EXHIBIT 99.3
American Cannabis Company, Inc. | ||||||||||||||||||||
F/K/A Brazil Interactive Media, Inc. | ||||||||||||||||||||
Unaudited Pro Forma Condensed Combined Balance Sheets | ||||||||||||||||||||
AS OF JUNE 30, 2014 | ||||||||||||||||||||
Brazil Interactive Media, Inc. | Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting | Pro Forma Adjustment | Pro Forma Combined Total | |||||||||||||||||
ASSETS | ||||||||||||||||||||
CURRENT ASSETS | ||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 302,187 | $ | — | $ | 302,187 | ||||||||||||
Prepaid expenses and other current assets | — | 45,047 | — | 45,047 | ||||||||||||||||
Due from related party | 215,642 | (215,642 | ) | B | — | |||||||||||||||
Accounts receivable, net | — | — | — | — | ||||||||||||||||
Total current assets | 215,642 | 347,234 | (215,642 | ) | 347,234 | |||||||||||||||
PROPERTY AND EQUIPMENT, net | — | 2,728 | — | 2,728 | ||||||||||||||||
Total assets | $ | 215,642 | $ | 349,962 | $ | (215,642 | ) | $ | 349,962 | |||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||||||
Deferred revenue | $ | — | $ | 116,642 | $ | — | $ | 116,642 | ||||||||||||
Due to directors | — | 3,006 | — | 3,006 | ||||||||||||||||
Accrued expenses | — | 51,215 | — | 51,215 | ||||||||||||||||
Accrued payroll liabilities | — | 2,834 | — | 2,834 | ||||||||||||||||
Convertible note payable, net of discount | 36,204 | — | — | 36,204 | ||||||||||||||||
Accounts payable | 58,467 | 46,579 | — | 105,046 | ||||||||||||||||
Total current liabilities | 94,671 | 220,276 | — | 314,947 | ||||||||||||||||
DUE TO RELATED PARTIES | — | 215,642 | (215,642 | ) | B | — | ||||||||||||||
Total liabilities | 94,671 | 435,918 | (215,642 | ) | 314,947 | |||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Preferred stock, $0.01 par value, 5,000,000 shares authorized; - 0- shares issued and outstanding | — | — | — | — | ||||||||||||||||
Common stock, $0.00001 par value, 100,000,000 shares authorized; 40,425,000 shares issued and outstanding | 404 | 10 | (10 | ) | A | 404 | ||||||||||||||
Additional paid in capital | 7,414,647 | 990 | 10 | A | 7,415,647 | |||||||||||||||
Retained earnings (loss) | (7,294,080 | ) | (86,956 | ) | (7,381,036 | ) | ||||||||||||||
Total shareholders’ equity | 120,971 | (85,956 | ) | — | 35,015 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 215,642 | $ | 349,962 | $ | (215,642 | ) | $ | 349,962 |
F-1 |
(A) | On May 15, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), between the Company, Cannamerica, Inc., Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”), and Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting, Inc., a Colorado corporation (“ACC”). Pursuant to the Merger Agreement, Merger Sub will be merged with and into ACC through a reverse triangular merger transaction upon the terms and subject to the conditions of the Merger Agreement, and in accordance with the General Corporation Law of the State of Delaware. Pursuant to the transactions contemplated by the Merger Agreement, (i) each share of common stock of ACC will be exchanged for shares of the Company based on a ratio of 3,171.0628 to one, (ii) ACC shall continue as the surviving corporation after the transactions contemplated by the Merger Agreement, (iii) each share of common stock of Merger Sub will be converted into and exchanged for one share of common stock of ACC and (iv) the Company shall change its name to “American Cannabis Company, Inc.” ACC was incorporated as Hollister & Blacksmith, Inc. on March 5, 2013 under the laws of the State of Colorado, and is based out of Denver, Colorado. On May 16, 2014, the Company entered into a Separation and Exchange Agreement (the “Separation Agreement”), by and among the Company, BIMI, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, and Brazil Investment Holding, LLC (“Holdings”), a Delaware limited liability company and the majority stockholder of the Company. Pursuant to the Separation Agreement, the Company agreed to distribute all shares of common stock of BIMI, Inc. held by the Company in exchange for all of the common stock held by Holdings, thereby resulting in a complete separation of BIMI, Inc. (the “Separation”). The Company and BIMI, Inc. each shall retain all assets and liabilities in its respective name, and shall take any and all actions necessary so that (i) the Company will own or be liable for all existing Company assets and liabilities and (ii) BIMI, Inc. will own or be liable for all existing BIMI, Inc. assets and liabilities, including all assets and liabilities of BIMI Inc.’s subsidiaries. The Separation Agreement further provides that all intercompany agreements by and between the Company, or any of its subsidiaries, and BIMI Inc., or any of its subsidiaries, are terminated except for confidentiality, non-disclosure or release of liability agreements. The foregoing descriptions of the Merger Agreement and Separation Agreement do not purport to be complete and are qualified in their entirety by the terms of the Merger Agreement, which is filed as an exhibit to the Form 8-K filed by the Company with the Securities and Exchange Commission on May 15, 2014 and the terms of the Separation Agreement, which is filed as an exhibit to the Form 8-K filed by the Company with the Securities and Exchange Commission on May 20, 2014. Further, additional information relevant to the transactions contemplated by the Merger Agreement and Separation Agreement can be found in the Company’s Preliminary Information Statement filed on Schedule 14C with the Securities and Exchange Commission on May 29, 20 14, as amended June 16, 2014 and July 29, 2014. |
(B) | Elimination of Due to/From account between BRAZIL INTERACTIVE MEDIA, INC and HOLLISTER & BLACKSMITH, INC. |
F-2 |
American Cannabis Company, Inc. | ||||||||||||||||
F/K/A Brazil Interactive Media, Inc. | ||||||||||||||||
UNAUDITED Pro Forma CONDENSED COMBINED Statement of Operations | ||||||||||||||||
For The Six Months Ended June 30, 2014 | ||||||||||||||||
Brazil Interactive Media, Inc. | Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting | Pro Forma Adjustment | Pro Forma Combined Total | |||||||||||||
REVENUES | ||||||||||||||||
Consulting and advisory | $ | — | $ | 127,404 | $ | — | $ | 127,404 | ||||||||
Equipment & supplies | — | 9,638 | — | 9,638 | ||||||||||||
Total revenues | $ | — | $ | 137,042 | $ | 137,042 | ||||||||||
COST OF REVENUES | ||||||||||||||||
Cost of consulting and advisory | — | 74,889 | — | 74,889 | ||||||||||||
Cost of equipment & supplies | — | 9,017 | — | 9,017 | ||||||||||||
Total cost of revenues | — | 83,906 | — | 83,906 | ||||||||||||
GROSS PROFIT | — | 53,136 | — | 53,136 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative expenses | 1,527,010 | 95,893 | — | 1,622,903 | ||||||||||||
Selling and marketing expenses | — | 47,517 | — | 47,517 | ||||||||||||
Total operating expenses | 1,527,010 | 143,410 | — | 1,670,420 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | (1,527,010 | ) | (90,274 | ) | — | (1,617,284 | ) | |||||||||
OTHER INCOME (EXPENSES) | ||||||||||||||||
Gain on debt forgiveness | 96,193 | — | 96,193 | |||||||||||||
Interest expense | (36,204 | ) | (261 | ) | — | (36,465 | ) | |||||||||
Total other income (expenses) | 59,989 | (261 | ) | — | 59,728 | |||||||||||
NET INCOME (LOSS) | $ | (1,467,021 | ) | $ | (90,535 | ) | $ | — | $ | (1,557,556 | ) | |||||
Basic and fully diluted net income per common share | N/A | N/A | $ | — | $ | (0.04 | ) | |||||||||
Weighted average common shares outstanding | N/A | N/A | — | 44,213,023 |
F-3 |
AMERICAN CANNABIS COMPANY, INC. | ||||||||||||||||
F/K/a Brazil Interactive Media, Inc. | ||||||||||||||||
UNAUDITED Pro Forma CONDENSED COMBINED Statement of Operations | ||||||||||||||||
For The Year Ended December 31, 2013 | ||||||||||||||||
Brazil Interactive Media, Inc. | Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting | Pro Forma Adjustment | Pro Forma Combined Total | |||||||||||||
REVENUES | ||||||||||||||||
Consulting and advisory | $ | — | $ | 70,273 | $ | — | $ | 70,273 | ||||||||
Equipment & supplies | — | 5,063 | — | 5,063 | ||||||||||||
Total revenues | $ | — | $ | 75,336 | $ | 75,336 | ||||||||||
COST OF REVENUES | ||||||||||||||||
Cost of consulting and advisory | — | 19,197 | — | 19,197 | ||||||||||||
Cost of equipment & supplies | — | 4,060 | — | 4,060 | ||||||||||||
Total cost of revenues | — | 23,257 | — | 23,257 | ||||||||||||
GROSS PROFIT | — | 52,079 | — | 52,079 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative expenses | 3,144,536 | 13,530 | — | 3,158,066 | ||||||||||||
Selling and marketing expenses | — | 19,608 | — | 19,608 | ||||||||||||
Total operating expenses | 3,144,536 | 33,138 | — | 3,177,674 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | (3,144,536 | ) | 18,941 | — | (3,125,595 | ) | ||||||||||
NET INCOME (LOSS) | $ | (3,144,536 | ) | $ | 18,941 | $ | — | $ | (3,125,595 | ) | ||||||
Basic and fully diluted net income per common share | N/A | N/A | $ | — | $ | (0.16 | ) | |||||||||
Weighted average common shares outstanding | N/A | N/A | — | 19,059,940 |
F-4 |