SAVEENE GROUP, INC.
Pro Forma Condensed
Combined Financial Statements
For the nine months ended September 30, 2012
and the years ended December 31, 2011 and 2010
| (1) |
SEVEENE GROUP, INC
Pro Forma Condensed Combined Financial Statements
For the nine months ended September 30, 2012
and the years ended December 31, 2011 and 2010
Index to Pro Forma Condensed Combined Financial Statements
| Pages | ||
| Introduction to Pro Forma Condensed Combined Financial Statements | 3 | |
| Unaudited Pro Forma Condensed Combined Balance Sheet | 4 | |
| Unaudited Pro Forma Condensed Combined Statement of Operations | 5-6 | |
| Notes to Pro Forma Condensed Combined Financial Statements | 7 |
| (2) |
SAVEENE GROUP, INC.
Introduction to Pro Forma Condensed Combined Financial Statements
The following unaudited pro forma condensed combined financial statements are presented to illustrate the estimated effects of the merger of 2235150 Ontario Inc. (“Ontario”) by Saveene Group, Inc. (“Saveene”) (the “Transaction”) on the historical financial position and results of operations of Saveene.
The pro forma balance sheet as of September 30, 2012 is based on the unaudited balance sheet of Saveene, and the unaudited balance sheet of Ontario as of September 30, 2012. The pro forma statement of operations for the nine months ended September 30, 2012 is based on the unaudited statement of operations of Saveene for the nine months ended September 30, 2012, and the unaudited statement of operations of Ontario for the nine months ended September 30, 2012. The pro forma statements of operations for the years ended December 31, 2011 and 2010, respectively, are based on the audited statements of operations of Saveene, and audited statements of operations of Ontario.
The unaudited pro forma condensed combined statements of operations for the nine months ended September 30, 2012 and for the years ended December 31, 2011 and 2010 assume that the Transaction was consummated on January 1, 2010. The unaudited pro forma condensed combined balance sheet as of September 30, 2012 assumes the Transaction was consummated on that date.
The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what the financial position or results of operations of Saveene would have been had the Transaction occurred as of the dates indicated, nor is it indicative of the future financial position or results of operations for any period of Saveene.
The pro forma adjustments are based upon available information and certain assumptions that the management of Saveene believes are reasonable under the circumstances.
These unaudited pro forma condensed combined financial statements should be read in conjunction with the accompanying notes and assumptions and the historical financial statements and related notes of Saveene and Ontario.
| (3) |
| Saveene Group, Inc. | ||||||||||||||||||
| Unaudited Pro Forma Condensed Combined Balance Sheet | ||||||||||||||||||
| As of September 30, 2012 | ||||||||||||||||||
| (Stated in US Dollars) | ||||||||||||||||||
| Saveene | Ontario | Pro forma | ||||||||||||||||
| As of | As of | Pro forma | combined | |||||||||||||||
| September 30, 2012 | September 30, 2012 | adjustment | total | |||||||||||||||
| ASSETS | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | — | $ | 6,956 | 1,000 | C | $ | 7,956 | ||||||||||
| Total current assets | — | 6,956 | 7,956 | |||||||||||||||
| Fixed assets: | ||||||||||||||||||
| Building held for leasing | — | 988,391 | 988,391 | |||||||||||||||
| Building improvements held for leasing | — | 126,613 | 126,613 | |||||||||||||||
| Accumulated depreciation | — | (90,040 | ) | (90,040 | ) | |||||||||||||
| Total fixed assets | — | 1,024,964 | 1,024,964 | |||||||||||||||
| TOTAL ASSETS | $ | — | $ | 1,031,920 | $ | 1,032,920 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable and accrued expenses | $ | 4,830 | $ | 16,396 | (4,830 | ) | D | $ | 16,396 | |||||||||
| Current portion of bank note payable | — | 18,748 | 18,748 | |||||||||||||||
| Due to related parties | — | 565,692 | 565,692 | |||||||||||||||
| Total current liabilities | 4,830 | 600,836 | 600,836 | |||||||||||||||
| Long-term liabilities | ||||||||||||||||||
| Payable to related party | 22,896 | — | (22,896 | ) | D | — | ||||||||||||
| Long term bank borrowings | — | 545,654 | 545,654 | |||||||||||||||
| Total liabilities | 27,726 | 1,146,490 | 1,146,490 | |||||||||||||||
| COMMITMENTS AND CONTINGENCIES | — | — | — | |||||||||||||||
| STOCKHOLDERS’ (DEFICIT) EQUITY | ||||||||||||||||||
| Common stock, $.0001 par, 250,000,000 shares authorized, 4,132,559 shares issued and outstanding at September 30, 2012 and 39,132,559 subsequent to | 413 | — | # | 3,500 | A, B, C | 3,913 | ||||||||||||
| Additional paid in capital | 31,012 | 3 | (33,925 | ) | A, B, C, D | (2,910 | ) | |||||||||||
| Accumulated other comprehensive income (loss) | — | (3,351 | ) | (3,351 | ) | |||||||||||||
| (Accumulated deficit) retained earnings | (59,151 | ) | (111,222 | ) | 59,151 | D | (111,222 | ) | ||||||||||
| Total stockholders’ (deficit) equity | (27,726 | ) | (114,570 | ) | (113,570 | ) | ||||||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ | — | $ | 1,031,920 | $ | 1,032,920 | ||||||||||||
| $ | — | |||||||||||||||||
| (4) |
| Saveene Group, Inc. | |||||||||||||||||
| Unaudited Pro Forma Condensed Combined Statement of Operations | |||||||||||||||||
| For the nine months ended September 30, 2012 | |||||||||||||||||
| (Stated in US Dollars) | |||||||||||||||||
| Saveene | Ontario | Pro forma | Pro forma | ||||||||||||||
| Nine months ended | Nine months ended | adjustment | combined | ||||||||||||||
| September 30, 2012 | September 30, 2012 | total | |||||||||||||||
| Revenues, net | $ | — | $ | 48,394 | $ | 48,394 | |||||||||||
| Cost of revenue | — | 30,803 | 30,803 | ||||||||||||||
| Gross profit | — | 17,591 | 17,591 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Filing fees | 620 | 620 | |||||||||||||||
| Professional fees | 4,750 | 4,750 | |||||||||||||||
| Repairs & maintenance | — | 3,439 | 3,439 | ||||||||||||||
| Property taxes | — | 16,303 | 16,303 | ||||||||||||||
| Other general and administrative expenses | — | 14,382 | 14,382 | ||||||||||||||
| Total operating expenses | 5,370 | 34,124 | 39,494 | ||||||||||||||
| Income (loss) from operaions | (5,370 | ) | (16,533 | ) | (21,903 | ||||||||||||
| Other income (expenses) | |||||||||||||||||
| interest expense | — | (22,418 | ) | (22,418 | |||||||||||||
| (Loss) income before income taxes | (5,370 | ) | (38,951 | ) | (44,321 | ||||||||||||
| Provision for income taxes | — | — | — | ||||||||||||||
| Net (loss) income | $ | (5,370 | ) | $ | (38,951 | ) | $ | (44,321 | |||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Foreign currency translation adjustments | — | 10,299 | 10,299 | ||||||||||||||
| Comprehensive (loss) | $ | (5,370 | ) | $ | (28,652 | ) | $ | (34,022 | |||||||||
| Pro forma income (loss) per share | N/A | N/A | ** | ||||||||||||||
| Number of Shares Affected by the Transaction | N/A | N/A | 35,000,000 | E | |||||||||||||
| (5) |
| Saveene Group, Inc. | |||||||||||||||||
| Unaudited Pro Forma Condensed Combined Statement of Operations | |||||||||||||||||
| For the year ended December 31, 2011 | |||||||||||||||||
| (Stated in US Dollars) | |||||||||||||||||
| Saveene | Ontario | Pro forma | Pro forma | ||||||||||||||
| Year ended | Year ended | adjustment | combined | ||||||||||||||
| December 31, 2011 | December 31, 2011 | total | |||||||||||||||
| Revenues, net | $ | — | $ | 65,255 | $ | 65,255 | |||||||||||
| Cost of revenue | — | 42,224 | 42,224 | ||||||||||||||
| Gross profit | — | 23,032 | 23,032 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Filing fees | 1,945 | 1,945 | |||||||||||||||
| Professional fees | 10,240 | 10,240 | |||||||||||||||
| Selling, general and administrative expenses | — | 28,673 | 28,673 | ||||||||||||||
| Total operating expenses | 12,185 | 28,673 | 40,858 | ||||||||||||||
| Income (loss) from operaions | (12,185 | ) | (5,641 | ) | (17,826 | ||||||||||||
| Other income (expenses) | |||||||||||||||||
| interest expense | — | (29,537 | ) | (29,537 | |||||||||||||
| (Loss) income before income taxes | (12,185 | ) | (35,178 | ) | (47,363 | ||||||||||||
| Provision for income taxes | — | — | — | ||||||||||||||
| Net (loss) income | $ | (12,185 | ) | $ | (35,178 | ) | $ | (47,363 | |||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Foreign currency translation adjustments | — | 23,876 | 23,876 | ||||||||||||||
| Comprehensive (loss) | $ | (12,185 | ) | $ | (11,302 | ) | $ | (23,487 | |||||||||
| Pro forma income (loss) per share | N/A | N/A | ** | ||||||||||||||
| Number of Shares Affected by the Transaction | N/A | N/A | 35,000,000 | E | |||||||||||||
| (6) |
| Saveene Group, Inc. | |||||||||||||||||
| Unaudited Pro Forma Condensed Combined Statement of Operations | |||||||||||||||||
| For the year ended December 31, 2010 | |||||||||||||||||
| (Stated in US Dollars) | |||||||||||||||||
| Saveene | Ontario | Pro forma | Pro forma | ||||||||||||||
| Year ended | Year ended | adjustment | combined | ||||||||||||||
| December 31, 2010 | December 31, 2010 | total | |||||||||||||||
| Revenues, net | $ | — | $ | 36,544 | $ | 36,544 | |||||||||||
| Cost of revenue | — | 15,540 | 15,540 | ||||||||||||||
| Gross profit | — | 21,003 | 21,003 | ||||||||||||||
| Operating expenses | |||||||||||||||||
| Filing fees | 2,001 | 2,001 | |||||||||||||||
| 1,335 | 1,335 | ||||||||||||||||
| Professional fees | 35,003 | 35,003 | |||||||||||||||
| Selling, general and administrative expenses | — | 36,066 | 36,066 | ||||||||||||||
| Total operating expenses | 38,339 | 36,066 | 74,405 | ||||||||||||||
| Income (loss) from operaions | (38,339 | ) | (15,062 | ) | (53,401 | ||||||||||||
| Other income (expenses) | |||||||||||||||||
| interest expense | — | (22,031 | ) | (22,031 | |||||||||||||
| (Loss) income before income taxes | (38,339 | ) | (37,093 | ) | (75,432 | ||||||||||||
| Provision for income taxes | — | — | — | ||||||||||||||
| Net (loss) income | $ | (38,339 | ) | $ | (37,093 | ) | $ | (75,432 | |||||||||
| Other comprehensive income (loss): | |||||||||||||||||
| Foreign currency translation adjustments | — | (37,526 | ) | (37,526 | |||||||||||||
| Comprehensive (loss) | $ | (38,339 | ) | $ | (74,619 | ) | $ | (112,958 | |||||||||
| Pro forma income (loss) per share | N/A | N/A | ** | ||||||||||||||
| Number of Shares Affected by the Transaction | N/A | N/A | 35,000,000 | E | |||||||||||||
| (7) |
SAVEENE GROUP, INC.
Notes to Pro Forma Condensed Combined Financial Statements
A = On March 7, 2012, Saveene entered into a Plan of Exchange with Ontario and filed an 8-K on March 13, 2013. The Ontario stockholders acquired the majority of the outstanding common stock of Saveene. The transaction is accounted for as a reverse purchase acquisition/merger wherein Ontario is the accounting acquirer and Saveene is the legal acquirer. Accordingly, the accounting acquirer records the assets purchased and liabilities assumed as part of the merger and the entire stockholders equity section of the legal acquirer is eliminated with negative book value acquired offset against the paid in capital of the accounting acquirer.
B =To subsequently record 27,500,000 new common shares of Saveene issued to Ontario shareholders per 8-K above.
C = On January 24, 2013, an accredited investor entered into a subscription agreement with Saveene for purchase of 7,500,000 common shares of Saveene by cash payment of $1,000.
D = Eliminate Saveene assets and liabilities due to recapitalization.
E = The denominator in computing pro forma earnings per shares is 35,000,000 shares, representing outstanding shares affected by the transactions per 8-K above.
