Delaware
|
000-49805
|
01-0592299
|
(State or other jurisdiction of incorporation or organization)
|
(Commission File Number)
|
IRS Employer
Identification No.)
|
26 West Mission Avenue #8
Santa Barbara, CA
|
93101
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Item 9.01
|
Financial Statements and Exhibits.
|
Exhibit Number
|
Description
|
|
10.1
|
Asset Purchase Agreement dated November 3, 2014 between MD Energy, LLC, Daniel Mitchell, Andrea Mitchell and Solar 3D, Inc. (previously filed as an exhibit to the Company’s quarterly report on Form 10-Q filed on November 10, 2014)
|
|
99.1
|
||
99.2 | Unaudited Pro forma combined financial statements of Solar3D, Inc. and MD Energy, LLC |
SOLAR3D, INC.
|
|||||
Date: January 7, 2015
|
By:
|
/s/ James B. Nelson
|
|||
Name: James B. Nelson
|
|||||
Title: Chief Executive Officer
|
Condensed Balance Sheets at September 30, 2014 (unaudited) and December 31, 2013
|
1
|
Unaudited Condensed Statements of Operations for the Nine Months Ended September 30, 2014
|
|
and Period April 8, 2013 (Inception) to September 30, 2013
|
2
|
Unaudited Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2014
|
|
and Period April 8, 2013 (Inception) to September 30, 2013
|
3
|
Notes to the Condensed Financial Statements (unaudited)
|
4 - 9
|
Reports of Independent Registered Public Accounting Firm
|
10
|
Balance Sheets at December 31, 2013
|
11
|
Statements of Operations and Members’ Equity,
|
|
for the period April 8, 2013 (Inception) through December 31, 2013
|
12
|
Statements of Cash Flows for the period April 8, 2013 (Inception) through December 31, 2013
|
13
|
Notes to the Financial Statements
|
14 - 20
|
ASSETS
|
||||||||
September 30, 2014
|
December 31, 2013
|
|||||||
(Unaudited)
|
||||||||
Current Assets :
|
||||||||
Cash and cash equivalents
|
$ | 489,936 | $ | 377,080 | ||||
Contracts receivable
|
740,697 | 85,166 | ||||||
Note receivable
|
150,442 | - | ||||||
Prepaid expenses
|
- | 420,500 | ||||||
Costs and estimated earnings
in excess of billings |
146,814 | 13,557 | ||||||
Total Current Assets
|
1,527,889 | 896,303 | ||||||
Furniture and equipment, net
|
78,389 | 2,508 | ||||||
TOTAL ASSETS
|
$ | 1,606,278 | $ | 898,811 | ||||
LIABILITIES AND MEMBERS' EQUITY
|
||||||||
Current Liabilities :
|
||||||||
Accounts payable and accrued expenses
|
$ | 473,496 | $ | 137,326 | ||||
Billings in excess of costs
and estimated earnings |
257,007 | 608,311 | ||||||
Notes payable - current portion
|
4,461 | - | ||||||
Total Current Liabilities
|
734,964 | 745,637 | ||||||
Long-Term Liabilities
|
||||||||
Notes payable, net of current portion
|
74,922 | - | ||||||
Members' Equity
|
796,392 | 153,174 | ||||||
TOTAL LIABILITIES AND MEMBERS' EQUITY
|
$ | 1,606,278 | $ | 898,811 |
September 30, 2014
|
September 30, 2013
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Revenue
|
$ | 4,398,799 | $ | 131,605 | ||||
Total Revenue
|
4,398,799 | 131,605 | ||||||
Cost of Contracts :
|
||||||||
Materials
|
1,786,663 | 84,378 | ||||||
Labor and subcontracts
|
1,644,404 | 30,351 | ||||||
Other costs
|
213,338 | 6,685 | ||||||
Total Cost of Revenue
|
3,644,405 | 121,414 | ||||||
Gross Profit
|
754,394 | 10,191 | ||||||
Operating Expenses :
|
||||||||
General and administrative expenses
|
307,270 | 105,996 | ||||||
Total Operating Expenses
|
307,270 | 105,996 | ||||||
INCOME (LOSS) FROM OPERATIONS
|
447,124 | (95,805 | ) | |||||
Other income
|
3,728 | - | ||||||
Income taxes
|
(800 | ) | (800 | ) | ||||
NET INCOME (LOSS)
|
450,052 | (96,605 | ) | |||||
Beginning members' equity
|
153,174 | - | ||||||
Capital contributions
|
300,000 | 300,000 | ||||||
Capital distributions
|
(106,834 | ) | - | |||||
MEMBERS' EQUITY
|
$ | 796,392 | $ | 203,395 |
September 30, 2014
|
September 30, 2013
|
|||||||
(Unaudited)
|
(Unaudited)
|
|||||||
Cash flows from operating activities
|
||||||||
Net Income (Loss)
|
$ | 450,052 | $ | (96,605 | ) | |||
Adjustments to reconcile in net income (loss) to net cash
provided by operating activities : |
||||||||
Depreciation and amortization
|
5,000 | - | ||||||
(Increase) in accounts receivable
|
(655,531 | ) | (97,408 | ) | ||||
Decrease in prepaid expenses
|
420,500 | - | ||||||
(Increase) in costs in excess of billing
|
(133,257 | ) | (30,968 | ) | ||||
Increase in accounts payable
|
336,170 | 60,103 | ||||||
Increase (decrease) in billings in excess of costs
|
(351,304 | ) | 13,821 | |||||
Total adjustments
|
(378,422 | ) | (54,452 | ) | ||||
Net cash provided (used) by operating activities
|
71,630 | (151,057 | ) | |||||
Cash flow from investing activities :
|
||||||||
Cash payments for the purchase of furniture and equipment
|
(2,416 | ) | (2,926 | ) | ||||
Net cash (used) in investing activities
|
(2,416 | ) | (2,926 | ) | ||||
Cash flow from financing activities :
|
||||||||
Member distributions
|
(106,834 | ) | - | |||||
Member contributions
|
300,000 | 300,000 | ||||||
Short-term notes receivable
|
(149,524 | ) | - | |||||
Net cash provided by financing activities
|
43,642 | 300,000 | ||||||
Net Increase in cash and equivalents
|
112,856 | 146,017 | ||||||
Cash and equivalents, beginning of period
|
377,080 | - | ||||||
Cash and equivalents end of period
|
$ | 489,936 | $ | 146,017 | ||||
Supplemental disclosures of cash flow information :
|
||||||||
Cash paid during the period for:
|
||||||||
Interest expense
|
$ | 406 | $ | 6 | ||||
Income Tax
|
$ | 800 | $ | 800 |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
Currently due:
|
||||||||
Contracts in progress
|
$ | 739,345 | $ | 85,166 | ||||
Contracts completed
|
- | - | ||||||
|
739,345 | 85,166 | ||||||
Retention:
|
||||||||
Contracts in progress
|
1,352 | - | ||||||
Total
|
$ | 740,697 | $ | 85,166 |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
Costs incurred on uncompleted contracts
|
$ | 3,958,014 | $ | 313,607 | ||||
Estimated earnings to date
|
791,250 | 36,858 | ||||||
Total costs and estimated earnings
|
4,749,264 | 350,465 | ||||||
Less, billings to date
|
(4,859,457 | ) | (945,219 | ) | ||||
Net billings in excess of costs and estimated earnings
|
$ | (110,193 | ) | $ | (594,754 | ) |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
Costs and estimated earnings in excess of billings
|
$ | 146,814 | $ | 13,557 | ||||
Billings in excess of costs and estimated earnings
|
(257,007 | ) | (608,311 | ) | ||||
Net billings in excess of costs and estimated earnings
|
$ | (110,193 | ) | $ | (594,754 | ) |
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
Transportation equipment
|
$ | 78,465 | $ | - | ||||
Furniture and equipment
|
5,342 | 2,926 | ||||||
83,807 | 2,926 | |||||||
Less - accumulated depreciation and amortization
|
(5,418 | ) | (418 | ) | ||||
Furniture and equipment, net
|
$ | 78,389 | $ | 2,508 |
September 30,
|
December 31,
|
|||||||
2014
|
2013
|
|||||||
(Unaudited)
|
||||||||
Long-term notes payable consist of: the following:
|
||||||||
Notes payable, secured by transportation equipment, requiring approximate monthly payments of $326 and $1,162, including principal and interest at various rates of interest per annum. Principal and any accrued interest are payable until September 2019.
|
$ | 79,383 | $ | - | ||||
Less, current portion
|
(4,461 | ) | - | |||||
Long term portion
|
$ | 74,922 | $ | - |
Years ending December 31,
|
||||
2014
|
$ | 4,461 | ||
2015
|
17,000 | |||
2016
|
16,000 | |||
2017
|
15,000 | |||
2018
|
13,530 | |||
Subsequent
|
13,392 | |||
|
$ | 79,383 |
ASSETS
|
|||||
2013
|
|||||
Current Assets :
|
|||||
Cash and cash equivalents
|
$ | 377,080 | |||
Contracts receivable
|
85,166 | ||||
Prepaid expenses
|
420,500 | ||||
Costs and estimated earnings in excess of billings
|
13,557 | ||||
Total Current Assets
|
896,303 | ||||
Furniture and equipment, net
|
2,508 | ||||
TOTAL ASSETS | $ | 898,811 | |||
LIABILITIES AND MEMBERS' EQUITY
|
|||||
Current Liabilities :
|
|||||
Accounts payable and accrued expenses
|
$ | 137,326 | |||
Billings in excess of costs and estimated earnings
|
608,311 | ||||
Total Current Liabilities
|
745,637 | ||||
Members' Equity
|
153,174 | ||||
TOTAL LIABILITIES AND MEMBERS' EQUITY | $ | 898,811 |
2013
|
||||
Revenue:
|
||||
Contract revenue
|
$ | 350,465 | ||
Cost of Revenue :
|
||||
Materials
|
112,750 | |||
Labor and subcontracts
|
133,533 | |||
Other costs
|
67,323 | |||
Total Cost of Revenue
|
313,606 | |||
Gross Profit
|
36,859 | |||
Operating Expenses :
|
||||
General and administrative expenses
|
145,120 | |||
Total Operating Expenses
|
145,120 | |||
(LOSS) FROM OPERATIONS
|
(108,261 | ) | ||
Incomes taxes
|
800 | |||
NET (LOSS)
|
(109,061 | ) | ||
Capital contributions
|
300,000 | |||
Capital distributions
|
(37,765 | ) | ||
MEMBERS' EQUITY
|
$ | 153,174 |
2013
|
||||
Cash flows from operating activities:
|
||||
Net (Loss)
|
$ | (109,061 | ) | |
Adjustments to reconcile net loss to net cash
provided by operating activities: |
||||
Depreciation and amortization
|
418 | |||
(Increase) in accounts receivable
|
(85,166 | ) | ||
(Increase) in prepaid expenses
|
(420,500 | ) | ||
(Increase) in costs in excess of billing
|
(13,557 | ) | ||
Increase in accounts payable
|
137,326 | |||
Increase in billings in excess of earnings
|
608,311 | |||
Total adjustments
|
226,832 | |||
Net cash provided by operating activities
|
117,771 | |||
Cash flow from investing activities:
|
||||
Cash payments for the purchase of furniture and equipment
|
(2,926 | ) | ||
Net cash (used) in investing activities
|
(2,926 | ) | ||
Cash flow from financing activities:
|
||||
Member distributions
|
(37,765 | ) | ||
Member contributions
|
300,000 | |||
Net cash provided by financing activities
|
262,235 | |||
Net increase in cash and equivalents
|
377,080 | |||
Cash and equivalents, beginning of period
|
- | |||
Cash and equivalents, end of period
|
$ | 377,080 | ||
Supplemental disclosures of cash flow information:
|
||||
Cash paid during the period for:
|
||||
Interest expense
|
$ | 6 | ||
Income tax
|
$ | 800 |
Estimated | |
|
Life |
Machinery and equipment
|
5 years |
Furniture, fixtures and computer equipment
|
7 years |
Transportation equipment
|
5 years |
Currently due:
|
||||
Contracts in progress
|
$ | 85,166 | ||
Contracts completed
|
- | |||
Total
|
$ | 85,166 |
Costs incurred on uncompleted contracts
|
$ | 313,607 | ||
Estimated earnings to date
|
36,858 | |||
Total costs and estimated earnings
|
350,465 | |||
Less, billings to date
|
(945,219 | ) | ||
Net billings in excess of costs and estimated earnings
|
$ | (594,754 | ) |
Costs and estimated earnings in excess of billings
|
$ | 13,557 | ||
Billings in excess of costs and estimated earnings
|
(608,311 | ) | ||
Net billings in excess of costs and estimated earnings
|
$ | (594,754 | ) |
Furniture and equipment
|
$ | 2,926 | ||
Less - accumulated depreciation and amortization
|
(418 | ) | ||
Furniture and equipment, net
|
$ | 2,508 |
For years ended
|
||||
December 31,
|
||||
2014
|
$ | 34,335 | ||
2015
|
45,780 | |||
2016
|
11,445 | |||
$ | 91,560 |
ProForma
|
|||||||||||||||||
Adjustments
|
ProForma
|
||||||||||||||||
SOLAR3D
|
MDE
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
ASSETS
|
|||||||||||||||||
CURRENT ASSETS
|
|||||||||||||||||
Cash and cash equivalents
|
$ | 1,288,855 | $ | 489,936 | $ | - | $ | 1,778,791 | |||||||||
Accounts receivable
|
1,082,436 | - | - | 1,082,436 | |||||||||||||
Contracts receivable
|
- | 740,697 | - | 740,697 | |||||||||||||
Inventory
|
89,821 | - | - | 89,821 | |||||||||||||
Costs and estimated earnings in excess of billings
|
1,551,854 | 146,814 | - | 1,698,668 | |||||||||||||
Prepaid expense
|
289,422 | - | - | 289,422 | |||||||||||||
Other receivable
|
107,458 | 150,442 | 257,900 | ||||||||||||||
- | |||||||||||||||||
TOTAL CURRENT ASSETS
|
4,409,846 | 1,527,889 | - | 5,937,735 | |||||||||||||
PROPERTY & EQUIPMENT, at cost
|
|||||||||||||||||
Equipment, computer, software, furniture & fixtures, and automotive
|
126,989 | 83,389 | - | 210,378 | |||||||||||||
Less accumulated depreciation
|
(85,567 | ) | (5,000 | ) | - | (90,567 | ) | ||||||||||
- | |||||||||||||||||
NET PROPERTY AND EQUIPMENT
|
41,422 | 78,389 | - | 119,811 | |||||||||||||
OTHER ASSETS
|
|||||||||||||||||
Security deposit
|
7,000 | - | - | 7,000 | |||||||||||||
Goodwill
|
2,599,268 | - | 3,003,608 |
(A)
|
5,602,876 | ||||||||||||
Patents
|
23,161 | - | - | 23,161 | |||||||||||||
- | |||||||||||||||||
TOTAL OTHER ASSETS
|
2,629,429 | - | 3,003,608 | 5,633,037 | |||||||||||||
- | |||||||||||||||||
TOTAL ASSETS
|
$ | 7,080,697 | $ | 1,606,278 | $ | 3,003,608 | 11,690,583 | ||||||||||
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
|||||||||||||||||
CURRENT LIABILITIES
|
|||||||||||||||||
Accounts payable
|
$ | 1,829,925 | $ | 473,496 | $ | - | 2,303,421 | ||||||||||
Billings in excess of costs and estimated earnings
|
939,364 | 257,007 | - | 1,196,371 | |||||||||||||
Accrued expenses and other liabilities
|
310,616 | - | - | 310,616 | |||||||||||||
Customer deposits
|
48,141 | - | - | 48,141 | |||||||||||||
Other liabilites
|
10,810 | 79,383 | - | 90,193 | |||||||||||||
Derivative liability
|
12,879,105 | - | - | 12,879,105 | |||||||||||||
Convertible promissory note, net of beneficial conversion feature of $478,723
|
646,277 | - | - | 646,277 | |||||||||||||
Convertible promissory note payable, net of discount $164,385
|
1,097,615 | - | 3,800,000 |
(C)
|
4,897,615 | ||||||||||||
- | |||||||||||||||||
TOTAL CURRENT LIABILITIES
|
17,761,853 | 809,886 | 3,800,000 | 22,371,739 | |||||||||||||
SHAREHOLDERS' DEFICIT
|
|||||||||||||||||
Preferred stock, $.001 par value;
5,000,000 authorized shares; |
- | - | - | ||||||||||||||
Common stock, $.001 par value;
1,000,000,000 authorized shares; |
330,154 | - | - | 330,154 | |||||||||||||
Additional paid in capital
|
22,513,814 | - | - | 22,513,814 | |||||||||||||
Members' Equity
|
- | 796,392 | (796,392 | ) |
(B)
|
- | |||||||||||
Retained earnings (deficit)
|
(33,525,124 | ) | - | - | (33,525,124 | ) | |||||||||||
- | |||||||||||||||||
TOTAL SHAREHOLDERS' DEFICIT
|
(10,681,156 | ) | 796,392 | (796,392 | ) | (10,681,156 | ) | ||||||||||
- | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
|
$ | 7,080,697 | $ | 1,606,278 | $ | 3,003,608 | 11,690,583 |
ProForma
|
|||||||||||||||||
Nine Months Ended
|
Adjustments
|
ProForma
|
|||||||||||||||
SOLAR3D
|
MDE
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
REVENUE
|
$ | 6,437,620 | $ | 4,398,799 | $ | - | $ | 10,836,419 | |||||||||
COST OF SERVICES
|
4,698,724 | 3,644,405 | - | 8,343,129 | |||||||||||||
GROSS PROFIT
|
1,738,896 | 754,394 | - | 2,493,290 | |||||||||||||
OPERATING EXPENSES
|
|||||||||||||||||
Selling and marketing expense
|
412,830 | - | - | 412,830 | |||||||||||||
General and administrative expenses
|
1,268,964 | 302,270 | 800 |
(D)
|
1,572,034 | ||||||||||||
Research and development
|
25,267 | - | - | 25,267 | |||||||||||||
Depreciation and amortization expense
|
2,294 | 5,000 | - | 7,294 | |||||||||||||
TOTAL OPERATING EXPENSES
|
1,709,355 | 307,270 | 800 | 2,017,425 | |||||||||||||
INCOME FROM OPERATIONS
|
29,541 | 447,124 | (800 | ) | 475,865 | ||||||||||||
OTHER INCOME/(EXPENSES)
|
|||||||||||||||||
Interest income
|
175 | 3,728 | 3,903 | ||||||||||||||
Gain/(loss) on change in derivative liability
|
(12,940,651 | ) | - | (12,940,651 | ) | ||||||||||||
Gain/(Loss) on settlement of debt
|
(65,497 | ) | - | (65,497 | ) | ||||||||||||
Penalties
|
(500 | ) | |||||||||||||||
State tax
|
- | (800 | ) | 800 |
(D)
|
- | |||||||||||
Interest expense
|
(786,002 | ) | - | (786,002 | ) | ||||||||||||
- | |||||||||||||||||
TOTAL OTHER INCOME/(EXPENSES)
|
(13,792,475 | ) | 2,928 | 800 | (13,788,747 | ) | |||||||||||
- | |||||||||||||||||
NET INCOME (LOSS)
|
$ | (13,762,934 | ) | $ | 450,052 | $ | - | $ | (13,312,882 | ) | |||||||
BASIC AND DILUTED LOSS PER SHARE
|
$ | (0.04 | ) | $ | - | $ | - | $ | (0.04 | ) | |||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
|
|||||||||||||||||
BASIC AND DILUTED
|
314,440,294 | - | - | 314,440,294 |
ProForma
|
|||||||||||||||||
Adjustments
|
ProForma
|
||||||||||||||||
SOLAR3D
|
MDE
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
ASSETS
|
|||||||||||||||||
CURRENT ASSETS
|
|||||||||||||||||
Cash and cash equivalents
|
$ | 10,422 | $ | 377,080 | $ | - | $ | 387,502 | |||||||||
Contracts receivable
|
- | 85,166 | - | 85,166 | |||||||||||||
Costs and estimated earnings in excess of billings
|
- | 13,557 | - | 13,557 | |||||||||||||
Prepaid expense
|
4,862 | 420,500 | - | 425,362 | |||||||||||||
Other receivable
|
- | - | - | ||||||||||||||
- | |||||||||||||||||
TOTAL CURRENT ASSETS
|
15,284 | 896,303 | - | 911,587 | |||||||||||||
PROPERTY & EQUIPMENT, at cost
|
|||||||||||||||||
Equipment, computer, software, furniture & fixtures, and automotive
|
79,705 | 2,926 | - | 82,631 | |||||||||||||
Less accumulated depreciation
|
(72,971 | ) | (418 | ) | - | (73,389 | ) | ||||||||||
- | |||||||||||||||||
NET PROPERTY AND EQUIPMENT
|
6,734 | 2,508 | - | 9,242 | |||||||||||||
OTHER ASSETS
|
|||||||||||||||||
Security deposit
|
2,000 | - | - | 2,000 | |||||||||||||
Goodwill
|
- | - | 3,646,826 |
(A)
|
3,646,826 | ||||||||||||
Patents
|
23,161 | - | - | 23,161 | |||||||||||||
- | |||||||||||||||||
TOTAL OTHER ASSETS
|
25,161 | - | 3,646,826 | 3,671,987 | |||||||||||||
- | |||||||||||||||||
TOTAL ASSETS
|
$ | 47,179 | $ | 898,811 | $ | 3,646,826 | 4,592,816 | ||||||||||
LIABILITIES AND SHAREHOLDERS' DEFICIT
|
|||||||||||||||||
CURRENT LIABILITIES
|
|||||||||||||||||
Accounts payable
|
$ | 73,791 | $ | 137,326 | $ | - | 211,117 | ||||||||||
Billings in excess of costs and estimated earnings
|
- | 608,311 | - | 608,311 | |||||||||||||
Accrued expenses and other liabilities
|
82,950 | - | - | 82,950 | |||||||||||||
Other liabilities
|
- | - | - | - | |||||||||||||
Derivative liability
|
2,822,430 | - | - | 2,822,430 | |||||||||||||
Convertible promissory note payable, net of discount $204,020
|
515,397 | - | 3,800,000 |
(C)
|
4,315,397 | ||||||||||||
- | |||||||||||||||||
TOTAL CURRENT LIABILITIES
|
3,494,568 | 745,637 | 3,800,000 | 8,040,205 | |||||||||||||
SHAREHOLDERS' DEFICIT
|
|||||||||||||||||
Preferred stock, $.001 par value;
5,000,000 authorized shares; |
- | - | - | ||||||||||||||
Common stock, $.001 par value;
1,000,000,000 authorized shares; |
213,289 | - | - | 213,289 | |||||||||||||
Additional paid in capital
|
12,286,429 | - | - | 12,286,429 | |||||||||||||
Members' Equity
|
- | 153,174 | (153,174 | ) |
(B)
|
- | |||||||||||
Retained earnings (deficit)
|
(15,947,107 | ) | - | - | (15,947,107 | ) | |||||||||||
- | |||||||||||||||||
TOTAL SHAREHOLDERS' DEFICIT
|
(3,447,389 | ) | 153,174 | (153,174 | ) | (3,447,389 | ) | ||||||||||
- | |||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT
|
$ | 47,179 | $ | 898,811 | $ | 3,646,826 | 4,592,816 |
ProForma
|
|||||||||||||||||
Year Ended
|
Adjustments
|
ProForma
|
|||||||||||||||
SOLAR3D
|
MDE
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||
REVENUE
|
$ | - | $ | 350,465 | $ | - | $ | 350,465 | |||||||||
COST OF SERVICES
|
- | 313,606 | - | 313,606 | |||||||||||||
GROSS PROFIT
|
- | 36,859 | - | 36,859 | |||||||||||||
OPERATING EXPENSES
|
|||||||||||||||||
General and administrative expenses
|
970,769 | 145,120 | 800 |
(D)
|
1,116,689 | ||||||||||||
Research and development
|
108,565 | - | - | 108,565 | |||||||||||||
Depreciation and amortization expense
|
1,847 | - | - | 1,847 | |||||||||||||
TOTAL OPERATING EXPENSES
|
1,081,181 | 145,120 | 800 | 1,227,101 | |||||||||||||
LOSS FROM OPERATIONS
|
(1,081,181 | ) | (108,261 | ) | (800 | ) | (1,190,242 | ) | |||||||||
OTHER INCOME/(EXPENSES)
|
|||||||||||||||||
Gain/(loss) on change in derivative liability
|
(2,068,886 | ) | - | (2,068,886 | ) | ||||||||||||
Gain/(Loss) on settlement of debt
|
60,908 | - | 60,908 | ||||||||||||||
State tax
|
- | (800 | ) | 800 |
(D)
|
- | |||||||||||
Interest expense
|
(725,767 | ) | - | (725,767 | ) | ||||||||||||
- | |||||||||||||||||
TOTAL OTHER INCOME/(EXPENSES)
|
(2,733,745 | ) | (800 | ) | 800 | (2,733,745 | ) | ||||||||||
- | |||||||||||||||||
NET LOSS
|
$ | (3,814,926 | ) | $ | (109,061 | ) | $ | - | $ | (3,923,987 | ) | ||||||
BASIC AND DILUTED LOSS PER SHARE
|
$ | (0.02 | ) | $ | - | $ | - | $ | (0.02 | ) | |||||||
WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING
|
|||||||||||||||||
BASIC AND DILUTED
|
168,603,843 | - | - | 168,603,843 |
1.
|
BASIS OF PRO FORMA PRESENTATION
|
2.
|
ACQUISITION OF MD ENERGY, LLC.
|
|
During the month of November 2014, Solar3D, Inc. (SLTD) entered into an agreement to acquire 100% of the membership interest of MD Energy, LLC (MDE) expected to close in February 2015. The transaction will be accounted for under ASC 805, for cash in the amount of $1,000,000, and convertible promissory notes for $2,800,000. MDE is engaged in energy, infrastructure, electrical and building construction. The acquisition is designed to enhance our services for solar technology. MDE will be a wholly-owned subsidiary of SLTD.
|
2.
|
ACQUISITION OFMD ENERGY, LLC (Continued)
|
|
Under the purchase method of accounting, the transactions will be valued for accounting purposes at $3,800,000, which will be the estimated fair value of the Company at date of acquisition. The assets and liabilities of MDE will be recorded at their respective fair values as of the date of acquisition, and the following table summarizes these values.
|
Purchase Price Allocation
|
||||
Nine Months Ended
|
||||
9/30/2014
|
||||
Assets acquired
|
||||
Current Assets
|
||||
Cash
|
$ | 489,936 | ||
Contract Receivables
|
740,697 | |||
Costs and Estimated Earnings in Excess of Billings
|
146,814 | |||
Note Receivable
|
150,442 | |||
Total Current Assets
|
1,527,889 | |||
Tangible Assets subject to depreciation
|
||||
Machinery and Equipment, net of depreciation
|
78,389 | |||
Other Assets
|
||||
Goodwill
|
3,003,608 | |||
Total Other Assets
|
3,003,608 | |||
Total assets acquired
|
4,609,886 | |||
Liabilities assumed
|
||||
Current liabilities
|
||||
Accounts Payable
|
$ | 473,496 | ||
Billings in Excess of Costs and Estimated Earnings
|
257,007 | |||
Other Liabilities
|
79,383 | |||
Total liabilities acquired
|
809,886 | |||
Net assets acquired
|
$ | 3,800,000 |
3.
|
PRO FORMA ADJUSTMENTS
|
(A)
|
To record the preliminary estimate of goodwill for the Company’s acquisition of MDE. The preliminary estimate of goodwill represents the excess of the purchase consideration over the estimated fair value of the assets acquired and the liabilities assumed.
|
(B)
|
To eliminate MDE’s historical members interest.
|
(C)
|
Record the purchase of 100% of MDE’s member interest through the issuance of convertible notes in the amount of $2,800,000, and convertible notes in the amount of $1,000,000 for cash received.
|
(D)
|
To reclassify other income (expenses) to general and administrative expenses to conform to the Company’s presentation.
|