Exhibit 99.1
AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC. | ||||||||||||
(A DEVELOPMENT STAGE COMPANY) | ||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEETS | ||||||||||||
SEPTEMBER 30, 2005 | ||||||||||||
American Southwest | ||||||||||||
American Southwest | GL Energy and | Pro Forma | Music Distribution, Inc. | |||||||||
Music Distribution, Inc. | Exploration, Inc. | Adjustments | Pro Forma | |||||||||
Assets |
| |||||||||||
Current assets | ||||||||||||
Cash | $ | 4,180 | $ | - | $ | 5,269 | A | $ | 9,449 | |||
Officer's loan receivable | 5,269 | - | (5,269) | A | - | |||||||
Prepaid expenses |
| 4,368 |
| - |
| - |
| 4,368 | ||||
Total current assets |
| 13,817 |
| - |
| 0 |
| 13,817 | ||||
Property and equipment | ||||||||||||
(net of accumulated | ||||||||||||
depreciation of $18,546) |
| 71,442 |
| - |
| - |
| 71,442 | ||||
Other assets | ||||||||||||
Music catalog(net of | ||||||||||||
accumulated amortization | ||||||||||||
of $0) | 4,216,000 | - | - | 4,216,000 | ||||||||
Deferred transaction costs | 183,900 | - | (183,900) | B | - | |||||||
Deposit | - | 62,500 | (62,500) | D | 0 | |||||||
Loan origination fees(net of | - | |||||||||||
accumulated amortization | - | |||||||||||
of $2,500) |
| 12,500 |
| - |
| - |
| 12,500 | ||||
Total other assets |
| 4,412,400 |
| 62,500 |
| (246,400) |
| 4,228,500 | ||||
Total assets | $ | 4,497,659 | $ | 62,500 | $ | (246,400) | $ | 4,313,759 | ||||
Liabilities and Stockholders' Equity | ||||||||||||
Current Liabilities | ||||||||||||
Accounts and accrued expenses |
| |||||||||||
payable | $ | 66,028 | $ | 47,065 | $ |
|
| $ | 113,093 | |||
Advances from shareholders | - | 218,822 | (62,500) | D | 156,322 | |||||||
Notes payable |
| 438,600 |
| - |
|
|
|
| 438,600 | |||
Total current liabilities |
| 504,628 |
| 265,887 |
| (62,500) |
| 708,015 | ||||
Total liabilities |
| 504,628 |
| 265,887 |
| (62,500) |
| 708,015 | ||||
Stockholders' equity | ||||||||||||
534 | C | |||||||||||
Common stock | 4 | 37,382 | (37,386) | C | 534 | |||||||
Preferred stock | - | - | - | |||||||||
36,852 | C | |||||||||||
Additional paid-in capital | 4,294,733 | 2,687,795 | (183,900) | B | 6,835,480 | |||||||
Accumulated deficit |
| (301,706) |
| (2,928,564) |
|
|
|
| (3,230,270) | |||
Total stockholders' equity |
| 3,993,031 |
| (203,387) |
| (183,900) |
| 3,605,744 | ||||
Total liabilities and stockholders' | ||||||||||||
equity | $ | 4,497,659 | $ | 62,500 | $ | (246,400) | $ | 4,313,759 | ||||
See the accompanying notes to unaudited pro forma consolidated condensed financial statements |
AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC. | ||||||||||||||
(A DEVELOPMENT STAGE COMPANY) | ||||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEETS | ||||||||||||||
NINE MONTHS ENDED SEPTEMBER 30, 2005 | ||||||||||||||
AND | ||||||||||||||
INCEPTION THROUGH SEPTEMBER 30, 2005 | ||||||||||||||
Inception | ||||||||||||||
American Southwest | Through | |||||||||||||
American Southwest | GL Energy and | Pro Forma | Music Distribution, Inc. | September 30, | ||||||||||
Music Distribution, Inc. | Exploration, Inc. | Adjustments | Pro Forma | 2005 | ||||||||||
|
|
|
| |||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | $ | - | ||||
Expenses | ||||||||||||||
Mineral rights | - | - | - | - | 85,830 | |||||||||
Impairment | - | - | - | - | 20,000 | |||||||||
General and administrative expenses | 78,214 | 28,782 | - | 106,996 | 323,507 | |||||||||
Professional fees |
| 83,500 |
| 45,700 |
| - |
| 129,200 |
| 2,740,394 | ||||
Total expenses |
| 161,714 |
| 74,482 |
| - |
| 236,196 |
| 3,169,731 | ||||
Loss from operations | (161,714) | (74,482) | - | (236,196) | (3,169,731) | |||||||||
Interest expense |
| 22,746 |
| 11,035 |
|
|
|
| 33,781 |
| 67,562 | |||
Net loss | $ | (184,460) | $ | (85,517) | $ | 0 | $ | (269,977) | $ | (3,237,293) | ||||
| ||||||||||||||
See the accompanying notes to unaudited pro forma consolidated condensed financial statements |
AMERICAN SOUTHWEST MUSIC DISTRIBUTION, INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE PROFORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
A
Reflects repayment of loan to CEO David Michery
B
Reflects reclassification of deferred transaction costs incurred prior to merger to additional paid-in capital
C
In connection with the merger the common stock of American Southwest Music Distribution, Inc. ("the Company") and GL Energy, Inc. has been adjusted to reflect the recapitalization transactions.
After giving effect to a reverse stock split and the merger, the Company's total issued and outstanding common shares will be approximately 18,699,230. The Company will perform a reverse stock split at the rate of 1 share for every 35 shares of common shares outstanding, and approval of an increase in the authorized common stock, $.001 par value from 2,857,142 to 100,000,000 shares.
Accordingly, the Company's previously total 18,699,230 of issued and outstanding commons shares will become 534,264 shares after the reverse stock split, and based upon a $.001 par value be reflected as a $534 common stock amount. Additional amounts that are part of the above transactions have been recorded to additional paid-in capital.
D
Reflects reversal of intercompany loan between GL Energy and American Southwest Music Distribution, Inc.