LEO MOTORS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2017
(AMOUNTS EXPRESSED IN US DOLLAR)
UNAUDITED
| | | | | | | | | |
| | Registrant | | | | | | | |
| | Historical | | | Adjustments | | | Pro Forma | |
ASSETS | | | | | | | | | |
Cash and equivalents | | 344,314 | | $ | (13,899) | (a) | $ | 330,415 | |
Receivables | | 612,617 | | | (15,060) | (b) | | 597,557 | |
Inventories | | 1,195,949 | | | (172,437) | (c) | | 1,023,513 | |
Other current assets | | 1,316,476 | | | (271,342) | (d) | | 1,045,134 | |
Property, plant and equipment | | 430,058 | | | (17,377) | (e) | | 412,681 | |
Investment in Subsidiaries | | - | | | 204,755 | (f) | | 204,755 | |
Deposits and other assets | | 689,941 | | | (257,966) | (g) | | 431,975 | |
Total assets | | 4,589,356 | | | (257,966) | | | 4,046,031 | |
| | | | | | | | | |
LIABILITIES | | | | | | | | | |
Accounts payable and accruals | | 5,086,818 | | | (1,394,808) | (h) | | 3,692,011 | |
Taxes payable | | 1,825,427 | | | (967,169) | (i) | | 858,258 | |
Long-Term accruals | | 364,169 | | | (116,537) | (j) | | 247,632 | |
Long-Term debt | | 290,918 | | | - | | | 290,918 | |
Total liabilities | | 7,567,352 | | | (2,478,514) | | | 5,088,818 | |
| | | | | | | | | |
EQUITY | | | | | | | | | |
Common stock | | 175,019 | | | - | | | 175,019 | |
Additional paid-in capital | | 21,678,402 | | | - | | | 21,678,402 | |
Other comprehensive income | | 818,309 | | | 777,580 | (k) | | 1,595,888 | |
Retained earnings | | 32,229,453 | | | 953,983 | (l) | | (31,275,470) | |
Total equity | | (9,557,723) | | | 1,731,563 | | | (7,826,161) | |
Non-controlling interest | | 6,579,748 | | | (203,625) | (m) | | 6,783,373 | |
Total liabilities and equity | | 4,589,356 | | | (543,325) | | | 4,046,031 | |
| | | | | | | | | |
LEO MOTORS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
TWELVEMONTHS ENDED DECEMBER 31, 2017
(AMOUNTS EXPRESSED IN US DOLLAR)
UNAUDITED
| | Registrant | | | | | | | |
| | Historical | | | Adjustments | | | Pro Forma | |
| | | | | | | | | |
Revenue | $ | 2,863,223 | | $ | (2,417,479) | (n) | $ | 445,744 | |
Cost of goods sold | | 2,217,178 | | | (2,234,891) | (o) | | (17,713) | |
Operating expenses | | 4,199,987 | | | 3,084,043 | (p) | | 3,292,778 | |
Other income and expense | | 153,569 | | | (349,455) | (q) | | (247,073) | |
Income tax expense | | (5,716) | | | - | | | 5,716 | |
Non-controlling interest | | 952,854 | | | 363,729 | (r) | | (589,125) | |
Net income (loss) | | (2,453,236) | | | 11,851 | | | (2,492,985) | |
| | | | | | | | | |
EPS information not included | | | | | | | | | |
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
On April 1, 2018, the Company sold one percent (1%) each of its fifty percent (50%) ownership in three subsidiaries making their investment in each of the three subsidiaries forty-nine percent (49%). As a result, the entities are no longer consolidated but accounted for on the equity method. The above pro forma financial statements reflect the financial statements as of December 31, 2017 and for the twelve months ended December 31, 2017as the historical numbers with adjustments to get to the pro forma column as if the subsidiaries were accounted for on the equity method for the full twelve months in 2017.
(a)This represents the change in cash due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(b)This represents the change in receivables due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(c)This represents the change in inventories due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(d)This represents the change in other current assets due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(e)This represents the change in property, plant and equipment due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(f)This represents the equity investment in subsidiaries due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method. Two of the subsidiaries had continual losses and no net revenue is considered likely in the short term so those two subsidiaries equity investment was written down to zero. This figure represents the equity investment of the third subsidiary increased by the Company’s portion of income for the twelve months ended 2017.
(g)This represents the change in deposits and other assets due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(h)This represents the change in accounts payable and accruals due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(i)This represents the change in taxes payable due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(j)This represents the change in long term accruals due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(k)This represents the change in taxes payable due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(l)This represents the change in other comprehensive income due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(m)This represents the change in retained earnings due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(n)This represents the change in non-controlling interest due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(o)This represents the change in revenue due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(p)This represents the change in cost of goods sold due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(q)This represents the change in operating expenses due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(r)This represents the change in other income and expense due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
(s)This represents the change in non-controlling interest portion of net loss due to the subsidiaries no longer being consolidated but treated as an investment based upon the equity method.
