EXHIBIT 99.1
WINDGEN ENERGY, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
On June 24, 2010, WindGen Energy, Inc. entered into an agreement with MicroCor, Inc., Chi Lin Technology Co., Inc. and Wescor, Inc., whereby WindGen will transfer 230,000 shares of MicroCor common stock owned by WindGen to Wescor, reducing WindGen’s holdings in MicroCor from 1,700,000 common shares to 1,470,000 common shares. WindGen’s percentage of ownership of MicroCor will be reduced from approximately 57% to 49%. Since WindGen’s ownership percentage will be below 50%, MicroCor’s financial statements will no longer be consolidated with WindGen’s financial statements. The following unaudited pro forma condensed combined financial statements are based on the December 31, 2009 historical financial statements of WindGen Energy, Inc. and MicroCor, Inc. and the March 31, 2010 historical unaudited financial statements of WindGen Energy , Inc. and MicroCor, Inc. contained elsewhere herein, giving effect to the transaction as a deconsolidation of a subsidiary.
The unaudited pro forma condensed combined balance sheet at December 31, 2009 presents the balance sheet of WindGen, assuming the deconsolidation was completed on December 31, 2009.
The unaudited pro forma condensed combined balance sheet at March 31, 2010 presents the balance sheet of WindGen, assuming the deconsolidation was completed on March 31, 2010.
The unaudited pro forma condensed combined statement of operations for the year ended December 31, 2009 presents the results of operations of WindGen, assuming the deconsolidation was completed on January 1, 2009.
The unaudited pro forma condensed combined statement of operations for the three months ended March 31, 2010 presents the results of operations of WindGen, assuming the acquisition was completed on January 1, 2010.
The unaudited pro forma condensed combined financial statements have been prepared by management of WindGen Energy, Inc. and MicroCor, Inc. based on the financial statements included elsewhere herein. The pro forma adjustments include certain assumptions and preliminary estimates as discussed in the accompanying notes and are subject to change. These pro forma statements may not be indicative of the results that actually would have occurred if the deconsolidation had been in effect on the dates indicated or which may be obtained in the future. These pro forma financial statements should be read in conjunction with the accompanying notes and the historical financial information of WindGen Energy, Inc. including the notes thereto, (see 10-K filed April 15, 2010 and 10-Q filed May 24, 2010).
F-1
WINDGEN ENERGY, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
AT DECEMBER 31, 2009
Consolidated | Pro Forma | Pro Forma | |||||||||||||
Balance Sheet | Adjustments | Balance | |||||||||||||
ASSETS | |||||||||||||||
Current Assets | |||||||||||||||
Cash & Cash Equivalents | $ | 14,323 | (205 | ) | A | $ | 14,118 | ||||||||
Receivable from MicroCor | – | 10,866 | A | 10,866 | |||||||||||
Prepaid Expenses & Other | 200 | – | 200 | ||||||||||||
Total Current Assets | 14,523 | 10,661 | 25,184 | ||||||||||||
Equipment & Furniture, at Cost, Net of Depreciation | – | – | – | ||||||||||||
TOTAL ASSETS | $ | 14,523 | 10,661 | $ | 25,184 | ||||||||||
LIABILITIES & STOCKHOLDER’S EQUITY | |||||||||||||||
Current Liabilities | |||||||||||||||
Related Party Consulting Fees Payable | $ | 60,000 | – | $ | 60,000 | ||||||||||
Accounts Payable | 36,166 | (5,381 | ) | A | 30,785 | ||||||||||
Accrued Interest | 45,112 | (45,112 | ) | A | – | ||||||||||
Related Party Royalty Payable | 153,333 | (153,333 | ) | A | – | ||||||||||
Related Party Note Payable | 179,842 | (159,000 | ) | A | 20,842 | ||||||||||
Related Party Payables | 38,445 | – | 38,445 | ||||||||||||
Note Payable | 22,799 | – | 22,799 | ||||||||||||
Preferred Stock Dividends Payable | 64,309 | – | 64,309 | ||||||||||||
Current Portion of Long-Term Debt | 232,633 | (232,633 | ) | A | – | ||||||||||
Total Current Liabilities | 832,639 | (595,459 | ) | 237,180 | |||||||||||
TOTAL LIABILITIES | 832,639 | (595,459 | ) | 237,180 | |||||||||||
WindGen Stockholders’ Equity (Deficit) | |||||||||||||||
Preferred Stock, 10,000,000 shares authorized; Series A cumulative convertible preferred stock, 8% cumulative, $4.50 par value, 1,000,000 shares designated, 21,016 shares outstanding (aggregate liquidation preference of $151,316) | 94,573 | – | 94,573 | ||||||||||||
Common Stock, $.001 par value: 100,000,000 shares authorized, 33,629,493 and 18,629,493.share outstanding | 33,629 | – | 33,629 | ||||||||||||
Additional Paid-in Capital | 8,668,749 | – | 8,668,749 | ||||||||||||
Stock Subscription Receivable | (17,500 | ) | – | (17,500 | ) | ||||||||||
Accumulated Deficit | (9,334,935 | ) | 343,488 | A | (8,991,447 | ) | |||||||||
Total WindGen Stockholders’ Equity (Deficit) | (555,484 | ) | 343,488 | (211,996 | ) | ||||||||||
Noncontrolling Interest | (262,632 | ) | 262,632 | A | – | ||||||||||
Total Equity (Deficit) | (818,116 | ) | 606,120 | (211,996 | ) | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 14,523 | 10,661 | $ | 25,184 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
F-2
WINDGEN ENERGY, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2009
Consolidated | Pro Forma | Pro Forma | |||||||||||||
Statement of Operations | Adjustments | Balance | |||||||||||||
ROYALTY REVENUES | $ | – | – | $ | – | ||||||||||
OPERATING EXPENSES | |||||||||||||||
General & Administrative | 83,698 | (57,616 | ) | B | 26,082 | ||||||||||
Legal and Professional Fees | 71,838 | – | 71,838 | ||||||||||||
Related Party Consulting Fees | 72,806 | – | 72,806 | ||||||||||||
Related Party General & Administrative | 4,736 | – | 4,736 | ||||||||||||
Total Operating Expense | 233,078 | (57,616 | ) | 175,462 | |||||||||||
LOSS FROM OPERATIONS | (233,078 | ) | 57,616 | (175,462 | ) | ||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest Income | – | – | – | ||||||||||||
Interest Expense | (22,747 | ) | 19,761 | B | (2,986 | ) | |||||||||
Gain on deconsolidation of MicroCor | – | 380,866 | B | 380,866 | |||||||||||
Other Income | – | – | – | ||||||||||||
Total Other Income (Expenses), Net | (22,747 | ) | 400,627 | 377,880 | |||||||||||
NET INCOME (LOSS) | (255,825 | ) | 458,243 | 202,418 | |||||||||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | (28,579 | ) | 28,579 | B | – | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO WINDGEN ENERGY, INC. | (284,404 | ) | 486,822 | 202,418 | |||||||||||
PREFERRED STOCK DIVIDENDS | (7,566 | ) | – | (7,556 | ) | ||||||||||
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS | $ | (291,970 | ) | 486,822 | $ | 194,862 | |||||||||
NET INCOME (LOSS) PER COMMON SHARE (BASIC & DILUTED) | $ | (0.01 | ) | $ | 0.01 | ||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||||||||||||||
BASIC | 22,856,265 | 22,856,265 | |||||||||||||
DILUTED | 22,887,789 | 22,887,789 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
F-3
WINDGEN ENERGY, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
AT MARCH 31, 2010
Consolidated | Pro Forma | Pro Forma | |||||||||||||
Balance Sheet | Adjustments | Balance | |||||||||||||
ASSETS | |||||||||||||||
Current Assets | |||||||||||||||
Cash & Cash Equivalents | $ | 35,949 | (181 | ) | A | $ | 35,768 | ||||||||
Receivable from MicroCor | – | 14,921 | A | 14,921 | |||||||||||
Prepaid Expenses & Other | 200 | – | 200 | ||||||||||||
Total Current Assets | 36,149 | 14,740 | 50,889 | ||||||||||||
Equipment & Furniture, at Cost, | 255,221 | (248,666 | ) | A | 6,555 | ||||||||||
Less Accumulated Depreciation | (255,221 | ) | 248,666 | A | (6,555 | ) | |||||||||
Total Equipment & Furniture | – | – | – | ||||||||||||
TOTAL ASSETS | $ | 36,149 | 14,740 | $ | 50,889 | ||||||||||
LIABILITIES & STOCKHOLDER’S EQUITY | |||||||||||||||
Current Liabilities | |||||||||||||||
Related Party Consulting Fees Payable | $ | 90,000 | – | $ | 90,000 | ||||||||||
Accounts Payable | 28,057 | (6,744 | ) | A | 21,313 | ||||||||||
Accrued Interest | 47,765 | (47,765 | ) | A | – | ||||||||||
Related Party Royalty Payable | 163,333 | (163,333 | ) | A | – | ||||||||||
Related Party Note Payable | 171,342 | (161,220 | ) | A | 10,122 | ||||||||||
Related Party Payables | 10,000 | – | 10,000 | ||||||||||||
Note Payable | 10,860 | – | 10,860 | ||||||||||||
Preferred Stock Dividends Payable | 66,200 | – | 66,200 | ||||||||||||
Current Portion of Long-Term Debt | 232,633 | (232,633 | ) | A | – | ||||||||||
Total Current Liabilities | 820,190 | (611,695 | ) | 208,495 | |||||||||||
TOTAL LIABILITIES | 820,190 | (611,695 | ) | 208,495 | |||||||||||
WindGen Stockholders’ Equity (Deficit) | |||||||||||||||
Preferred Stock, 10,000,000 shares authorized; Series A cumulative convertible preferred stock, 8% cumulative, $4.50 par value, 1,000,000 shares designated, 21,016 shares outstanding (aggregate liquidation preference of $151,316) | 94,573 | – | 94,573 | ||||||||||||
Common Stock, $.001 par value: 100,000,000 shares authorized, 33,629,493 and 18,629,493.share outstanding | 35,496 | – | 35,496 | ||||||||||||
Additional Paid-in Capital | 8,806,882 | – | 8,806,882 | ||||||||||||
Stock Subscription Receivable | (17,500 | ) | – | (17,500 | ) | ||||||||||
Accumulated Deficit | (9,432,058 | ) | 355,001 | A | (9,077,057 | ) | |||||||||
Total WindGen Stockholders’ Equity (Deficit) | (512,607 | ) | 355,001 | (157,606 | ) | ||||||||||
Noncontrolling Interest | (271,434 | ) | 271,434 | A | – | ||||||||||
Total Equity (Deficit) | (784,041 | ) | 626,435 | (157,606 | ) | ||||||||||
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY | $ | 36,149 | 14,740 | $ | 50,889 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
F-4
WINDGEN ENERGY, INC.
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010
Consolidated | Pro Forma | Pro Forma | |||||||||||||
Statement of Operations | Adjustments | Balance | |||||||||||||
ROYALTY REVENUES | $ | – | – | $ | – | ||||||||||
OPERATING EXPENSES | |||||||||||||||
General & Administrative | 40,440 | (15,441 | ) | B | 24,999 | ||||||||||
Legal and Professional Fees | 24,409 | – | 24,409 | ||||||||||||
Related Party Consulting Fees | 33,975 | – | 33,975 | ||||||||||||
Total Operating Expense | 98,824 | (15,441 | ) | 83,383 | |||||||||||
LOSS FROM OPERATIONS | (98,824 | ) | 15,441 | (83,383 | ) | ||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||
Interest Income | – | – | – | ||||||||||||
Interest Expense | (5,210 | ) | 4,874 | B | (336 | ) | |||||||||
Gain on deconsolidation of MicroCor | – | 343,488 | B | 343,488 | |||||||||||
Other Income | – | – | – | ||||||||||||
Total Other Income (Expenses), Net | (5,210 | ) | 348,362 | 343,152 | |||||||||||
NET INCOME (LOSS) | (104,034 | ) | 363,803 | 259,769 | |||||||||||
NET (INCOME) LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | 8,802 | (8,802 | ) | B | – | ||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO WINDGEN ENERGY, INC. | (95,232 | ) | 355,001 | 259,769 | |||||||||||
PREFERRED STOCK DIVIDENDS | (1,891 | ) | – | (1,891 | ) | ||||||||||
NET INCOME (LOSS) APPLICABLE TO COMMON STOCKHOLDERS | $ | (97,123 | ) | 354,981 | $ | 257,878 | |||||||||
NET INCOME (LOSS) PER COMMON SHARE (BASIC & DILUTED) | $ | 0.00 | $ | 0.01 | |||||||||||
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING | |||||||||||||||
BASIC | 34,921,344 | 34,921,344 | |||||||||||||
DILUTED | 34,952,868 | 34,952,868 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
F-5
WINDGEN ENERGY, INC.
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
(1) General
In the deconsolidation involving WindGen Energy, Inc. and MicroCor, Inc., MicroCor, Inc. was deconsolidated from WindGen Energy, Inc. Under the agreement, WindGen transferred 230,.000 shares of MicroCor owned by WindGen to Wescor, resulting in WindGen’s ownership percentage of MicroCor going from 57% before the stock transfer to 49% after the stock transfer. The reduction in the ownership percentage resulted in MicroCor no longer being consolidated with WindGen for financial statement reporting purposes.
(2) Fiscal Year Ends
The unaudited pro forma condensed combined balance sheets at December 31, 2009 and March 31, 2010, and statements of operations for the year ended December 31, 2009 and the three months ended March 31, 2010, include WindGen Energy, Inc. and MicroCor, Inc.’s operations on a common fiscal year.
(3) Pro Forma Adjustments
The adjustments to the accompanying unaudited pro forma condensed combined balance sheets are described below:
(A) To record pro forma adjustments to the balance sheet to adjust assets, liabilities and equity for amounts attributable to MicroCor, and the deconsolidation of MicroCor. The remaining assets, liabilities and equity are attributable solely to WindGen Energy, Inc.
(B) To record pro forma adjustments to the statements of operations to adjust expenses for amounts attributable to MicroCor, and the deconsolidation of MicroCor. The remaining expenses items are attributable solely to WindGen Energy, Inc.
F-6