Exhibit 99.1
Proforma Consolidated Balance Sheet
As of September 30, 2014
(Unaudited)
Pro Forma | ||||||||||||
September 30, 2014 | Pro Forma Adjustments | September 30, 2014 | ||||||||||
(Unaudited) | (Unaudited) | |||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and cash equivalents | $ | 1,288,855 | - | 1,288,855 | ||||||||
Accounts receivable | 1,082,436 | - | 1,082,436 | |||||||||
Inventory | 89,821 | - | 89,821 | |||||||||
Cost in excess of billing | 1,551,854 | - | 1,551,854 | |||||||||
Prepaid expense | 289,422 | - | 289,422 | |||||||||
Other receivable | 107,458 | - | 107,458 | |||||||||
Total Current Assets | 4,409,846 | 4,409,846 | ||||||||||
Property and Equipment, at cost | ||||||||||||
Equipment, computer, software, furniture & fixtures, and automotives | 126,989 | 126,989 | ||||||||||
Less accumulated depreciation | (85,567 | ) | (85,567 | ) | ||||||||
Net Property and Equipment | 41,422 | 41,422 | ||||||||||
Other Assets | ||||||||||||
Other deposits | 7,000 | 7,000 | ||||||||||
Patents | 23,161 | 23,161 | ||||||||||
Goodwill | 2,599,268 | 2,599,268 | ||||||||||
Total Other Assets | 2,629,429 | 2,629,429 | ||||||||||
Total Assets | $ | 7,080,697 | $ | 7,080,697 | ||||||||
Liabilities and Shareholders' Deficit | ||||||||||||
Current Liabilities: | ||||||||||||
Accounts payable | $ | 1,829,926 | 1,829,926 | |||||||||
Accrued expenses | 310,616 | 21,800.57 | 288,815 | |||||||||
Billing in excess of cost and estimated earnings | 939,364 | 939,364 | ||||||||||
Customer deposits | 48,141 | 48,141 | ||||||||||
Other payable | 10,810 | 10,810 | ||||||||||
Derivative liability | 12,879,105 | 12,799,180.34 | 25,678,285 | |||||||||
Convertible promissory notes, net of beneficial conversion feature of $478,723 | 646,277 | 646,277 | ||||||||||
Convertible promissory notes | 1,262,000 | 314,000.00 | 948,000 | |||||||||
Debt discount | (164,385 | ) | (162,185.19 | ) | (2,200 | ) | ||||||
Total Current Liabilities | 17,761,854 | 12,972,795.72 | 4,789,058 | |||||||||
Shareholders' Deficit | ||||||||||||
Preferred stock, $.001 par value; 5,000,000 authorized shares; | - | - | ||||||||||
Common stock, $.001 par value; 1,000,000,000 authorized shares; | 330,154 | (26,115.00 | ) | 356,269 | ||||||||
Additional paid in capital | 22,513,814 | (20,366,282.11 | ) | 42,880,096 | ||||||||
Accumulated Deficit | (33,525,125 | ) | 7,419,601.39 | (40,944,726 | ) | |||||||
Total Shareholders' Deficit | (10,681,157 | ) | (12,972,795.72 | ) | 2,291,639 | |||||||
Total Liabilities and Shareholders' Deficit | $ | 7,080,697 | $ | - | $ | 7,080,697 |
Proforma Consolidated Statement of Operations
For the Nine Months ended September 30, 2014
(Unaudited)
Pro Forma | ||||||||||||
Nine Months Ended | Pro Forma | Nine Months Ended | ||||||||||
September 30, 2014 | Adjustments | September 30, 2014 | ||||||||||
Sales | $ | 14,956,077 | - | $ | 14,956,077 | |||||||
Cost of Goods Sold | 10,909,254 | - | 10,909,254 | |||||||||
Gross Profit | 4,046,823 | - | 4,046,823 | |||||||||
Operating Expenses | ||||||||||||
Selling and marketing expenses | 1,030,915 | 1,030,915 | ||||||||||
General and administrative expenses | 3,028,954 | 3,028,954 | ||||||||||
Research and development cost | 86,025 | 86,025 | ||||||||||
Depreciation and amortization | 5,747 | 5,747 | ||||||||||
Total Operating Expenses | 4,151,641 | 4,151,641 | ||||||||||
Income (Loss) before Other Income/(Expenses) | (104,818 | ) | (104,818 | ) | ||||||||
Other Income/(Expenses) | ||||||||||||
Interest and other income | 323 | 323 | ||||||||||
Penalties | (7,170 | ) | (7,170 | ) | ||||||||
Gain/(Loss) on settlement of debt | (14,355 | ) | (19,223,240.84 | ) | (19,237,596 | ) | ||||||
Change in fair value of derivative liability | (14,533,218 | ) | 12,799,180.34 | (1,734,038 | ) | |||||||
Interest expense | (2,918,779 | ) | (995,540.89 | ) | (3,914,320 | ) | ||||||
Total Other Income/(Expenses) | (17,473,199 | ) | (7,419,601 | ) | (24,892,800 | ) | ||||||
Income (Loss) before Income Taxes | (17,578,017 | ) | (7,419,601 | ) | (24,997,618 | ) | ||||||
Income Tax Expense | - | - | ||||||||||
Net Loss | $ | (17,578,017 | ) | $ | (7,419,601 | ) | $ | (24,997,618 | ) | |||
EARNINGS PER SHARE: | ||||||||||||
Basic | $ | (0.07 | ) | |||||||||
Diluted | $ | (0.07 | ) | |||||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||
Basic | 255,633,764 | |||||||||||
Diluted | 255,633,764 |