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 |
|
| Prime |
|
| Adjustments |
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| 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 |
|
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Total current assets |
|
| 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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| - |
|
|
| - |
|
|
| 2,352,409 |
| b |
| 2,352,409 |
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Total other assets |
|
| 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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| 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 |
|
Treasury stock, $.001 par value; 96,697 shares held in treasury |
|
| (97 | ) |
|
| - |
|
|
| - |
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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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| 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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| 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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| 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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| 2,222,397 |
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(Loss) income before other (expense) income |
|
| (335,049 | ) |
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| 291,460 |
|
|
| - |
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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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| (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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| (213,000 | ) |
Gain on sale |
|
| 3,409,184 |
|
|
| - |
|
|
| - |
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| 3,409,184 |
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Other expense |
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| (3,765 | ) |
|
| 23,705 |
|
|
| - |
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| 19,940 |
|
Total other income (expense) |
|
| 2,929,047 |
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| (159,829 | ) |
|
| - |
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| 2,769,218 |
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Income from continuing operations before provision for income taxes |
|
| 2,593,998 |
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|
| 131,631 |
|
|
| - |
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| 2,725,629 |
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Provision for income taxes |
|
| (731 | ) |
|
| - |
|
|
| - |
|
|
| (731 | ) |
|
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Income from continuing operations |
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| 2,593,267 |
|
|
| 131,631 |
|
|
| - |
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| 2,724,898 |
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Discontinued operations: |
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Income (loss) from discontinued operations, net |
|
| 992,853 |
|
|
| - |
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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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| $ | 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 |
|
Discontinued operations |
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| 3.32 |
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| 3.32 |
|
Net income |
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| 11.99 |
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| 12.43 |
|
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 |
|
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 |
|
| 299,146 |
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|
| 299,146 |
|
Diluted |
|
| 299,146 |
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|
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|
| 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 |
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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 |
|
| Adjustments |
|
| Forma |
| ||||
Net revenue |
| $ | 22,608,024 |
|
| $ | 22,587,083 |
|
| $ | - |
|
| $ | 45,195,107 |
|
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Cost of goods sold |
|
| 17,479,599 |
|
|
| 18,774,272 |
|
|
| - |
|
|
| 36,253,871 |
|
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Gross profit |
|
| 5,128,425 |
|
|
| 3,812,811 |
|
|
| - |
|
|
| 8,941,236 |
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Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(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 |