Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - Code Chain New Continent Ltd | f8k122818_tmsrholdings.htm |
| EX-10.1 - EQUITY PURCHASE AGREEMENT DATED DECEMBER 27, 2018 - Code Chain New Continent Ltd | f8k122818ex10-1_tmsrhold.htm |
Exhibit 99.1
TMSR HOLDING COMPANY LIMITED AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED BALANCE SHEETS
(UNAUDITED)
| September 30, 2018 | ||||||||||||||
| Pro Forma | ||||||||||||||
| TMSR | Adjustments | Note | Pro Forma | |||||||||||
| ASSETS | ||||||||||||||
| CURRENT ASSETS | ||||||||||||||
| Cash and cash equivalents | $ | 889,244 | $ | (345,387 | ) | (a) | $ | 543,857 | ||||||
| Notes receivable | 336,034 | - | 336,034 | |||||||||||
| Accounts receivable, net | 11,093,760 | (10,433,554 | ) | (a) | 660,206 | |||||||||
| Accounts receivable - related party, net | 1,065,657 | (1,065,657 | ) | (a) | - | |||||||||
| Other receivables | 475,980 | (53,430 | ) | (a) | 422,550 | |||||||||
| Other receivable - related party | 2,161 | (2,161 | ) | (a) | - | |||||||||
| Inventories | 5,614,489 | (5,607,815 | ) | (a) | 6,674 | |||||||||
| Prepayments | 31,989,661 | (31,872,087 | ) | (a) | 117,574 | |||||||||
| Total current assets | 51,466,986 | (49,380,091 | ) | 2,086,895 | ||||||||||
| PLANT AND EQUIPMENT, NET | 6,060,303 | (223,652 | ) | 5,836,651 | ||||||||||
| OTHER ASSETS | ||||||||||||||
| Goodwill | 6,955,665 | - | 6,955,665 | |||||||||||
| Intangible assets, net | 2,868,905 | - | 2,868,905 | |||||||||||
| Other assets | 11,646 | (7,279 | ) | (a) | 4,367 | |||||||||
| Deferred tax assets | 620,032 | (584,693 | ) | (a) | 35,339 | |||||||||
| Total other assets | 10,456,248 | (591,972 | ) | 9,864,276 | ||||||||||
| Total assets | $ | 67,983,537 | $ | (50,195,715 | ) | $ | 17,787,822 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
| CURRENT LIABILITIES | ||||||||||||||
| Short term loans - bank | $ | 2,183,724 | $ | (2,183,724 | ) | (a) | $ | - | ||||||
| Third party loan | 144,887 | (144,887 | ) | (a) | - | |||||||||
| Deferred revenue | 205,209 | (205,209 | ) | (a) | - | |||||||||
| Accounts payable | 368,646 | (103,629 | ) | (a) | 265,017 | |||||||||
| Other payables and accrued liabilities | 1,516,359 | (1,767,087 | ) | (a) | (250,728 | ) | ||||||||
| Other payables - related parties | 4,803,385 | (785,056 | ) | (a) | 4,018,329 | |||||||||
| Customer deposits | 1,926,889 | (965,842 | ) | (a) | 961,047 | |||||||||
| Taxes payable | 16,604,953 | (16,515,786 | ) | (a) | 89,167 | |||||||||
| Total current liabilities | 27,754,052 | (22,671,220 | ) | 5,082,832 | ||||||||||
| OTHER LIABILITIES | ||||||||||||||
| Third party loan - noncurrent | 145,582 | - | 145,582 | |||||||||||
| Deferred rent liabilities | 108,434 | (108,434 | ) | (a) | - | |||||||||
| Total other liabilities | 254,016 | (108,434 | ) | 145,582 | ||||||||||
| Total liabilities | 28,008,068 | (22,779,654 | ) | 5,228,414 | ||||||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||||||||
| SHAREHOLDERS’ EQUITY | ||||||||||||||
| Preferred stock, $0.0001 par value, 20,000,000 shares authorized, no shares issued and outstanding as of September 30, 2018 | - | - | - | |||||||||||
| Common stock, $0.0001 par value, 200,000,000 shares authorized, 23,789,255 actual shares, 15,265,935 proforma shares, issued and outstanding as of September 30, 2018* | 2,379 | (852 | ) | (b) | 1,527 | |||||||||
| Additional paid-in capital | 22,878,496 | (4,143,694 | ) | (a) (b) | 18,734,802 | |||||||||
| Statutory reserves | 2,259,332 | (2,259,332 | ) | (a) | - | |||||||||
| Retained earnings | 16,706,160 | (21,975,426 | ) | (a) | (5,269,266 | ) | ||||||||
| Accumulated other comprehensive loss | (1,870,898 | ) | 963,243 | (a) | (907,655 | ) | ||||||||
| Total shareholders’ equity | 39,975,469 | (27,416,061 | ) | 12,559,408 | ||||||||||
| Total liabilities and shareholders’ equity | $ | 67,983,537 | $ | (50,195,715 | ) | $ | 17,787,822 | |||||||
| * | Giving retroactive effect to the 2 for 1 split effected on June 20, 2018 |
| (a) | These adjustments reflect the elimination of assets and liabilities attributable to Hubei Shengrong (“Disposal Group”) through cancellation of 8,523,320 shares of common stock |
| (b) | These adjustments reflect the cancellation of 8,523,320 shares of common stock at book value as no gain/loss being recognized in the transaction as the Chief Executive Officer of the Company control the entity who previously owned the cancelling shares. |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
1
TMSR HOLDING COMPANY LIMITED AND SUBSIDIARIES
UNAUDITED PRO FORMA COMBINED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| For the Nine Months Ended September 30, 2018 | ||||||||||||||
| Pro Forma | ||||||||||||||
| TMSR | Adjustments | Note | Pro Forma | |||||||||||
| REVENUES | ||||||||||||||
| Equipment and systems | $ | 15,393,627 | $ | (15,393,627 | ) | (a) | $ | - | ||||||
| Trading and others | 1,852,812 | (1,852,162 | ) | (a) | 650 | |||||||||
| Coating materials | 2,653,187 | - | 2,653,187 | |||||||||||
| TOTAL REVENUES | 19,899,626 | (17,245,789 | ) | 2,653,837 | ||||||||||
| COST OF REVENUES | ||||||||||||||
| Equipment and systems | 12,944,978 | (12,944,978 | ) | (a) | - | |||||||||
| Trading and others | 1,295,066 | (1,295,066 | ) | (a) | - | |||||||||
| Coating materials | 1,838,776 | - | 1,838,776 | |||||||||||
| TOTAL COST OF REVENUES | 16,078,820 | (14,240,044 | ) | 1,838,776 | ||||||||||
| GROSS PROFIT | 3,820,806 | (3,005,745 | ) | 815,061 | ||||||||||
| OPERATING EXPENSES (INCOME) | ||||||||||||||
| Selling, general and administrative | 2,354,521 | (1,825,061 | ) | (a) | 529,460 | |||||||||
| Provision for (recovery of) doubtful accounts | (2,374,375 | ) | 2,419,118 | (a) | 44,743 | |||||||||
| TOTAL OPERATING INCOME | (19,854 | ) | 594,057 | 574,203 | ||||||||||
| INCOME FROM OPERATIONS | 3,840,660 | (3,599,802 | ) | 240,858 | ||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||
| Interest income | 1,788 | (1,141 | ) | (a) | 647 | |||||||||
| Interest expense | (135,328 | ) | 135,328 | (a) | - | |||||||||
| Other income (expense), net | 42,173 | (50,501 | ) | (a) | (8,328 | ) | ||||||||
| Total other expense, net | (91,367 | ) | 83,686 | (7,681 | ) | |||||||||
| INCOME BEFORE INCOME TAXES | 3,749,293 | (3,516,116 | ) | 233,177 | ||||||||||
| PROVISION FOR INCOME TAXES | 739,284 | (679,580 | ) | (a) | 59,704 | |||||||||
| NET INCOME | 3,010,009 | (2,836,536 | ) | 173,473 | ||||||||||
| OTHER COMPREHENSIVE LOSS | ||||||||||||||
| Foreign currency translation adjustment | (2,572,115 | ) | 1,607,340 | (964,775 | ) | |||||||||
| COMPREHENSIVE INCOME (LOSS) | $ | 437,894 | $ | (1,229,196 | ) | $ | (791,302 | ) | ||||||
| WEIGHTED AVERAGE NUMBER OF COMMON SHARES | ||||||||||||||
| Basic and diluted* | 22,814,730 | 14,291,410 | ||||||||||||
| EARNINGS PER SHARE | ||||||||||||||
| Basic and diluted* | $ | 0.13 | 0.01 | |||||||||||
| * | Giving retroactive effect to the 2 for 1 split effected on June 20, 2018 |
| (a) | These adjustments reflect the elimination of Hubei Shengrong operating revenues and costs. |
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
2