Contract
Exhibit 99.3
On January 4, 2011, 2010 Entest BioMedical, Inc. (“Entest CA”), a California corporation and a wholly owned subsidiary of Entest BioMedical, Inc., a Nevada corporation (the “Company”) acquired from Pet Pointers, Inc., a California corporation doing business as XxXxxxxx Animal Hospital (“Seller”), and Dr. Xxxxxxx XxXxxxxx DVM (“McDonald”) all the goodwill from McDonald and assets of Seller except cash and accounts receivables used in connection with the operation of a veterinary medical clinic located at 000 X. Xxxxxx Xxxxxx, Xxxxx Xxxxxxx, XX 00000 (the "Business").
The accompanying unaudited pro forma consolidated balance sheet of the Company and Seller gives effect to the acquisition as if it had been completed as of August 31, 2010.
The accompanying unaudited pro forma consolidated statements of operations for the year ended August 31, 2010 give effect to the acquisition as if it had been completed as of August 31, 2009. The historical unaudited statements of operations of the Seller have been recast with a fiscal year end of August 31.
These unaudited pro forma consolidated financial statements are presented for illustrative purposes only. Such information in not necessarily indicative of the operating results or financial position had the acquisition taken place on the dates above indicated, nor is it indicative of the results that may be expected for future periods.
The pro forma consolidated financial statements should be read in conjunction with the Company’s financial statements and related notes in it’s filings with the United States Securities and Exchange Commission and in conjunction with the financial statements of the Seller and related notes included in this current report on Form 8-K .
1
Balance Sheet as of August 31, 2010
|
Pet Pointers, Inc.
|
Adjustments and
|
Pro Forma
|
||||||||||||||||||
|
Eliminations
|
Combined
|
|||||||||||||||||||
|
ASSETS
|
||||||||||||||||||||
|
Current Assets
|
||||||||||||||||||||
|
Cash
|
$ | 206 | $ | 926 | - | $ | (926 | )(a) | $ | 206 | ||||||||||
|
Officer Loan
|
- | 35,233 | - | (35,233 | )(a) | - | ||||||||||||||
|
Accounts Receivable
|
||||||||||||||||||||
|
Current Portion of Prepaid Expenses
|
54,200 | 800 | - | (800 | )(a) | 54,200 | ||||||||||||||
|
Employee Receivable
|
1,396 | - | - | - | 1,396 | |||||||||||||||
|
Total Current Assets
|
55,802 | 36,959 | 55802 | |||||||||||||||||
|
Long Term Assets
|
||||||||||||||||||||
|
Property & Equipment (Net of Accumulated Depreciation)
|
- | 371 | 28,000 | (b) | (371 | )(b) | 28,000 | |||||||||||||
|
Leasehold Improvements (Net of Accumulated Depreciation)
|
- | 14,171 | - | (14,171 | )(b) | - | ||||||||||||||
|
Loan to Shareholder
|
- | 30,000 | - | (30,000 | )(a) | - | ||||||||||||||
|
Non Current Portion of Prepaid Expenses
|
28,400 | - | - | - | 28,400 | |||||||||||||||
|
Deposits
|
1,059 | - | - | - | 1,059 | |||||||||||||||
|
Intellectual property
|
||||||||||||||||||||
|
Goodwill
|
- | - | 405,000 | (c) | - | 405,000 | ||||||||||||||
|
Total Long Term Assets
|
29,459 | 44,542 | - | - | 462,459 | |||||||||||||||
|
TOTAL ASSETS
|
$ | 85,261 | $ | 81,501 | $ | 518,261 | ||||||||||||||
|
LIABILITES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
|
Current Liabilities
|
||||||||||||||||||||
|
Accounts Payable
|
21,342 | 4,565 | - | (4,565 | )(d) | 21,342 | ||||||||||||||
|
Bank Overdraft
|
- | 3,533 | - | (3,533 | )(d) | - | ||||||||||||||
|
Current Portion Long Term Debt
|
- | - | 27,900 | (e) | - | 27,900 | ||||||||||||||
|
Deferred tax Liability
|
- | 115 | - | (115 | )(d) | - | ||||||||||||||
|
Notes Payable
|
156,566 | - | 50,000 | (e) | - | 206,566 | ||||||||||||||
|
Accrued Expenses
|
128,095 | 53,648 | - | (53,648 | )(d) | 128,095 | ||||||||||||||
|
Total Current Liabilities
|
306,003 | 61,861 | 383,903 | |||||||||||||||||
|
Noncurrent portion of Long Term Debt
|
- | |||||||||||||||||||
|
Term Note payable
|
- | 71,290 | 75,100 | (e) | (71,290 | )(d) | 75,100 | |||||||||||||
|
TOTAL LIABILITIES
|
306,003 | 133,151 | 459,003 | |||||||||||||||||
|
STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
|
Common Stock, Pet Pointers
|
- | 1,000 | - | (1,000 | )(f) | - | ||||||||||||||
|
Common Stock, Entest
|
17,553 | - | 112 | (g) | - | 17,665 | ||||||||||||||
|
Additional paid in Capital
|
537,415 | - | 279,888 | (h) | - | 817,303 | ||||||||||||||
|
Contributed capital
|
15,104 | - | - | - | 15,104 | |||||||||||||||
|
Deficit accumulated during the development stage
|
(790,814 | ) | (52,650 | )(i) | - | 52,650 | (i) | (790,814 | ) | |||||||||||
|
Total Stockholders' Equity
|
(220,742 | ) | (51,650 | ) | 59,258 | |||||||||||||||
|
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY
|
$ | 85,261 | $ | 81,501 | $ | 518,261 | ||||||||||||||
|
|
(a)
|
Asset Not acquired in Acquisition
|
|
|
(b)
|
Adjustments resulting from Assets acquired recorded at Fair Value estimated as of the date of Acquisition
|
|
|
(c)
|
Goodwill resulting from Acquisition
|
|
|
(d)
|
Liability not assumed by Company
|
|
|
(e)
|
Liability resulting from Acquisition
|
|
|
(f)
|
Common stock of Seller not acquired in Acquisition
|
|
|
(g)
|
Common Stock of Company issued in connection with Acquisition
|
|
|
(h)
|
Additional Paid in Capital resulting from common stock issued in excess of par in connection with Acquisition
|
|
|
(i)
|
Accumulated Deficit of Seller not assumed in Acquisition
|
2
Statement of Operations For the year ended August 31, 2010
|
Entest
|
Pet Pointer
|
Adjustments and
|
Pro Forma
|
|||||||||||||||||||||
|
Eliminations
|
Consolidated
|
|||||||||||||||||||||||
|
Year Ended
|
Year Ended
|
Year Ended
|
||||||||||||||||||||||
|
August 31,
|
August 31,
|
August 31,
|
||||||||||||||||||||||
|
2010
|
2010
|
2010
|
||||||||||||||||||||||
|
REVENUES
|
||||||||||||||||||||||||
|
Sales
|
$ | - | 609,163 | - | - | - | 609,163 | |||||||||||||||||
|
Total Revenues
|
$ | - | $ | 609,163 | $ | 609,163 | ||||||||||||||||||
|
Cost of Revenue
|
98,850 | - | - | - | 98,850 | |||||||||||||||||||
|
Gross profit
|
- | 510,313 | 510,313 | |||||||||||||||||||||
|
COSTS AND EXPENSES
|
||||||||||||||||||||||||
|
Research and Development
|
20,933 | - | - | - | - | 20,933 | ||||||||||||||||||
|
Rent
|
49,200 | - | - | - | - | 49,200 | ||||||||||||||||||
|
Occupancy Cost
|
- | 71,938 | - | - | - | 71,938 | ||||||||||||||||||
|
General and Administrative
|
421,213 | 418,497 | (2,594 | )(a) | (32,000 | )(b) | 2,800 | (c) | 807,916 | |||||||||||||||
|
Incorporation Costs
|
- | - | - | - | - | - | ||||||||||||||||||
|
Consultant's Expenses
|
46,470 | 25,146 | - | - | - | 71,616 | ||||||||||||||||||
|
Miscellaneous Expenses
|
- | - | - | - | - | - | ||||||||||||||||||
|
Total Costs and Expenses
|
537,816 | 515,581 | 1,021,603 | |||||||||||||||||||||
|
OPERATING LOSS
|
(537,816 | ) | (5,268 | ) | (511,290 | ) | ||||||||||||||||||
|
OTHER INCOME AND EXPENSE
|
||||||||||||||||||||||||
|
Interest Income
|
- | 1,127 | (1,127 | )(d) | - | - | - | |||||||||||||||||
|
Interest Expense
|
(7,075 | ) | (8,007 | ) | 8,007 | (e) | - | - | (7,075 | ) | ||||||||||||||
|
LOSS BEFORE INCOME TAXES
|
(544,891 | ) | (12,148 | ) | (518,365 | ) | ||||||||||||||||||
|
Income Taxes
|
- | - | - | - | - | |||||||||||||||||||
|
NET INCOME (LOSS)
|
$ | (544,891 | ) | $ | (12,148 | ) | $ | (518,365 | ) | |||||||||||||||
|
BASIC AND DILUTED EARNINGS (LOSS)
|
||||||||||||||||||||||||
|
PER SHARE
|
$ | (0.031 | ) | $ | (12.148 | ) | (0.029 | ) | ||||||||||||||||
|
WEIGHTED AVERAGE NUMBER OF
|
||||||||||||||||||||||||
|
COMMON SHARES OUTSTANDING
|
17,540,420 | 1,000 | 17,652,128 | |||||||||||||||||||||
|
|
(a)
|
Depreciation Expense of Seller
|
|
|
(b)
|
Compensation to McDonald in excess of compensation stipulated by Employment Agreement
|
|
|
(c)
|
Depreciation expense of Company attributable to Assets Acquired
|
|
|
(d)
|
Interest income of Seller
|
|
|
(e)
|
Interest Expense of Seller
|
3
