EX-99 2 ex_99-1.htm UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION

Exhibit 99.1


UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL INFORMATION


The unaudited pro forma consolidated financial statements of CornerWorld Corporation. (“CornerWorld” or the “Company”) have been derived from its historical consolidated financial statements and are being presented to give effect to the separation of Woodland Holdings Corporation (Woodland) into an independent, publicly traded company. Effective with the filing of the Company’s Form 10-K for the period ending December 31, 2015, Woodland will be reported as a discontinued operation of the Company. The unaudited pro forma consolidated balance sheet has been prepared as though the separation of Woodland occurred on September 30, 2015. The unaudited pro forma consolidated statement of operations for the nine months ended September 30, 2015 and the year ended December 31, 2014 have been prepared as though the separation of Woodland occurred on December 31, 2014. The following unaudited pro forma consolidated financial statements should be read in conjunction with the Company’s historical financial statements and accompanying notes.


The information in the “Woodland Spin-Off” column in the unaudited pro forma consolidated income statement was derived from the Company’s audited consolidated financial statements and the related accounting records for the nine months ended September 30, 2015 and for the year ended December 31, 2014 and reflects the financial results of the Woodland business, adjusted to include certain costs directly attributable to Woodland.  For more information on Woodland, see also Woodland’s Registration Statement on Form 10 which was filed with the Securities and Exchange Commission (“SEC”) that was declared effective by the SEC on October 14, 2015. The information in the “Woodland Spin-Off” column in the unaudited pro forma consolidated balance sheet was derived from Woodland’s audited consolidated financial statements and related accounting records as of September 30, 2015.


The pro forma adjustments are based on available information and assumptions management believes are factually supportable. The pro forma adjustments to reflect the separation of Woodland include:


 

•

Settlement of inter-company payables to Woodland.

 

 

 

 

•

Elimination of the Company’s equity interest in Woodland.


The unaudited pro forma consolidated financial statements are presented for illustrative purposes only. These unaudited pro forma consolidated financial statements do not purport to be a complete presentation of the Company’s financial position or results of operations had the Spin-Off occurred as of and for the periods indicated. In addition, the unaudited pro forma consolidated financial statements are not necessarily indicative of the Company’s future financial position or future results of operations. These unaudited pro forma consolidated financial statements and the accompanying unaudited notes should be read together with our annual report on Form 10-K for the year ended December 31, 2014.


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CornerWorld Corporation

Pro-Forma Condensed Consolidated Balance Sheets

As of September 30, 2015

(Unaudited)


 

 

As Reported

 

Woodland
Spin-Off

 


Adjustments

 

Pro-Forma

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

38,542

 

$

(37,427

)

$

—

 

$

1,115

 

Accounts receivable, net

 

 

20,839

 

 

(19,761

)

 

—

 

 

1,078

 

Prepaid expenses and other current assets

 

 

3,516

 

 

—

 

 

—

 

 

3,516

 

Total current assets

 

 

62,897

 

 

(57,188

)

 

—

 

 

5,709

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

 

4

 

 

—

 

 

—

 

 

4

 

TOTAL ASSETS

 

$

62,901

 

$

(57,188

)

$

—

 

$

5,713

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity (Deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

138,037

 

$

(8,147

)

$

—

 

$

129,890

 

Accrued expenses

 

 

309,834

 

 

(1,000

)

 

(59,973

) (a)

 

249,041

 

Notes payable related parties

 

 

280,412

 

 

—

 

 

(140,206

) (a)

 

140,206

 

Deferred revenue

 

 

300

 

 

—

 

 

—

 

 

300

 

Total current liabilities

 

 

728,583

 

 

(9,147

)

 

(199,999

)

 

519,437

 

Long-term liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes payable related parties, net of current portion

 

 

58,546

 

 

—

 

 

(29,273

) (a)

 

29,273

 

Total liabilities

 

 

787,129

 

 

(9,147

)

 

(229,272

)

 

548,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

162,937

 

 

—

 

 

—

 

 

162,937

 

Additional paid-in capital

 

 

11,810,978

 

 

(4,109,945

) (b)

 

229,272

 

 

7,930,305

 

Accumulated deficit

 

 

(12,698,143

)

 

4,061,904

 

 

—

 

 

(8,636,239

)

Total stockholders’ deficit

 

 

(724,228

)

 

(48,041

)

 

229,272

 

 

(542,997

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

62,901

 

$

(57,188

)

$


—

 

$

5,713

 


Legend:


 

(a)

Represents re-allocation to Woodland of 50% of the note payable and 50% of the accrued interest thereon to Scott N. Beck, the Company’s Chief Executive Officer.

 

 

 

 

(b)

Includes elimination of inter-company account receivable totaling $70,321.


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CornerWorld Corporation

Condensed Consolidated Statements of Operations

For the Nine Months Ended September 30, 2015

(unaudited)


 

 

As Reported

 

Woodland
Spin-Off

 

Pro-Forma

 

 

 

 

 

 

 

 

 

Sales, net

 

$

443,451

 

$

(69,211

)

$

374,240

 

 

 

 

 

 

 

 

 

 

 

 

Costs of goods sold

 

 

151,007

 

 

(10,467

)

 

140,540

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

292,444

 

 

(58,744

)

 

233,700

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

209,240

 

 

67,809

 

 

277,049

 

Depreciation

 

 

907

 

 

(907

)

 

—

 

Total Operating expenses

 

 

210,147

 

 

66,902

 

 

277,049

 

Operating income (loss)

 

 

82,297

 

 

(125,646

)

 

(43,349

)

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(20,889

)

 

10,445

 (c)

 

(10,444

)

Other income (expense), net

 

 

(379

)

 

176

 

 

(203

)

Total other expense, net

 

 

(21,268

)

 

10,621

 

 

(10,647

)

Income (loss) from continuing operations before income taxes

 

 

61,029

 

 

(115,025

)

 

(53,996

)

Income taxes

 

 

—

 

 

—

 

 

—

 

Income (loss) from continuing operations

 

 

61,029

 

 

(115,025

)

 

(53,996

)

Income from discontinued operations, net of tax

 

 

15,777

 

 

(15,777

)

 

—

 

Net income (loss)

 

$

76,806

 

$

(130,802

)

$

(53,996

)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share from continuing operations

 

$

0.00

 (d)

 

 

 

$

0.00

 (d)

Basic and diluted earnings per share from discontinued operations

 

$

0.00

 (d)

 

 

 

$

0.00

 (d)

Basic and diluted earnings (loss) per share

 

$

0.00

 (d)

 

 

 

$

0.00

 (d)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average number shares outstanding

 

 

162,937,110

 (d)

 

 

 

 

162,937,110

 (d)


Legend:


 

(c)

Represents re-allocation to Woodland of 50% of the interest accrued on the note payable to Scott N. Beck, the Company’s Chief Executive Officer.

 

 

 

 

(d)

Earnings per share and weighted average share outstanding amounts do not reflect impact of 35 for 1 reverse stock split that took place in October 2015.


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CornerWorld Corporation

Consolidated Statements of Operations

For the Year Ended December 31, 2014


 

 

As Reported

 

Woodland
Spin-Off

 

Pro-Forma

 

 

 

(audited)

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

$

988,221

 

$

(244,155

)

$

744,066

 

 

 

 

 

 

 

 

 

 

 

 

Costs of goods sold

 

 

528,854

 

 

(159,971

)

 

368,883

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

459,367

 

 

(84,184

)

 

375,183

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

1,411,576

 

 

(120,198

)

 

1,291,378

 

Depreciation and amortization

 

 

16,808

 

 

(10,709

)

 

6,099

 

Total operating expenses

 

 

1,428,384

 

 

(130,907

)

 

1,297,477

 

Operating income (loss)

 

 

(969,017

)

 

46,723

 

 

(922,294

)

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(26,845

)

 

13,423

 (e)

 

(13,422

)

Other income (expense), net

 

 

(3,313

)

 

—

 

 

(3,313

)

Total other expense, net

 

 

(30,158

)

 

13,423

 

 

(16,735

)

Income (loss) before income taxes

 

 

(999,175

)

 

60,146

 

 

(939,029

)

Income taxes

 

 

—

 

 

—

 

 

—

 

Loss from continuing operations

 

 

(999,175

)

 

60,146

 

 

(939,029

)

Income from discontinued operations, net of tax

 

 

—

 

 

—

 

 

—

 

Gain from disposal of discontinued operations, net of tax

 

 

—

 

 

—

 

 

—

 

Net income (loss)

 

$

(999,175

)

$

60,146

 

$

(939,029

)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share from continuing operations

 

$

(0.01

) (f)

 

 

 

$

(0.01

) (f)

Basic and diluted earnings per share from discontinued operations

 

$

0.00

  (f)

 

 

 

$

0.00

  (f)

Basic and diluted earnings (loss) per share

 

$

(0.01

) (f)

 

 

 

$

(0.01

) (f)

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average number shares outstanding

 

 

161,880,193

  (f)

 

 

 

 

161,880,193

  (f)


Legend:


 

(e)

Represents re-allocation to Woodland of 50% of the interest accrued on the note payable to Scott N. Beck, the Company’s Chief Executive Officer.

 

 

 

 

(f)

Earnings per share and weighted average share outstanding amounts do not reflect impact of 35 for 1 reverse stock split that took place in October 2015.


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