INTRODUCTION TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
INTRODUCTION TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION
On April 23, 2014, StationDigital , Inc., a Delaware corporation (“StationDigital”) consummated a Stock Purchase Agreement, as amended (the “Agreement”) entered into with Steel Pier Capital Advisors, LLC (“Steel Pier”) whereby StationDigital acquired 4,850,000 shares of 5,000,000 shares of Common Stock held by Steel Pier. The purchase price for the Shares was One Hundred Thousand Dollars ($100,000). The acquisition of the Shares, which represent approximately 91% of the Registrant’s shares of outstanding Common Stock, resulted in a change in control of the Registrant.
Also on April 23, 2014, the Registrant authorized an amendment to its Articles of Incorporation (the “Amendment”) to (i) change its name to StationDigital, Inc., (ii) to increase the number of its authorized shares of capital stock from 75,000,000 to 510,000,000 shares of which 500,000,000 shares were designated common stock, par value $0.0001 per share (the “Common Stock”) and 10,000,000 shares were designated “blank check” preferred stock, par value $0.0001 per share (the “Preferred Stock”) and (iii) to effect a forward split such that 17.6471 shares of Common Stock and Preferred Stock were issued for every 1 share of Common Stock and Preferred Stock issued and outstanding immediately prior to the Amendment (the “Split”). The Registrant also authorized a conversion of its corporate domicile to the State of Delaware.
Also on April 23, 2014, the Registrant entered into and consummated the Agreement and Plan of Merger (the “Merger Agreement”), with StationDigital, whereby StationDigital merged with into the Registrant (the “Merger”) for approximately 3,585,575 pre-Split shares of the Company’s Common Stock and 56 shares of a newly-created Series A Preferred Stock. Further, the Registrant amended its By-laws to change the fiscal year end to December 31st. The change is intended to align the Registrant’s fiscal periods with that of StationDigital’s business.
The unaudited pro forma combined balance sheet as of December 31, 2013 combines the unaudited balance sheet of the Registrant as of December 31, 2013 and the unaudited balance sheet of StationDigital, Inc. as of December 31, 2013 and assumes that the Exchange was consummated on December 31, 2013.
The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what our financial position or results of operations would have been had the Exchange occurred as of the dates indicated, nor is it indicative of our future financial position or results of operations for any period. You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience after the Exchange.
The unaudited pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances.
StationDigital, Inc.
(A Development Stage Company)
Pro Forma Balance Sheet
| December 31, 2013 | December 31, 2013 | Pro Forma | ||||||||||||||||||
| StationDigital, Inc. | Alarming Devices, Inc. | Adjustments | Note | Consolidated | ||||||||||||||||
| ASSETS | ||||||||||||||||||||
| Current assets: | ||||||||||||||||||||
| Cash | $ | 5,687 | $ | - | $ | - | $ | 5,687 | ||||||||||||
| Deposit | 1,000 | - | - | 1,000 | ||||||||||||||||
| Total current assets | 6,687 | - | - | 6,687 | ||||||||||||||||
| Property and equipment, net | 41,865 | - | - | 41,865 | ||||||||||||||||
| Website development costs, net | 229,884 | - | - | 229,884 | ||||||||||||||||
| Total assets | $ | 278,436 | $ | - | $ | - | $ | 278,436 | ||||||||||||
| LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||||||||||||||
| Current liabilities: | ||||||||||||||||||||
| Accounts payable | $ | 634,097 | $ | 33,252 | $ | - | $ | 667,349 | ||||||||||||
| Advances from stockholder | - | 79,837 | - | 79,837 | ||||||||||||||||
| Payable to GoldenHeart Holdings | 5,676,478 | - | 5,676,478 | |||||||||||||||||
| Payable to GHH Commerce | 416,183 | - | - | 416,183 | ||||||||||||||||
| Total current liabilities | 6,726,758 | 113,089 | - | 6,839,847 | ||||||||||||||||
| Total liabilities | 6,726,758 | 113,089 | - | 6,839,847 | ||||||||||||||||
| Stockholders’ deficit: | ||||||||||||||||||||
| Common stock par value $0.0001: 500,000,000 shares authorized; 68,500,154 shares issued and outstanding | 748 | 5,340 | 762 | 1,2,3,4,5,6 | 6,850 | |||||||||||||||
| Preferred stock par value $0.0001: 10,000,000 shares authorized; nil shares issued and outstanding | - | - | - | - | ||||||||||||||||
| Loan to shareholder | (4,045 | ) | - | - | (4,045 | ) | ||||||||||||||
| Related party receivable | (468,389 | ) | - | - | (468,389 | ) | ||||||||||||||
| Stock payable | 2,456 | - | - | 2,456 | ||||||||||||||||
| Additional paid-in capital | - | 9,860 | (762 | ) | 1,2,3,4,5,6 | 9,098 | ||||||||||||||
| Deficit accumulated during the development stage | (5,979,092 | ) | (128,289 | ) | - | (6,107,381 | ) | |||||||||||||
| Total stockholders’ deficit | (6,448,322 | ) | (113,089 | ) | - | (6,561,411 | ) | |||||||||||||
| Total liabilities and stockholders’ deficit | $ | 278,436 | $ | - | $ | - | $ | 278,436 | ||||||||||||
| Registrant share transactions | Shares | Cash Consideration | Share Value | Paid-in Capital | ||||||||||||||||
| Pro forma adjustments | ||||||||||||||||||||
| Common stock: | ||||||||||||||||||||
| (1) To give effect to the elimination of StationDigital's common stock in Share Exchange | - | $ | - | $ | (748 | ) | $ | 748 | ||||||||||||
| (2) To give effect to the exchange of Steel Pier's common stock in Share Exchange | (5,000,000 | ) | - | (5,000 | ) | 5,000 | ||||||||||||||
| (3) To give effect to the issuance of common stock to StationDigital in Share Exchange | 3,400,000 | - | 3,400 | (3,400 | ) | |||||||||||||||
| (4) To give effect to forward stock split of 17.6471 for 1 | 62,260,154 | - | 62,260 | (62,260 | ) | |||||||||||||||
| (5) To give effect to the shares issued to Steel Pier in consideration for Share Exchange | 2,500,000 | - | 2,500 | (2,500 | ) | |||||||||||||||
| (6) To give effect of change in par value from $0.001 to $0.0001 | - | - | (61,650 | ) | 61,650 | |||||||||||||||
| Total common stock pro forma adjustments | 63,160,154 | $ | - | $ | 762 | $ | (762 | ) | ||||||||||||
StationDigital, Inc.
(A Development Stage Company)
Pro Forma Statements of Operations
| For the Year Ended | For the Year Ended | |||||||||||||||
| December 31, 2013 | December 31, 2013 | |||||||||||||||
| StationDigital, Inc. | Alarming Devices, Inc. | Adjustment | Consolidated | |||||||||||||
| Advertising revenue | $ | 13,512 | $ | - | $ | - | $ | 13,512 | ||||||||
| Cost of revenue | 559,750 | - | - | 559,750 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Product development costs | 282,016 | - | - | 282,016 | ||||||||||||
| Sales and marketing | 4,627,523 | - | - | 4,627,523 | ||||||||||||
| Professional fees | - | 30,133 | - | 30,133 | ||||||||||||
| General and administrative | 455,613 | - | - | 455,613 | ||||||||||||
| Total operating expenses | 5,365,152 | 30,133 | - | 5,395,285 | ||||||||||||
| Operating loss | (5,911,390 | ) | (30,133 | ) | - | (5,941,523 | ) | |||||||||
| Net loss | $ | (5,911,390 | ) | $ | (30,133 | ) | $ | - | $ | (5,941,523 | ) | |||||
