Exhibit 99.1
NATURALNANO, INC.
(A Development Stage Company)
PRO FORMA BALANCE SHEET
September 30, 2005 PRO FORMA
(UNAUDITED)
PRO FORMA | PRO FORMA | ||||||||||||||||||||||||
NaturalNano, Inc. | Cementitious Materials, Inc. | Adjustments | Acquisition September 30, 2005 | Other Capital Adjustments | September 30, 2005 | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Current assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 2,698,330 | $ | 2,698,330 | $ | 2,698,330 | |||||||||||||||||||
Prepaid assets | 250,000 | 250,000 | 250,000 | ||||||||||||||||||||||
Other current assets | 24,038 | 24,038 | 24,038 | ||||||||||||||||||||||
Total current assets | 2,972,368 | 2,972,368 | 2,972,368 | ||||||||||||||||||||||
Property and equipment, net | 29,346 | 29,346 | 29,346 | ||||||||||||||||||||||
Investments | 300,000 | 300,000 | 300,000 | ||||||||||||||||||||||
Total assets | $ | 3,301,714 | $ | 0 | $ | 3,301,714 | $ | 3,301,714 | |||||||||||||||||
Liabilities and Stockholder's Equity (Accumulated Deficit) | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||
Current liabilities: | |||||||||||||||||||||||||
Accounts Payable | $ | 119,338 | $ | 12,018 | $ | 131,356 | 131,356 | ||||||||||||||||||
Accrued Payroll | 112,604 | 112,604 | 112,604 | ||||||||||||||||||||||
Accrued Expenses | 175,093 | 175,093 | 175,093 | ||||||||||||||||||||||
Due to Related Parties | 81,556 | 81,556 | 81,556 | ||||||||||||||||||||||
Convertible Bridge Notes | 4,156,000 | 4,156,000 | (4,156,000 | ) | (2 | ) | 0 | ||||||||||||||||||
Total current liabilities | 4,563,035 | 93,574 | 0 | 4,656,609 | (4,156,000 | ) | 500,609 | ||||||||||||||||||
Other Liability | 35,000 | 35,000 | 35,000 | ||||||||||||||||||||||
Total Liabilities | 4,598,035 | 93,574 | 0 | 4,691,609 | (4,156,000 | ) | 535,609 | ||||||||||||||||||
Stockholder's Equity (Accumulated Deficit) | |||||||||||||||||||||||||
Common stock | 100,000 | 4,991 | (100,000 | ) | (1 | ) | |||||||||||||||||||
44,919 | (1 | ) | 49,910 | 10,470 | (2 | ) | 60,380 | ||||||||||||||||||
Additional paid in capital | 383,083 | 362,474 | 100,000 | (1 | ) | ||||||||||||||||||||
(44,919 | ) | (1 | ) | ||||||||||||||||||||||
(461,039 | ) | (3 | ) | 339,599 | 4,145,530 | (2 | ) | 4,485,129 | |||||||||||||||||
Deficit accumulated in the development stage | (1,779,404 | ) | (461,039 | ) | 461,039 | (3 | ) | (1,779,404 | ) | (1,779,404 | ) | ||||||||||||||
Total stockholder's equity (accumulated deficit) | (1,296,321 | ) | (93,574 | ) | 0 | (1,389,895 | ) | 4,156,000 | 2,766,105 | ||||||||||||||||
Total liabilities and stockholder's equity (deficiency) | $ | 3,301,714 | $ | 0 | $ | 0 | $ | 3,301,714 | $ | 0 | $ | 3,301,714 |
See notes to financial statements
NaturalNano, Inc.
(A Development Stage Company)
PRO FORMA STATEMENT OF OPERATIONS
For the nine months ending September 30, 2005
(UNAUDITED)
PRO FORMA | PRO FORMA | |||||||||||||||||||||
NaturalNano, Inc. | Cementitious Materials, Inc. | Adjustments | Acquisition September 30, 2005 | Other Capital Adjustments | September 30, 2005 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development (see note "a") | $ | 293,492 | $ | 293,492 | $ | 293,492 | ||||||||||||||||
General and administrative (see note "b") | 1,597,065 | $ | 25,745 | 1,622,810 | 1,622,810 | |||||||||||||||||
1,890,557 | 25,745 | 1,916,302 | 1,916,302 | |||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||
Interest expense | 1,511 | 3,982 | 5,493 | 5,493 | ||||||||||||||||||
Investment (income) | (120,000 | ) | (120,000 | ) | (120,000 | ) | ||||||||||||||||
(118,489 | ) | 3,982 | (114,507 | ) | (114,507 | ) | ||||||||||||||||
Net loss | ($1,772,068 | ) | ($29,727 | ) | ($1,801,795 | ) | ($1,801,795 | ) | ||||||||||||||
Loss per common share - basic and diluted | ($0.18 | ) | ($0.01 | ) | ($0.04 | ) | ($0.03 | ) | ||||||||||||||
Weighted average shares outstanding | 10,000,000 | 4,991,042 | 44,919,378 | 55,388,978 | (1)(2 | ) |
(a) Research and development expenses include stock based compensation of $17,500.
(b) General and administrative expense includes stock based compensation of $140,583.
See notes to financial statements
NaturalNano, Inc.
(A Development Stage Company)
PRO FORMA STATEMENT OF OPERATIONS
For the twelve months ending December 31, 2004
(UNAUDITED)
PRO FORMA | PRO FORMA | |||||||||||||||||||||
NaturalNano, Inc. (a) | Cementitious Materials, Inc. | Adjustments | Acquisition December 31, 2004 | Other Capital Adjustments | December 31, 2004 | |||||||||||||||||
Operating expenses: | ||||||||||||||||||||||
Research and development | $ | 5,000 | $ | 5,000 | $ | 5,000 | ||||||||||||||||
General and administrative | 2,336 | $ | 13,967 | 16,303 | 16,303 | |||||||||||||||||
7,336 | 13,967 | 21,303 | 21,303 | |||||||||||||||||||
Other (income) expense: | ||||||||||||||||||||||
Interest expense | 2,312 | 2,312 | 2,312 | |||||||||||||||||||
0 | 2,312 | 2,312 | 2,312 | |||||||||||||||||||
Net loss | ($7,336 | ) | ($16,279 | ) | ($23,615 | ) | ($23,615 | ) | ||||||||||||||
Loss per common share - basic and diluted | ($0.00 | ) | ($0.00 | ) | ($0.00 | ) | ($0.00 | ) | ||||||||||||||
Weighted average shares outstanding | 10,000,000 | 4,991,042 | 44,919,378 | 55,388,978 | (1)(2 | ) |
(a) Includes the period from December 22, 2004 (inception) to December 31, 2004.
See notes to financial statements
NOTES TO UNAUDITED PRO FORMA CONDENSED
FINANCIAL STATEMENTS
Basis of presentation
As of November 29, 2005, NaturalNano,Inc.,(“NaturalNano”) Cementitious Materials, Inc. (“Cementitious”) and a wholly-owned subsidiary of Cementitious (the “Merger sub”) completed the previously announced merger whereby the Merger Sub merged with and into NaturalNano with NaturalNano becoming the surviving entity from the transaction, as a wholly owned subsidiary of Cementitious (the “Merger”). The transaction has been deemed a capital transaction accompanied by a recapitalization. Therefore, no goodwill will be recorded in the Merger.
The unaudited pro forma condensed balance sheet and statement of operations of NaturalNano have been prepared to give effect to
· | the merger of Cementitious with NaturalNano ; |
· | the conversion of all indebtedness of NaturalNano outstanding at September 30, 2005 in exchange for 10,469,600 shares of Cementitious common stock. |
The condensed pro forma financial statements have been prepared as if such transactions had taken place on September 30, 2005 for purposes of the pro forma condensed balance sheet and as if the transactions had taken place on January 1, 2004 for purposes of the pro forma condensed statements of operations.
The columns captioned NaturalNano represent the balance sheet of NaturalNano as of September 30, 2005 and the related statements of operations for the periods from December 22, 2004 (inception) through December 31, 2004 and for the nine months ended September 30, 2005. The columns captioned Cementitious represent the balance sheet of Cementitious as of September 30, 2005 and the related statements of operations for the year ended December 31, 2004 and for the nine months ended September 30, 2005.
We are providing this information to aid you in your analysis of the financial aspects of the Merger. The unaudited pro forma condensed financial statements described above should be read in conjunction with the historical financial statements of NaturalNano and Cementitious and the related notes thereto. The unaudited pro forma information is not necessarily indicative of the financial position or results of operations that may have actually occurred had the Merger taken place on the dates noted, or the future financial position or operating results of the combined company.
PRO FORMA ENTRIES:
(1) To reflect the issuance of 44,919,378 shares of Cementitious common stock as merger consideration with respect to all outstanding shares of common stock of NaturalNano.
(2) To reflect the issuance of 10,469,600 shares of Cementitious common stock relating to the November 29, 2005 outstanding convertible notes of NaturalNano.
(3) To reflect the recapitalization adjustment for the Merger.