Exhibit 99.2
Excel Corporation and Subsidiary
and Excel Business Solutions, Inc.
Proforma Condensed Combined Balance Sheet
December 31, 2012
Assets
(Unaudited)
Excel Corporation and Sub (Parent) | Excel Business Solutions, Inc. (Subsidiary) | Proforma Increase (Decrease) | Proforma Combined | |||||||||||||
| Current Assets | ||||||||||||||||
| Cash and cash equivalents | $ | 646,136 | $ | 100 | $ | $ | 646,236 | |||||||||
| Accounts receivable | 7,500 | 7,500 | ||||||||||||||
| Notes receivable | 60,000 | 60,000 | ||||||||||||||
| Accrued interest | 1,515 | 1,515 | ||||||||||||||
| Total current assets | 715,151 | 100 | 715,251 | |||||||||||||
| Other Assets | ||||||||||||||||
| License agreements | 150,000 | 150,000 | ||||||||||||||
| Goodwill | 66,965 | (A) | 66,965 | |||||||||||||
| Investment in subsidiary | 100 | (A) | ||||||||||||||
| (100 | )(B) | |||||||||||||||
| Total other assets | 150,000 | 66,965 | 216,965 | |||||||||||||
| Total Assets | 865,151 | 100 | 66,965 | 932,216 | ||||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||
| Current Liabilities | ||||||||||||||||
| Accounts payable | 44,183 | 368 | 44,551 | |||||||||||||
| Note payable | 120,000 | 120,000 | ||||||||||||||
| Accrued expenses | 3,000 | 3,000 | ||||||||||||||
| Accrued corp tax | 149 | 149 | ||||||||||||||
| Advance due to shareholders | 17,500 | 17,500 | ||||||||||||||
| Shares subject to mandatory redemption | 277,000 | 277,000 | ||||||||||||||
| Total current liabilities | 441,332 | 20,868 | 462,200 | |||||||||||||
| Stockholders’ Equity | ||||||||||||||||
| Preferred stock | ||||||||||||||||
| Common stock | 3,152 | 100 | 3,353 | (A) | 6,505 | |||||||||||
| (100 | )(B) | |||||||||||||||
| Additional paid-in capital | 725,162 | 63,712 | (A) | 788,874 | ||||||||||||
| Accumulated deficit | (304,495 | ) | (20,868 | ) | (325,363 | ) | ||||||||||
| Total stockholders’ equity | 423,819 | (20,768 | ) | 66,965 | 470,016 | |||||||||||
| Total Liabilities and | ||||||||||||||||
| Stockholders’ Equity | $ | 865,151 | $ | 100 | $ | 66,965 | $ | 932,216 | ||||||||
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Excel Corporation and Subsidiary
and Excel Business Solutions, Inc.
Proforma Condensed Combined Statement of Operations
(Unaudited)
Excel Corporation Sub for the Year Ended and December 31, 2012 (Parent) | Excel Business Solutions, Inc. from November 8, 2012 (date of inception) to December 31, 2012 (Subsidiary) | Proforma Increase (Decrease) | Proforma (Combined) | |||||||||||||
| Revenues | ||||||||||||||||
| Service fee income | $ | 7,500 | $ | $ | $ | 7,500 | ||||||||||
| Less: cost of sales | ||||||||||||||||
| Gross profit | 7,500 | 7,500 | ||||||||||||||
| Expenses | ||||||||||||||||
| Filing fees | 4,832 | 4,832 | ||||||||||||||
| Edgar filing fees | 10,169 | 10,169 | ||||||||||||||
| Advertising | 72,425 | 72,425 | ||||||||||||||
| Telephone | 1,187 | 1,187 | ||||||||||||||
| Outside services | 207,222 | 207,222 | ||||||||||||||
| Transfer agent fees | 2,508 | 2,508 | ||||||||||||||
| Legal and accounting | 102,433 | 20,500 | 122,933 | |||||||||||||
| Automobile | 3,887 | 3,887 | ||||||||||||||
| Bank charges | 212 | 212 | ||||||||||||||
| Dues and subscriptions | 165 | 165 | ||||||||||||||
| Reimbursement of expenses | 12,992 | 12,992 | ||||||||||||||
| Miscellaneous | 368 | 368 | ||||||||||||||
| License expense | 50,000 | 50,000 | ||||||||||||||
| Total expense | 468,032 | 20,868 | 488,900 | |||||||||||||
Net loss before other income and income taxes | ( 460,532 | ) | (20,868 | ) | ( 481,400 | ) | ||||||||||
| Other Income | ||||||||||||||||
| Gain on sale of note receivable | 220,313 | 220,313 | ||||||||||||||
| Referral fee income | 1,250 | 1,250 | ||||||||||||||
| Interest income | 1,515 | 1,515 | ||||||||||||||
| Total other income | 223,078 | 223,078 | ||||||||||||||
(Continued)
2
Excel Corporation and Subsidiary
and Excel Business Solutions, Inc.
Proforma Condensed Combined Statement of Operations
(Unaudited)
Excel Corporation Sub for the Year Ended and December 31, 2012 (Parent) | Excel Business Solutions, Inc. from November 8, 2012 (date of inception) to December 31, 2012 (Subsidiary) | Proforma Increase (Decrease) | Proforma (Combined) | |||||||||||||
Net income (loss) before income taxes | ( 237,454 | ) | ( 20,868 | ) | ( 258,322 | ) | ||||||||||
| Income Taxes | ||||||||||||||||
| Current | ||||||||||||||||
| Deferred | ||||||||||||||||
| Total income taxes | ||||||||||||||||
| Net Income (Loss) | $ | (237,454 | ) | $ | ( 20,868 | ) | $ | $ | ( 258,322 | ) | ||||||
| Loss per share | ||||||||||||||||
| Basic | ( .004 | ) | ||||||||||||||
| Diluted | ( .004 | ) | ||||||||||||||
Weighted average shares outstanding | ||||||||||||||||
| Basic | 65,056,191 | |||||||||||||||
| Diluted | 65,056,191 | |||||||||||||||
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Excel Corporation and Subsidiary
and Excel Business Solutions, Inc.
Notes to Proforma Condensed Combined Financial Statements
NOTE 1: EXCEL CORPORATION AND SUBSIDIARY
Excel Corporation (the “Parent”) was organized November 13, 2010 as a Delaware corporation. The Company has one wholly owned subsidiary, XL Fashions, Inc., formed in fiscal 2012. The Company is currently considered a development stage company as defined by FASB ASC 915-205-45-6. The Company is currently devoting substantially all of its efforts in acquiring, developing and licensing brands in a broad range of product categories. The Company also intends to acquire, develop and license select brands where the brand name can be leveraged into new categories. The Company’s objective is to develop a diversified portfolio of iconic consumer brands by issuing licenses and then organically growing the existing portfolio, licensing new brands and entering into joint ventures or other partnerships with the goal of leveraging the experience of management in the license of branded merchandise.
Based upon the experience of our management, we expect that our licenses will typically require our licensees to pay us royalties based upon net sales with guaranteed minimum royalties in the event that net sales do not reach specified targets. We further expect that any licenses we issue will require licensees to pay us certain minimum amounts for the advertising and marketing of the respective license brands.
NOTE 2: EXCEL BUSINESS SOLUTIONS, INC.
Excel Business Solutions, Inc. (the “Subsidiary”) was organized November 8, 2012 as a Delaware corporation.
Currently, the Company is considered a development stage company as defined by FASB ASC 915-205-45-6. The Company intends to acquire, develop and manage merchant accounts. The Company’s objective is to develop a diversified portfolio and then organically grow the existing portfolio.
NOTE 3: PROFORMA ADJUSTMENTS
On January 14, 2013, the Company completed the merger agreement through the issuance of 33,532,446 shares of Parent’s common stock for 100% of Subsidiary’s, or 1,000 shares.
Proforma adjustments on the attached financial statements include the following:
(A) To record the acquisition of 100% interest in Subsidiary by Parent through the issuance of 33,532,446 shares of common stock for 1,000 shares of the Subsidiary
(B) To record elimination of investment in Subsidiary and common stock of Subsidiary
NOTE 4: PROFORMA (LOSS) PER SHARE
The proforma (loss) per share is computed based on the number of shares outstanding, after adjustment for shares issued in the acquisition as though all shares issued in the acquisition had been outstanding from the beginning of the period presented.
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