Exhibit 99.2
Consolidated Pro Forma Financial Information.
(UNAUDITED)
On November 21, 2014 Indigo-Energy, Inc. (“Indigo”) acquired 100% of the 48,500,000 outstanding shares of HDIMAX, Inc. common stock by issuing 712,121,205 shares of common stock. The issuance of the shares of common stock resulted in a change of control in which the previous shareholder of HDIMAX, Inc. obtained approximately 94% of the consolidated Company immediately following the transaction. As a result of the change in control and that HDIMAX, Inc. did not issue any consideration, the business combination is being accounted for as a reverse acquisition.
In accounting for the reverse acquisition, HDIMAX is deemed to be the accounting acquirer. Accordingly,the acquisition-date fair value of the consideration transferred by HDIMAX for its interest in Indigo is based on the number of shares of common stock HDIMAX would issue to give the Indigo shareholders the same 6% interest in the combined entity following the reverse acquisition.
For purposes of this pro forma, the estimated number of shares of HDIMAX that would have to be given to the shareholders of Indigo is approximately 3,100,000. Further, in estimating the fair value of the consideration used in this pro forma, the quoted market price of Indigo on the date of the transaction was deemed the most reliably measurable.
As of the date of this report, and for purposes of preparing the accompanying pro forma balance sheet and statement of operations, the initial accounting for the reverse acquisition is incomplete and based on facts and circumstances currently known and subject to change during the measurement period not to exceed one year in accordance with accounting principles generally accepted in the United States (“US GAAP”).
The following balance sheet and statement of operations as of and for the period ended November 21, 2014 give effect to the reverse acquisition had it occurred on January 1, 2014 and is based on information obtained as of the date of this report:
Pro Forma Consolidated Balance Sheet
(Unaudited)
| | Indigo-Energy, Inc, November 21, 2014 | | | HDIMAX, Inc. November 21, 2014 | | | Pro-Forma Recapitalization Adjustments | | | Pro-Forma Consolidated November 21, 2014 | |
| | (Accounting Acquiree) | | | (Accounting Acquirer) | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | |
Cash | | $ | 96 | | | $ | 1,220 | | | | | | | $ | 1,316 | |
Short term notes receivable | | | 454,452 | | | | – | | | | (454,452 | ) | (1) | | – | |
| | | | | | | | | | | | | | | | |
Total current assets | | | 454,548 | | | | 1,220 | | | | | | | | 1,316 | |
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Intangible assets | | | – | | | | 488 | | | | 18,181,818 | | (2) | | 18,182,306 | |
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Total assets | | $ | 454,548 | | | $ | 1,708 | | | | | | | $ | 18,183,622 | |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | | | | | | | | | | | | | | |
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Current Liabilities | | | | | | | | | | | | | | | | |
Accounts payable | | $ | 132,496 | | | $ | 136,129 | | | | | | | $ | 268,625 | |
Related party accounts payable | | | 250,087 | | | | – | | | | | | | | 250,087 | |
Accrued expenses | | | 147,063 | | | | 229,000 | | | | | | | | 376,063 | |
Related party accrued interest | | | – | | | | 4,452 | | | | (4,452 | ) | (1) | | – | |
Related party notes payable | | | – | | | | 475,000 | | | | (450,000 | ) | (1) | | 25,000 | |
| | | | | | | | | | | | | | | | |
Total current liabilities | | | 529,646 | | | | 844,581 | | | | | | | | 919,775 | |
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Commitments and Contingencies | | | | | | | | | | | | | | | | |
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Stockholders' Equity (Deficit) | | | | | | | | | | | | | | | | |
Preferred stock, $.001 par value, 100,000,000 shares authorized and no shares issued and outstanding | | $ | – | | | $ | – | | | | | | | $ | – | |
Common stock, $.001 par value, 2,000,000,000 shares authorized and 757,575,750 shares issued and outstanding immediately following the reverse acquisition on November 21, 2014 | | | 45,546 | | | | 48 | | | | 711,982 | | (3) | | 757,576 | |
Additional paid in capital | | | 99,764,609 | | | | 440 | | | | (79,592,180 | ) | (4) | | 20,172,869 | |
Accumulated deficit | | | (99,885,253 | ) | | | (843,361 | ) | | | 97,062,016 | | (4) | | (3,666,598 | ) |
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Total stockholders' equity (deficit) | | | (75,098 | ) | | | (842,873 | ) | | | | | | | 17,263,847 | |
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Total liabilities and stockholders' equity (deficit) | | $ | 454,548 | | | $ | 1,708 | | | | | | | $ | 18,183,622 | |
(1) The note, and corresponding accrued interest, was due to Indigo-Energy, Inc. on a pre-merger basis from HDIMAX, Inc. and is eliminated upon consolidation.
(2) In accordance with accounting principles generally accepted in the United States applicable to reverse acquisitions, the amount allocated to the intangible assets held by HDIMAX, Inc. prior to, and immediately following, the reverse acquisition is based on the estimated fair value of the consideration effectively transferred by HDIMAX, Inc. to consummate the transaction. The estimated fair value of the effectively transferred consideration is based on the quoted market price of Indigo-Energy common stock, deemed to be the most reliably measurable.
(3) Indigo-Energy, Inc. issued 712,121,205 shares of common stock in exchange for 100% of the previously outstanding stock of HDIMAX, Inc.
(4) Reflects the elimination of the pre-reverse acquisition accumulated deficit of Indigo-Energy, Inc., the legal acquirer and accounting acquiree. For purposes of this pro-forma, $2,823,237 of the accumulated deficit to be eliminated is included and represents the operational results of Indigo-Energy, Inc. for the period from January 1, 2014 through November 21, 2014. This elimination is net of the fair value of the shares issued to effectuate the reverse acquisition.
Pro-Forma Consolidated Statement of Operations
(Unaudited)
| | Consolidated | |
| | For the Period from | |
| | January 1, 2014 | |
| | to November 21, | |
| | 2014 | |
| | | | |
Revenue | | | | |
| | | | |
Net revenue | | $ | 439 | |
| | | | |
Expenses | | | | |
General and administrative | | | 544,779 | |
Sales and marketing | | | 255,361 | |
Professional fees | | | 2,236,003 | |
| | | | |
Total operating expenses | | | 3,036,143 | |
| | | | |
Gain (loss) from operations | | | (3,035,704 | ) |
| | | | |
Other income (expense) | | | | |
| | | | |
Gain on settlement of operating obligations | | | 258,112 | |
Interest expense | | | (889,006 | ) |
| | | | |
Total other expenses | | | (630,894 | ) |
| | | | |
Net loss | | $ | (3,666,598 | ) |
| | | | |
Net loss per share - basic and diluted | | $ | (0.00 | ) |