EX-99.1 2 cncg_ex991.htm PRO FORMA FINANCIAL STATEMENTS cncg_ex991.htm
Exhibit 99.1
INDEX

 
Page
   
Pro-Forma Financial Statements of Concierge Technologies, Inc. and Subsidiaries
  
   
Pro-Forma Consolidated Balance Sheet for the year ended June 30, 2014
F-2
   
Pro-Forma Consolidated Balance Sheet as of December 31, 2014
F-3
   
Pro-Forma Statement of Operations for the year ended June 30, 2014
F-4
   
Pro-Forma Statement of Operations for the three and six month periods ended December 31, 2014
F-5
   
Notes to unaudited Pro-Forma Financial Statements
F-6
 
 
 
F-1
 
 
PRO FORMA FINANCIAL STATEMENTS
 
Below is the pro-forma financial information as of the last balance sheet date of December 31, 2014 and reflect the historical and adjusted results of operations for the fiscal year ended June 30, 2014, the 3-month period ended September 30, 2014 and the 6-month period ended December 31, 2014.
 
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
   
As of June 30, 2014
        
   
Historical
    
Adjustments
    
Pro Forma
  
ASSETS
                  
CURRENT ASSETS:
                  
Cash & cash equivalents
   $ 20,454     $ (1,256 )   $ 19,198  
Accounts receivable, net allowance for doubtful accounts of $25,186
     159,047       (159,047 )     -  
Due from related party
     12,084       (12,084 )     -  
Inventory, net
     474,034       (474,034 )     -  
Other current assets
     2,285       (2,285 )     -  
Total current assets
     667,904       (648,706 )     19,198  
                         
Security deposits
     11,222       (11,222 )     -  
Property and equipment, net
     12,456       (12,456 )     -  
Total assets
   $ 691,582     $ (672,384 )   $ 19,198  
                         
LIABILITIES AND STOCKHOLDERS' DEFICIT
                        
                         
CURRENT LIABILITIES:
                        
Accounts payable and accrued expenses
   $ 953,578     $ (677,370 )   $ 276,208  
Advance from customers
     6,752       (6,752 )     -  
Notes payable - related parties
     48,000       (10,000 )     38,000  
Notes payable
     50,000       (50,000 )     -  
Convertible Debenture, net
     118,000       -       118,000  
Related party convertible debenture, net
     204,700       -       204,700  
Total liabilities
     1,381,030       (744,122 )     636,908  
                         
STOCKHOLDERS' DEFICIT
                        
Preferred stock, 50,000,000 authorized par $0.001
                        
Series A: 206,186 shares issued and outstanding at June 30, 2014
     206       -       206  
Series B: 9,498,409 shares issued and outstanding at June 30, 2014
     9,498       -       9,498  
Common stock, $0.001 par value; 900,000,000 shares authorized; 172,337,841 shares issued and outstanding at at June 30, 2014
     240,339       (68,000 )     172,339  
Additional paid-in capital
     3,954,217       (394,400 )     3,559,817  
Accumulated deficit
     (4,893,708 )     534,139       (4,359,569 )
Total
     (689,448 )     71,739       (617,710 )
Total liabilities and Stockholders' deficit
   $ 691,582     $ (672,384 )   $ 19,198  
 
See accompanying notes
 
 
F-2
 
 
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
 
   
As of December 31, 2014
        
   
Historical
    
Adjustments
    
Pro Forma
  
ASSETS
                  
CURRENT ASSETS:
                  
Cash & cash equivalents
   $ 86,883     $ (28,098 )   $ 58,785  
Accounts receivable, net allowance for doubtful accounts of $25,186
     56,080       (56,080 )     -  
Due from related party
     80,994       (80,994 )     -  
Inventory, net
     187,696       (187,696 )     -  
Other current assets
     3,054       (3,054 )     -  
Total current assets
     414,707       (355,922 )     58,785  
                         
Security deposits
     11,222       (11,222 )     -  
Property and equipment, net
     9,260       (9,260 )     -  
Total assets
   $ 435,189     $ (376,404 )   $ 58,785  
                         
LIABILITIES AND STOCKHOLDERS' DEFICIT
                        
                         
CURRENT LIABILITIES:
                        
Accounts payable and accrued expenses
   $ 750,213     $ (456,756 )   $ 293,457  
Advance from customers
     2,707       (2,707 )     -  
Notes payable - related parties
     38,000       -       38,000  
Notes payable
     85,000       (50,000 )     35,000  
Convertible Debenture, net
     63,224       -       63,224  
Derivative Liability
     48,878       -       48,878  
Related party convertible debenture, net
     204,700       -       204,700  
Total liabilities
     1,192,722       (509,463 )     683,259  
                         
STOCKHOLDERS' DEFICIT
                        
Preferred stock, 50,000,000 authorized par $0.001
                        
Series A: 206,186 shares issued and outstanding at December 31, 2014 and June 30, 2014
     206       -       206  
Series B: 5,092,045 shares issued and outstanding at December 31, 2014 and 9,498,409 June 30, 2014
     5,092       -       5,092  
Common stock, $0.001 par value; 900,000,000 shares authorized; 270,235,368 shares issued and outstanding at December 31, 2014 and 240,337,841 shares issued and outstanding at at June 30, 2014
     338,236       (68,000 )     270,236  
Additional paid-in capital
     3,983,422       (394,400 )     3,589,022  
Accumulated deficit
     (5,084,489 )     595,460       (4,489,029 )
Total
     (757,533 )     133,060       (624,474 )
Total liabilities and Stockholders' deficit
   $ 435,189     $ (376,404 )   $ 58,785  
 
See accompanying notes
 
 
F-3
 
 
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
(UNAUDITED)
 
   
For the year ended June 30, 2014
        
   
Historical
    
Adjustments
    
Pro Forma
  
Net revenue
   $ 2,268,127     $ (2,216,617 )   $ 51,510  
                         
Cost of revenue
     1,318,657       (1,270,615 )     48,042  
                         
Gross profit
     949,471       (946,003 )     3,468  
                         
Operating expense
                        
                         
General & administrative expense
     1,307,571       (1,234,714 )     72,857  
                         
Operating Loss
     (358,100 )     288,711       (69,389 )
                         
Other income (expense)
                        
Other income
     58,701       (58,701 )     -  
Interest expense
     (19,620 )     4,640       (14,979 )
Beneficial conversion feature expense
     -                  
Total other income (expense)
     39,081       (54,061 )     (14,979 )
                         
Loss from continuing operations before income taxes
     (319,019 )     234,651       (84,368 )
                         
Provision of income taxes
     800       (800 )     -  
                         
Proforma Loss from Continuing Operations
     (319,819 )     235,451       (84,368 )
                         
Gain from disposal of subsidiary
     -       4,234       4,234  
                         
Pro forma net gain (loss)
   $ (319,819 )   $ 239,685     $ (80,134 )
                         
Pro forma Weighted average shares of common stock *
                        
Basic & Diluted
     240,337,841       68,000,000       172,337,841  
                         
Pro forma net loss per common share
                        
Basic & Diluted
   $ (0.00 )           $ (0.00 )
 
* Weighted average number of shares used to compute basic and diluted loss per share is the same as the effect of dilutive securities are anti dilutive
 
See accompanying notes
 
 
F-4
 
 
CONCIERGE TECHNOLOGIES, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
(UNAUDITED)
 
   
For the three months period ended December 31, 2014
    
For the six months period ended December 31, 2014
  
   
Historical
    
Adjustments
    
Pro Forma
    
Historical
    
Adjustments
    
Pro Forma
  
Net revenue
   $ 380,384     $ (191,820 )   $ 188,564     $ 800,823     $ (449,848 )   $ 350,975  
                                                 
Cost of revenue
     224,282       (48,599 )     175,683       508,169       (180,824 )     327,345  
                                                 
Gross profit
     156,102       (143,220 )     12,882       292,654       (269,024 )     23,630  
                                                 
Operating expense
                                                
                                                 
General & administrative expense
     141,096       (129,367 )     11,729       356,243       (330,748 )     25,495  
                                                 
Operating Loss
     15,006       (13,853 )     1,152       (63,589 )     61,724       (1,865 )
                                                 
Other income (expense)
                                                
Other income
     1,189       (1,189 )     -       2,250       (2,250 )     -  
Interest expense
     (31,230 )     2,062       (29,168 )     (79,764 )     4,515       (75,249 )
Beneficial conversion feature expense
     (14,112 )     -       (14,112 )     (48,877 )     -       (48,877 )
Total other income (expense)
     (44,153 )     873       (43,280 )     (126,391 )     2,265       (124,126 )
                                                 
Loss from continuing operations before income taxes
     (29,147 )     (12,981 )     (42,128 )     (189,980 )     63,989       (125,991 )
                                                 
Provision of income taxes
     -       -       -       800       (800 )     -  
                                                 
Proforma Loss from Continuing Operations
     (29,147 )     (12,981 )     (42,128 )     (190,780 )     64,789       (125,991 )
                                                 
Gain from disposal of subsidiary
     -       236,218       236,218       -       236,218       236,218  
                                                 
Pro forma net gain (loss)
   $ (29,147 )   $ 223,237     $ 194,090     $ (190,780 )   $ 301,007     $ 110,226  
                                                 
Pro forma Weighted average shares of common stock *
                                          
Basic & Diluted
     336,924,071       68,000,000       268,924,071       333,259,611       68,000,000       265,259,611  
                                                 
Pro forma net loss per common share
                                                
Basic & Diluted
   $ (0.00 )           $ 0.00     $ (0.00 )           $ 0.00  
 
* Weighted average number of shares used to compute basic and diluted loss per share is the same as the effect of dilutive securities are anti dilutive
 
See accompanying notes
 
 
F-5
 
 
Concierge Technologies, Inc. and Subsidiaries
Notes to Unaudited Pro-Forma Financial Statements
 
Basis of Presentation
 
The accompanying pro-forma financial information has been prepared as of the last balance sheet date of December 31, 2014 and reflect the historical and adjusted results of operations for the fiscal year ended June 30, 2014, the 3-month period ended September 30, 2014 and the 6-month period ended December 31, 2014.
 
The gain of $236,218 realized in the divestiture of Wireless Village, Inc. dba Janus Cam (“Janus Cam”) is attributed to the market value of the shares being redeemed minus the forgiveness of intercompany debt plus the excess of Janus Cam liabilities over their assets. Janus Cam's net operating loss of $64,789 for the 6-month period ending December 31, 2014 is not included in the calculation of the gain but appears separately as an adjustment to the proforma loss for continuing operations on the Pro Forma Statement of Operations.
 
The Company has retained a certain segment of the Janus Cam business through a product distribution agreement that currently has application to one specific customer. The sales revenues and cost of goods sold are measurable for this specific customer and have been included in the Proforma Statement of Operations for the continuing business of the Company.
 
We are providing this information to aid you in your analysis of the financial aspects of the disposition. The unaudited pro forma condensed combined financial statements described above should be read in conjunction with the historical financial statements of the Company and subsidiary (Janus Cam) and the related notes thereto.
 

F-6