Clavo Rico, Ltd. and Subsidiaries
Combined Pro Forma Statements of Financial Position
As of September 30, 2015
Clavo Rico | IMII | Adjustments | Total | |||||||||||||||
ASSETS | ||||||||||||||||||
Current assets | ||||||||||||||||||
Cash and cash equivalents | $ | 154,169 | $ | 29,490 | $ | - | $ | 183,659 | ||||||||||
Inventories | 1,117,653 | - | - | 1,117,653 | ||||||||||||||
Accounts receivable | 26,783 | - | - | 26,783 | ||||||||||||||
Accounts receivable - related companies | 24,094 | - | - | 24,094 | ||||||||||||||
Other current assets | - | 71,213 | - | 71,213 | ||||||||||||||
Total current assets | 1,322,699 | 100,703 | - | 1,423,402 | ||||||||||||||
Non-current assets | ||||||||||||||||||
Property, plant and equipment - net | 2,631,947 | - | - | 2,631,947 | ||||||||||||||
Intangible assets-mining rights and concessions | 71,290 | - | - | 71,290 | ||||||||||||||
Other assets | 569,705 | - | 1 | (151,724 | ) | 417,981 | ||||||||||||
Total non-current assets | 3,272,942 | - | (151,724 | ) | 3,121,218 | |||||||||||||
Total assets | $ | 4,595,641 | $ | 100,703 | $ | (151,724 | ) | $ | 4,544,620 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
Accounts payables | $ | 197,002 | $ | 72,148 | $ | - | $ | 269,150 | ||||||||||
Employee withholdings and payroll taxes | 96,194 | - | - | 96,194 | ||||||||||||||
Employee benefit obligations | 97,791 | - | - | 97,791 | ||||||||||||||
Accrued liabilities | - | 529,723 | 1 | (151,724 | ) | 377,999 | ||||||||||||
Accrued interst payable | - | 55,336 | 1 | 3,394,326 | 3,449,662 | |||||||||||||
Mine reclamation | 29,003 | - | - | 29,003 | ||||||||||||||
Taxes other than income taxes | 15,153 | - | - | 15,153 | ||||||||||||||
Convertible notes payable, net of debt discount of $75,755 | - | 186,195 | - | 186,195 | ||||||||||||||
Convertible note payable - related party, net of debt discount of $982 | - | 731,562 | - | 731,562 | ||||||||||||||
Derivative liabilities | - | 729,781 | - | 729,781 | ||||||||||||||
Warrant liabilities | - | 107,018 | - | 107,018 | ||||||||||||||
Total current liabilities | 435,143 | 2,411,763 | 3,242,602 | 6,089,508 | ||||||||||||||
Non-current liabilities | ||||||||||||||||||
Notes payable | 5,488,980 | - | - | 5,488,980 | ||||||||||||||
Total non-current liabilities | 5,488,980 | - | - | 5,488,980 | ||||||||||||||
Total liabilities | 5,924,123 | 2,411,763 | 3,242,602 | 11,578,488 | ||||||||||||||
Shareholders’ equity | ||||||||||||||||||
Preferred stock, $0.00001 par value; 10,000,000 shares authorized, none issued and outstanding | - | - | - | - | ||||||||||||||
Common stock, $0.00001 par value; 500,000,000 shares authorized, 20,557,683 | - | 206 | 2,423 | 2,629 | ||||||||||||||
Additional paid-in capital | - | 9,095,099 | 9,095,099 | |||||||||||||||
Share capital | 1,051,116 | - | 2 | (1,051,116 | ) | - | ||||||||||||
Supplementary equity contributions | 582,639 | - | 2 | (582,639 | ) | - | ||||||||||||
Retained earnings (loss) | (2,962,237 | ) | (11,406,365 | ) | 1 | (3,394,326 | ) | (16,131,596 | ) | |||||||||
2 | 1,631,332 | |||||||||||||||||
Total shareholders’ equity | (1,328,482 | ) | (2,311,060 | ) | (3,394,326 | ) | (7,033,868 | ) | ||||||||||
Total liabilities and shareholders’ equity | $ | 4,595,641 | $ | 100,703 | $ | (151,724 | ) | $ | 4,544,620 |
Clavo Rico, Ltd. and Subsidiaries
Combined Pro Forma Statements of Comprehensive Income
For the Nine Months ended September 30, 2015
Clavo Rico | IMII | Adjustments | Total | |||||||||||||
Revenue | ||||||||||||||||
Sales of precious metal | $ | 3,402,179 | $ | - | $ | - | $ | 3,402,179 | ||||||||
Other income | 12,490 | - | - | 12,490 | ||||||||||||
Total revenue | 3,414,669 | - | - | 3,414,669 | ||||||||||||
Cost of sales | 2,689,825 | 2,109 | - | 2,691,934 | ||||||||||||
Gross profit | 724,844 | (2,109 | ) | - | 722,735 | |||||||||||
Operating expenses | ||||||||||||||||
Exploration costs | - | 118,339 | - | 118,339 | ||||||||||||
General and administrative expenses | 423,011 | 1,654,400 | - | 2,077,411 | ||||||||||||
Depreciation and amortization expenses | 340,619 | - | - | 340,619 | ||||||||||||
Interest expenses | 6,216 | 1,360,718 | 3,394,326 | 4,761,260 | ||||||||||||
Total operating expenses | 769,846 | 3,133,457 | 3,394,326 | 7,297,629 | ||||||||||||
Change in derivative liabilities | - | (722,647 | ) | (722,647 | ) | |||||||||||
Loss on extinguishment of debt | - | 15,843 | 15,843 | |||||||||||||
Impairment charge - mining claim | - | 950,160 | 950,160 | |||||||||||||
Change in foreign currency translation | (280,090 | ) | - | (280,090 | ) | |||||||||||
Profit before tax | 235,088 | (3,378,922 | ) | (3,394,326 | ) | (6,538,160 | ) | |||||||||
Income tax expense | - | - | - | - | ||||||||||||
Profit (loss) for the year | $ | 235,088 | $ | (3,378,922 | ) | $ | (3,394,326 | ) | $ | (6,538,160 | ) |
Clavo Rico, Ltd. and Subsidiaries
Combined Pro Forma Statements of Comprehensive Income
For the Year ended December 31, 2014
Clavo Rico | IMII | Adjustments | Total | |||||||||||||||
Revenue | ||||||||||||||||||
Sales of precious metal | $ | 3,120,825 | $ | - | $ | - | $ | 3,120,825 | ||||||||||
Other income | 27,965 | - | - | 27,965 | ||||||||||||||
Total revenue | 3,148,790 | - | - | 3,148,790 | ||||||||||||||
Cost of sales | 1,984,684 | - | - | 1,984,684 | ||||||||||||||
Gross profit | 1,164,106 | - | - | 1,164,106 | ||||||||||||||
Operating expenses | ||||||||||||||||||
Exploration costs | - | 163,953 | - | 163,953 | ||||||||||||||
General and administrative expenses | 845,267 | 2,030,744 | - | 2,876,011 | ||||||||||||||
Depreciation and amortization expenses | 405,287 | - | - | 405,287 | ||||||||||||||
Interest expenses | 58,118 | 1,428,718 | 2 | 3,394,326 | 4,881,162 | |||||||||||||
Total operating expenses | 1,308,672 | 3,623,415 | 3,394,326 | 8,326,413 | ||||||||||||||
Change in derivative liabilities | - | (195,945 | ) | (195,945 | ) | |||||||||||||
Gain on forgiveness of debt | - | (161,750 | ) | (161,750 | ) | |||||||||||||
Change in foreign currency translation | - | - | - | |||||||||||||||
Profit before tax | (144,566 | ) | (3,265,720 | ) | (3,394,326 | ) | (6,804,612 | ) | ||||||||||
Income tax expense | (15,439 | ) | - | - | (15,439 | ) | ||||||||||||
Profit (loss) for the year | $ | (160,005 | ) | $ | (3,265,720 | ) | $ | (3,394,326 | ) | $ | (6,820,051 | ) |