Exhibit 99.1 (Revised April 6, 2009)
Proforma
Unaudited Condensed Financial Information
Reflecting the Effects of the Acquisition
Introduction
The following unaudited condensed financial information presents the proforma unaudited consolidated balance sheets of Mod Hospitality, Inc. (f/k/a PSPP Holdings, Inc.) and Subsidiaries as of June 30, 2008 along with the proforma unaudited consolidated statements of operations for the three and six month periods ended June 30, 2008 and 2007 and the proforma unaudited consolidated statements of cash for the six months ended June 30, 2008 and 2007. The information contained in these proforma unaudited statements were derived from the 10-QSBs of PSPP Holdings, Inc. as filed with the SEC, the internally prepared financial statements of ECV Holdings, Inc. and subsidiaries for the respective periods presented.
The following unaudited condensed financial information presents the proforma unaudited consolidated balance sheets of ECV Holdings, Inc. and Subsidiaries as of June 30, 2008 along with the proforma unaudited consolidated statements of operations for the three and six month periods ended June 30, 2008 and 2007and the proforma unaudited consolidated statements of cash flows for the six months ended June 30, 2008 and 2007. The information contained in these proforma unaudited statements were derived from the 10-QSBs of PSPP Holdings, Inc. as filed with the SEC, the internally prepared financial statements of ECV Holdings, Inc. and subsidiaries and the audited combined financial statements of ECRV Hanover Hospitality Leaseco, LLC, ECRV Clinton Leaseco, LLC, and ECRV FM Leaseco, LLC. for the respective dates and periods presented.
The audited combined financial statements of ECRV Hanover Hospitality Leaseco, LLC, ECRV Clinton Leaseco, LLC, and ECRV FM Leaseco, LLC. for the year ended December 31, 2007 is being presented for comparison purposes only.
The unaudited condensed financial information that is being presented herein Exhibit 99.1 is not necessarily indicative of the results that actually would have occurred if the acquisition had been completed on the assumed date(s) nor are the statements necessarily indicative of future consolidated financial position or earnings.
All of the information, as presented, should be read in conjunction with Mod Hospitality, Inc. ‘s (f//k/a PSPP Holdings, Inc.) securities filings with the SEC under its current ticker symbol of “MODY”, the audited combined financial statements of ECRV Hanover Hospitality Leaseco, LLC, ECRV Clinton Leaseco, LLC, and ECRV FM Leaseco, LLC. for the year ended December 31, 2007 as presented elsewhere in this Form 8-K filing and the share exchange agreements that were effective in May 2008 and October 2008 also presented elsewhere in this From 8-K filing.
Mod Hospitality, Inc. (f/k/a PSPP Holdings, Inc.) and Subsidiaries
ECV Holdings, Inc. and Subsidiaries
June 30, 2008
Mod Hospitality, Inc. (f/k/a PSPP Holdings, Inc.) and Subsidiaries | | |
| | |
Proforma Unaudited Consolidated Balance Sheets | | |
June 30, 2008 | | 1 |
| | |
Proforma Unaudited Consolidated Statements of Operations | | |
For the three and six months ended June 30, 2008 and 2007 | | 3 |
| | |
Proforma Unaudited Consolidated Statements of Operations | | |
For the six months ended June 30, 2008 | | 4 |
| | |
Proforma Unaudited Consolidated Statements of Operations | | |
For the year ended December 31, 2007 | | 5 |
| | |
| | |
| | |
ECV Holdings, Inc. and Subsidiaries | | |
| | |
Proforma Unaudited Consolidated Balance Sheets | | |
June 30, 2008 and December 31, 2007 | | 6 |
| | |
Unaudited Consolidated Statements of Operations | | |
Six months ended June 30, 2008 and 2007 | | 8 |
Mod Hospitality, Inc. f/k/a PSPP Holdings, Inc.and Subsidiaries Proforma Unaudited Consolidated Balance Sheets | | | | | | | | | | |
| | | | | | | | | | | | |
Assets | |
| | | | | | | | | | | Consolidated | |
| | PSPP Holdings, Inc. | | | ECV Holdings, Inc | | | Adjustments | | | Proforma | |
| | 6/30/2008 | | | 6/30/2008 | | | Reverse Merger | | | 6/30/2008 | |
| | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | |
Current assets | | | | | | | | | | | | |
Cash | | $ | 7 | | | $ | 1,483,728 | | | $ | - | | | $ | 1,483,735 | |
Accounts receivable | | | - | | | | 122,758 | | | | - | | | | 122,758 | |
Prepaid expenses | | | - | | | | 33,452 | | | | - | | | | 33,452 | |
Ledger accounts | | | - | | | | 48,287 | | | | - | | | | 48,287 | |
Inventory | | | - | | | | 1,469 | | | | - | | | | 1,469 | |
| | | | | | | | | | | | | | | | |
Total current assets | | | 7 | | | | 1,689,694 | | | | | | | | 1,689,701 | |
| | | | | | | | | | | | | | | | |
Fixed assets | | | | | | | | | | | | | | | | |
Construction in progress (PIP) | | | - | | | | 295,669 | | | | - | | | | 295,669 | |
Furniture and fixtures | | | - | | | | 3,720,925 | | | | - | | | | 3,720,925 | |
Less: accumulated depreciation | | | - | | | | (605,956 | ) | | | - | | | | (605,956 | ) |
| | | | | | | | | | | | | | | | |
Total fixed assets | | | - | | | | 3,410,639 | | | | | | | | 3,410,639 | |
| | | | | | | | | | | | | | | | |
Other assets | | | | | | | | | | | | | | | | |
Investments | | | 58,000 | | | | - | | | | - | | | | 58,000 | |
Franchise fee, net | | | - | | | | 135,900 | | | | - | | | | 135,900 | |
Deposits | | | - | | | | 41,103 | | | | - | | | | 41,103 | |
| | | | | | | | | | | | | | | | |
Total other assets | | | 58,000 | | | | 177,003 | | | | - | | | | 235,003 | |
| | | | | | | | | | | | | | | | |
Total assets | | $ | 58,007 | | | $ | 5,277,336 | | | $ | - | | | $ | 5,335,343 | |
| | | | | | | | | | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants | |
Mod Hospitality, Inc. f/k/a PSPP Holdings, Inc. and Subsidiaries Proforma Unaudited Consolidated Balance Sheets | | | | | | | | | | | |
| | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | |
| | | | | | | | | | | | | |
| | PSPP Holdings, Inc. 6/30/2008 Unaudited | | | ECV Holdings, Inc. Unaudited | | | | Unaudited | | | Unaudited | |
Current liabilities | | | | | | | | | | | | | |
Accounts payable and accrued expenses | | $ | - | | | $ | 948,456 | | | | $ | - | | | $ | 948,456 | |
Loans payable | | | 294,561 | | | | - | | | | | - | | | | 294,561 | |
Accrued salaries and wages | | | - | | | | 100,171 | | | | | - | | | | 100,171 | |
Management fees payable | | | - | | | | 37,029 | | | | | - | | | | 37,029 | |
Taxes payable, rooms | | | - | | | | 67,828 | | | | | - | | | | 67,828 | |
Taxes payable, other | | | - | | | | 273,511 | | | | | - | | | | 273,511 | |
Total liabilities | | | | | | | | | | | | | | | | | |
| | | 294,561 | | | | 1,426,995 | | | | | - | | | | 1,721,556 | |
| | | | | | | | | | | | | | | | | |
Long term liabilities | | | | | | | | | | | | | | | | | |
Advances from shareholder | | | - | | | | 260,000 | | | | | - | | | | 260,000 | |
| | | | | | | | | | | | | | | | | |
Total liabilities | | | 294,561 | | | | 1,686,995 | | | | | - | | | | 1,981,556 | |
| | | | | | | | | | | | | | | | | |
Commitments and contingencies | | | - | | | | - | | | | | - | | | | - | |
| | | | | | | | | | | | | | | | | |
Stockholders' equity | | | | | | | | | | | | | | | | | |
Preferred stock | | | 10,000 | | | | - | | | | | - | | | | 10,000 | |
Common stock | | | 680 | | | | - | | | | | - | | | | 680 | |
Additional paid-in capital | | | 5,457,150 | | | | 4,338,797 | | A | | | (5,704,384 | ) | | | 4,091,563 | |
Accumulated deficit | | | (5,704,384 | ) | | | (748,456 | ) | A | | | 5,704,384 | | | | (748,456 | ) |
| | | | | | | | | | | | | | | | | |
Total stockholders' equity (deficit) | | | (236,554 | ) | | | 3,590,341 | | | | | - | | | | 3,353,787 | |
| | | | | | | | | | | | | | | | | |
Total liabilities and stockholders' equity | | $ | 58,007 | | | $ | 5,277,336 | | | | $ | - | | | $ | 5,335,343 | |
| | | | | | | | | | | | | | | | | |
A - adjustment to eliminate the historical accumulated deficit of the accounting acquiree in the reverse merger | |
| | | | | | | | | | | | | | | | | |
Net assets acquired upon reverse merger | | $ | (236,554 | ) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants | |
Mod Hospitality, Inc. f/k/a PSPP Holdings, Inc and Subsidiaries Proforma Consolidated Statements of Operations | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | For the three | | | For the three | | | For the six | | | For the six | |
| | months ended | | | months ended | | | months ended | | | months ended | |
| | June 30, 2008 | | | June 30, 2007 | | | June 30, 2008 | | | June 30, 2007 | |
| | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | |
Revenue | | | | | | | | | | | | |
Rooms | | $ | 2,996,922 | | | $ | 1,370,371 | | | $ | 5,931,122 | | | $ | 2,515,411 | |
Food and beverage | | | 28,929 | | | | 28,233 | | | | 66,160 | | | | 47,520 | |
Other income | | | 256,295 | | | | 29,715 | | | | 487,558 | | | | 149,870 | |
| | | | | | | | | | | | | | | | |
Total operating revenue | | | 3,282,146 | | | | 1,428,319 | | | | 6,484,840 | | | | 2,712,801 | |
| | | | | | | | | | | | | | | | |
Operating expenses | | | | | | | | | | | | | | | | |
Rooms | | | 781,605 | | | | 318,803 | | | | 1,461,848 | | | | 584,931 | |
Food and beverage | | | 8,454 | | | | 3,675 | | | | 22,665 | | | | 6,663 | |
Rent | | | 825,366 | | | | 615,673 | | | | 1,897,518 | | | | 1,140,135 | |
Management and franchise fees | | | 342,260 | | | | 225,264 | | | | 767,853 | | | | 408,092 | |
General and administrative | | | 257,495 | | | | 98,823 | | | | 539,928 | | | | 179,193 | |
Depreciation and amortization | | | 180,531 | | | | 11,031 | | | | 361,061 | | | | 22,063 | |
Other expenses | | | 511,535 | | | | 216,234 | | | | 1,319,632 | | | | 415,758 | |
| | | | | | | | | | | | | | | | |
Total operating expenses | | | 2,907,246 | | | | 1,489,503 | | | | 6,370,505 | | | | 2,756,835 | |
| | | | | | | | | | | | | | | | |
Income (loss) from operations | | | 374,901 | | | | (56,069 | ) | | | 114,335 | | | | (44,034 | ) |
| | | | | | | | | | | | | | | | |
Other income (expenses) | | | | | | | | | | | | | | | | |
Forgiveness of debt income | | | 255,189 | | | | - | | | | 255,189 | | | | - | |
Write-off of investments | | | (300,000 | ) | | | - | | | | (300,000 | ) | | | - | |
Interest income | | | 531 | | | | 1,460 | | | | 1,193 | | | | 1,997 | |
Interest expense | | | (7,072 | ) | | | - | | | | (399,464 | ) | | | (25,105 | ) |
| | | | | | | | | | | | | | | | |
Total other (income) expense | | | (51,352 | ) | | | 1,460 | | | | (443,082 | ) | | | (23,108 | ) |
| | | | | | | | | | | | | | | | |
Income (loss) before provision | | | | | | | | | | | | | | | | |
for income taxes | | | 323,549 | | | | (54,609 | ) | | | (328,747 | ) | | | (67,142 | ) |
| | | | | | | | | | | | | | | | |
Provision for income taxes | | | - | | | | - | | | | - | | | | - | |
| | | | | | | | | | | | | | | | |
Net income (loss) | | $ | 323,549 | | | $ | (54,609 | ) | | $ | (328,747 | ) | | $ | (67,142 | ) |
| | | | | | | | | | | | | | | | |
Weighted average number of common | | | | | | | | | | | | | | | | |
shares outstanding | | | 644,499 | | | | 574,994 | | | | 671,750 | | | | 574,994 | |
| | | | | | | | | | | | | | | | |
Basic and diluted (loss) per common share | | $ | 0.50 | | | $ | (0.09 | ) | | $ | (0.49 | ) | | $ | (0.12 | ) |
| | | | | | | | | | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants |
f/k/a PSPP Holdings, Inc and Subsidiaries Proforma Consolidated Statements of Operations For the six months ended June 30, 2008 | | | | | | | | | | | | |
| | | | | | | | | | | | |
| | PSPP | | | ECV Holdings, | | | Adjustments | | | Proforma | |
| | Holdings, Inc. | | | Inc. | | | Reverse Merger | | | Consolidation | |
| | Unaudited | | | Unaudited | | | Unaudited | | | Unaudited | |
Revenue | | | | | | | | | | | | |
Rooms | | $ | - | | | $ | 5,931,122 | | | $ | - | | | $ | 5,931,122 | |
Food and beverage | | | - | | | | 66,160 | | | | - | | | | 66,160 | |
Other income | | | - | | | | 487,558 | | | | - | | | | 487,558 | |
| | | | | | | | | | | | | | | - | |
Total operating revenue | | | - | | | | 6,484,840 | | | | - | | | | 6,484,840 | |
| | | | | | | | | | | | | | | - | |
Operating expenses | | | | | | | | | | | | | | | - | |
Rooms | | | - | | | | 1,461,848 | | | | - | | | | 1,461,848 | |
Food and beverage | | | - | | | | 22,665 | | | | - | | | | 22,665 | |
Rent | | | - | | | | 1,897,518 | | | | - | | | | 1,897,518 | |
Management and franchise fees | | | - | | | | 767,853 | | | | - | | | | 767,853 | |
General and administrative | | | - | | | | 539,928 | | | | - | | | | 539,928 | |
Depreciation and amortization | | | - | | | | 361,061 | | | | - | | | | 361,061 | |
Other expenses | | | 204 | | | | 1,319,428 | | | | - | | | | 1,319,632 | |
| | | | | | | | | | | | | | | - | |
Total operating expenses | | | 204 | | | | 6,370,301 | | | | - | | | | 6,370,505 | |
| | | | | | | | | | | | | | | - | |
Income (loss) from operations | | | (204 | ) | | | 114,539 | | | | - | | | | 114,335 | |
| | | | | | | | | | | | | | | - | |
Other income (expenses) | | | | | | | | | | | | | | | - | |
Forgiveness of debt income | | | 255,189 | | | | - | | | | - | | | | 255,189 | |
Write-off of investments | | | (300,000 | ) | | | - | | | | - | | | | (300,000 | ) |
Interest income | | | - | | | | 1,193 | | | | - | | | | 1,193 | |
Interest expense | | | (14,322 | ) | | | (385,142 | ) | | | - | | | | (399,464 | ) |
| | | | | | | | | | | | | | | - | |
Total other (income) expense | | | (59,133 | ) | | | (383,949 | ) | | | - | | | | (443,082 | ) |
| | | | | | | | | | | | | | | - | |
Income (loss) before provision | | | | | | | | | | | | | | | - | |
for income taxes | | | (59,337 | ) | | | (269,410 | ) | | | - | | | | (328,747 | ) |
| | | | | | | | | | | | | | | - | |
Provision for income taxes | | | - | | | | - | | | �� | - | | | | - | |
| | | | | | | | | | | | | | | - | |
Net income (loss) | | $ | (59,337 | ) | | $ | (269,410 | ) | | $ | - | | | | (328,747 | ) |
| | | | | | | | | | | | | | | | |
Weighted average number of common | | | | | | | | | | | | | | | | |
shares outstanding | | | | | | | | | | | | | | | 671,750 | |
| | | | | | | | | | | | | | | | |
Basic and diluted (loss) per common share | | | | | | | | | | | | | | $ | (0.49 | ) |
The financial information presented herein has been prepared by management without audit by independent certified public accountants |
Mod Hospitality, Inc. f/k/a PSPP Holdings, Inc. and Subsidiaries Proforma Consolidated Statements of Operations For the year ended December 31, 2007 | | | | | | | | |
| | | | | | | | | |
| | | | | | | Adjustments | | Consolidated |
| | | PSPP Holdings, Inc | | ECV Holdings, Inc | | Reverse Merger | | Proforma |
| | | Unaudited | | Unaudited | | Unaudited | | Unaudited |
Revenue | | | | | | | | |
| Rooms | $ | - | $ | 6,918,220 | | - | $ | 6,918,220 |
| Food and beverage | | - | | 159,782 | | - | | 159,782 |
| Other income | | - | | 475,044 | | - | | 475,044 |
| | | | | | | | | |
Total operating revenue | | - | | 7,553,046 | | - | | 7,553,046 |
| | | | | | | | | |
Operating expenses | | | | | | | | |
| Rooms | | - | | 1,967,157 | | - | | 1,967,157 |
| Food and beverage | | - | | 56,188 | | - | | 56,188 |
| Rent | | - | | 3,288,643 | | - | | 3,288,643 |
| Management and franchise fees | | - | | 894,287 | | - | | 894,287 |
| General and administrative | | 2,821 | | 585,532 | | - | | 588,353 |
| Depreciation and amortization | | - | | 233,863 | | - | | 233,863 |
| Consulting services | | 464,421 | | - | | - | | 464,421 |
| Other expenses | | 58,690 | | 1,134,421 | | - | | 1,193,111 |
| | | | | | | | | |
| Total operating expenses | | 525,932 | | 8,160,091 | | - | | 8,686,023 |
| | | | | | | | | |
Income (loss) from operations | | (525,932) | | (607,045) | | - | | (1,132,977) |
| | | | | | | | | |
Other income (expenses) | | | | | | | | |
| Forgiveness of debt income | | - | | - | | - | | - |
| Write-off of investments | | - | | - | | - | | - |
| Interest income | | - | | 5,383 | | - | | 5,383 |
| Interest expense | | (42,622) | | (66,836) | | - | | (109,458) |
| | | | | | | | | |
| Total other (income) expense | | (42,622) | | (61,453) | | - | | (104,075) |
| | | | | | | | | |
Income (loss) before provision | | | | | | | | |
| for income taxes | | (568,554) | | (668,498) | | - | | (1,237,052) |
| | | | | | | | | |
| Provision for income taxes | | - | | - | | - | | - |
| | | | | | | | | |
| Net income (loss) | $ | (568,554) | $ | (668,498) | | - | $ | (1,237,052) |
| | | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants |
| | | | | | |
Consolidated Balance Sheets | | | | | | |
| | | | | | |
Assets | |
| | 6/30/2008 | | | 12/31/2007 | |
| | Unaudited | | | Unaudited | |
Current assets | | | | | | |
Cash | | $ | 1,483,728 | | | $ | 806,806 | |
Accounts receivable | | | 122,758 | | | | 107,821 | |
Prepaid expenses | | | 33,452 | | | | 141,013 | |
Ledger accounts | | | 48,287 | | | | 179,025 | |
Inventory | | | 1,469 | | | | - | |
| | | | | | | | |
Total current assets | | | 1,689,694 | | | | 1,234,665 | |
| | | | | | | | |
Fixed assets | | | | | | | | |
Property improvement plan (PIP) | | | 295,669 | | | | - | |
Furniture and fixtures | | | 3,720,925 | | | | 3,727,591 | |
Less: accumulated depreciation | | | (605,956 | ) | | | (233,863 | ) |
| | | | | | | | |
Total fixed assets | | | 3,410,639 | | | | 3,493,728 | |
| | | | | | | | |
Other assets | | | | | | | | |
Escrow reserves | | | - | | | | (54,956 | ) |
Franchise fee, net | | | 135,900 | | | | 144,500 | |
Deposits | | | 41,103 | | | | 17,412 | |
| | | | | | | | |
Total other assets | | | 177,003 | | | | 106,956 | |
| | | | | | | | |
Total assets | | $ | 5,277,336 | | | $ | 4,835,349 | |
| | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants | |
| | | | | | |
Unaudited Consolidated Balance Sheets | | | | | | |
| | | | | | |
Liabilities and Stockholders' Equity | |
| | 6/30/2008 | | | 12/31/2007 | |
| | Unaudited | | | Unaudited | |
| | | | | | |
Current liabilities | | | | | | |
Accounts payable and accrued expenses | | $ | 948,456 | | | $ | 351,361 | |
Accrued salaries and wages | | | 100,171 | | | | 91,144 | |
Management fees payable | | | 37,029 | | | | 35,164 | |
Taxes payable, rooms | | | 67,828 | | | | 69,214 | |
Taxes payable, other | | | 273,511 | | | | 146,138 | |
| | | | | | | | |
Total liabilities | | | 1,426,995 | | | | 693,021 | |
| | | | | | | | |
Long term liabilities | | | | | | | | |
Advances from shareholder | | | 260,000 | | | | 260,000 | |
| | | | | | | | |
Total liabilities | | | 1,686,995 | | | | 953,021 | |
| | | | | | | | |
Commitments and contingencies | | | - | | | | - | |
| | | | | | | | |
Stockholders' equity | | | | | | | | |
Capital stock | | | - | | | | - | |
Additional paid-in capital | | | 4,338,797 | | | | 4,349,121 | |
Accumulated deficit | | | (748,456 | ) | | | (466,794 | ) |
| | | | | | | | |
Total stockholders' equity | | | 3,590,341 | | | | 3,882,328 | |
| | | | | | | | |
Total liabilities and stockholders' equity | | $ | 5,277,336 | | | $ | 4,835,349 | |
| | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants |
Consolidated Statements of Operations For the six months ended June 30, 2008 and 2007 | | | | | | |
| | | | | | |
| | For the six | | | For the six | |
| | months ended | | | months ended | |
| | June 30, 2008 | | | June 30, 2007 | |
| | Unaudited | | | Unaudited | |
Revenue | | | | | | |
Rooms | | $ | 5,993,844 | | | $ | 1,370,371 | |
Food and beverage | | | 57,858 | | | | 28,233 | |
Other income | | | 512,590 | | | | 34,830 | |
| | | | | | | | |
Total operating revenue | | | 6,564,292 | | | | 1,433,434 | |
| | | | | | | | |
Operating expenses | | | | | | | | |
Rooms | | | 1,563,210 | | | | 318,803 | |
Food and beverage | | | 16,908 | | | | 3,675 | |
Rent | | | 1,650,732 | | | | 396,615 | |
Management and franchise fees | | | 684,520 | | | | 225,264 | |
General and administrative | | | 514,582 | | | | 98,823 | |
Depreciation and amortization | | | 372,092 | | | | 11,031 | |
Other expenses | | | 1,647,782 | | | | 499,995 | |
| | | | | | | | |
Total operating expenses | | | 6,449,826 | | | | 1,554,206 | |
| | | | | | | | |
Income (loss) from operations | | | 114,466 | | | | (120,772 | ) |
| | | | | | | | |
Other income (expenses) | | | | | | | | |
Interest income | | | 1,062 | | | | 1,460 | |
Interest expense | | | (392,392 | ) | | | - | |
| | | | | | | | |
Total other (income) expense | | | (391,330 | ) | | | 1,460 | |
| | | | | | | | |
Income (loss) before provision | | | | | | | | |
for income taxes | | | (276,864 | ) | | | (119,312 | ) |
| | | | | | | | |
Provision for income taxes | | | - | | | | - | |
| | | | | | | | |
Net income (loss) | | $ | (276,864 | ) | | $ | (119,312 | ) |
| | | | | | | | |
The financial information presented herein has been prepared by management without audit by independent certified public accountants | |
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