New Continent Ltd | f8k0618a1_tmsrholding.htm |
Exhibit 99.2
TMSR HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Pro Forma Combined Balance Sheet
As of March 31, 2018
| Adjustment for | ||||||||||||||||||
| Business | Pro Forma | |||||||||||||||||
| TMSR | Wuhan Host | Combination | Note | Combined | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| CURRENT ASSETS | ||||||||||||||||||
| Cash and cash equivalents | $ | 8,763,559 | $ | 236,442 | $ | (5,200,000 | ) | (b) | $ | 3,800,001 | ||||||||
| Accounts receivable, net | 17,672,589 | 195,717 | - | 17,868,306 | ||||||||||||||
| Accounts receivable - related party | - | 3,423 | - | 3,423 | ||||||||||||||
| Notes receivable | - | 97,886 | - | 97,886 | ||||||||||||||
| Other receivables | 55,809 | 6,635,676 | (6,486,739 | ) | (a) | 204,746 | ||||||||||||
| Inventories | 4,885,068 | 295,288 | - | 5,180,356 | ||||||||||||||
| Prepayments | 24,998,406 | 35,321 | - | 25,033,727 | ||||||||||||||
| TOTAL CURRENT ASSETS | 56,375,431 | 7,499,753 | (11,686,739 | ) | 52,188,445 | |||||||||||||
| PROPERTY AND EQUIPMENT, NET | 2,227,510 | 4,214,948 | 2,362,835 | (b) | 8,805,293 | |||||||||||||
| OTHER ASSETS | ||||||||||||||||||
| Intangible assets, net | 1,176,761 | 745,816 | 1,376,397 | (b) | 3,298,974 | |||||||||||||
| Other receivables | 73,575 | 4,777 | - | 78,352 | ||||||||||||||
| Deferred tax assets | 803,078 | 32,532 | - | (b) | 835,610 | |||||||||||||
| Goodwill | - | - | 7,601,555 | 7,601,555 | ||||||||||||||
| TOTAL OTHER ASSETS | 2,053,414 | 783,125 | 8,977,952 | 11,814,491 | ||||||||||||||
| TOTAL ASSETS | $ | 60,656,355 | $ | 12,497,826 | $ | (345,952 | ) | $ | 72,808,229 | |||||||||
| CURRENT LIABILITIES | ||||||||||||||||||
| Short term loan - bank | $ | 2,388,278 | $ | - | $ | - | $ | 2,388,278 | ||||||||||
| Third party loan | 144,501 | - | - | 144,501 | ||||||||||||||
| Deferred revenue | 547,911 | - | - | 547,911 | ||||||||||||||
| Accounts payable | 179,923 | 230,961 | - | 410,884 | ||||||||||||||
| Other payables and accrued liabilities | 527,665 | 7,485,223 | (6,486,739 | ) | (a) | 1,526,149 | ||||||||||||
| Other payables - related parties | 1,747,771 | 3,884,639 | - | 5,632,410 | ||||||||||||||
| Customer deposits | 496,284 | 851,325 | - | 1,347,609 | ||||||||||||||
| Taxes payable | 17,892,813 | 27,246 | - | 17,920,059 | ||||||||||||||
| TOTAL LIABILITIES | 23,925,146 | 12,479,394 | (6,486,739 | ) | 29,917,801 | |||||||||||||
| OTHER LIABILITIES | ||||||||||||||||||
| Third party loan - noncurrent | 20,808 | 159,219 | - | 180,027 | ||||||||||||||
| Deferred rent liabilities | 86,248 | - | - | 86,248 | ||||||||||||||
| TOTAL OTHER LIABILITIES | 107,056 | 159,219 | - | 266,275 | ||||||||||||||
| TOTAL LIABILITIES | 24,032,202 | 12,638,613 | (6,486,739 | ) | 30,184,076 | |||||||||||||
| SHAREHOLDERS' EQUITY (DEFICIENCY) | ||||||||||||||||||
| Common stock, $0.0001 par value, 200,000,000 shares authorized; 24,042,736 issued and outstanding* | 2,274 | - | 130 | (b) | 2,404 | |||||||||||||
| Registered capital | - | 750,075 | (750,075 | ) | (b) | - | ||||||||||||
| Additional paid-in-capital | 18,045,266 | - | 6,890,732 | (b) | 24,935,998 | |||||||||||||
| Statutory reserve | 2,261,667 | - | 2,261,667 | |||||||||||||||
| Retained earnings (accumulated deficit) | 14,617,430 | (935,771 | ) | 13,681,659 | ||||||||||||||
| Accumulated other comprehensive income (loss) | 1,697,516 | 44,909 | 1,742,425 | |||||||||||||||
| TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) | 36,624,153 | (140,787 | ) | 6,140,787 | 42,624,153 | |||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIENCY) | $ | 60,656,355 | $ | 12,497,826 | $ | (345,952 | ) | $ | 72,808,229 | |||||||||
*Giving retroactive effect to the 2 for 1 split effected on June 20, 2018
Note
| (a) | To eliminate intercompany balance |
| (b) | To record the acquisition of Wuhan Host with purchase price of $11.2 million |
TMSR HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Pro Forma Combined Statement of Income and Comprehensive Income
For the Three Months Ended March 31, 2018
| Adjustment for | ||||||||||||||||||
| Business | Pro Forma | |||||||||||||||||
| TMSR | Wuhan Host | Combination | Note | Combined | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| REVENUES | $ | 7,497,883 | $ | 577,491 | $ | - | $ | 8,075,374 | ||||||||||
| COST OF REVENUES | 6,740,435 | 392,066 | - | 7,132,501 | ||||||||||||||
| GROSS PROFIT | 757,448 | 185,425 | - | 942,873 | ||||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||||
| Selling, general and administrative | 928,050 | 173,559 | - | 1,101,609 | ||||||||||||||
| Recovery of doubtful accounts | (1,401,413 | ) | - | (1,401,413 | ) | |||||||||||||
| Total operating expenses (income) | (473,363 | ) | 173,559 | - | (299,804 | ) | ||||||||||||
| INCOME FROM OPERATIONS | 1,230,811 | 11,866 | - | 1,242,677 | ||||||||||||||
| OTHER INCOME (EXPENSE), NET | (1,272 | ) | 314 | - | (958 | ) | ||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 1,229,539 | 12,180 | - | 1,241,719 | ||||||||||||||
| PROVISION FOR INCOME TAXES | 305,925 | 1,827 | - | 307,752 | ||||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCK | 923,614 | 10,353 | - | 933,967 | ||||||||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||||||||
| Foreign currency translation adjustment | 996,299 | (5,124 | ) | - | 991,175 | |||||||||||||
| COMPREHENSIVE INCOME | $ | 1,919,913 | $ | 5,229 | $ | - | $ | 1,925,142 | ||||||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | ||||||||||||||||||
| Basic and diluted* | 20,846,120 | 1,293,104 | 22,139,224 | |||||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||
| Basic and diluted* | $ | 0.04 | $ | 0.01 | $ | 0.04 | ||||||||||||
*Giving retroactive effect to the 2 for 1 split effected on June 20, 2018
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TMSR HOLDING COMPANY LIMITED AND SUBSIDIARIES
Unaudited Pro Forma Combined Statement of Income and Comprehensive Income
For the Year Ended December 31, 2017
| Adjustment for | ||||||||||||||||||
| Business | Pro Forma | |||||||||||||||||
| TMSR | Wuhan Host | Combination | Note | Combined | ||||||||||||||
| (Unaudited) | ||||||||||||||||||
| REVENUES | $ | 38,751,765 | $ | 2,528,970 | $ | - | $ | 41,280,735 | ||||||||||
| COST OF REVENUES | 19,234,020 | 2,109,643 | - | 21,343,663 | ||||||||||||||
| GROSS PROFIT | 19,517,745 | 419,327 | - | 19,937,072 | ||||||||||||||
| OPERATING EXPENSES (INCOME): | ||||||||||||||||||
| Selling, general and administrative | 1,804,895 | 436,494 | - | 2,241,389 | ||||||||||||||
| Recovery of doubtful accounts | 6,428,261 | - | 6,428,261 | |||||||||||||||
| Impairment loss of goodwill | 3,838,274 | 3,838,274 | ||||||||||||||||
| Total operating expenses | 12,071,430 | 436,494 | - | 12,507,924 | ||||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 7,446,315 | (17,167 | ) | - | 7,429,148 | |||||||||||||
| OTHER INCOME (EXPENSE), NET | (1,278,896 | ) | 24,713 | - | (1,254,183 | ) | ||||||||||||
| INCOME BEFORE PROVISION FOR INCOME TAXES | 6,167,419 | 7,546 | - | 6,174,965 | ||||||||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 1,953,942 | (2,861 | ) | - | 1,951,081 | |||||||||||||
| NET INCOME ATTRIBUTABLE TO COMMON STOCK | 4,213,477 | 10,407 | - | 4,223,884 | ||||||||||||||
| OTHER COMPREHENSIVE INCOME | ||||||||||||||||||
| Foreign currency translation adjustment | 1,515,092 | (9,501 | ) | - | 1,505,591 | |||||||||||||
| COMPREHENSIVE INCOME | $ | 5,728,569 | $ | 906 | $ | - | $ | 5,729,475 | ||||||||||
| WEIGHTED AVERAGE ORDINARY SHARES OUTSTANDING | ||||||||||||||||||
| Basic and diluted* | 17,745,085 | 1,293,104 | 19,038,189 | |||||||||||||||
| EARNINGS PER SHARE | ||||||||||||||||||
| Basic and diluted* | $ | 0.24 | $ | 0.01 | $ | 0.22 | ||||||||||||
*Giving retroactive effect to the 2 for 1 split effected on June 20, 2018
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