EX-99.2 3 ex99-2.htm EX-99.2 ex99-2.htm
Exhibit 99.2


 

MYGO GAMES HOLDING CO.
 
 
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
 

MAY 31, 2014

 
(Unaudited – Expressed in U.S. Dollars)












 
 
 

Unaudited Pro Forma Condensed Combined Balance Sheet
As of May 31, 2014

   
(MyGO Games Holding Co.)
    
My Go Games, LLC
    
Pro Forma Adjustments
    
Pro Forma
  
               
Dr
    
Cr
        
ASSETS
                              
  Cash and Cash equivalents
   $ 151,454     $ 498,904                 $ 650,358  
  Accounts receivable
     357       -                   357  
    Total Current Assets
     151,811       498,904                   650,715  
                                     
  Investments in joint ventures-controlled by affiliate
     497,928       -       2,072       500,000       -  
Due from affiliate
     -       7,833                       7,833  
TOTAL ASSETS
   $ 649,739     $ 506,737                     $ 658,548  
                                         
LIABILITIES AND STOCKHOLDERS EQUITY
                                        
                                         
CURRENT LIABILITIES
                                        
  Accounts payable and accrued liabilities
     246,940       18,764                       265,704  
  Current portion of convertible notes payable, net
     4,904       -                       4,904  
  Current portion of convertible notes payable, net
     96,319       -                       96,319  
    Total current liabilities
     348,163       18,764                       366,927  
 
                                        
LONG TERM LIABILITIES
                                        
  Convertible loan payable, net
     26,194       -                       26,194  
  Convertible loan payable due to related party
     500,288       -                       500,288  
TOTAL LIABILITIES
     874,645       18,764                       893,409  
                                         
STOCKHOLDERS' EQUITY
                                        
  Common Stock 24,989,939 outstanding
     2,499       -       2,499               -  
  Members’ equity
     -       500,500       500,000               500  
  Additional paid in capital
     3,633,514       -       1,884,218               1,749,296  
  Excess of fair value of shares over net assets
                     1,972,130               (1,972,130 )
  Accumulated deficit
     (3,860,919 )     (12,527 )             3,860,919       (12,527 )
Total Stockholders' Deficit
     (224,906 )     487,973                       (234,861 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
   $ 649,739     $ 506,737                     $ 658,548  
 
The accompanying notes are an integral part of these pro-forma consolidated financial statements
 
 
 
 

Unaudited Pro Forma Condensed Combined Statement of Operations
For The Period Ended May 31, 2014
 
   
For the period ended May 31, 2014
  
   
MyGO Games Holding Co.
    
My Go Games, LLC
    
Pro Forma Adjustments
    
Pro Forma
  
               
Dr
    
Cr
        
REVENUE
                              
  Software Sales
   $ 1,065     $ -                 $ 1,065  
   GROSS PROFIT
     1,065       -                   1,065  
                                     
OPERATING EXPENSES
                                    
  General and administrative  expenses
     362,494       12,527                   375,021  
  Loss on acquisition of 20% of Novalon
     25,000       -                   25,000  
  Net loss from minority owned entity
     2,072       -               2,072       -  
   LOSS FROM OPERATIONS
     (388,501 )     (12,527 )                     (398,956 )
 
                                        
OTHER INCOME (EXPENSE)
                                        
  Interest expense
     (437,531 )     -                       (437,531 )
                                         
NET LOSS
   $ (826,032 )   $ (12,527 )                   $ (836,487 )
NET LOSS PER COMMON SHARE
                                   $ (0.012 )
   Basic
     19,798,662       50,323,526                       70,122,188  
 
The accompanying notes are an integral part of these pro-forma consolidated financial statements

 
 
 

MYGO GAMES HOLDING CO.
NOTES TO THE PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
As at May 31, 2014
(Unaudited)
 
1.
BASIS OF PRESENTATION
 
The following unaudited pro forma condensed combined financial data is provided for informational purposes only. The unaudited pro forma condensed combined financial information is not necessarily indicative of operating results that would have been achieved had the Acquisition been completed as of May 31,2014 and does not intend to project the future financial results of MyGO Games Holding Co. after the transaction. The unaudited pro forma condensed combined balance sheet does not purport to reflect what our financial condition would have been had the transaction closed on May 31, 2014 or for any future or historical period.
 
MyGO Games Holding Co.’s  fiscal year ended on August 31, 2013 and My Go Games, LLC’s fiscal year ends on August 31, 2014. The unaudited pro forma condensed combined balance sheet combines the interim unaudited consolidated balance sheets of both MyGO Games Holding Co. and My Go Games, LLC as of May 31, 2014. The 9 month unaudited pro forma condensed combined income statement combines My GO Games Holding Co.’s period ended May 31, 2014 with the My Go Games, LLC’s period ended May 31, 2014. The interim unaudited pro forma condensed combined income statement combines MyGO Games Holding Co. three months ended May 31, 2014 and My Go Games, LLC  month ended May 31, 2014.
 
You should read the unaudited pro forma condensed combined financial information in conjunction with the following information:
 
 
•
  
Notes to the unaudited pro forma condensed combined financial information.
 
 
•
  
Current Report on Form 8-K filed June 23, 2014.
 
 
•
  
Unaudited interim financial statements of MyGO Games Holding Co. as of and for the quarter ended May 31, 2014 which are included in the Form 10-Q filing for the quarter ended May 31, 2014, as filed with the SEC.
 
 
•
  
Audited financial statements of the My Go Games, LLC business as of and for the period ended May 31, 2014, which are included in Exhibit 99.1 of  the September 4, 2014 8K/A.
 
2.
ACQUISITION

The transaction will be accounted for as a reverse merger (“RTO”) accompanied by a recapitalization, involving a non-operating public shell MyGO Games Holding Co. (“MYGGH”) and the private operating company My Go Games, LLC (“MGGLLC”).

On May 5, 2014, the Company was formed for the purpose of being a joint venture company.  On May 21, 2014,  MYGGH entered into a Joint Venture Agreement (“GO JV Agreement”) with Great Outdoors, LLC (“GO”). MGGLLC  was created to operate the joint venture. The purpose of the joint venture is to improve upon the Company’s and GO’s existing games and develop and commercialize new games. MGGLLC is owned by GO (80%) and MYGGH (20%). The GO JV Agreement calls for MYGGH and GO to enter into a member control agreement which permits the appointment of three governors of MGGLLC, two to be appointed by GO and one to be appointed by MYGGH.
 
On May 27, 2014 MYGGH entered into a convertible note with GO for $500,000.  MYGGH then made an initial investment in the Company with this cash.  Per the Master Services Agreement the Company must pay all operating expenses for MYGGH.

 
 
 
 
MYGO GAMES HOLDING CO.
NOTES TO THE PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
As at May 31, 2014
(Unaudited)

On June 19, 2014, MYGGH entered into a share exchange agreement (the “Share Exchange Agreement”) with GO and MGGLLC, pursuant to which MYGGH issued 50,323,526 shares of its common stock (the “Exchange Shares”) for all of the issued and outstanding membership interests of MGGLLC held by GO (the “Share Exchange”). Prior to the Share Exchange MGGLLC was owned 20% by the Company and 80% by GO.  GO is owned 100% by Daniel Hammett a director of the Company and following the closing of the Share Exchange, the Company’s Chief Executive Officer.

After reflecting the pro forma RTO adjustments, the excess of the purchase consideration over the adjusted book values of MYGGH’s assets and liabilities has been allocated in full to the equity section of the balance sheet. Upon consummation of the proposed transaction, the fair value of all identifiable assets and liabilities acquired will be determined. The Company does not expect there to be any difference between fair value and current value.  Therefore, it is unlikely that the fair values of assets and liabilities acquired will vary from those shown below.

The preliminary purchase price allocation is subject to change and is summarized as follows:

Cash
     151,454  
Prepaid expenses and other current assets
     357  
Investment in joint venture
     497,928  
Net assets acquired
     649,739  
         
Accounts payable and accrued liabilities
     (246,940 )
Current portion convertible notes payable
     (101,223 )
Long Term portion of convertible notes payable
     (26,194 )
Long Term portion of convertible notes payable- related party
     (500,288 )
Loss on investment
     2,072  
Net liabilities acquired
     (872,573 )
         
Fair value of 50,323,526 shares issued by MyGO Games Holding Co.
     1,749,296  
         
Aggregate fair value of consideration paid
     1,972,130  
 
3.
PRO-FORMA ASSUMPTIONS AND ADJUSTMENTS

The unaudited pro forma consolidated financial statements incorporate the following pro forma assumptions:

a)  
Eliminating entry to adjusts off intercompany balances:

i.  
Loss on investment
ii.  
Investment in joint venture

b)  
Recapitalization reflecting the following:

i.  
Eliminate MYGGH stock equity
ii.  
Tie in equity to fair value of transaction
iii.  
Reduce equity by excess of fair value over net assets acquired
iv.  
Eliminate MYGGH accumulated deficit
 
 
 
 
 
MYGO GAMES HOLDING CO.
NOTES TO THE PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
As at May 31, 2014
(Unaudited)

4.
PRO-FORMA CAPITAL STOCK AND ADDITIONAL PAID-IN CAPITAL

   
Shares
    
Amount $
    
Additional paid in Capital $
    
Accumulated Deficit $
    
Excess Fair Market $
    
Total
  
Balance, August 31, 2013
     15,234,339       1,523       2,898,220       (3,034,887 )           (135,144 )
Shares Issued for conversion of notes
     9,755,600       976       516,804                     517,780  
Shares Issued on company formation
             500                             500  
Discount on issuance of convertible notes
                     218,490                     218,490  
Re-capitalization upon RTO
     50,323,526       (2,499 )     (1,884,218 )     3,858,847       (1,972,130 )     -  
Net loss
                             (836,487 )             (836,487 )
Balance, May 31, 2014
     75,313,465       500       1,749,296       (12,527 )     (1,972,130 )     (234,861 )
 
5.
PRO-FORMA LOSS PER SHARE

Pro forma basic loss per share for the nine months ended May 31, 2014 and the year ended August 31, 2013 has been calculated based on actual weighted average number of MyGGH common shares outstanding for the respective periods and the assumed number of MYGGH common shares issued to GO shareholders being effective on September 1, 2013.

   
Nine months ended May 31, 2014
    
Year ended August 31, 2013
  
             
Actual weighted average number of MyGO Games Holding Co. common shares outstanding
     19,798,662       7,860,789  
Assumed number of MyGO Games Holding Co. common shares to be issued pursuant to the Transaction
     50,323,526       50,323,526  
                 
Pro-forma weighted average number of shares outstanding
     70,122,188       58,184,315  
                 
Pro-forma net loss
     (836,487 )     (860,301 )
                 
Pro-forma adjusted basic and diluted loss per share
     (0.012 )     (0.015 )