EXHIBIT 99.1
UTILICRAFT AEROSPACE INDUSTRIES, INC.
UNAUDITED PRO FORMA BALANCE SHEET
September 30, 2007
Historical Pro Forma Pro Forma
Utilicraft (1) Adjustments (2) Utilicraft
----------- ----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $ 7,458 $ $ 7,458
----------- ----------- -----------
Total current assets 7,458 7,458
----------- ----------- -----------
Computer equipment, net of depreciation of $9,534 26,871 (26,871) --
----------- ----------- -----------
Other assets:
Lease security deposits and other assets 23,250 (23,250) --
Performance flight test aircraft 563,149 (563,149) --
Prototypes for design aircraft 312,804 (312,804) --
----------- ----------- -----------
Total other assets 899,203 (899,203) --
----------- ----------- -----------
Total assets $ 933,532 $ (926,074) $ 7,458
----------- ----------- -----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 687,635 $ (40,347) $ 647,288
Note payable 142,894 (142,894) --
Payroll taxes payable 497,961 (497,961) --
Accrued interest, related party 63,250 (63250) --
Rent payable, related party 114,000 (114,000) --
Accrued aircraft rent, related party 67,500 (67,500) --
Deferred compensation 2,983,762 (844,185) 2,139,577
Loans and advances from related party 413,569 (413,569) --
Advances from stockholders 82,500 (82,500) --
Customer deposits 30,000 (30,000) --
----------- ----------- -----------
Total current liabilities 5,083,071 (2,182,206) 2,869,365
Long-term liabilities 84,000 (84,000) --
----------- ----------- -----------
Total liabilities 5,167,071 2,869,365
----------- ----------- -----------
Commitments and contingencies -- -- --
Stockholders' equity:
Preferred stock, $.0001 par value, 25,000,000 shares authorized, no
shares
issued and outstanding
Common stock, $.0001 par value, 475,000,000 shares authorized,
216,425,989 shares issued and outstanding 21,642 -- 21,642
33,192,903 shares
Additional paid-in capital 5,699,775 -- 5,699,775
Deficit accumulated during the development stage (9,954,956) 1,340,132 (8,583,324)
----------- ----------- -----------
Total stockholders' equity (4,233,539) 1,401,478 (2,861,907)
----------- ----------- -----------
Total liabilities and stockholders' equity (deficit) $ 933,532 $ (926,074) $ 7,458
----------- ----------- -----------
See accompanying notes to unaudited Pro Forma Financial Statements.
- --------------------------------------------------------------------------------
UTILICRAFT AEROSPACE INDUSTRIES, INC.
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
Nine Months Ended September 30, 2007
Historical Pro Forma Pro Forma
Utilicraft (3) Adjustments(4) Utilicraft
------------- ------------- -------------
Revenues $ -- $ -- $ --
------------- ------------- -------------
Operating expenses:
Related party reorganization costs -- -- --
Compensation and related costs 827,021 (563,952) 263,069
General and administrative, exclusive of compensation costs 414,255 (191,035) 223,220
Engineering, research and development 51,420 (51,420) --
Interest expense 54,185 (54,185) --
------------- ------------- -------------
Total operating expenses 1,346,881 (860,592) 486,289
------------- ------------- -------------
Loss before provision for income taxes (1,346,881) 860,592 (486,289)
Provision for income taxes -- -- --
------------- ------------- -------------
Net loss $ (1,346,881) $ 860,592 $ (486,289)
------------- ------------- -------------
Loss from continuing operations per share - Basic and Diluted
Basic net loss per share based on weighted average common shares $ (0.01) $ (0.01)
------------- ------------- -------------
Weighted average number of common shares outstanding 158,661,557 158,661,557
------------- ------------- -------------
See notes to the unaudited Pro Forma Financial Statements.
- --------------------------------------------------------------------------------
UTILICRAFT AEROSPACE INDUSTRIES, INC.
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
Year Ended December 31, 2006
Historical Pro Forma Pro Forma
Utilicraft(5) Adjustments(6) Utilicraft
------------- ------------- -------------
Revenues $ -- $ -- $ --
------------- ------------- -------------
Operating expenses:
Related party reorganization costs -- -- --
Compensation and related costs 1,006,384 (497,687) 508,697
General and administrative, exclusive of compensation costs 505,604 (254,207) 251,397
Engineering, research and development 174,445 (176,745) --
Interest expense 30,393 (29,425) 968
------------- ------------- -------------
Total operating expenses 1,716,826 (958,064) 761,062
Loss before provision for income taxes (1,716,826) 958,064 (761,062)
Provision for income taxes -- -- --
------------- ------------- -------------
Net loss $ (1,716,826) $ 958,064 $ (761,062)
------------- ------------- -------------
Loss from continuing operations per share - Basic and Diluted
Basic net loss per share based on weighted average common shares $ (0.01) $ (0.01)
------------- ------------- -------------
Weighted average number of common shares outstanding 155,516,257 155,516,257
------------- ------------- -------------
See notes to the unaudited Pro Forma Financial Statements.
- --------------------------------------------------------------------------------
UTILICRAFT AEROSPACE INDUSTRIES, INC.
UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
Year Ended December 31, 2005
Historical Pro Forma Pro Forma
Utilicraft(5) Adjustments(6) Utilicraft
------------- ------------- -------------
Revenues $ -- $ -- $ --
------------- ------------- -------------
Operating expenses:
Related party reorganization costs -- --
Compensation and related costs 2,311,945 (867,283) 1,444,662
General and administrative, exclusive of compensation costs 709,302 (397,973) 311,329
Engineering, research and development 261,428 (261,428) --
Interest expense 23,199 (23,199) --
------------- ------------- -------------
Total operating expenses 3,305,874 (1,549,883) 1,755,991
------------- ------------- -------------
Loss before provision for income taxes (3,305,874) 1,549,883 (1,755,991)
Provision for income taxes -- -- --
------------- ------------- -------------
Net loss $ (3,305,874) $ 1,549,883 $ (1,755,991)
------------- ------------- -------------
Loss from continuing operations per share - Basic and Diluted
Basic net loss per share based on weighted average common shares $ (0.02) $ (0.01)
------------- ------------- -------------
Weighted average number of common shares outstanding 142,342,517 142,342,517
------------- ------------- -------------
See notes to the unaudited Pro Forma Financial Statements.
- --------------------------------------------------------------------------------
UTILICRAFT AEROSPACE INDUSTRIES, INC.
NOTES TO UNAUDITED PRO FORMA
FINANCIAL STATEMENTS
Nine Months Ended September 30, 2007, and
Years Ended December 31, 2006, 2005
The accompanying unaudited Pro Forma Financial Statements consist of the
historical Financial Statements of the Company, adjusted to exclude the
historical salaries and expenses related to employees assumed by Freight Feeder
Aircraft Corporation ("FFAC"), the Company's research and development costs
associated with the FF1080 aircraft program, and interest expense associated
with related party debt assumed by FFAC, as described below:
1. Represents the unaudited historical balance sheet accounts of the Company
and was derived from the Company's unaudited balance sheet as previously
reported in its Quarterly Report on Form 10-Q as of September 30, 2007.
2. Represents the pro forma adjustments for the assets purchased by FFAC and
the liabilities of the Company assumed by FFAC as of September 30, 2007.
3. Represents the historical results of operations of the Company and was
derived from the Company's unaudited statement of operations as previously
reported in its Quarterly Report on Form 10-QSB for the nine months ended
September 30, 2007, before reflecting its FF1080 aircraft development
program and related salaries and expenses of employees assumed by FFAC,
related research and development costs associated with the FF1080 aircraft
program, and related interest expense associated with related party debt
assumed by FFAC, as discontinued operations.
4. Represents the pro forma adjustments for the nine months ended September
30, 2007 for expenses assumed by FFAC, including employees moving to
general and administrative expenses including depreciation, hanger and
office space, research and development and interest expense related to
debts assumed.
5. Represents the historical operating results of the Company for the periods
presented.
6. Represents the pro forma adjustments for the period presented for expenses
assumed by FFAC, including employees moving to general and administrative
expenses including depreciation, hanger and office space, research and
development and interest expense related to debts assumed.