EX-99.2 20 v125542_ex99-2.htm Unassociated Document

Tag Events Corp.
and Deer International Group Limited
Pro Forma Combined Financial Statements
(unaudited)


Contents
 
Page
   
   
Pro Forma Combined Financial Statements:
  
   
Pro Forma Combined Balance Sheet
 
as of June 30, 2008 (unaudited)
F-1
 
 
Pro Forma Combined Statements of Operations
 
for the period ended June 30, 2008 (unaudited)
F-2
 
 
Pro Forma Combined Statements of Operations
 
for the period ended September 30, 2007 (unaudited)
F-3
   
Notes to Pro Forma Combined Financial Statements (unaudited)
F-4
 

Tag Events Corp.
and Deer International Group Limited
Pro Forma Combined Balance Sheet
June 30, 2008
(unaudited)
 
 
 
 
 
Tag Events
 
Deer International
 
Pro forma
 
Pro forma
 
 
 
Corp. (1)
 
Group Limited (2)
 
Adjustments
 
Combined
  
   
(historical)
 
(historical)
            
                     
ASSETS
                          
                           
CURRENT ASSETS
                          
Cash 
  
$
13,085
  
$
402,903
  
$
-
 
$
415,988
 
Restricted cash 
    
-
   
603,757
   
-
   
603,757
 
Accounts receivable, net 
    
-
   
4,894,652
   
-
   
4,894,652
 
Advances to suppliers 
    
-
   
2,644,024
   
-
   
2,644,024
 
Other receivable 
    
-
   
626,949
   
-
   
626,949
 
Due from shareholder 
    
-
   
5,101,415
   
-
   
5,101,415
 
Inventory 
    
-
   
6,300,160
   
-
   
6,300,160
 
                           
TOTAL CURRENT ASSETS
    
13,085
   
20,573,860
   
-
   
20,586,945
 
                           
FIXED ASSETS, NET
    
-
   
8,844,217
   
-
   
8,844,217
 
CONSTRUCTION IN PROGRESS
    
-
   
872,145
   
-
   
872,145
 
INTANGIBLE ASSETS, NET
    
-
   
406,616
   
-
   
406,616
 
OTHER ASSETS
    
-
   
48,502
   
-
   
48,502
 
                           
TOTAL ASSETS
  
$
13,085
  
$
30,745,340
  
$
-
 
$
30,758,425
 
                           
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                          
                           
CURRENT LIABILITIES
                          
Accounts payable 
  
$
2,100
  
$
6,044,312
  
$
-
 
$
6,046,412
 
Other payables 
    
-
   
776,448
   
-
   
776,448
 
Unearned revenue 
    
-
   
41,001
   
-
   
41,001
 
Accrued payroll 
    
-
   
241,110
   
-
   
241,110
 
Short term loans 
    
-
   
2,831,042
   
-
   
2,831,042
 
Due to shareholder 
    
45,482
   
-
   
-
   
45,482
 
Advances from shareholder 
    
-
   
260,633
   
-
   
260,633
 
Notes payable 
    
-
   
3,333,303
   
-
   
3,333,303
 
Tax and welfare payable 
    
-
   
872,389
   
-
   
872,389
 
                           
TOTAL CURRENT LIABILITIES
    
47,582
   
14,400,238
   
-
   
14,447,820
 
                           
STOCKHOLDERS' EQUITY
                      
-
 
Common Stock 
    
10,500
   
9,120,886
  a
(9,108,786
)
  
22,600
 
Additional paid in capital 
    
20,500
   
228,137
  b
(65,497
)
  
9,291,926
 
 
               a 9,108,786        
Development funds 
    
-
   
436,877
   
-
   
436,877
 
Statutory reserve 
    
-
   
873,755
   
-
   
873,755
 
Accumulated other comprehensive income (loss) 
    
-
   
2,241,322
   
-
   
2,241,322
 
Retained Earnings (accumulated deficit) 
    
(65,497
)
  
3,444,125
  b
65,497
   
3,444,125
 
                           
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
    
(34,497
)
  
16,345,102
   
-
   
16,310,605
 
                           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
  
$
13,085
  
$
30,745,340
  
$
-
 
$
30,758,425
 
  
(1) Source: unaudited financial statements of Tag Events Corp. as of June 30, 2008 included in Form 10Q
(2) Source: unaudited financial statements of Deer International Group Limited as of June 30, 2008 included elsewhere in this Form 8K.
 
See accompanying notes to pro forma combined financial statements
 
F - 1
 
Tag Events Corp.
and Deer International Group Limited
Pro Forma Combined Statement of Operations
For the Period Ended June 30, 2008
(unaudited)

   
Tag Events
 
Deer International
 
 
 
 
 
 
 
Corp. (1)
 
Group Limited (2)
 
 
 
 
 
 
 
For the Nine Months
 
For the Six Months
 
Pro forma
 
Pro forma
 
 
 
Ended June 30, 2008
 
Ended June 30, 2008
 
Adjustments
 
Combined
  
   
(historical)
 
(historical)
          
                   
Net Revenue
  
$
-
  
$
20,502,927
  
$
-
  
$
20,502,927
  
                           
Cost of Revenue
    
-
   
16,294,338
   
-
   
16,294,338
 
                           
Gross Profit
    
-
   
4,208,589
   
-
   
4,208,589
 
                           
Operating expenses:
                          
Selling expenses
    
-
   
1,209,416
   
-
   
1,209,416
 
General and administrative expenses
    
20,866
   
1,239,502
   
-
   
1,260,368
 
                           
Total operating expenses
    
20,866
   
2,448,918
   
-
   
2,469,784
 
                           
Income (loss) from operations
    
(20,866
)
  
1,759,671
   
-
   
1,738,805
 
                           
Non-operating income (expense):
                          
Financing costs
    
-
   
(46,435
)
  
-
   
(46,435
)
Interest income
    
-
   
6,855
   
-
   
6,855
 
Interest expense
    
(151
)
  
(89,857
)
  
-
       
Other income (expense)
    
-
   
76,221
   
-
       
Realized loss on trading securities
    
-
   
(34,388
)
  
-
   
(34,388
)
Foreign exchange gain (loss)
    
-
   
345,926
   
-
   
345,926
 
                           
Total non-operating (expense) income
   
(151
)
  
258,322
   
-
   
271,958
 
                           
Income (loss) before provision for income taxes
    
(21,017
)
  
2,017,993
   
-
   
1,996,976
 
                           
Income tax
    
-
   
624,303
   
-
   
624,303
 
                           
Net income (loss)
  
$
(21,017
)
$
1,393,690
    
-
   
1,372,673
 
                           
Earnings (loss) per common share
  
$
(0.00
)
            
$
0.06
  
                           
Weighted average shares outstanding
    
5,239,377
               
23,289,377
 
 
(1) Source: unaudited financial statements of Tag Events Corp. included in Form 10Q for the nine months ended June 30, 2008.
(2) Source: unaudited financial statements of Deer International Group Limited for the six months ended June 30, 2008 included elsewhere in this Form 8K.
 
See accompanying notes to pro forma combined financial statements
 
F - 2

Tag Events Corp.
and Deer International Group Limited
Pro Forma Combined Statement of Operations
For the Period Ended September 30, 2007

   
Tag Events
 
Deer International
 
 
 
 
 
 
 
Corp. (1)
 
Group Limited (2)
 
 
 
 
 
 
 
For the Year Ended
 
For the Year Ended
 
Pro forma
 
Pro forma
 
 
 
September 30, 2007
 
December 31, 2007
 
Adjustments
 
Combined
 
   
(historical)
 
(historical)
          
                   
Net Revenue
  
$
-
  
$
33,476,259
  
$
-
  
$
33,476,259
  
                           
Cost of Revenue
    
-
   
26,249,009
   
-
   
26,249,009
 
                           
Gross Profit
    
-
   
7,227,250
   
-
   
7,227,250
 
                           
Operating expenses:
                          
Selling expenses
    
-
   
1,518,482
   
-
   
1,518,482
 
General and administrative expenses
    
42,855
   
1,788,025
   
-
   
1,830,880
 
                           
Total operating expenses
    
42,855
   
3,306,507
   
-
   
3,349,362
 
                           
Income (loss) from operations
    
(42,855
)
  
3,920,743
   
-
   
3,877,888
 
                           
Non-operating income (expense):
                          
Financing costs
    
-
   
(194
)
  
-
   
(194
)
Interest income
    
-
   
18,524
   
-
   
18,524
 
Interest expense
    
(173
)
  
(114,361
)
  
-
   
(114,534
)
Other income (expense)
    
-
   
64,698
   
-
   
64,698
 
Realized loss on trading securities
    
-
   
57,043
   
-
   
57,043
 
Foreign exchange gain (loss)
    
-
   
90,707
   
-
   
90,707
 
                           
Total non-operating (expense) income
   
(173
)
  
116,417
   
-
   
116,244
 
                           
Income (loss) before provision for income taxes
    
(43,028
)
  
4,037,160
   
-
   
3,994,132
 
                           
Income tax
    
-
   
615,568
   
-
   
615,568
 
                           
Net income (loss)
  
$
(43,028
)
$
3,421,592
    
-
   
3,378,564
 
                           
Earnings (loss) per common share
  
$
(0.01
)
            
$
0.15
  
                           
Weighted average shares outstanding
    
5,245,205
               
23,295,205
 
 
(1) Source: audited financial statements of Tag Events Corp. included in Form 10KSB.
(2) Source: audited financial statements of Deer International Group Limited. as of December 31, 2007 included elsewhere in this Form 8K.
 
See accompanying notes to pro forma combined financial statements
 
F - 3
 
Tag Events Corp.
and Deer International Group Limited
Notes to Pro form Combined Financial Statements
 
NOTE 1 - BASIS OF PRESENTATION

The accompanying pro forma combined balance sheet presents the accounts of Tag Events Corp. (“Tag”) and Deer International Group Limited (“Deer”) as if the acquisition of Deer by Tag occurred on June 30, 2008. The accompanying pro forma combined statement of operations presents the accounts of Tag and Deer for the year ended September 30, 2007 and for the nine months ended June 30, 2008 as if the acquisition occurred on October 1, 2006. For accounting purposes, the transaction is being accounted for as a recapitalization of Deer.

The following adjustments would be required if the acquisition occurred as indicated above:

a.
Recapitalization of Deer to account for issuance of an aggregate of 18,050,000 common shares of Tag to the shareholders of Deer;

b.
Eliminate pre-acquisition accumulated deficit of Tag.
 
F - 4