(Exact name of registrant as specified in its charter)
|
Nevada
|
000-50356
|
55-0840109
|
||
(State or other jurisdiction
of incorporation)
|
(Commission File Number)
|
(IRS Employer
Identification No.)
|
810 Franklin Court, Suite H
Marietta, Georgia 30067
|
(Address of principal executive offices)
|
Exhibit No.
|
Description
|
|
10.1
|
Share Exchange Agreement by and between the Company and Rogue Paper, Inc, dated October 23, 2011 (incorporated by reference to the Company’s Quarterly Report on Form 10-Q for the period ending September 30, 2011 filed with the Commission on November 21, 2011)
|
|
99.1
|
Audited Financial Statements of Rogue Paper, Inc. as of December 31, 2010 and for the period from February 17, 2010 (Inception) to December 31, 2010
|
|
99.2
|
Unaudited Financial Statements of Rogue Paper, Inc. as of and for the nine months ended September 30, 2011 and for the period from February 17 (Inception) to September 30, 2010
|
|
99.3
|
Pro Forma Balance Sheet and Statement of Operations for East Coast Diversified Corporation and Rogue Paper, Inc. as of and for the nine months ended September 30, 2011 and Statement of Operations for East Coast Diversified Corporation and Rogue Paper, Inc. for the year ended December 30, 2010
|
Date: February 2, 2012
|
EAST COAST DIVERSIFIED CORPORATION
|
|
By:
|
/s/ Kayode Aladesuyi
|
|
Name: Kayode Aladesuyi
|
||
Title: Chief Executive Officer
|
ROGUE PAPER, INC.
|
|
Balance Sheet
|
|
December 31, 2010
|
ASSETS
|
||||
Current assets:
|
||||
Cash
|
$ |
43,613
|
||
Accounts receivable, net
|
764
|
|||
Prepaid expenses
|
31,500
|
|||
Total current assets
|
75,877
|
|||
Property and equipment, net
|
4,750
|
|||
Total assets
|
$ |
80,627
|
||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||
Current liabilities:
|
||||
Accounts payable
|
$ |
19,750
|
||
Accrued expenses
|
21,250
|
|||
Total current liabilities
|
41,000
|
|||
Total liabilities
|
41,000
|
|||
Commitments and contingencies
|
||||
Shareholders' equity:
|
||||
Preferred stock, $0.10 par value, 250,000 shares authorized, 110,000 shares issued and outstanding
|
11,000
|
|||
Common stock - $0.10 par value, 2,750,000 shares authorized, 2,000,000 shares issued and outstanding
|
200,000
|
|||
Additional paid in capital
|
99,000
|
|||
Accumulated deficit
|
(270,373)
|
|||
Total shareholders' equity
|
39,627
|
|||
Total liabilities and shareholders' equity
|
$ |
80,627
|
||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
Statement of Operations
|
For The Period From February 17, 2010 (Inception) Through December 31, 2010
|
Revenues
|
$ |
83,364
|
||
Cost of revenues
|
50,280
|
|||
Gross profit
|
33,084
|
|||
Operating expenses:
|
||||
Compensation
|
60,886
|
|||
Selling, general and administrative
|
17,102
|
|||
Research and development
|
35,469
|
|||
Total operating expenses
|
113,457
|
|||
Loss before income taxes
|
(80,373)
|
|||
Provision for income taxes
|
-
|
|||
Net loss
|
$ |
(80,373)
|
||
Net loss per share - basic and diluted
|
$ |
(0.05)
|
||
Weighted average number of shares outstanding during the period - basic and diluted
|
1,597,484
|
|||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
Statement of Shareholders' Equity
|
For The Period From February 17, 2010 (Inception) Through December 31, 2010
|
Total
|
||||||||||||||||||||||||||||
Preferred stock
|
Common stock
|
Additional
|
Accumulated
|
shareholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
paid in capital
|
deficit
|
equity
|
||||||||||||||||||||||
Common stock issued to founders for cash
|
- | - | 2,000,000 | 200,000 | - | (190,000 | ) | 10,000 | ||||||||||||||||||||
Preferred stock issued for cash
|
110,000 | 11,000 | - | - | 99,000 | - | 110,000 | |||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | (80,373 | ) | (80,373 | ) | |||||||||||||||||||
Balance, December 31, 2010
|
110,000 | $ | 11,000 | 2,000,000 | $ | 200,000 | $ | 99,000 | $ | (270,373 | ) | $ | 39,627 | |||||||||||||||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
Statement of Cash Flows
|
For The Period From February 17, 2010 (Inception) Through December 31, 2010
|
Cash flows from operating activities:
|
||||
Net loss
|
$ |
(80,373)
|
||
Adjustments to reconcile net loss to net cash used in operations:
|
||||
Depreciation
|
121
|
|||
Changes in operating assets and liabilities:
|
||||
Accounts receivable
|
(764)
|
|||
Prepaid expenses
|
(31,500)
|
|||
Accounts payable
|
19,750
|
|||
Accrued expenses
|
21,250
|
|||
Net cash used in operating activities
|
(71,516)
|
|||
Cash flows from investing activities:
|
||||
Purchase of equipment
|
(4,871)
|
|||
Net cash flows used in investing activities
|
(4,871)
|
|||
Cash flows from financing activities:
|
||||
Proceeds from the sale of common stock
|
10,000
|
|||
Proceeds from the sale of preferred stock
|
110,000
|
|||
Net cash flows provided by financing activities
|
120,000
|
|||
Net increase in cash
|
43,613
|
|||
Cash at beginning of period
|
-
|
|||
Cash at end of period
|
$ |
43,613
|
||
Supplemental Disclosures of Cash Flow Information:
|
||||
Cash paid during the period for:
|
||||
Interest
|
$ |
-
|
||
Income taxes
|
$ |
-
|
||
See accompanying notes to financial statements.
|
|
·
|
Revenue for consulting services is recognized based on the milestone method once the milestone services have been performed.
|
|
·
|
Revenue from sharing agreements is recognized in the period the revenue sharing amounts have been earned.
|
February 17, 2010
|
||||
(Inception) to
|
||||
December 31, 2010
|
||||
Expected income tax (benefit) at 34% statutory rate
|
$ | (27,000 | ) | |
State tax expense (benefit)
|
(7,000 | ) | ||
Change in valuation allowance
|
34,000 | |||
Income tax expense
|
$ | - |
December 31, 2010
|
||||
Deferred income tax assets:
|
||||
Net operating loss carry forwards
|
$ | 34,000 | ||
Valuation allowance
|
(34,000 | ) | ||
Net deferred income tax assets
|
$ | - |
ROGUE PAPER, INC.
|
Balance Sheets
|
September 30,
2011
|
December 31,
2010
|
|||||||
(unaudited) | ||||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$ | 37,374 | $ | 43,613 | ||||
Accounts receivable, net
|
81,915 | 764 | ||||||
Prepaid expenses
|
- | 31,500 | ||||||
Advances to officer
|
1,000 | - | ||||||
Total current assets
|
120,289 | 75,877 | ||||||
Property and equipment, net
|
4,664 | 4,750 | ||||||
Total assets
|
$ | 124,953 | $ | 80,627 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$ | 30,370 | $ | 19,750 | ||||
Accrued expenses
|
13,847 | 21,250 | ||||||
Total current liabilities
|
44,217 | 41,000 | ||||||
Total liabilities
|
44,217 | 41,000 | ||||||
Commitments and contingencies
|
||||||||
Shareholders' equity:
|
||||||||
Preferred stock, $0.10 par value, 250,000 shares authorized, 210,000 and 110,000 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
|
21,000 | 11,000 | ||||||
Common stock - $0.10 par value, 2,750,000 shares authorized, 2,039,000 and 2,000,000 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively
|
203,900 | 200,000 | ||||||
Additional paid in capital
|
189,000 | 99,000 | ||||||
Accumulated deficit
|
(333,164 | ) | (270,373 | ) | ||||
Total shareholders' equity
|
80,736 | 39,627 | ||||||
Total liabilities and shareholders' equity
|
$ | 124,953 | $ | 80,627 | ||||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
Statements of Operations
|
(Unaudited)
|
For the Period
|
||||||||||||||||
Nine Months
|
February 17, 2010
|
|||||||||||||||
Three Months Ended
|
Ended
|
(Inception) to
|
||||||||||||||
September 30,
|
September 30,
|
September 30,
|
September 30,
|
|||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Revenues
|
$ | 118,875 | $ | 26,600 | $ | 457,410 | $ | 42,600 | ||||||||
Cost of revenues
|
58,534 | 13,163 | 305,690 | 22,780 | ||||||||||||
Gross profit
|
60,341 | 13,437 | 151,720 | 19,820 | ||||||||||||
Operating expenses:
|
||||||||||||||||
Compensation
|
37,245 | 21,732 | 155,797 | 21,732 | ||||||||||||
Selling, general and administrative
|
16,312 | 5,052 | 56,214 | 10,039 | ||||||||||||
Research and development
|
- | 30,219 | 2,500 | 30,219 | ||||||||||||
Total operating expenses
|
53,557 | 57,003 | 214,511 | 61,990 | ||||||||||||
Income (loss) before income taxes
|
6,784 | (43,566 | ) | (62,791 | ) | (42,170 | ) | |||||||||
Provision for income taxes
|
- | - | - | - | ||||||||||||
Net income (loss)
|
$ | 6,784 | $ | (43,566 | ) | $ | (62,791 | ) | $ | (42,170 | ) | |||||
Net income (loss) per share -
|
||||||||||||||||
basic and diluted
|
$ | 0.00 | $ | (0.02 | ) | $ | (0.03 | ) | $ | (0.03 | ) | |||||
Weighted average number of shares
|
||||||||||||||||
outstanding during the period -
|
||||||||||||||||
basic and diluted
|
2,039,000 | 2,000,000 | 2,021,714 | 1,433,628 | ||||||||||||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
||||||||||||||||||||||||||||
Statement of Shareholders' Equity
|
||||||||||||||||||||||||||||
February 17, 2010 (Inception) through September 30, 2011
|
||||||||||||||||||||||||||||
Preferred stock
|
Common stock
|
Additional
paid in
|
Accumulated
|
Total
shareholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
deficit
|
equity
|
||||||||||||||||||||||
Common stock issued to founders for cash
|
- | $ | - | 2,000,000 | $ | 200,000 | $ | - | $ | (190,000 | ) | $ | 10,000 | |||||||||||||||
Preferred stock issued for cash
|
110,000 | 11,000 | - | - | 99,000 | - | 110,000 | |||||||||||||||||||||
Net loss for the period from February 17, 2010 (Inception) through December 31, 2010
|
- | - | - | - | - | (80,373 | ) | (80,373 | ) | |||||||||||||||||||
Balance, December 31, 2010
|
110,000 | 11,000 | 2,000,000 | 200,000 | 99,000 | (270,373 | ) | 39,627 | ||||||||||||||||||||
Preferred stock issued for cash
|
100,000 | 10,000 | - | - | 90,000 | - | 100,000 | |||||||||||||||||||||
Common stock issued to founders for services
|
- | - | 39,000 | 3,900 | - | - | 3,900 | |||||||||||||||||||||
Net loss for the nine months ended September 30, 2011 (unaudited)
|
- | - | - | - | - | (62,791 | ) | (62,791 | ) | |||||||||||||||||||
Balance, September 30, 2010 (unaudited)
|
210,000 | $ | 21,000 | 2,039,000 | $ | 203,900 | $ | 189,000 | $ | (333,164 | ) | $ | 80,736 | |||||||||||||||
See accompanying notes to financial statements.
|
ROGUE PAPER, INC.
|
||||||||
Statements of Cash Flows
|
||||||||
(Unaudited)
|
||||||||
For the Period
|
||||||||
Nine Months
|
February 17, 2010
|
|||||||
Ended
|
(Inception) to
|
|||||||
September 30,
|
September 30,
|
|||||||
2011
|
2010
|
|||||||
Cash flows from operating activities:
|
||||||||
Net loss
|
$ | (62,791 | ) | $ | (42,170 | ) | ||
Adjustments to reconcile net loss to net cash used in operations:
|
||||||||
Depreciation
|
823 | - | ||||||
Stock issued for services
|
3,900 | |||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(81,151 | ) | - | |||||
Prepaid expenses
|
31,500 | |||||||
Advances to officer
|
(1,000 | ) | - | |||||
Accounts payable
|
10,620 | |||||||
Accrued expenses
|
(7,403 | ) | - | |||||
Net cash used in operating activities
|
(105,502 | ) | (42,170 | ) | ||||
Cash flows from investing activities:
|
||||||||
Purchase of equipment
|
(737 | ) | - | |||||
Net cash flows used in investing activities
|
(737 | ) | - | |||||
Cash flows from financing activities:
|
||||||||
Proceeds from the sale of common stock
|
- | 10,000 | ||||||
Proceeds from the sale of preferred stock
|
100,000 | 110,000 | ||||||
Net cash flows provided by financing activities
|
100,000 | 120,000 | ||||||
Net increase (decrease) in cash
|
(6,239 | ) | 77,830 | |||||
Cash at beginning of period
|
43,613 | - | ||||||
Cash at end of period
|
$ | 37,374 | $ | 77,830 | ||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | - | $ | - | ||||
Income taxes
|
$ | - | $ | - | ||||
See accompanying notes to financial statements.
|
·
|
Revenue for consulting services is recognized based on the milestone method once the milestone services have been performed.
|
·
|
Revenue from sharing agreements is recognized in the period the revenue sharing amounts have been earned.
|
From
|
||||||||
Nine Months
|
February 17, 2010
|
|||||||
Ended
|
(Inception) to
|
|||||||
September 30, 2011
|
September 30, 2010
|
|||||||
Expected income tax (benefit) at 34% statutory rate
|
$ | (21,000 | ) | $ | (14,000 | ) | ||
State tax expense (benefit)
|
$ | (6,000 | ) | $ | (4,000 | ) | ||
Change in valuation allowance
|
27,000 | 18,000 | ||||||
Income tax expense
|
$ | - | $ | - |
September 30, 2011 | December 31, 2010 | |||||||
Deferred income tax assets:
|
||||||||
Net operating loss carry forwards
|
$ | 61,000 | $ | 34,000 | ||||
Valuation allowance
|
(61,000 | ) | (34,000 | ) | ||||
Net deferred income tax assets
|
$ | - | $ | - |
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET |
SEPTEMBER 30, 2011 (UNAUDITED) |
East Coast
|
|||||||||||||||||||
Diversified
|
Rogue | ||||||||||||||||||
Corporation
|
Paper, Inc.
|
Pro Forma
|
|||||||||||||||||
Historical
|
Historical
|
Adjustments
|
Ref
|
Combined
|
|||||||||||||||
ASSETS
|
|||||||||||||||||||
Current assets:
|
|||||||||||||||||||
Cash
|
$ | 8,345 | $ | 37,374 | $ | - | $ | 45,719 | |||||||||||
Accounts receivable, net
|
243,985 | 81,915 | - | 325,900 | |||||||||||||||
Inventory
|
37,093 | - | - | 37,093 | |||||||||||||||
Prepaid expenses
|
76,365 | - | - | 76,365 | |||||||||||||||
Advances to officer
|
- | 1,000 | - | 1,000 | |||||||||||||||
Total current assets
|
365,788 | 120,289 | - | 486,077 | |||||||||||||||
Property and equipment, net
|
7,914 | 4,664 | - | 12,578 | |||||||||||||||
Non-current assets:
|
|||||||||||||||||||
Unidentified intangibles and goodwill
|
- | - | 1,488,798 | (1) | 1,488,798 | ||||||||||||||
Capitalized research and development costs, net
|
13,910 | - | - | 13,910 | |||||||||||||||
Other non-current assets
|
12,648 | - | - | 12,648 | |||||||||||||||
Total assets
|
$ | 400,260 | $ | 124,953 | $ | 1,488,798 | $ | 2,014,011 | |||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|||||||||||||||||||
Current liabilities:
|
|||||||||||||||||||
Loans payable
|
$ | 815,891 | $ | - | $ | - | $ | 815,891 | |||||||||||
Loans payable - related parties
|
618,494 | - | - | 618,494 | |||||||||||||||
Accounts payable and accrued expenses
|
864,427 | 44,217 | - | 908,644 | |||||||||||||||
Accrued payroll and related liabilities
|
1,622,228 | - | - | 1,622,228 | |||||||||||||||
Total current liabilities
|
3,921,040 | 44,217 | - | 3,965,257 | |||||||||||||||
Noncurrent liabilities
|
- | - | - | - | |||||||||||||||
Total liabilities
|
3,921,040 | 44,217 | - | 3,965,257 | |||||||||||||||
Commitments and contingencies:
|
|||||||||||||||||||
Contingent acquisition liabilities |
-
|
- | 1,184,973 | (2) | 1,184,973 | ||||||||||||||
Shareholders' equity
|
(3,520,780 | ) | 80,736 | 303,825 | (3) | (3,136,219 | ) | ||||||||||||
Total liabilities and shareholders' equity
|
$ | 400,260 | $ | 124,953 | $ | 1,488,798 | $ | 2,014,011 |
(1)
|
Represents unidentified intangibles of $1,488,798 as a result of the purchase price allocation of the acquired assets and liabilities of Rogue Paper, Inc. assuming the transaction occurred on September 30, 2011. The initial accounting of the excess of the purchase price paid over the fair value of the assets and liabilities acquired is not complete as a significant portion of the assets acquired were intangible assets that need to be appraised. As a result, the full amount of the excess of the purchase price over the fair value of the assets and liabilities has been classified as unidentified intangibles in the Pro Forma as of September 30, 2011.
|
(2)
|
Represents the following contingent acquisition liabilities:
|
Contingent redemption rights of East Coast Diversified's preferred stock issued in exchange for Rogue Paper's common stock (redemption price of $0.60 per share)
|
$ | 1,155,000 | |||
Contingent redemption tights of Rogue Paper's non-controlling common stock shareholders at $0.03 per share
|
29,973 | ||||
$ | 1,184,973 |
(3)
|
The following adjustments were made to the equity accounts:
|
To eliminate existing preferred stock of Rogue Paper, Inc.
|
$ | (21,000 | ) | ||
To eliminate existing common stock of Rogue Paper, Inc.
|
(203,900 | ) | |||
To eliminate existing additional paid in capital of Rogue Paper, Inc.
|
(189,000 | ) | |||
To eliminate accumulated deficit of Rogue Paper, Inc.
|
333,164 | ||||
Record preferred stock issuance to Rogue Shareholders per Exchange Agreement, at par
|
25,000 | ||||
Record additional paid in capital from Rogue Exchange Agreement share issuance
|
320,000 | ||||
To recognize 49% noncontrolling interests in the net assets of Rogue Paper, Inc.
|
39,561 | ||||
$ | 303,825 |
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS |
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2011 (UNAUDITED) |
East Coast
|
||||||||||||||||||||
Diversified
|
Rogue | |||||||||||||||||||
Corporation
|
Paper, Inc.
|
Pro Forma
|
||||||||||||||||||
Historical
|
Historical
|
Adjustments
|
Ref
|
Combined
|
||||||||||||||||
(1) | ||||||||||||||||||||
Revenues
|
$ | 463,283 | $ | 457,410 | $ | - | $ | 920,693 | ||||||||||||
Operating expenses:
|
||||||||||||||||||||
Cost of revenues
|
214,576 | 305,690 | 520,266 | |||||||||||||||||
Selling general and administrative expenses
|
972,314 | 214,511 | 1,186,825 | |||||||||||||||||
Total Operating expenses
|
1,186,890 | 520,201 | - | 1,707,091 | ||||||||||||||||
Loss from operations
|
(723,607 | ) | (62,791 | ) | - | (786,398 | ) | |||||||||||||
Other income (expense)
|
(108,774 | ) | - | - | (108,774 | ) | ||||||||||||||
Loss before income taxes
|
(832,381 | ) | (62,791 | ) | - | (895,172 | ) | |||||||||||||
Income tax expense (benefit)
|
- | - | - | - | ||||||||||||||||
Loss before noncontrolling interest
|
(832,381 | ) | (62,791 | ) | - | (895,172 | ) | |||||||||||||
Loss attributable to noncontrolling interest
|
(26,324 | ) | - | (30,768 | ) | (2) | (57,092 | ) | ||||||||||||
Net loss
|
$ | (806,057 | ) | $ | (62,791 | ) | $ | 30,768 | $ | (838,080 | ) | |||||||||
Net loss per share;
|
||||||||||||||||||||
Basic
|
$ | (0.00 | ) | $ | (0.03 | ) | $ | (0.01 | ) | |||||||||||
Diluted
|
$ | (0.00 | ) | $ | (0.03 | ) | $ | (0.00 | ) | |||||||||||
Weighted average number of shares:
|
||||||||||||||||||||
Basic
|
165,205,586 | 2,021,714 | (2,021,714 | ) | (3) | 165,205,586 | ||||||||||||||
Diluted
|
215,205,586 | 2,021,714 | (2,021,714 | ) | (3) | 215,205,586 |
(1)
|
Represents unaudited results of operations of Rogue Paper, Inc. from January 1, 2011 to September 30, 2011.
|
(2)
|
Represents noncontrolling interests in the net loss of Rogue Paper, Inc. for the nine months ended September 30, 2011 as if Rogue Paper, Inc. was acquired as of January 1, 2011.
|
(3)
|
The adjustment to weighted average number of common shares outstanding reflects the change necessary to calculate shares outstanding as if Rogue Paper, Inc. was acquired on January 1, 2010.
|
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS |
FOR THE YEAR ENDED DECEMBER 31, 2010 (UNAUDITED) |
East Coast
|
||||||||||||||||||||
Diversified
|
Rogue | |||||||||||||||||||
Corporation
|
Paper, Inc.
|
Pro Forma
|
||||||||||||||||||
Historical
|
Historical
|
Adjustments
|
Ref
|
Combined
|
||||||||||||||||
(1) | ||||||||||||||||||||
Revenues
|
$ | 129,248 | $ | 83,364 | $ | - | $ | 212,612 | ||||||||||||
Operating expenses:
|
||||||||||||||||||||
Cost of revenues
|
81,573 | 50,280 | 131,853 | |||||||||||||||||
Selling general and administrative expenses
|
2,404,804 | 113,457 | 2,518,261 | |||||||||||||||||
Total Operating expenses
|
2,486,377 | 163,737 | - | 2,650,114 | ||||||||||||||||
Loss from operations
|
(2,357,129 | ) | (80,373 | ) | - | (2,437,502 | ) | |||||||||||||
Other income (expense)
|
(252,270 | ) | - | - | (252,270 | ) | ||||||||||||||
Loss before income taxes
|
(2,609,399 | ) | (80,373 | ) | - | (2,689,772 | ) | |||||||||||||
Income tax expense (benefit)
|
- | - | - | - | ||||||||||||||||
Loss before noncontrolling interest
|
(2,609,399 | ) | (80,373 | ) | - | (2,689,772 | ) | |||||||||||||
Loss attributable to noncontrolling interest
|
(112,507 | ) | - | (39,383 | ) | (2) | (151,890 | ) | ||||||||||||
Net loss
|
$ | (2,496,892 | ) | $ | (80,373 | ) | $ | 39,383 | $ | (2,537,882 | ) | |||||||||
Net loss per share;
|
||||||||||||||||||||
Basic
|
$ | (0.03 | ) | $ | (0.05 | ) | $ | (0.03 | ) | |||||||||||
Diluted
|
$ | (0.01 | ) | $ | (0.04 | ) | $ | (0.01 | ) | |||||||||||
Weighted average number of shares:
|
||||||||||||||||||||
Basic
|
77,118,976 | 1,597,484 | (1,597,484 | ) | (3) | 77,118,976 | ||||||||||||||
Diluted
|
127,118,976 | 1,597,484 | (1,597,484 | ) | (3) | 127,118,976 |
(1)
|
Represents audited results of operations of Rogue Paper, Inc. from February 17, 2010 (Inception) to December 31, 2010.
|
(2)
|
Represents noncontrolling interests in the net loss of Rogue Paper, Inc. for the period from February 17, 2010 (Inception) to December 31, 2010 as if Rogue Paper, Inc.was acquired as of February 17, 2010.
|
(3)
|
The adjustment to weighted average number of common shares outstanding reflects the change necessary to calculate shares outstanding as if Rogue Paper, Inc. was acquired on February 17, 2010.
|