Exhibit 99.1
Below are the pro-forma consolidated financials as of December 31, 2017 as if the acquisition closed on December 31, 2017:
Monster Products, Inc.
Pro-Forma Consolidated Balance Sheet
December 31, 2017
Atlantic | ||||||||||||||||||
Monster | Acquisition | Pro-Forma | ||||||||||||||||
Consolidated | Inc. | Adjustments | Consolidated | Notes | ||||||||||||||
Assets | ||||||||||||||||||
Current assets | ||||||||||||||||||
Cash and cash equivalents | $ | 7,796,202 | $ | 20,000 | $ | 7,816,202 | ||||||||||||
Restricted cash | 501,225 | 501,225 | ||||||||||||||||
Accounts receivable, net | 34,327,644 | 34,327,644 | ||||||||||||||||
Accounts receivable assigned | 2,798,826 | 2,798,826 | ||||||||||||||||
Inventories, net | 10,627,883 | 10,627,883 | ||||||||||||||||
Prepaid expenses and other current assets | 12,662,136 | 12,662,136 | ||||||||||||||||
Total current assets | 68,713,916 | 20,000 | - | 68,733,916 | ||||||||||||||
Property and equipment, net | 1,769,970 | 1,769,970 | ||||||||||||||||
Trademarks, net | 4,401,950 | 4,401,950 | ||||||||||||||||
Related party receivable | 1,943,594 | 1,943,594 | ||||||||||||||||
Total assets | $ | 76,829,430 | $ | 20,000 | $ | - | $ | 76,849,430 | ||||||||||
Liabilities and Shareholders’/Members’ Deficit | ||||||||||||||||||
Current liabilities | ||||||||||||||||||
Accounts payable | $ | 7,308,756 | $ | 2,000 | $ | 7,310,756 | ||||||||||||
Accrued liabilities | 70,377,587 | 70,377,587 | ||||||||||||||||
Notes payable to shareholders | 64,964,680 | 52,332 | 65,017,012 | |||||||||||||||
Factoring payable | 1,960,540 | 1,960,540 | ||||||||||||||||
Total current liabilities | 144,611,563 | 54,332 | - | 144,665,895 | ||||||||||||||
Notes payable to shareholders, non-current | 35,557,742 | 35,557,742 | ||||||||||||||||
Other liabilities | 1,869,591 | 1,869,591 | ||||||||||||||||
Total liabilities | 182,038,896 | 54,332 | - | 182,093,228 | ||||||||||||||
Commitments and Contingencies (Note 8) | ||||||||||||||||||
Shareholders’/members’ equity (deficit) | ||||||||||||||||||
Common stock; no par value | 30,470 | (30,470 | ) | - | (1)(2) | |||||||||||||
Common stock; $0.0001 par value | 2,100 | (2,100 | ) | - | (1)(2) | |||||||||||||
Common stock; $0.001 par value | 316,000 | 316,000 | (1)(2) | |||||||||||||||
Additional paid-in capital | 73,610,704 | 19,900 | 3,837,944 | 77,468,548 | (1)(2) | |||||||||||||
Members’ equity | 4,121,374 | (4,121,374 | ) | - | (1)(2) | |||||||||||||
Accumulated deficit | (173,687,638 | ) | (56,332 | ) | (173,743,970 | ) | ||||||||||||
Accumulated other comprehensive loss | (9,284,376 | ) | (9,284,376 | ) | ||||||||||||||
Total shareholders’/members’ deficit | (105,209,466 | ) | (34,332 | ) | - | (105,243,798 | ) | |||||||||||
Total liabilities and shareholders’/members’ deficit | $ | 76,829,430 | $ | 20,000 | $ | - | $ | 76,849,430 |
1) | On February 13, 2018, a Share Exchange Agreement was executed between Atlantic Acquisition, Inc. and Monster Inc. and Monster, LLC under which upon closing of the share exchange transaction, Atlantic Acquisition, Inc. (“AA”) acquired all the equity interest in Monster, Inc. and Monster, LLC and issued 300,000,000 shares of AA’s common stock to the shareholders and members, as applicable, of Monster, Inc. and Monster, LLC. |
2) | Effective on April 12, 2018 (the “Closing Date”), pursuant to the Share Exchange Agreement, Monster, Inc. and Monster, LLC became two wholly-owned subsidiaries of AA. The acquisition of Monster, Inc. and Monster, LLC is treated as a reverse acquisition, and the business of Monster, Inc. and Monster, LLC became the business of AA. Upon Closing, the Company had 316,000,000 shares of common stock outstanding. |
Monster Products, Inc.
Pro-Forma Consolidated Income Statement
For 12 Months Ended December 31, 2017
Atlantic | ||||||||||||||||
Monster | Acquisition | Pro-Forma | ||||||||||||||
Consolidated | Inc. | Adjustments | Consolidated | |||||||||||||
Net sales | $ | 57,486,610 | $ | 57,486,610 | ||||||||||||
Cost of sales | 35,761,909 | 35,761,909 | ||||||||||||||
Gross profit | 21,724,701 | - | - | 21,724,701 | ||||||||||||
Selling, general and administrative expenses | 44,197,523 | 40,985 | 44,238,508 | |||||||||||||
Loss from operations | (22,472,822 | ) | (40,985 | ) | - | (22,513,807 | ) | |||||||||
Other income (expenses) | ||||||||||||||||
Interest expense | (4,208,652 | ) | (4,208,652 | ) | ||||||||||||
Gain from foreign currency transactions | 1,053,481 | 1,053,481 | ||||||||||||||
Other, net | (1,022,569 | ) | (1,022,569 | ) | ||||||||||||
Loss before income taxes | (26,650,562 | ) | (40,985 | ) | - | (26,691,547 | ) | |||||||||
Provision for income taxes | 92,582 | 92,582 | ||||||||||||||
Net loss | (26,743,144 | ) | (40,985 | ) | - | (26,784,129 | ) | |||||||||
Basic and diluted net loss per common share | $ | (0.09 | ) | $ | (0.00 | ) | $ | - | $ | (0.08 | ) | |||||
Basic and diluted weighted average common shares outstanding | 305,786,690 | 20,276,712 | 0 | 326,063,402 |