SUNBURST ACQUISITIONS IV, INC.
Pro-Forma Condensed Consolidated Financial Statements
May 31, 2004
(Unaudited)
Index to Pro-Forma Condensed Consolidated Financial Statements
Condensed Consolidated Balance Sheet at May 31, 2004
Pro-Forma Condensed Consolidated Statement of Operations
for the Year Ended February 28, 2004
Condensed Consolidated Statement of Operations
For the First Quarter Ended May 31, 2004
Notes to Pro-Forma Condensed Consolidated Financial Statements
1
SUNBURST ACQUISITIONS IV, INC.(A Development Stage Company)
Condensed Consolidated Balance Sheet
May 31
(Unaudited)
(U.S. Dollars)
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| | 2004 |
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Assets |
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Current | |
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Cash | | | $33,687 |
Accounts receivable and other current assets | | | 14,910 |
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Total Assets | | | $48,597 |
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Liabilities |
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Current |
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Accounts payable and accrued liabilities | | | $42,949 |
Convertible debenture | | | 30,000 |
Notes payable to related parties | | | 28,500 |
Total Current Liabilities |
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| 101,449 |
| | | |
Customer Deposits | | | 44,056 |
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Total Liabilities | | | $145,505 |
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Stockholders' Deficit |
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Capital Stock | | | |
Authorized | | | |
20,000,000 Preferred stock with no par value | | | |
200,000,000 Common stock with no par value | | | |
Issued | | | |
83,107,597 Common stock issued and outstanding | | | 2,224,843 |
Additional Paid-In Capital from Stock Options | | | 194,375 |
Additional Paid-In Capital | | | 16 |
Stock Subscriptions | | | 199,135 |
Deficit Accumulated During the Development Stage | | | (2,722,930) |
Accumulated Other Comprehensive Income | | | 7,653 |
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Total Stockholders’ Deficit | | | (96,908) |
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| |
Total Liabilities and Stockholders’ Deficit | | | $48,597 |
See notes to pro-forma condensed consolidated financial statements.
2
SUNBURST ACQUISITIONS IV, INC.
(A Development Stage Company)
Pro-Forma Condensed Consolidated Statements of Operations
Year Ended February 29, 2004
(Unaudited)
(U.S. Dollars)
| | | | |
Revenues | | | $13,580 |
| | | | | |
Expenses | | | |
Selling, general, and administrative | | | 370,541 |
| | |
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Net Loss | | | (356,961) |
Other Comprehensive Income | | | |
Unrealized foreign exchange income | | | 14,739 |
Total Comprehensive Loss | | | $(342,222) |
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Loss Per Share | | | $(0.00) |
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Weighted Average Number of |
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Common Stock Outstanding | | | 78,457,597 |
**Note: The financial statements of the acquired company, Sierra Minerals and Mining Inc. are not included in these pro-froma condensed consolidated statements of operations, as this company was incorporated on March 19, 2004 and had no operations at February 29, 2004.
See notes to pro-forma condensed consolidated financial statements.
3
SUNBURST ACQUISITIONS IV, INC.
(A Development Stage Company)
Condensed Consolidated Statements of Operations
First Quarter Ended May 31, 2004
(Unaudited)
(U.S. Dollars)
| | | | |
Revenues | | | $0 |
| | | | | |
Expenses | | | |
Selling, general, and administrative | | | 62,003 |
Acquisition of resource properties | | | 430,000 |
Deposit for property acquisition | | | 227,500 |
Total Expenses | | | 719,503 |
| | |
|
Net Loss for period | | | (719,503) |
Other Comprehensive Income | | | |
Unrealized foreign exchange income | | | (1,276) |
Total Comprehensive Loss | | | $(720,779) |
| | | | |
Loss Per Share | | | $(0.02) |
| | | | |
Weighted Average Number of |
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Common Stock Outstanding | | | 37,782,597 |
4
SUNBURST ACQUISITIONS IV, INC.
(A Development Stage Company)
Notes to Pro-Forma Condensed Consolidated Financial Statements
May 31, 2004
(Unaudited)
(U.S. Dollars)
The pro-forma condensed consolidated financial statements give effect to the following:
1.
The Acquisition of Sierra Minerals and Mining, Inc. (“Sierra”)
On May 25, 2004, the Company completed a share exchange with the shareholders of Sierra. Pursuant to the terms of the share exchange agreement, the Company issued 43,000,000 shares of its common stock in exchange for all of the outstanding shares of Sierra. Sierra is a company incorporated in the state of Nevada that was incorporated just prior to the share exchange with the Company. Sierra had no activities, other than minor organizational charges, and no operations other than having an option to acquire an interest in a property in Mexico.
2.
The Expenditure for Cost of Mining Properties Interest
Sierra is a party to a joint venture agreement with Minera Rio Tinto S.A. de C.V. (“MRT”), a Mexican company, pursuant to which Sierra and MRT have agreed to explore and develop, if feasible, certain mining properties in the state of Chihuahua, Mexico. The Company loaned on behalf of Sierra, a total of $227,500 to MRT. The amounts loaned are not recoverable. Should Sierra fail to complete the terms of the option agreement, Sierra will lose all right to the loaned amount. As such, the Company wrote off the loans to MRT resulting in a charge to operations of $227,500.
3.
The Accruing of Legal and Accounting Fees
In addition, professional fees of $13,388 have been incurred relating to organizational and set up costs to Sierra which have been charged to operations.
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