Exhibit 99.3
| LEO MOTORS, INC. | ||||||||||||||||
| CONSOLIDATED PRO FORMA BALANCE SHEETS | ||||||||||||||||
| BALANCE AT MARCH 31, 2016 | ||||||||||||||||
| UNAUDITED | ||||||||||||||||
| (AMOUNTS EXPRESSED IN US DOLLAR) | ||||||||||||||||
| Leo Motors | LELC | Pro Forma | Pro Forma | |||||||||||||
| 3/31/2016 | 3/31/2016 | AJE | Consolidated | |||||||||||||
| Assets | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 130,874 | $ | 998 | $ | 131,872 | ||||||||||
| Accounts Receivable | 1,015,447 | 14,031 | 1,029,478 | |||||||||||||
| Inventories | 838,785 | 37,879 | 876,664 | |||||||||||||
| Prepayment to suppliers | 382,545 | 0 | 382,545 | |||||||||||||
| Stockholder loans | 0 | 129,066 | 129,066 | |||||||||||||
| Other current assets | 199,073 | 2,905 | 201,978 | |||||||||||||
| Total Current Assets | 2,566,724 | 184,879 | 2,751,603 | |||||||||||||
| Fixed assets, net | 142,137 | 33,242 | 175,379 | |||||||||||||
| Deposit | 346,255 | 0 | 346,255 | |||||||||||||
| Other non-current assets | 87,275 | 1,228 | 88,503 | |||||||||||||
| Investments | 500,000 | 0 | $ | (500,000 | ) | 0 | ||||||||||
| Goodwill | 3,057,003 | 0 | 470,559 | 3,527,562 | ||||||||||||
| Total Assets | $ | 6,699,394 | $ | 219,349 | $ | 6,889,302 | ||||||||||
| Liabilities and Equity(Deficit) | ||||||||||||||||
| Current Liabilities: | ||||||||||||||||
| Accounts payable and accrued expenses | $ | 3,748,487 | $ | 50,193 | $ | 3,798,680 | ||||||||||
| Current portion notes payable | 264,158 | 85,034 | 349,192 | |||||||||||||
| Advance from customers | 496,385 | 0 | 496,385 | |||||||||||||
| Due to related parties | 136,887 | 0 | 136,887 | |||||||||||||
| Taxes payable | 155,151 | 4,429 | 159,580 | |||||||||||||
| Total Current Liabilities | 4,801,068 | 139,656 | 4,940,724 | |||||||||||||
| Accrued retirement benefits | 96,518 | 0 | 96,518 | |||||||||||||
| Other long term liabilities | 196,579 | 0 | 196,579 | |||||||||||||
| Long term debt net of current portion | 95,599 | 0 | 95,599 | |||||||||||||
| Total Liabilities | 5,189,764 | 139,656 | 5,329,420 | |||||||||||||
| Commitments | - | - | ||||||||||||||
| Leo Motors, Inc.("LEOM") Equity(Deficit): | ||||||||||||||||
| Common stock ($0.001 par value; 300,000,000 shares authorized); 163,198,512 shares issued and outstanding at March 31, 2016 | 164,614 | 169,348 | (169,348 | ) | 164,614 | |||||||||||
| Additional paid-in capital | 21,488,871 | 0 | 21,488,871 | |||||||||||||
| Accumulated other comprehensive income | 1,329,240 | 1,805 | 1,331,045 | |||||||||||||
| Accumulated loss | (25,827,119 | ) | (91,460 | ) | 55,233 | (25,863,346 | ) | |||||||||
| Total Equity(Deficit) Leo Motors, Inc. | (2,844,394 | ) | 79,693 | (2,878,816 | ) | |||||||||||
| Non-controlling interest | 4,354,024 | 0 | 84,674 | 4,438,698 | ||||||||||||
| Total Equity(Deficit) | 1,509,630 | 79,693 | 1,475,208 | |||||||||||||
| Total Liabilities and Equity(Deficit) | $ | 6,699,394 | $ | 219,349 | 0 | $ | 6,804,628 | |||||||||
| "See accompanying notes to consolidated financial statements" | ||||||||||||||||
| LEO MOTORS, INC. | ||||||||||||||||
| CONSOLIDATED PRO FORMA STATEMENTS OF OPERATIONS | ||||||||||||||||
| FOR THE THREE MONTHS ENDED MARCH 31, 2016 | ||||||||||||||||
| UNAUDITED | ||||||||||||||||
| (AMOUNTS EXPRESSED IN US DOLLAR) | ||||||||||||||||
| Leo Motors | LELC | Pro Forma | Pro Forma | |||||||||||||
| 3/31/2016 | 3/31/2016 | AJE | Consolidated | |||||||||||||
| Revenues | $ | 745,706 | $ | 14,161 | $ | 759,867 | ||||||||||
| Cost of Revenues | 291,014 | 9,346 | 300,360 | |||||||||||||
| Gross Profit | 454,692 | 4,815 | 459,507 | |||||||||||||
| Operating Expenses | 908,860 | 40,422 | 949,282 | |||||||||||||
| Income(loss) from Continuing Operations | (454,168 | ) | (35,607 | ) | (489,775 | ) | ||||||||||
| Other Income (Expenses) | ||||||||||||||||
| Assets disposal gain, net | 0 | 0 | 0 | |||||||||||||
| Debt Forgiveness | 0 | 0 | 0 | |||||||||||||
| Interest expense | (9,328 | ) | (630 | ) | (9,958 | ) | ||||||||||
| Non-Operating (expense) income | 5,330 | 10 | 5,340 | |||||||||||||
| Total Other Income (Expenses) | (3,998 | ) | (620 | ) | (4,618 | ) | ||||||||||
| Income(loss) from Continuing Operations Before Income Taxes | (458,166 | ) | (36,227 | ) | (494,393 | ) | ||||||||||
| Income Tax Expense | 0 | 0 | 0 | |||||||||||||
| Net Income(Loss) | $ | (458,166 | ) | $ | (36,227 | ) | $ | (494,393 | ) | |||||||
| Income(loss) attributable to non-controlling interest | $ | (35,655 | ) | $ | 0 | $ | (35,655 | ) | ||||||||
| Net Income(Loss) Attributable To Leo Motors, Inc. | $ | (422,511 | ) | $ | (36,227 | ) | $ | (458,738 | ) | |||||||
| Other Comprehensive Income: | ||||||||||||||||
| Net Income(loss) | $ | (422,511 | ) | $ | (36,227 | ) | $ | (458,738 | ) | |||||||
| Unrealized foreign currency translation gain | 78,120 | 1,921 | 80,041 | |||||||||||||
| Comprehensive Income(loss) Attributable to Leo Motors, Inc. | $ | (344,391 | ) | $ | (34,306 | ) | $ | 0 | $ | (378,697 | ) | |||||
| Net Loss per Common Share: | ||||||||||||||||
| Basic | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||||
| Diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic | $ | 163,198,512 | $ | 164,613,340 | ||||||||||||
| Diluted | $ | 163,198,512 | $ | 164,613,340 | ||||||||||||
| "See accompanying notes to consolidated financial statements" | ||||||||||||||||
| LEO MOTORS, INC. | ||||||||||||||||
| CONSOLIDATED PRO FORMA BALANCE SHEETS | ||||||||||||||||
| BALANCE AT DECEMBER 31, 2015 | ||||||||||||||||
| UNAUDITED | ||||||||||||||||
| (AMOUNTS EXPRESSED IN US DOLLAR) | ||||||||||||||||
| Leo Motors | LELC | Pro Forma | Pro Forma | |||||||||||||
| 12/31/2015 | 12/31/2015 | AJE | Consolidated | |||||||||||||
| Assets | ||||||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 243,809 | $ | 746 | $ | 244,555 | ||||||||||
| Accounts Receivable | 1,565,114 | 4,434 | 1,569,548 | |||||||||||||
| Inventories | 496,971 | 37,879 | 534,850 | |||||||||||||
| Prepayment to suppliers | 279,229 | 0 | 279,229 | |||||||||||||
| Stockholder Loans | 0 | 121,583 | ||||||||||||||
| Other current assets | 32,107 | 19,893 | 52,000 | |||||||||||||
| Total Current Assets | 2,617,230 | 184,535 | 2,680,182 | |||||||||||||
| Fixed assets, net | 163,001 | 35,089 | 198,090 | |||||||||||||
| Deposit | 346,659 | 0 | 346,659 | |||||||||||||
| Other non-current assets | 63,831 | 1,228 | 65,059 | |||||||||||||
| Investments | 500,000 | 0 | $ | (500,000 | ) | 0 | ||||||||||
| Goodwill | 3,057,003 | 0 | 470,559 | 3,527,562 | ||||||||||||
| Total Assets | $ | 6,747,724 | $ | 220,852 | $ | 6,817,552 | ||||||||||
| Liabilities and Equity(Deficit) | ||||||||||||||||
| Current Liabilities: | ||||||||||||||||
| Accounts payable and accrued expenses | $ | 4,082,198 | $ | 18,918 | $ | 4,101,116 | ||||||||||
| Current portion notes payable | 49,397 | 85,034 | 134,431 | |||||||||||||
| Short term borrowings | 7,661 | 0 | ||||||||||||||
| Advance from customers | 795,431 | 0 | 795,431 | |||||||||||||
| Due to related parties | 140,396 | 0 | 140,396 | |||||||||||||
| Taxes payable | 99,584 | 922 | 100,506 | |||||||||||||
| Total Current Liabilities | 5,174,667 | 104,874 | 5,271,880 | |||||||||||||
| Accrued retirement benefits | 92,948 | 0 | 92,948 | |||||||||||||
| Other long term liabilities | 129,748 | 0 | 129,748 | |||||||||||||
| Long trm debt net of current portion | 273,646 | 0 | 273,646 | |||||||||||||
| Total Liabilities | 5,671,009 | 104,874 | 5,768,222 | |||||||||||||
| Commitments | - | - | ||||||||||||||
| Leo Motors, Inc.("LEOM") Equity(Deficit): | ||||||||||||||||
| Common stock ($0.001 par value; 300,000,000 shares authorized); 160,363,432 shares issued and outstanding at December 31, 2015 | 160,364 | 169,348 | (169,348 | ) | 160,364 | |||||||||||
| Additional paid-in capital | 20,865,857 | 0 | 20,865,857 | |||||||||||||
| Accumulated other comprehensive income | 1,251,120 | 1,863 | 1,252,983 | |||||||||||||
| Accumulated loss | (25,404,609 | ) | (55,233 | ) | 55,233 | (25,404,609 | ) | |||||||||
| Total Equity(Deficit) Leo Motors, Inc. | (3,127,268 | ) | 115,978 | (3,125,405 | ) | |||||||||||
| Non-controlling interest | 4,203,983 | 0 | 84,674 | 4,288,657 | ||||||||||||
| Total Equity(Deficit) | 1,076,715 | 115,978 | 1,078,578 | |||||||||||||
| Total Liabilities and Equity(Deficit) | $ | 6,747,724 | $ | 220,852 | 0 | $ | 6,846,800 | |||||||||
| "See accompanying notes to consolidated financial statements" | ||||||||||||||||
| LEO MOTORS, INC. | ||||||||||||||||
| CONSOLIDATED PRO FORMA STATEMENTS OF OPERATIONS | ||||||||||||||||
| FOR THE YEAR ENDED DECEMBER 31, 2015 | ||||||||||||||||
| UNAUDITED | ||||||||||||||||
| (AMOUNTS EXPRESSED IN US DOLLAR) | ||||||||||||||||
| Leo Motors | LELC | Pro Forma | Pro Forma | |||||||||||||
| 12/31/2015 | 12/31/2015 | AJE | Consolidated | |||||||||||||
| Revenues | $ | 4,299,187 | $ | 985 | $ | 4,300,172 | ||||||||||
| Cost of Revenues | 3,275,587 | 695 | 3,276,282 | |||||||||||||
| Gross Profit | 1,023,600 | 290 | 1,023,890 | |||||||||||||
| Operating Expenses | 5,421,508 | 58,474 | 5,479,982 | |||||||||||||
| Income(loss) from Continuing Operations | (4,397,908 | ) | (58,184 | ) | (4,456,092 | ) | ||||||||||
| Other Income (Expenses) | ||||||||||||||||
| Interest expense | (319,054 | ) | (208 | ) | (319,262 | ) | ||||||||||
| Non-Operating (expense) income | 225,990 | 3,159 | 229,149 | |||||||||||||
| Total Other Income (Expenses) | (93,064 | ) | 2,951 | (90,113 | ) | |||||||||||
| Income(loss) from Continuing Operations Before Income Taxes | (4,490,972 | ) | (55,233 | ) | (4,546,205 | ) | ||||||||||
| Income Tax Expense | 0 | 0 | 0 | |||||||||||||
| Net Income(Loss) | $ | (4,490,972 | ) | $ | (55,233 | ) | $ | (4,546,205 | ) | |||||||
| Income(loss) attributable to non-controlling interest | $ | (443,574 | ) | $ | 0 | $ | (443,574 | ) | ||||||||
| Net Income(Loss) Attributable To Leo Motors, Inc. | $ | (4,047,398 | ) | $ | (55,233 | ) | $ | (4,102,631 | ) | |||||||
| Other Comprehensive Income: | ||||||||||||||||
| Net Income(loss) | $ | (4,490,972 | ) | $ | (55,233 | ) | $ | (4,546,205 | ) | |||||||
| Unrealized foreign currency translation gain | 739,891 | 1,863 | 741,754 | |||||||||||||
| Comprehensive Income(loss) Attributable to Leo Motors, Inc. | $ | (3,751,081 | ) | $ | (53,370 | ) | $ | 0 | $ | (3,804,451 | ) | |||||
| Net Loss per Common Share: | ||||||||||||||||
| Basic | $ | (0.03 | ) | $ | (0.03 | ) | ||||||||||
| Diluted | $ | (0.03 | ) | $ | (0.03 | ) | ||||||||||
| Weighted Average Common Shares Outstanding: | ||||||||||||||||
| Basic | $ | 158,948,604 | $ | 160,363,432 | ||||||||||||
| Diluted | $ | 158,948,604 | $ | 160,363,432 | ||||||||||||
| "See accompanying notes to consolidated financial statements" | ||||||||||||||||
1. BASIS OF PRESENTATION
The accompanying unaudited pro forma consolidated balance sheet as at March 31, 2016 and the unaudited pro forma consolidated statements of operations for the three-month period ended March 31, 2016 and the year ended December 31, 2015 (the "Pro Forma Consolidated Financial Statements") of Leo Motors, Inc have been prepared by management on the basis of United States Generally Accepted Accounting Principles ("US GAAP") and in accordance with the rules and regulations of the United States Securities and Exchange Commission ("SEC") from information derived from the financial statements of Leo Motors Inc. and the financial statements of Lelcon Co., LTD. The unaudited Pro Forma Consolidated Financial Statements have been prepared for inclusion in the Form 8-K in conjunction with the proposed acquisition of 50% of the issued and outstanding capital stock of Lelcon Co., LTD (the "Acquisition").
The unaudited pro forma consolidated balance sheet as at March 31, 2016 gives effect to the acquisition of Lelcon Co., LTD by Leo Motors, Inc. as if it had occurred on January 1, 2015. The unaudited pro forma consolidated statements of loss for the three months ended March 31, 2016 and for the year ended December 31, 2015 give effect to the Acquisition as if it had occurred on January 1, 2015.
The unaudited Pro Forma Consolidated Financial Statements have been derived from:
| a) | the unaudited interim financial statements of Leo Motors Inc. for three month period ended March 31, 2016 |
| b) | the unaudited financial statements of Leo Motors Inc for the twelve month period ended December 31, 2015 |
| c) | the unaudited condensed interim financial statements of Lelcon Co., LTD for three month period ended March 31, 2016 |
| d) | the audited financial statements of Lelcon Co., LTD for the year ended December 31, 2015. |
The unaudited pro forma adjustments are based on currently available information and certain assumptions that management believes are reasonable. The unaudited Pro Forma Consolidated Financial Statements should be read in conjunction with the selected historical financial information and related financial statements and accompanying footnotes of Leo Motors Inc. and Lelcon Co., LTD. The unaudited Pro Forma Consolidated Financial Statements are for informational purposes only and do not purport to reflect the financial position or results of operations that would have occurred if the Acquisition had been consummated on the dates indicated above; nor do they purport to represent or be indicative of the financial position or results of operations of Lelcon Co., LTD for any future dates or periods. Unless otherwise stated, all amounts presented in these unaudited Pro Forma Consolidated Financial Statements are in U.S. dollars.
2. SIGNIFICANT ACCOUNTING POLICIES
The accounting policies used in the preparation of these unaudited pro forma consolidated financial statements are those set out in Leo Motors Inc's audited financial statements as at December 31, 2013 and Lelcon Co., LTD 's unaudited condensed interim financial statements for the six months ended June 30, 2014. Management has determined that no material adjustments are necessary to conform Lelcon Co., LTD's financial statements to the accounting policies used by Leo Motors Inc. in the preparation of these Pro Forma Consolidated Financial Statements.
3. DESCRIPTION OF THE TRANSACTION
a) Description of the Transaction
On June 3, 2016, Leo Motors, Inc., a Nevada Corporation (the "Company") acquired 50% of the outstanding common stock of Lelcon Co. Ltd., a corporation incorporated in the Republic of Korea ("LELC"), from Lelcon's shareholders, which represents 813,747 shares of Lelcon Co., LTD. common stock, in exchange for 1,414,828 shares of the Company's common stock (the "Transaction") pursuant to the Share Swap Agreement entered into by and between Lelcon and the Company (the "Agreement"). Pursuant to the Agreement, Lelcon became a subsidiary of the Company.
4. PRO FORMA ASSUMPTIONS AND ADJUSTMENTS
The unaudited Pro Forma Consolidated Financial Statements are presented as if 50% of the shares of Lelcon Co., LTD have been exchanged for Leo Motors, Inc. common shares at the date of the Acquisition
| a) | The unaudited pro forma consolidated balance sheet as at March 31, 2016 reflects the following adjustment, which is directly attributable to the Acquisition, as if the Acquisition had occurred on January 1, 2015: |
| i) | To eliminate the book value of Lelcon Co., LTD's equity accounts and to adjust outstanding common shares. |
b) The unaudited pro forma consolidated statement of operations for the three months ended March 31, 2016 and the year ended December 31, 2015 is prepared as if the Acquisition had occurred on January 1, 2015. The Company does not anticipate any income or expense adjustments directly attributable to the Acquisition. |
5. PRO FORMA COMMON STOCK
Pro forma common stock as at March 31, 2016 has been determined as follows: | ||||||||
| March 31, 2016 | ||||||||
| Common Shares | Amount ($) | |||||||
| Common stock of Leo Motors, Inc. at March 31, 2016 | 163,198,512 | 163,199 | ||||||
| Common Shares Issued | 1,414,828 | 1,414 | ||||||
| Pro forma common stock at March 31, 2016 | 164,613,340 | 164,340 | ||||||
6. PRO FORMA INCOME/(LOSS) PER SHARE
| Pro forma income/(loss) per share has been determined as follows: |
Three months ended March 31, 2016 | Year ended December 31, 2015 | |||||||
| Deemed shares held by Lelcon Co., LTD shareholders - basic | 1,414,828 | 1,414,828 | ||||||
| Weighted average number of Leo Motors, Inc. common shares - basic | 163,198,512 | 158,948,604 | ||||||
| Weighted average number of Leo Motors, Inc. common shares - diluted | 163,198,512 | 158,948,604 | ||||||
| Pro forma weighted average number of shares outstanding - basic | 164,613,340 | 160,363,432 | ||||||
| Pro forma weighted average number of shares outstanding - diluted | 164,613,340 | 160,363,432 | ||||||
| Pro forma adjusted net income/(loss) - basic | $ | (0.01 | ) | $ | (0.01 | ) | ||
| Pro forma adjusted earnings/(loss) per share - diluted | $ | (0.01 | ) | $ | (0.01 | ) | ||