Exhibit 99.1
The following unaudited Pro Forma Statements have been derived from the
unaudited financial statements of Flexxtech Corporation (A) for the year ended
December 31, 1999 and the audited financial statements of Primavera, Inc. (B)
for the period from inception (April 26, 2000) thru June 30, 2000.
The unaudited Pro Forma Statements of Operations and financial conditions
reflects the acquisition by a A (a reporting company) of B (a previously non
public company) in an acquisition using purchase method of accounting and
assumes that such acquisition was consummated as of January 1, 2000
The unaudited Pro Forma Statement of Operations and financial conditions
should be read in conjunction with the Financial Statements of A & the
Financial Statements of B and the Notes to the financial statements. The Pro
Forma Statement of Operations does not purport to represent what the
Company's results of operations would actually have been if the acquisition of
B had occurred on the date indicated or to project the company's results of
operations for any future period or date. The Pro Forma adjustments, as
described in the accompanying data, are based on available information and the
assumption set forth in the foot notes below, which management believes are
reasonable
PRO FORMA STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
Flexxtech Primavera Acquisition Pro Forma Pro Forma
(Historical) (Historical) of Primavera Adjustment Combined
------------- ------------ ------------- ------------- -------------
Sales $ 108,496 1,130,549 $ 0.00 $ 0.00 $ 1,239,045
Cost of Sales 71,448 920,149 0.00 0.00 991,597
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Gross profit 37,048 210,400 0.00 0.00 247,448
Operating expenses (106,049) (101,003) 0.00 0.00 (207,052)
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Loss from operations (69,001) 109,397 0.00 0.00 40,396
Other Income (expense) 0 (360,719) (360,719)
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(69,001) (251,322) 0.00 0.00 (320,323)
Provision for taxes 800 0.00 0.00 0.00 800
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NET INCOME (LOSS) $ (69,801) (251,322) $ 0.00 $ 0.00 $ (321,123)
============= ============ ============= ============= =============
OTHER COMPREHENSIVE INCOME
Unrealized gains(loss) on
investments arising during
the period (154,000) 0.00 0.00 0.00 (154,000)
------------- ------------ ------------- ------------- -------------
COMPREHENSIVE INCOME $ (223,801) (251,322) $ 0.00 $ 0.00 $ (475,123)
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EARNINGS PER SHARE
Weighted -average number of
shares outstanding 2,110,915
=============
Loss per share $ (0.15)
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NOTES:
(1) Earnings per share data shown above are applicable for both primary and fully diluted.
(2) Weighted-average number of shares outstanding for the combined entity includes all
shares issued as of June 30, 2000 as if outstanding as of the beginning of the
period plus 130,000 shares issued in acquisition of Primavera
PRO FORMA STATEMENT OF FINANCIAL CONDITIONS
AS OF JUNE 30, 2000
(UNAUDITED)
Flexxtech Primavera Acquisition Pro Forma Pro Forma
(Historical) (Historical) of Primavera Adjustment Combined
------------- ------------ ------------- ------------- -------------
ASSETS
Current Assets
Cash $ 166,411 $ 70,273 $ 0.00 $ 0.00 $ 236,684
Accounts Receivable 78,105 1,618,326 0.00 0.00 1,696,431
Inventory 75,740 811,497 0.00 0.00 887,237
Investments in Stock available
for sale 1,151,000 0.00 0.00 0.00 1,151,000
Investment in Primavera 0.00 0.00(1) 1,575,000(2) (1,575,000) 0.00
Deposits & other assets 7,550 12,863 0.00 0.00 20,413
------------- ------------ ------------- ------------- -------------
1,478,805 2,512,959 1,575,000 (1,575,000) 3,991,764
Property & Equipment 135,114 1,514,358 0.00 0.00 1,649,472
Goodwill 531,243 0.00 0.00(2) 250,122 781,365
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TOTAL ASSETS $ 2,145,162 $ 4,027,317 $ 1,575,000 $ (1,324,878) $ 6,422,601
============= ============ ============= ============= =============
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities
Bank Overdraft $ 0.00 $ 139,598 $ 0.00 $ 0.00 $ 139,598
Accounts Payable 102,689 1,548,597 0.00 0.00 1,651,286
Accrued Expenses 19,839 46,921 0.00 0.00 66,760
Loans Payable -current 16,788 2,465,750 0.00 0.00 2,482,538
Capital lease obligations-current 0.00 32,159 0.00 0.00 32,159
Loans from stockholders 0.00 20,800 0.00 0.00 20,800
Customers deposits 7,374 0.00 0.00 0.00 7,374
Defered Tax liability 10,559 0.00 0.00 0.00 10,559
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157,249 4,253,825 0.00 0.00 4,411,074
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Long term liabilities
Vehicle - Mardock 25,162 0.00 0.00 0.00 25,162
Payable to Haledane, Ltd. 100,000 0.00 0.00 0.00 100,000
Capital lease obligation 0.00 23,614 0.00 0.00 23,614
Payable to Primavera 0.00 0.00(1) 1,250,000(2) (1,250,000) 0.00
------------- ------------ ------------- ------------- -------------
125,162 23,614 1,250,000 (1,250,000) 148,776
------------- ------------ ------------- ------------- -------------
Total liabilities 282,412 4,277,439 1,250,000 (1,250,000) 4,559,851
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Stockholders' equity;
Common stock 6,432 1,200(1) 130(2) (1,200) 6,432
Common stock (130)(1)
Additional paid-in capital 2,088,434 0.00(1) 324,870(2) (324,870) 2,088,434
Retained earnings (deficit) (78,116) (251,322) 0.00(2) 251,322 (78,116)
Accumulated other comprehensive
income:
Unrealized loss on securities
available for sale (154,000) 0.00 0.00 0.00 (154,000)
------------- ------------ ------------- ------------- -------------
Total stockholders' equity 1,862,750 (250,122) 325,000 (74,878) 1,862,750
------------- ------------ ------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 2,145,162 $ 4,027,317 $ 1,575,000 $ (1,324,878) $ 6,422,601
============= ============ ============= ============= =============
NOTES;
(1) Acquisition of Primavera by issuance of a note for $1,250,000 and issuance of 130,000
common shares of .001 par value at $2.50 per share (total $325,000).
(2) Elimination of investment in subsidiary upon consolidation and recording of Goodwill
of $250,122 representing net value of Primavera at acquisition date. The shares and
notes payable issued in acquisition stayed within the consolidated group and therefor
do not impact the goodwill calculation.