Pro Forma Combined Financial Statements for Genio Group, Inc. and Genio, Inc. (Tele-V, Inc.) Acquisition

Contract Categories: Mergers & Acquisitions › Plan of Reorganization Agreements
Summary

This document presents unaudited pro forma combined financial statements for Genio Group, Inc. (formerly National Management Consulting, Inc.) following its acquisition of Genio, Inc. (formerly Tele-V, Inc.) and a related private placement of common stock. The statements illustrate the estimated financial impact of these transactions as of June 30, 2003. The key obligations include reflecting the effects of the acquisition, elimination of intercompany notes, and the issuance of new shares and warrants. The statements are for informational purposes only and do not represent actual results.

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EX-1.A 3 ex-1.txt Pro Forma Combined Financial Statements The following unaudited pro forma combined balance sheet of Genio Group, Inc. (formerly National Management Consulting, Inc.) ("Genio" or the "Company") as of June 30, 2003 (the "Pro Forma Balance Sheet") and the unaudited pro forma combined statements of operations of the Company for the three months and the nine months ended June 30, 2003 (the "Pro Forma Statements of Operations") have been prepared to illustrate the estimated effect of the Genio, Inc. (formerly Tele-V, Inc.) ("Genio Sub") transactions and the completion of the previously announced private placement of Genio common stock. This acquisition was deemed a reorganization or "reverse acquisition" for accounting purposes. The pro forma financial statements are presented for informational purposes only and do not purport to be indicative of the financial condition that may have resulted if the acquisition had been consummated at June 30, 2003. The pro forma financial statements should be read in conjunction with the notes thereto and the financial statements of Genio and related notes thereto contained in its filing on Form 10-QSB for the period ended June 30, 2003. .. 1
Genio Group, Inc (formerly National Management Consulting, Inc) Pro Forma Balance Sheet June 30, 2003 (unaudited) Historical ------------------------------ Genio Genio, Inc Pro Forma Pro Forma Group, Inc Adjustments ---------------------------------------------------------------- ASSETS Current Assets: Cash and cash equivalents $129,325 $9,017 $2,194,940(b) $2,333,282 Inventory, net 982,218 982,218 Prepaid expenses and other 50,000 50,000 Note receivable - Tele-V 600,000 (600,000)(a) 0 ---------------------------------------------------------------- Total Current Assets 729,325 1,041,235 1,594,940 3,365,500 ---------------------------------------------------------------- Property and equipment, net 7,883 7,883 Other assets 50,000 50,000 ---------------------------------------------------------------- TOTAL ASSETS $729,325 $1,099,118 $1,594,940 $3,423,383 ================================================================ LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities: Accounts payable $561,040 $561,040 Accrued expenses 36,183 36,183 Notes payable 660,000 $(600,000)(a) 60,000 Net liabilities of discontinued operations $359,334 359,334 ---------------------------------------------------------------- Total Current Liabilities 359,334 1,257,223 (600,000) 1,016,557 ---------------------------------------------------------------- STOCKHOLDERS' EQUITY Preferred stock Common stock 960 228(b) 2,736 1,548(c) Additional paid in capital 4,867,285 2,194,712(b) 7,060,449 (1,548)(c) Accumulated deficit (4,430,968) (158,105) (4,589,073) Treasury stock (67,286) (67,286) ---------------------------------------------------------------- Total Stockholders' Equity 369,991 (158,105) 2,194,940 2,406,826 ---------------------------------------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $729,325 $1,099,118 $1,594,940 $3,423,383 ================================================================
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Genio Group, Inc (formerly National Management Consulting, Inc) Pro Forma Statement of Operations For the three months ended June 30, 2003 (unaudited) Historical ----------------------------- Genio Pro Forma Group, Inc Genio, Inc Adjustments Pro Forma ------------------------------------------------------------ Revenues Sales - Other $ 212,614 $ 212,614 ------------------------------------------------------------ Total Revenue 212,614 212,614 Costs of Sales 34,478 34,478 ------------------------------------------------------------ Gross Profit 178,136 178,136 ------------------------------------------------------------ Selling and Administrative: Advertising expense 15,000 15,000 Personnel expense 81,212 81,212 Product expenses 156,546 156,546 Depreciation expense 750 750 Other expense 77,233 77,233 ------------------------------------------------------------ Total selling and administrative 330,741 330,741 ------------------------------------------------------------ Operating Loss (152,605) (152,605) Other (expense)income (5,500) 4,150(d) (1,350) ------------------------------------------------------------ Loss before income taxes (158,105) (153,955) Provision for income tax ------------------------------------------------------------ Net Loss $ (158,105) $(153,955) ============================= ================= Loss Per Share $0.00 $0.00 ============== ================= Weighted average number of common shares outstanding 9,462,672 24,972,398 ============== =================
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Genio Group, Inc (formerly National Management Consulting, Inc) Pro Forma Statement of Operations For the nine months ended June 30, 2003 (unaudited) Historical ----------------------------- Genio Pro Forma Group, Inc Genio, Inc Adjustments Pro Forma ------------------------------------------------------------ Revenues Sales - Other $ 212,614 $ 212,614 --------------------------------------------------------------- Total Revenue 212,614 212,614 Costs of Sales 34,478 34,478 --------------------------------------------------------------- Gross Profit 178,136 178,136 --------------------------------------------------------------- Selling and Administrative: Advertising expense 15,000 15,000 Personnel expense 81,212 81,212 Product expenses 156,546 156,546 Depreciation expense 750 750 Other expense 77,233 77,233 --------------------------------------------------------------- Total selling and administrative 330,741 330,741 --------------------------------------------------------------- Operating Loss (152,605) (152,605) Other (expense) income (5,500) 4,150 (d) (1,350) --------------------------------------------------------------- Loss before income taxes (158,105) (153,955) Provision for income tax --------------------------------------------------------------- Net Loss $(158,105) $(153,955) ============================== =================== Net Loss Per Share $0.00 $0.00 ================= =================== Weighted average number of common shares outstanding 7,624,119 23,1163,993 ================= ===================
4 Pro forma adjustments are as follows: (a) To eliminate intercompany notes at June 30, 2003. (b) To give effect to the completion of a $3 million private placement at June 30, 2003. Through June 30, 2003, the Company raised $600,000 in gross proceeds through a private placement of its equity securities to accredited investors. The Company raised additional funds subsequent to June 30, 2003 through the same private placement. Total gross proceeds in such private placement amounted to $3,000,000. The Company raised $2,000,000 of such funds through its own efforts and the remaining $1,000,000 was raised through a placement agent. Pursuant to this private placement, the Company issued an aggregate of 3 million shares of restricted common stock and warrants to acquire 3 million shares of restricted common stock at an exercise price of $1.50 per share, exercisable for a twenty-four month period. $2,000,000 of the proceeds of such private placement were used to make a secured loan to Genio, Inc. (Genio Loan), a New York privately-held corporation (the "Genio Loan") and effective July 21, 2003, the Company acquired all of the capital stock of Genio Sub. For the purpose of calculating pro forma weighted average number of shares outstanding for the periods presented, it is assumed that the private placement shares issued subsequent to June 30, 2003 were issued and outstanding on June 30, 2003 (c) To record the issuance of 15,484,448 shares of Genio's restricted common stock in connection with the Tele-V, Inc. acquisition. (d) To eliminate interest expenses accrued on the $600,000 intercompany note (see (a) above). 5