CLEAR SKIES HOLDINGS, INC.
F/K/A BIP OIL, INC.
PRO FORMA BALANCE SHEET
AS OF DECEMBER 31, 2006
The following Pro forma balance sheet has been derived from the audited financial statements of Clear Skies Group, Inc. as of December 31, 2006. The weighted average shares outstanding has been adjusted to reflect the shares recevied in the merger as if the transaction had occurred on January 1, 2006. The results of Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc.'s operations were not included in the proforma balance sheet and income statement as the Company was not formed as of December 31, 2006.
Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc. | Clear Skies Group, Inc. | Note | Pro Forma Adjustments | Pro Forma | ||||||||||||
Historical | Historical | Ref | Dr. (Cr.) | Combined | ||||||||||||
ASSETS | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | - | $ | 111,439 | - | $ | 111,439 | |||||||||
Accounts receivable, less allowance for doubtful | ||||||||||||||||
accounts of $68,000 | 70,137 | 70,137 | ||||||||||||||
Costs and estimated earnings in excess of billings | 79,875 | 79,875 | ||||||||||||||
Total Current Assets | - | 261,451 | 261,451 | |||||||||||||
Property and equipment, net | 17,708 | 17,708 | ||||||||||||||
Other Assets | 133,278 | 133,278 | ||||||||||||||
$ | - | $ | 412,437 | $ | 412,437 | |||||||||||
LIABILITIES & STOCKHOLDERS' | ||||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | - | $ | 344,554 | 344,554 | |||||||||||
Billings in excess of costs and estimated earnings | 48,056 | 48,056 | ||||||||||||||
Due to related parties | 30,275 | 30,275 | ||||||||||||||
Loan payable, stockholder | 73,569 | 73,569 | ||||||||||||||
Payroll liabilities | 76,125 | 76,125 | ||||||||||||||
Installation warranty liability | 6,100 | 6,100 | ||||||||||||||
Total current liabilities | - | 578,679 | 578,679 | |||||||||||||
Common stock to be issued | - | 894,000 | 894,000 | |||||||||||||
Stockholder's deficit | ||||||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding | ||||||||||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, | - | - | 1 | 9,025 | 9,025 | |||||||||||
Additional paid in capital | - | 500 | 1 | (9,025 | ) | (8,525 | ) | |||||||||
Accumulated deficit | - | (1,060,742 | ) | - | (1,060,742 | ) | ||||||||||
Total stockholder's equity (deficit) | - | (1,060,242 | ) | (1,060,242 | ) | |||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | $ | - | $ | 412,437 | $ | 412,437 |
CLEAR SKIES HOLDINGS, INC.
F/K/A BIP OIL, INC.
PRO FORMA STATEMENT OF OPERATIONS
(A) | (B) | ||||||||||||
Clear Skies Holdings, Inc. | |||||||||||||
f/k/a BIP Oil, Inc. | Clear Skies Group, Inc. | Pro Forma Adjustments | Pro Forma | ||||||||||
Historical | Historical | Dr. (Cr.) | Combined | ||||||||||
Revenues | |||||||||||||
Contract revenue | $ | - | $ | 291,915 | $ | 291,915 | |||||||
Subcontractor revenue | - | 644,681 | 644,681 | ||||||||||
Total revenues | - | 936,596 | 936,596 | ||||||||||
Cost of revenues | - | 701,702 | 701,702 | ||||||||||
Gross profit | - | 234,894 | 234,894 | ||||||||||
Operating expenses | |||||||||||||
Selling expenses | - | 215,071 | 215,071 | ||||||||||
General and administrative expenses | - | 709,293 | - | 709,293 | |||||||||
- | 924,364 | 924,364 | |||||||||||
Net loss | $ | - | $ | (689,470 | ) | $ | (689,470 | ) | |||||
Weighted Average - Basic and Fully Diluted | 9,025,000 | ||||||||||||
Net Loss per shares - Basic and Fully Diluted | $ | (0.08 | ) |
Note 1
To reflect the issuance of stock received as part of the merger transaction.
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CLEAR SKIES HOLDINGS, INC.
F/K/A BIP OIL, INC.
PRO FORMA BALANCE SHEET
AS OF SEPTEMBER 30, 2007
The following Pro forma balance sheet has been derived from the unaudited financial statements of (A) Clear Skies Holdings, Inc., f/k/a BIP Oil, Inc. as of October 31, 2007, the statement of operations has been derived from the unaudited financial statements for the period January 31, 2007 (inception) to October 31, 2007 (B) Clear Skies Group, Inc. balance sheet as of September 30, 2007, the statement of operations has been derived from the unaudited statement of operations for the period January 1, 2007 through September 30, 2007.
(A) | (B) | |||||||||||||||
Clear Skies Holdings, Inc. | ||||||||||||||||
f/k/a BIP Oil, Inc. | Clear Skies Group, Inc, | Note | Pro Forma Adjustments | Pro Forma | ||||||||||||
Historical | Historical | Ref | Dr. (Cr.) | Combined | ||||||||||||
ASSETS | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 24,160 | $ | 43,386 | 1 | (24,160 | ) | $ | 43,386 | |||||||
Accounts receivable, less allowance for doubtful | ||||||||||||||||
accounts of $68,000 | 936,144 | 936,144 | ||||||||||||||
Costs and estimated earnings in excess of billings | 23,114 | 23,114 | ||||||||||||||
Other current assets and prepaid expenses | 7,500 | - | 1 | (7,500 | ) | - | ||||||||||
Total Current Assets | 31,660 | 1,002,644 | 1,002,644 | |||||||||||||
Property and equipment, net | 13,293 | 13,293 | ||||||||||||||
Other Assets | 81,260 | 81,260 | ||||||||||||||
$ | 31,660 | $ | 1,097,197 | $ | 1,097,197 | |||||||||||
LIABILITIES & STOCKHOLDERS' | ||||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable | $ | - | $ | 394,020 | $ | 394,020 | ||||||||||
Billings in excess of costs and estimated earnings | 870,024 | 870,024 | ||||||||||||||
Note payable, net of discount of $494,156 | 250,844 | 2 | (250,844 | ) | - | |||||||||||
Due to related parties | 12,412 | 12,412 | ||||||||||||||
Loan payable, stockholder | 171,969 | 171,969 | ||||||||||||||
Payroll liabilities | 126,389 | 126,389 | ||||||||||||||
Installation warranty liability | 7,742 | 7,742 | ||||||||||||||
Total current liabilities | - | 1,833,400 | 1,582,556 | |||||||||||||
Stockholder's deficit | ||||||||||||||||
Preferred stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding | ||||||||||||||||
Common stock, $0.001 par value, 100,000,000 shares authorized, | 6,510 | 44,420 | 1 | (6,510 | ) | 16,490 | ||||||||||
3 | (27,930 | ) | ||||||||||||||
153,290 | 2,386,599 | 2 | 250,844 | 2,665,373 | ||||||||||||
Additional paid in capital | 1 | (153,290 | ) | |||||||||||||
3 | 27,930 | |||||||||||||||
Accumulated deficit | (128,140 | ) | (3,167,222 | ) | 1 | 128,140 | (3,167,222 | ) | ||||||||
Total stockholder's equity (deficit) | 31,660 | (736,203 | ) | (485,359 | ) | |||||||||||
TOTAL LIABILITIES AND | ||||||||||||||||
STOCKHOLDERS' EQUITY (DEFICIT) | $ | 31,660 | $ | 1,097,197 | $ | 1,097,197 |
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CLEAR SKIES HOLDINGS, INC.
F/K/A BIP OIL, INC.
PRO FORMA STATEMENT OF OPERATIONS
Clear Skies Holdings, Inc. | ||||||||||||||||
f/k/a BIP Oil, Inc. | Clear Skies Group, Inc. | Note | Pro Forma Adjustments | Pro Forma | ||||||||||||
Historical | Historical | Ref | Dr. (Cr.) | Combined | ||||||||||||
Revenues | ||||||||||||||||
Contract revenue | $ | - | $ | 82,081 | $ | 82,081 | ||||||||||
Subcontractor revenue | - | 210,614 | 210,614 | |||||||||||||
Other revenue | - | 27,645 | 27,645 | |||||||||||||
Total revenues | - | 320,340 | 320,340 | |||||||||||||
Cost of revenues | - | 289,152 | 289,152 | |||||||||||||
Gross profit | - | 31,188 | 31,188 | |||||||||||||
Operating expenses | ||||||||||||||||
Selling expenses | - | 359,610 | 359,610 | |||||||||||||
General and administrative expenses | 100,590 | 1,527,214 | 1 | (100,590 | ) | 1,527,214 | ||||||||||
Total Operating expenses | 100,590 | 1,886,824 | 1,886,824 | |||||||||||||
Loss from Operations | (100,590 | ) | (1,855,636 | ) | (1,855,636 | ) | ||||||||||
Interest expense | - | 250,844 | 2 | (250,844 | ) | - | ||||||||||
Net loss | $ | (100,590 | ) | $ | (2,106,480 | ) | $ | (1,855,636 | ) | |||||||
Weighted Average - Basic and Fully Diluted | 4 | 16,490,050 | ||||||||||||||
Net Loss per shares - Basic and Fully Diluted | $ | (0.11 | ) |
Note 1
To reflect the spin off of Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc. to stockholders for the return of 53,866,873 shares
Note 2
To reflect the exchange of $745,000 of notes payable into 1,490,000 common shares upon completion of the merger with Clear Skies Holdings, Inc. f/k/a BIP Oil, Inc.
Note 3
To reflect the issuance of stock received as part of the merger transaction.
Note 4
The weighted average calculation includes 1,490,000 shares to be issued upon the conversion of notes payable and 9,025,000 shares issued upon the acquisition of Clear Skies Group, Inc.
The financial statements are presented for informational purposes only and do not purport to be indicative of the financial position that would have resulted if the merger had been consummated at each Company's year end. The pro forma financial statements should be read in conjunction with the Registrant's financial statements and related notes thereto contained in the Registrant's SEC quarterly and annual filings (including its Current Reports on Form 8-K filed with the Commission in connection with the merger and the financial statements of Clear Skies Group, Inc. and related notes thereto contained elsewhere in this Form 8-K).
The transaction has been accounted for as a reverse merger by Clear Skies Group, Inc. The final determination of the purchase price adjustment to the assets acquired based on their respective fair values, has not been made. Accordingly, the purchase accounting adjustments made in connection with the development of the pro forma financial statements are preliminary and have been made solely for the purpose of developing the pro forma combined financial information.
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