UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
The following unaudited pro forma condensed combined balance sheet combines our historical unaudited balance sheet as of March 31, 2010 and the historical audited balance sheet of Allianex as of March 31, 2010, giving effect to the acquisition as if it had occurred on March 31, 2010.
The following unaudited pro forma condensed combined statements of operations combine (i) the historical unaudited statements of operations of us and Allianex, LLC (“Allianex”) for the three months ended March 31, 2010, giving effect to the acquisition as if it had occurred on January 1, 2010, and (ii) the historical unaudited statements of operations of us and Allianex for the twelve months ended December 31, 2009, giving effect to the acquisition as if it had occurred on January 1, 2009.
The following information should be read in conjunction with the pro forma condensed combined financial statements:
· | |
Accompanying notes to the unaudited pro forma condensed combined statements; | |
· | Separate historical financial statements of Allianex included elsewhere in this Report; and |
· | Our separate historical financial statements, which are included in our Annual Reports filed on Form 10-K and our Quarterly Reports filed on Form 10-Q. |
The unaudited pro forma information is not necessarily indicative of the financial position or results of operations that may have actually occurred had the acquisition taken place on the dates noted, or the future financial position or operating results of the combined company.
Kensington Leasing, Ltd. and Allianex LLC
Consolidated Pro Forma Balance Sheets (Unaudited)
Historical | Pro Forma Consolidated (Unaudited) | ||||||||||||
Kensington Leasing, Ltd. | Allianex LLC | Adjustments | As Adjusted | ||||||||||
ASSETS | |||||||||||||
Current assets | |||||||||||||
Cash | $ | 346,805 | $ | 101,238 | $ | -- | $ | 448,043 | |||||
Accounts receivable | -- | 3,900 | -- | 3,900 | |||||||||
Other current assets | 102,380 | -- | -- | 102,380 | |||||||||
Total current assets | 449,185 | 105,138 | -- | 554,323 | |||||||||
Property and equipment, net | -- | 38,782 | -- | 38,782 | |||||||||
Intangible assets and goodwill | 5,000 | -- | 88,587 | (b) | 93,587 | ||||||||
Total assets | 454,185 | 143,920 | 88,587 | 686,692 | |||||||||
LIABILITIES AND | |||||||||||||
SHAREHOLDERS' DEFICIT | |||||||||||||
Liabilities | |||||||||||||
Notes payable | 763 | 100,000 | -- | 100,763 | |||||||||
Accounts payable and accrued | 789 | 11,507 | -- | 12,296 | |||||||||
expenses | |||||||||||||
Due to related parties | 15,000 | -- | -- | 15,000 | |||||||||
Total liabilities | 16,552 | 111,507 | -- | 128,059 | |||||||||
Stockholders' Equity (Deficit) | |||||||||||||
Common stock | 7,313 | -- | 575 | (b) | 7,888 | ||||||||
Paid in capital | 490,512 | -- | 120,425 | (b) | 610,937 | ||||||||
Deficit accumulated during | (60,193) | (819,855) | 819,855 | (b) | (60,193) | ||||||||
development stage | |||||||||||||
Member contributions during | -- | 852,268 | (852,268) | (b) | -- | ||||||||
development stage | |||||||||||||
Total shareholders' equity | 437,632 | 32,413 | 88,587 | 558,632 | |||||||||
(deficit) | |||||||||||||
Total liabilities and | $ 454,185 | $ | 143,920 | $ | 88,587 | $ | 686,692 | ||||||
shareholders' equity (deficit) | |||||||||||||
See accompanying notes to pro forma financial information | |||||||||||||
Kensington Leasing, Ltd. and Allianex LLC
Consolidated Pro Forma Statements of Operations
Historical (Audited) | Pro Forma Consolidated (Unaudited) | ||||||||||||
Kensington Leasing, Ltd. | Allianex LLC | Adjustments | As Adjusted | ||||||||||
Income | $ -- | $ | 7,293 | $ | -- | $ | 7,293 | ||||||
Operating expenses | |||||||||||||
General and administrative | 2,045 | 41,823 | -- | 43,868 | |||||||||
Legal and accounting | 25,030 | -- | -- | 25,030 | |||||||||
Selling | -- | 109,336 | -- | 109,336 | |||||||||
Total operating expenses | 27,075 | 151,159 | -- | 178,234 | |||||||||
Income from operations | (27,075) | (143,866) | -- | (170,941) | |||||||||
Other income (expense) | |||||||||||||
LLC Fees | -- | (800) | 800 | (c) | -- | ||||||||
Interest income (expense) | (327) | -- | -- | (327) | |||||||||
Total other income (expense) | (327) | (800) | 800 | (327) | |||||||||
Net loss | $ | (27,402) | $ | (144,666) | $ | 800 | $ | (171,268) | |||||
Net loss per share | $ | (0.02) | $ | (0.09) | |||||||||
Weighted average shares outstanding | 1,237,104 | (b) | 1,812,104 | ||||||||||
See accompanying notes to pro forma financial information
Kensington Leasing, Ltd. and Allianex LLC
Consolidated Pro Forma Statements of Operations (Unaudited)
Historical | Pro Forma | ||||||||||||
Kensington Leasing, Ltd. | Allianex LLC | Adjustments | As Adjusted | ||||||||||
Income | $ -- | $ | -- | $ | -- | $ | -- | ||||||
Operating expenses | |||||||||||||
General and administrative | 1,976 | 7,426 | -- | 9,402 | |||||||||
Legal and accounting | 25,815 | - | 25,815 | ||||||||||
Selling | - | 18,854 | -- | 18,854 | |||||||||
Total operating expenses | 27,791 | 26,280 | -- | 54,071 | |||||||||
Income from operations | (27,791) | (26,280) | -- | (54,071) | |||||||||
Other income (expense) | |||||||||||||
LLC Fees | -- | (200) | 200 | (c) | -- | ||||||||
Interest income (expense) | -- | -- | -- | -- | |||||||||
Total other income (expense) | -- | (200) | 200 | -- | |||||||||
Net loss | $ | (27,791) | $ | (26,480) | $ | 200 | $ | (54,071) | |||||
Net loss per share | $ | (0.02) |
| $ | (0.03) | ||||||||
Weighted average shares outstanding | 1,379,667 |
| (b) | 1,954,667 | |||||||||
See accompanying notes to pro forma financial information
Notes to Pro Forma Financial Information
(a)
The Unaudited Pro Forma Consolidated Financial Statements are based on the historical financial statements of Allianex, LLC.
(b)
Adjustments reflect the opening balance sheet entries as determined by an internal valuation of the fair market value of the consideration paid. We issued 575,000 shares of our common stock to Allianex LLC at a value of $.08 per share and $75,000 in cash for a total value of $121,000. The assets we acquired from Allianex included principally: fixed assets (recorded at net book value); contracts and relationships with a network of retail aggregator partners, affinity groups and direct selling companies, and a call center; as well as a worldwide license to use, exploit, market, sell and distribute certain software products to the purchasers of prepaid cards.
(c)
Adjustments reflect the reversal of fees incurred by the Allianex, LLC, as a limited liability company, which would not have been incurred as a Corporation.