EXHIBIT 99.2
INDEX TO FINANCIAL STATEMENTS
Page No.
--------
Chancellor Group, Inc. Pro-Forma Consolidated Financial Statements
(Unaudited) as of December 31, 2012
Chancellor Group, Inc. Pro-Forma Consolidated Balance Sheets F-2
Chancellor Group, Inc. Pro-Forma Consolidated Statements of Operations F-3
Notes to Pro-Forma Consolidated Financial Statements F-4
F-1
CHANCELLOR GROUP, INC.
PRO-FORMA CONSOLIDATED BALANCE SHEETS (UNAUDITED)
DECEMBER 31, 2012
Chancellor The
Group, Inc. Fuelist, LLC Adjustments Consolidated
------------ ------------ ----------- ------------
ASSETS
CURRENT ASSETS
Cash in bank $ 1,700,508 $ -- $ -- $ 1,700,508
Restricted cash 25,000 -- -- 25,000
Revenue receivable 5,500 -- -- 5,500
Income tax receivable 7,753 -- -- 7,753
Prepaid expenses 8,284 -- -- 8,284
------------ ------------ ------------ ------------
Total Current Assets 1,747,045 -- -- 1,747,045
------------ ------------ ------------ ------------
PROPERTY AND EQUIPMENT
Leasehold costs - developed 57,580 -- -- 57,580
Accumulated depreciation
and amortization (23,835) -- -- (23,835)
------------ ------------ ------------ ------------
Total Property and Equipment, net 33,745 -- -- 33,745
------------ ------------ ------------ ------------
OTHER ASSETS
Goodwill -- -- 427,200 427,200
Deposits 250 -- -- 250
------------ ------------ ------------ ------------
Total Other Assets 250 -- 427,200 427,450
------------ ------------ ------------ ------------
TOTAL ASSETS $ 1,781,040 $ -- $ 427,200 $ 2,208,240
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 34,175 $ -- -- 34,175
Contributions payable -- -- 271,200 271,200
Accrued expenses 169 -- -- 169
------------ ------------ ------------ ------------
Total Current Liabilities 34,344 -- 271,200 305,544
------------ ------------ ------------ ------------
STOCKHOLDERS' EQUITY
Series B preferred stock -- -- -- --
Common stock, $0.001 par value 69,560 -- 2,000 71,560
Paid-in capital 3,539,053 -- 154,000 3,693,053
Members' capital contributions -- -- -- --
Due from Members for Capital Contributions -- -- -- --
Retained earnings (deficit) (1,829,517) -- -- (1,829,517)
Deficit accumulated during development stage -- -- -- --
Noncontrolling minority interest in Pimovi, Inc. (32,400) -- -- (32,400)
Noncontrolling minority interest in Fuelist, LLC -- -- -- --
------------ ------------ ------------ ------------
Total Stockholders' Equity 1,746,696 -- 156,000 1,902,696
------------ ------------ ------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,781,040 $ -- $ 427,200 $ 2,208,240
============ ============ ============ ============
See the accompanying notes to the consolidated financial statements
F-2
CHANCELLOR GROUP, INC.
PRO-FORMA CONSOLIDATED STATEMENTS OF OPERATION (UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2012
Chancellor The
Group, Inc. Fuelist, LLC Adjustments Consolidated
------------ ------------ ----------- ------------
REVENUES, NET $ 110,127 $ -- $ -- $ 110,127
OPERATING EXPENSES
Lease operating expenses 38,873 -- -- 38,873
Severance taxes 3,934 -- -- 3,934
Other operating expenses 28,051 -- -- 29,759
Investment professional and consulting expenses 83,076 -- -- 130,350
Administrative expenses 532,141 -- -- 537,786
Depreciation and amortization 5,020 -- -- 5,020
---------- ---------- ---------- ----------
TOTAL OPERATING EXPENSES 691,095 -- -- 745,722
---------- ---------- ---------- ----------
(LOSS) FROM OPERATIONS (580,968) -- -- (635,595)
---------- ---------- ---------- ----------
OTHER INCOME (EXPENSE)
Interest income 4,079 -- -- 4,079
---------- ---------- ---------- ----------
TOTAL OTHER INCOME (EXPENSE) 4,079 -- -- 4,079
---------- ---------- ---------- ----------
FINANCING CHARGES
Bank fees amortization 3,478 -- -- 3,478
---------- ---------- ---------- ----------
TOTAL FINANCING CHARGES 3,478 -- -- 3,478
---------- ---------- ---------- ----------
(LOSS) BEFORE PROVISION FOR INCOME TAXES (580,367) -- -- (580,367)
---------- ---------- ---------- ----------
Provision for Income Taxes (Benefit) -- -- -- --
---------- ---------- ---------- ----------
NET (LOSS) OF CHANCELLOR, INC (580,367) -- -- (580,367)
---------- ---------- ---------- ----------
Net Loss Attributable to Noncontrolling
Interest in Pimovi, Inc. 32,400 -- -- 32,400
---------- ---------- ---------- ----------
NET LOSS $ (547,967) $ -- $ -- $ (547,967)
========== ========== ========== ==========
See the accompanying notes to the consolidated financial statements
F-3
CHANCELLOR GROUP, INC.
NOTES TO PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012
(UNAUDITED)
NOTE 1 - BASIS OF PRO-FORMA PRESENTATION
On August 15, 2013, the Company entered into a binding term sheet with members
of The Fuelist, LLC ("Fuelist"), a California limited liability company, whereby
Chancellor agreed to acquire 51% ownership interest in Fuelist. As consideration
for the ownership interest, Chancellor agreed to contribute to Fuelist a total
of $271,200 in cash payable in 12 monthly installments of $22,600, beginning in
August 2013. As additional consideration for the ownership interest, Chancellor
contributed a total of 2,000,000 shares of newly issued common stock to Fuelist
on Monday, August 19, 2013, valued at $156,000, or $0.078 per share.
Also in the term sheet, the 2,000,000 shares of Chancellor common stock are
deemed the property of the Founders irrespective of any future sales of the
Company or outcomes, and in the event of any sale of the Company to a third
party, the Founder's shares paid as part-consideration to the Company for the
purchase of Chancellor's 51% shall remain the property of the Founders and those
Founder's shares shall be transferred to the Founders before, or as part of, the
closing of any such sale in the future to a third party.
Fuelist is a development stage entity formed for the primary purpose of the
development of a data-driven mobile and web technology platform that leverages
extensive segment expertise and big data analysis tools to value classic
vehicles. These tools will enable users to quickly find values, track valuations
over time, and to identify investment and arbitrage opportunities in this
lucrative market.
Chancellor's fiscal year end is December 31st and Fuelist's fiscal year end is
December 31st. However, Fuelist's separate company financial statements
presented are as of August 31, 2013, and for the period May 1, 2013 (inception)
through August 31, 2013 for the purpose of presenting pro-forma financial
information for Chancellor.
NOTE 2 - PRO-FORMA ADJUSTMENTS
Adjustments included in the pro-forma financial statements are as follows:
a. To record the issuance of 2,000,000 shares of Chancellor common stock
to Fuelist and $271,200 contribution payable.
F-4