Unaudited pro forma condensed consolidated balance sheet of Amerinac Holding. Corp. and its subsidiaries as of June 30, 2017 and the unaudited pro forma condensed consolidated statements of operations of Amerinac Holding Corp. and its subsidiaries for the year ended December 31, 2016 and six months ended June 30, 2017, giving effect to the acquisition of Prime Metals & Alloys, Inc

EX-10.3 4 paos_ex103.htm UNAUDITED PRO FORMA paos_ex103.htm

EXHIBIT 10.3

 

AMERINAC HOLDING CORP. AND SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

AMERINAC HOLDING CORP.

 

 

 

 

 

 

 

 

 

 

 

 

Unaudited Pro Forma Condensed Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

June 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

Historical

 

 

Historical

 

 

Pro Forma

 

 

Pro

 

Current assets:

 

Amerinac

 

 

Prime

 

 

Adjustments

 

 

Forma

 

Cash

 

 $ 1,131,275

 

 

 $ 154,971

 

 

 $ (1,254,971 )

a

 $ 31,275

 

Accounts receivable - net

 

 

 1,043,389

 

 

 

 353,673

 

 

 

 -

 

 

 

 1,397,062

 

Inventories - net

 

 

 1,897,414

 

 

 

 699,905

 

 

 

 -

 

 

 

 2,597,319

 

Escrow receivable

 

 

 1,000,000

 

 

 

 -

 

 

 

 -

 

 

 

 1,000,000

 

Escrow deposit

 

 

 500,000

 

 

 

 -

 

 

 

 (500,000 )

a

 

 -

 

Other current assets

 

 

 264,200

 

 

 

 428,958

 

 

 

 -

 

 

 

 693,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

 5,836,278

 

 

 

 1,637,507

 

 

 

 (1,754,971 )

 

 

 5,718,814

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment - net

 

 

 54,152

 

 

 

 5,859,819

 

 

 

 -

 

 

 

 5,913,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 3,382

 

 

 

 29,005

 

 

 

 -

 

 

 

 32,387

 

Goodwill

 

 

 -

 

 

 

 -

 

 

 

 2,352,409

 

b

 

 2,352,409

 

Total other assets

 

 

 3,382

 

 

 

 29,005

 

 

 

 2,352,409

 

 

 

 2,384,796

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 $ 5,893,812

 

 

 $ 7,526,331

 

 

 $ 597,438

 

 

 $ 14,017,581

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lines of credit

 

 $ 497,438

 

 

 $ 6,491,268

 

 

 $ (6,491,268 )

c

 $ 497,438

 

Accounts payable and accrued expenses

 

 

 858,779

 

 

 

 5,709,486

 

 

 

 (5,623,345 )

c

 

 944,920

 

Loans payable

 

 

 -

 

 

 

 5,387,547

 

 

 

 (5,387,547 )

c

 

 -

 

Advance from third party

 

 

 -

 

 

 

 1,579,119

 

 

 

 (1,579,119 )

c

 

 -

 

Officer loans

 

 

 -

 

 

 

 1,265,329

 

 

 

 (1,265,329 )

c

 

 -

 

Income taxes payable

 

 

 22,831

 

 

 

 -

 

 

 

 -

 

 

 

 22,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

 1,379,048

 

 

 

 20,432,749

 

 

 

 (20,346,608 )

 

 

 1,465,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term liabilities - notes payable

 

 

 -

 

 

 

 -

 

 

 

 8,000,000

 

d

 

 8,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

 1,379,048

 

 

 

 20,432,749

 

 

 

 (12,346,608 )

 

 

 9,465,189

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficiency):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $.001 par value; 1,500,000 shares authorized, 358,333 issued and 261,636 outstanding at June 30, 2017

 

 

 358

 

 

 

 1,800

 

 

 

 (1,800 )

c

 

 358

 

Treasury stock, $.001 par value; 96,697 shares held in treasury

 

 

 (97 )

 

 

 -

 

 

 

 -

 

 

 

 (97 )

Additional paid-in capital

 

 

 14,119,501

 

 

 

 -

 

 

 

 -

 

 

 

 14,119,501

 

Accumulated deficit

 

 

 (9,604,998 )

 

 

 (12,908,218 )

 

 

 12,945,846

 

 

 

 (9,567,370 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity (deficiency)

 

 

 4,514,764

 

 

 

 (12,906,418 )

 

 

 12,944,046

 

 

 

 4,552,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity (deficiency)

 

 $ 5,893,812

 

 

 $ 7,526,331

 

 

 $ 597,438

 

 

 $ 14,017,581

 

   

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

  

 

 

Historical

 

 

Historical

 

 

Pro

Forma

 

 

Pro

 

 

 

Amerinac

 

 

Prime

 

 

Adjustments

 

 

Forma

 

Net revenue

 

 $ 4,133,305

 

 

 $ 11,786,894

 

 

 $ -

 

 

 $ 15,920,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

 3,295,704

 

 

 

 10,445,687

 

 

 

 -

 

 

 

 13,741,391

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 837,601

 

 

 

 1,341,207

 

 

 

 -

 

 

 

 2,178,808

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

 968,539

 

 

 

 1,001,175

 

 

 

 -

 

 

 

 1,969,714

 

Professional and consulting fees

 

 

 204,111

 

 

 

 48,572

 

 

 

 -

 

 

 

 252,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

 1,172,650

 

 

 

 1,049,747

 

 

 

 -

 

 

 

 2,222,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before other (expense) income

 

 

 (335,049 )

 

 

 291,460

 

 

 

 -

 

 

 

 (43,589 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income(expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 (263,372 )

 

 

 (165,783 )

 

 

 -

 

 

 

 (429,155 )

Impairment loss

 

 

 -

 

 

 

 (17,751 )

 

 

 

 

 

 

 (17,751 )

Change in fair value of put option

 

 

 (213,000 )

 

 

 -

 

 

 

 -

 

 

 

 (213,000 )

Gain on sale

 

 

 3,409,184

 

 

 

 -

 

 

 

 -

 

 

 

 3,409,184

 

Other expense

 

 

 (3,765 )

 

 

 23,705

 

 

 

 -

 

 

 

 19,940

 

Total other income (expense)

 

 

 2,929,047

 

 

 

 (159,829 )

 

 

 -

 

 

 

 2,769,218

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before provision for income taxes

 

 

 2,593,998

 

 

 

 131,631

 

 

 

 -

 

 

 

 2,725,629

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 (731 )

 

 

 -

 

 

 

 -

 

 

 

 (731 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

 

 2,593,267

 

 

 

 131,631

 

 

 

 -

 

 

 

 2,724,898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued operations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations, net

 

 

 992,853

 

 

 

 -

 

 

 

 -

 

 

 

 992,853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income applicable to common stockholders

 

 $ 3,586,120

 

 

 $ 131,631

 

 

 $ -

 

 

 $ 3,717,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

 

 8.67

 

 

 

 

 

 

 

 

 

 

 

 9.11

 

Discontinued operations

 

 

 3.32

 

 

 

 

 

 

 

 

 

 

 

 3.32

 

Net income

 

 

 11.99

 

 

 

 

 

 

 

 

 

 

 

 12.43

 

Diluted earnings per share applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations

 

 

 8.67

 

 

 

 

 

 

 

 

 

 

 

 9.11

 

Discontinued operations

 

 

 3.32

 

 

 

 

 

 

 

 

 

 

 

 3.32

 

Net income

 

 

 11.99

 

 

 

 

 

 

 

 

 

 

 

 12.43

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 299,146

 

 

 

 

 

 

 

 

 

 

 

 299,146

 

Diluted

 

 

 299,146

 

 

 

 

 

 

 

 

 

 

 

 299,146

 

 

 
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

   

 

 

Historical

 

 

Historical

 

 

Pro

Forma

 

 

Pro

 

 

 

Amerinac

 

 

Prime

 

 

Adjustments

 

 

Forma

 

Net revenue

 

 $ 22,608,024

 

 

 $ 22,587,083

 

 

 $ -

 

 

 $ 45,195,107

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

 

 17,479,599

 

 

 

 18,774,272

 

 

 

 -

 

 

 

 36,253,871

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

 5,128,425

 

 

 

 3,812,811

 

 

 

 -

 

 

 

 8,941,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

 

 

 3,615,873

 

 

 

 1,777,185

 

 

 

 -

 

 

 

 5,393,058

 

Professional and consulting fees

 

 

 275,620

 

 

 

 123,890

 

 

 

 -

 

 

 

 399,510

 

Total operating expenses

 

 

 3,891,493

 

 

 

 1,901,075

 

 

 

 -

 

 

 

 5,792,568

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) income before other (expense) income

 

 

 1,236,932

 

 

 

 1,911,736

 

 

 

 -

 

 

 

 3,148,668

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income(expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 (908,146 )

 

 

 (362,134 )

 

 

 -

 

 

 

 (1,270,280 )

Change in fair value of put option

 

 

 (121,658 )

 

 

 -

 

 

 

 -

 

 

 

 (121,658 )

Impairment loss

 

 

 -

 

 

 

 (1,715,091 )

 

 

 

 

 

 

 (1,715,091 )

Other expense

 

 

 2,700

 

 

 

 24,445

 

 

 

 -

 

 

 

 27,145

 

Total other income (expense)

 

 

 (1,027,104 )

 

 

 (2,052,780 )

 

 

 -

 

 

 

 (3,079,884 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

 

 209,828

 

 

 

 (141,044 )

 

 

 -

 

 

 

 68,784

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 40,749

 

 

 

 -

 

 

 

 -

 

 

 

 40,749

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income applicable to common stockholders

 

 $ 250,577

 

 

 $ (141,044 )

 

 $ -

 

 

 $ 109,533

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share applicable to common stockholders:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 1.46

 

 

 

 

 

 

 

 

 

 

 

 0.64

 

Diluted

 

 

 1.39

 

 

 

 

 

 

 

 

 

 

 

 0.61

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

 171,118

 

 

 

 

 

 

 

 

 

 

 

 171,118

 

Diluted

 

 

 180,088

 

 

 

 

 

 

 

 

 

 

 

 180,088

 

 

 

3