NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS BASIS OF PRO FORMA PRESENTATION
NOTES
TO
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
BASIS
OF
PRO FORMA PRESENTATION
On
November 6, 2008, Yatinoo International SA, a Public Limited Company formed
in
Spain, including its subsidiaries (the “Company” or “Yatinoo”) and Stone
Consulting Services, Inc. (“Pubco” or “Stone”) entered into a Stock Purchase
Agreement, whereby Pubco agreed to acquire 100% of the issued and outstanding
capital stock of Yatinoo from Yatinoo stockholders (the “Yatinoo
Holders”)
in
exchange for payment of the purchase price of Fourteen Million Four Hundred
Thousand (14,400,000) restricted shares of $.001 par value Common Stock of
Pubco
(the “Purchase
Price”),
or
forty-eight percent (48%) of the issued and outstanding capital stock of Pubco
immediately following the Forward Stock Split and closing of the transactions
contemplated by the Stock Purchase Agreement (the “Yatinoo
Acquisition”).
The
Purchase Price was paid by Pubco to the Yatinoo Holders on November 13, 2008,
the Closing Date. On November 14, 2008, Pubco changed its name to Yatinoo,
Inc.
For accounting purposes, Yatinoo is considered to be the accounting acquirer.
In
relation to the Stock Purchase Agreement, Pubco transferred all of the assets,
liabilities and the consulting business that existed and was engaged in by
Pubco
immediately before the Closing to Xxxxxxx Xxxxx, Pubco’s Founder, d/b/a Stone
Consulting Services.
The
unaudited pro forma combined condensed balance sheets combine Yatinoo and
Xxxxx’x balances sheets as of the balance sheet date as if the transaction had
been consummated on that date.
The
unaudited pro forma combined condensed statements of operations for the year
ended December 31, 2007 and for the six month period ended June 30, 2008 give
effect to the Yatinoo Acquisition as if it had occurred on January 1.
PRO
FORMA
ADJUSTMENTS
| a. |
To
reflect the transfer of all the assets and liabilities of Pubco
immediately prior to the transaction to Xxxxxxx Xxxxx as if the
transaction occurred on the balance sheet
date.
|
| b. |
To
reflect the increase in authorized shares of common stock of Pubco
from 50
million to 500 million and a simultaneous 30 for 1 forward stock
split.
|
| c. |
To
reflect the repurchase and cancellation of 134,400,000 shares of
common
stock for $200,000. Assumes that the Company entered into a note
payable
for $200,000 to fund the repurchase on the balance sheet
date.
|
| d. |
To
reflect the recapitalization of Pubco through the issuance of 14,400,000
shares of common stock of Pubco to the Yatinoo shareholders for their
100%
ownership interest in Yatinoo. Yatinoo shareholders will exchange
their
outstanding shares of common stock in Yatinoo for shares of Pubco,
representing a 48% interest in the combined
entity.
|
| e. |
Reflects
the excess of the consideration paid, over the net assets received.
As no
goodwill is recorded in a transaction entered into with a shell,
the
difference was recorded as an adjustment to paid-in
capital.
|
| f. |
Reflects
the interest expense which would have been reflected on the note
payable,
had the note been outstanding for the entire year. The note payable
is due
within 120 days, and if repaid within that time, is non-interest
bearing.
The default rate on the note is 18%. For purposes of the pro forma
presentation, the note is assumed to have been outstanding for the
entire
year.
|
| g. |
Represents
estimated transaction costs of $50,000 for legal and accounting fees
associated with the Stock Purchase
Agreement.
|
F-5
| h. |
The
conversion rate for the balance sheet at December 31, 2007 and June
30,
2008 was $1.47 and $1.58 per Euro, respectively. The conversion rate
for
stockholders’ equity represents the historical rate on the date of
issuance, which was $1.37 for 3,081 shares and $1.58 for 96,919 shares.
The conversation rate for the statement of operations for the year
ended
December 31, 2007 was $1.31 per Euro and for six months ended June
30,
2008 was $1.53 per Euro.
|
F-6
|
PRO
FORMA COMBINED BALANCE SHEET AT DECEMBER 31, 2007
|
||||||||||||||||
|
(UNAUDITED)
|
||||||||||||||||
|
Actual
|
Actual
|
Pro
Forma
|
Pro
Forma
|
|||||||||||||
|
Yatinoo
(h)
|
Stone
|
Adjustments
|
Notes
|
Combined
|
||||||||||||
|
Cash
|
$
|
90,228
|
$
|
24,656
|
$
|
(24,656
|
)
|
a
|
$
|
90,228
|
||||||
|
Accounts
receivable
|
5,543
|
5,543
|
||||||||||||||
|
Total
current assets
|
95,771
|
24,656
|
95,771
|
|||||||||||||
|
Property,
plant and equipment
|
88,607
|
-
|
88,607
|
|||||||||||||
|
Intangible
assets
|
163,000
|
-
|
163,000
|
|||||||||||||
|
Total
Assets
|
$
|
347,378
|
$
|
24,656
|
$
|
347,378
|
||||||||||
|
Current
Liabilities:
|
||||||||||||||||
|
Accounts
payable
|
$
|
516,339
|
$
|
-
|
$
|
516,339
|
||||||||||
|
Accrued
liabilites
|
-
|
5,754
|
(5,754
|
)
|
a
|
|||||||||||
|
Income
tax payable
|
-
|
800
|
(800
|
)
|
a
|
-
|
||||||||||
|
Loan
payable
|
60,760
|
-
|
200,000
|
c,f
|
260,760
|
|||||||||||
|
Total
Current Liabilities
|
577,099
|
6,554
|
777,099
|
|||||||||||||
|
Long-Term
Debt
|
||||||||||||||||
|
Shareholder
loan
|
-
|
500
|
(500
|
)
|
a
|
-
|
||||||||||
|
Total
Liabilities
|
577,099
|
7,054
|
777,099
|
|||||||||||||
|
Stockholders'
Equity
|
||||||||||||||||
|
Common
stock, $.001 par value 50,000,000 authorized
|
||||||||||||||||
|
5,000,000
issued and outstanding
|
4,212
|
5,000
|
20,788
|
b,g,f,d
|
30,000
|
|||||||||||
|
Additional
Paid in Capital
|
32,500
|
(258,288
|
)
|
b,c,d,e
|
(225,788
|
)
|
||||||||||
|
Accumulated
other comprehensive loss
|
(27,317
|
)
|
-
|
-
|
(27,317
|
)
|
||||||||||
|
Deficit
Accumulated in the Development Stage
|
(206,616
|
)
|
(19,898
|
)
|
19,898
|
a
|
(206,616
|
)
|
||||||||
|
Total
Stockholders' Equity (Deficit)
|
(229,721
|
)
|
17,602
|
(429,721
|
)
|
|||||||||||
|
Total
Liabilities and Stockholders' Equity
|
$
|
347,378
|
$
|
24,656
|
$
|
347,378
|
||||||||||
F-7
|
PRO
FORMA COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED
|
||||||||||||||||
|
DECEMBER
31, 2007 (UNAUDITED)
|
||||||||||||||||
|
|
||||||||||||||||
|
Actual
|
Actual
|
Pro
Forma
|
Pro
Forma
|
|||||||||||||
|
Yatinoo
(i)
|
Stone
|
Adjustments
|
Combined
|
|||||||||||||
|
Revenues
|
||||||||||||||||
|
Consulting
Revenue
|
$
|
-
|
$
|
2,500
|
$
|
2,500
|
||||||||||
|
Service
Revenue
|
19,986
|
-
|
19,986
|
|||||||||||||
|
19,986
|
2,500
|
22,486
|
||||||||||||||
|
Cost
of Sales
|
4,481
|
-
|
4,481
|
|||||||||||||
|
Gross
profit
|
15,505
|
2,500
|
18,005
|
|||||||||||||
|
|
||||||||||||||||
|
General
administrative expenses
|
174,509
|
22,347
|
50,000
|
g
|
246,856
|
|||||||||||
|
Net
loss from operations
|
(159,004
|
)
|
(19,847
|
)
|
(228,851
|
)
|
||||||||||
|
Interest
expense
|
-
|
-
|
(36,000
|
)
|
f
|
(36,000
|
)
|
|||||||||
|
Loss
before provision for income tax
|
(159,004
|
)
|
(19,847
|
)
|
(264,851
|
)
|
||||||||||
|
|
||||||||||||||||
|
Income
tax expense
|
-
|
800
|
800
|
|||||||||||||
|
Net
Loss
|
$
|
(159,004
|
)
|
$
|
(20,647
|
)
|
$
|
(265,651
|
)
|
|||||||
|
Basic
and Diluted Loss per
|
||||||||||||||||
|
Common
share
|
$
|
-
|
$
|
(0.01
|
)
|
|||||||||||
|
Basic
and Diluted Weigted Average
|
||||||||||||||||
|
Common
Shares Outstanding
|
139,561,650
|
30,000,000
|
||||||||||||||
F-8
|
PRO
FORMA COMBINED BALANCE SHEET AT JUNE 30, 2008
|
|||||||||||||||||||
|
(UNAUDITED)
|
|||||||||||||||||||
|
Actual
|
Actual
|
Pro
Forma
|
Pro
Forma
|
||||||||||||||||
|
Yatinoo
(i)
|
Stone
|
Adjustments
|
Notes
|
Combined
|
|||||||||||||||
|
|
|||||||||||||||||||
|
Cash
|
$
|
20,340
|
$
|
4,804
|
(4,804
|
)
|
a
|
$
|
20,340
|
||||||||||
|
Accounts
receivable
|
245,774
|
-
|
245,774
|
||||||||||||||||
|
Prepaid
expenses
|
8,456
|
-
|
8,456
|
||||||||||||||||
|
Total
current assets
|
274,570
|
4,804
|
274,570
|
||||||||||||||||
|
Property,
plant and equipment
|
118,962
|
-
|
118,962
|
||||||||||||||||
|
Intangible
assets
|
37,131
|
-
|
37,131
|
||||||||||||||||
|
Goodwill
|
-
|
||||||||||||||||||
|
Total
Assets
|
$
|
430,663
|
$
|
4,804
|
$
|
430,663
|
|||||||||||||
|
Current
Liabilities:
|
|||||||||||||||||||
|
Accounts
payable
|
$
|
521,683
|
$
|
8,471
|
(8,471
|
)
|
a
|
521,683
|
|||||||||||
|
Loan
payable
|
170,699
|
200,000
|
c,
f
|
370,699
|
|||||||||||||||
|
Shareholder
loan-current portion
|
321,134
|
-
|
321,134
|
||||||||||||||||
|
Total
Current Liabilities
|
1,013,516
|
8,471
|
1,213,516
|
||||||||||||||||
|
Long-Term
Debt
|
|||||||||||||||||||
|
Shareholder
loan
|
-
|
8,000
|
(8,000
|
)
|
a
|
-
|
|||||||||||||
|
Total
Liabilities
|
1,013,516
|
16,471
|
1,213,516
|
||||||||||||||||
|
Stockholders'
Equity
|
|||||||||||||||||||
|
Common
Stock
|
157,334
|
5,000
|
(132,334
|
)
|
b,
c, d
|
30,000
|
|||||||||||||
|
Additional
Paid in Capital
|
-
|
32,500
|
(105,166
|
)
|
b,
c, d, e
|
(72,666
|
)
|
||||||||||||
|
Accumulated
other comprehensive loss
|
(212,822
|
)
|
-
|
(212,822
|
)
|
||||||||||||||
|
Deficit
Accumulated in the Development Stage
|
(527,365
|
)
|
(49,167
|
)
|
49,167
|
a
|
(527,365
|
)
|
|||||||||||
|
Total
Stockholders' Equity (Deficit)
|
(582,853
|
)
|
(11,667
|
)
|
(782,853
|
)
|
|||||||||||||
|
Total
Liabilities and Stockholders' Equity
|
$
|
430,663
|
$
|
4,804
|
$
|
430,663
|
|||||||||||||
F-9
|
PRO
FORMA COMBINED STATEMENT OF OPERATIONS FOR THE
|
||||||||||||||||
|
SIX
MONTHS ENDED JUNE 30, 2008 (UNAUDITED)
|
||||||||||||||||
|
Actual
|
Actual
|
Pro
Forma
|
Pro
Forma
|
|||||||||||||
|
Yatinoo
|
Stone
|
Adjustments
|
Combined
|
|||||||||||||
|
Revenues
|
||||||||||||||||
|
|
$
|
- |
$
|
3,350
|
$
|
3,350
|
||||||||||
|
Consulting
Revenue
|
1,530,490
|
-
|
1,530,490
|
|||||||||||||
|
Service
Revenue
|
1,530,490
|
3,350
|
1,533,840
|
|||||||||||||
|
Cost
of Sales
|
169,799
|
-
|
169,799
|
|||||||||||||
|
Gross
profit
|
1,360,691
|
3,350
|
1,364,041
|
|||||||||||||
|
|
||||||||||||||||
|
General
administrative expenses
|
1,677,195
|
31,622
|
50,000
|
g
|
1,758,817
|
|||||||||||
|
Net
loss from operations
|
(316,504
|
)
|
(28,272
|
)
|
(344,776
|
)
|
||||||||||
|
Interest
expense
|
(4,246
|
)
|
-
|
(18,000
|
)
|
f
|
(22,246
|
)
|
||||||||
|
Loss
before provision for income tax
|
(320,750
|
)
|
(28,272
|
)
|
(349,022
|
)
|
||||||||||
|
|
||||||||||||||||
|
Income
tax expense
|
-
|
997
|
997
|
|||||||||||||
|
Net
Loss
|
$
|
(320,750
|
)
|
$
|
(29,269
|
)
|
$
|
(350,019
|
)
|
|||||||
|
Basic
and Diluted Loss per
|
||||||||||||||||
|
Common
share
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
||||||||||
|
Basic
and Diluted Weigted Average
|
||||||||||||||||
|
Common
Shares Outstanding
|
150,000,000
|
30,000,000
|
||||||||||||||
F-10
