Amerinac Holding Corp. and Subsidiaries Unaudited Pro Forma Condensed Consolidated Financial Statements
This document presents unaudited pro forma condensed consolidated financial statements for Amerinac Holding Corp. and its subsidiaries, reflecting the acquisition of Prime Metals & Alloys, Inc. It shows how the combined company's financial position and results of operations would have appeared if the acquisition had occurred earlier. The statements include adjustments for the purchase, elimination of certain liabilities, and recognition of goodwill. The document is intended to provide investors with a clearer picture of the financial impact of the transaction, but does not represent actual historical results.
EXHIBIT 10.3
AMERINAC HOLDING CORP. AND SUBSIDIARIES | ||||||||||||||||
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
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AMERINAC HOLDING CORP. |
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Unaudited Pro Forma Condensed Consolidated Balance Sheets |
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June 30, 2017 |
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ASSETS |
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| Historical |
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| Historical |
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| Pro Forma |
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| Pro |
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Current assets: |
| Amerinac |
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| Prime |
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| Adjustments |
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| Forma |
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Cash |
| $ | 1,131,275 |
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| $ | 154,971 |
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| $ | (1,254,971 | ) | a | $ | 31,275 |
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Accounts receivable - net |
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| 1,043,389 |
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| 353,673 |
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| - |
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| 1,397,062 |
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Inventories - net |
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| 1,897,414 |
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| 699,905 |
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| - |
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| 2,597,319 |
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Escrow receivable |
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| 1,000,000 |
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| - |
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| - |
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| 1,000,000 |
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Escrow deposit |
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| 500,000 |
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| - |
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| (500,000 | ) | a |
| - |
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Other current assets |
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| 264,200 |
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| 428,958 |
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| - |
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| 693,158 |
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Total current assets |
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| 5,836,278 |
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| 1,637,507 |
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| (1,754,971 | ) |
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| 5,718,814 |
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Property, plant and equipment - net |
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| 54,152 |
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| 5,859,819 |
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| - |
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| 5,913,971 |
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Other assets: |
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Other |
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| 3,382 |
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| 29,005 |
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| - |
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| 32,387 |
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Goodwill |
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| - |
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| - |
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| 2,352,409 |
| b |
| 2,352,409 |
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Total other assets |
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| 3,382 |
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| 29,005 |
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| 2,352,409 |
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| 2,384,796 |
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Total |
| $ | 5,893,812 |
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| $ | 7,526,331 |
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| $ | 597,438 |
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| $ | 14,017,581 |
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) |
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Current liabilities: |
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Lines of credit |
| $ | 497,438 |
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| $ | 6,491,268 |
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| $ | (6,491,268 | ) | c | $ | 497,438 |
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Accounts payable and accrued expenses |
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| 858,779 |
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| 5,709,486 |
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| (5,623,345 | ) | c |
| 944,920 |
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Loans payable |
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| - |
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| 5,387,547 |
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| (5,387,547 | ) | c |
| - |
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Advance from third party |
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| - |
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| 1,579,119 |
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| (1,579,119 | ) | c |
| - |
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Officer loans |
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| - |
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| 1,265,329 |
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| (1,265,329 | ) | c |
| - |
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Income taxes payable |
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| 22,831 |
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| - |
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| - |
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| 22,831 |
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Total current liabilities |
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| 1,379,048 |
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| 20,432,749 |
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| (20,346,608 | ) |
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| 1,465,189 |
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Long-term liabilities - notes payable |
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| - |
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| - |
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| 8,000,000 |
| d |
| 8,000,000 |
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Total liabilities |
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| 1,379,048 |
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| 20,432,749 |
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| (12,346,608 | ) |
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| 9,465,189 |
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Stockholders' equity (deficiency): |
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Common stock, $.001 par value; 1,500,000 shares authorized, 358,333 issued and 261,636 outstanding at June 30, 2017 |
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| 358 |
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| 1,800 |
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| (1,800 | ) | c |
| 358 |
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Treasury stock, $.001 par value; 96,697 shares held in treasury |
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| (97 | ) |
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| - |
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| - |
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| (97 | ) |
Additional paid-in capital |
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| 14,119,501 |
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| - |
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| - |
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| 14,119,501 |
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Accumulated deficit |
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| (9,604,998 | ) |
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| (12,908,218 | ) |
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| 12,945,846 |
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| (9,567,370 | ) |
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Total stockholders' equity (deficiency) |
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| 4,514,764 |
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| (12,906,418 | ) |
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| 12,944,046 |
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| 4,552,392 |
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Total liabilities and stockholders' equity (deficiency) |
| $ | 5,893,812 |
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| $ | 7,526,331 |
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| $ | 597,438 |
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| $ | 14,017,581 |
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a. | Decrease in cash and escrow for purchase of Prime Metals & Alloys, Inc. LLC |
b. | An increase in goodwill to reflect the estimated value of the assets acquired from Prime Metals and Alloys, Inc. on the closing date. |
c. | Elimination of items not assumed in the transaction. |
d. | An increase in notes payable to acquire the assets of Prime Metals and Alloys, Inc. on the closing date. |
1 |
AMERINAC HOLDING CORP. AND SUBSIDIARIES | ||||||||||||||||
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
AMERINAC HOLDING CORP. | ||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statements of Income | ||||||||||||||||
Six Months Ended June 30, 2017 |
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| Historical |
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| Historical |
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| Pro Forma |
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| Pro |
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| Amerinac |
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| Prime |
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| Adjustments |
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| Forma |
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Net revenue |
| $ | 4,133,305 |
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| $ | 11,786,894 |
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| $ | - |
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| $ | 15,920,199 |
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Cost of goods sold |
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| 3,295,704 |
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| 10,445,687 |
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| - |
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| 13,741,391 |
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Gross profit |
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| 837,601 |
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| 1,341,207 |
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| - |
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| 2,178,808 |
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Operating expenses: |
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General and administrative expenses |
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| 968,539 |
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| 1,001,175 |
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| - |
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| 1,969,714 |
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Professional and consulting fees |
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| 204,111 |
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| 48,572 |
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| - |
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| 252,683 |
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Total operating expenses |
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| 1,172,650 |
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| 1,049,747 |
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| - |
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| 2,222,397 |
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(Loss) income before other (expense) income |
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| (335,049 | ) |
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| 291,460 |
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| - |
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| (43,589 | ) |
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Other income(expense): |
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Interest |
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| (263,372 | ) |
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| (165,783 | ) |
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| - |
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| (429,155 | ) |
Impairment loss |
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| - |
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| (17,751 | ) |
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| (17,751 | ) |
Change in fair value of put option |
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| (213,000 | ) |
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| - |
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| - |
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| (213,000 | ) |
Gain on sale |
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| 3,409,184 |
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| - |
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| - |
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| 3,409,184 |
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Other expense |
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| (3,765 | ) |
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| 23,705 |
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| - |
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| 19,940 |
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Total other income (expense) |
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| 2,929,047 |
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| (159,829 | ) |
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| - |
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| 2,769,218 |
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Income from continuing operations before provision for income taxes |
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| 2,593,998 |
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| 131,631 |
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| - |
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| 2,725,629 |
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Provision for income taxes |
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| (731 | ) |
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| - |
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| - |
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| (731 | ) |
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Income from continuing operations |
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| 2,593,267 |
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| 131,631 |
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| - |
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| 2,724,898 |
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Discontinued operations: |
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Income (loss) from discontinued operations, net |
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| 992,853 |
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| - |
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| - |
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| 992,853 |
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Net income applicable to common stockholders |
| $ | 3,586,120 |
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| $ | 131,631 |
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| $ | - |
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| $ | 3,717,751 |
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Basic earnings per share applicable to common stockholders: |
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Continuing operations |
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| 8.67 |
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| 9.11 |
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Discontinued operations |
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| 3.32 |
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| 3.32 |
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Net income |
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| 11.99 |
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| 12.43 |
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Diluted earnings per share applicable to common stockholders: |
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Continuing operations |
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| 8.67 |
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| 9.11 |
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Discontinued operations |
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| 3.32 |
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| 3.32 |
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Net income |
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| 11.99 |
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| 12.43 |
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Weighted average shares outstanding: |
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Basic |
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| 299,146 |
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| 299,146 |
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Diluted |
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| 299,146 |
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| 299,146 |
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2 |
AMERINAC HOLDING CORP. AND SUBSIDIARIES | ||||||||||||||||
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||||||
AMERINAC HOLDING CORP. | ||||||||||||||||
Unaudited Pro Forma Condensed Consolidated Statements of Income | ||||||||||||||||
Year Ended December 31, 2016 |
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| Historical |
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| Historical |
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| Pro Forma |
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| Pro |
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| Amerinac |
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| Prime |
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| Adjustments |
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| Forma |
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Net revenue |
| $ | 22,608,024 |
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| $ | 22,587,083 |
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| $ | - |
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| $ | 45,195,107 |
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Cost of goods sold |
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| 17,479,599 |
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| 18,774,272 |
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| - |
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| 36,253,871 |
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Gross profit |
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| 5,128,425 |
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| 3,812,811 |
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| - |
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| 8,941,236 |
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Operating expenses: |
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General and administrative expenses |
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| 3,615,873 |
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| 1,777,185 |
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| - |
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| 5,393,058 |
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Professional and consulting fees |
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| 275,620 |
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| 123,890 |
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| - |
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| 399,510 |
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Total operating expenses |
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| 3,891,493 |
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| 1,901,075 |
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| - |
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| 5,792,568 |
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(Loss) income before other (expense) income |
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| 1,236,932 |
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| 1,911,736 |
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| - |
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| 3,148,668 |
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Other income(expense): |
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Interest |
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| (908,146 | ) |
|
| (362,134 | ) |
|
| - |
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| (1,270,280 | ) |
Change in fair value of put option |
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| (121,658 | ) |
|
| - |
|
|
| - |
|
|
| (121,658 | ) |
Impairment loss |
|
| - |
|
|
| (1,715,091 | ) |
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|
|
|
|
| (1,715,091 | ) |
Other expense |
|
| 2,700 |
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|
| 24,445 |
|
|
| - |
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|
| 27,145 |
|
Total other income (expense) |
|
| (1,027,104 | ) |
|
| (2,052,780 | ) |
|
| - |
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|
| (3,079,884 | ) |
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Income before provision for income taxes |
|
| 209,828 |
|
|
| (141,044 | ) |
|
| - |
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|
| 68,784 |
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Provision for income taxes |
|
| 40,749 |
|
|
| - |
|
|
| - |
|
|
| 40,749 |
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Net income applicable to common stockholders |
| $ | 250,577 |
|
| $ | (141,044 | ) |
| $ | - |
|
| $ | 109,533 |
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Net income per share applicable to common stockholders: |
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Basic |
|
| 1.46 |
|
|
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|
|
| 0.64 |
|
Diluted |
|
| 1.39 |
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|
| 0.61 |
|
Weighted average shares outstanding: |
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Basic |
|
| 171,118 |
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| 171,118 |
|
Diluted |
|
| 180,088 |
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| 180,088 |
|
3 |