EX-99.2 5 energie0610ex99_2.htm

Exhibit 99.2

Un-Audited Financial Statements

of

Energie LLC (OELC, LLC)

for the Three Months Ended March 31,  2014 and 2013

 

 

 

 
 

 

 

Energie LLC

Condensed Balance Sheets

(Unaudited)

    March 31, 2014   December 31, 2013
Assets        
         
Current Assets        
  Cash and cash equivalents $ 10,416 $ 37,874
  Accounts receivable, net   1,046,522   715,716
  Inventory   404,346   391,881
  Prepaid expenses   8,917   15,922
Total Current Assets   1,470,201   1,161,393
         
Noncurrent Assets        
  Intangible assets, net   772,156   1,119,550
  Property and equipment, net   1,322   23,422
  Other assets   11,695   11,695
Total Noncurrent Assets   785,172   1,154,667
         
Total Assets $ 785,172 $ 2,316,060
         
         
Liabilities and Members' Deficit        
         
Current Liabilities:        
  Accounts payable 2,343,143 1,523,544
  Unearned income   9,444   --
  Notes payable   1,950,706   1,348,090
Total Current Liabilities   4,303,294   2,967,839
         
Noncurrent Liabilities:        
  Commissions payable   92,740   96,205
Total Noncurrent Liabilities   92,740   96,205
         
Total Liabilities   4,396,034   2,967,839
         
Members' Deficit        
  Members' deficit   (2,140,660)   (651,779)
         
Total Members' Deficit   (2,140,660)   (651,779)
         
Total Liabilities and Members' Deficit $ 2,255,374 $ 2,316,060

 

The accompanying notes are an integral part of these condensed financial statements.

 

 
 

 

 

Energie LLC

Condensed Statements of Operations

(Unaudited)

 

    Three months ended   Three months ended
    March 31, 2014   March 31, 2013
         
Sales Revenue $ 164,609 $ 779,772
Cost of goods sold   (148,850)   (427,422)
  Gross Profit   15,759   352,350
         
Operating Expenses     `  
  Commissions   (26,673)   (163,953)
  Compensation   (85,997)   (109,951)
  Depreciation and amortization   (26,348)   (16,111)
  General and administrative   (70,655)   (64,239)
  Professional fees   (5,799)   (1,750)
  Rent   (5,370)   (32,453)
  Travel   (6,207)   (11,207)
Total Operating Expenses   (227,048)   (399,664)
         
Loss from Operations   (211,289)   (47,314)
         
Other income (expense)        
  Interest expense   (94,104)   (55,141)
  Other income   39,779   2,064
Other income (expense), net   (54,325)   (53,077)
         
Net loss and comprehensive loss $ (265,614) $ (100,391)

 

The accompanying notes are an integral part of these condensed financial statements.

 
 

Energie LLC

Condensed Statements of Cash Flows

(Unaudited)

    Three Months Ended   Three Months Ended
    March 31, 2014   March 31, 2013
         
Cash flow from operating activities        
  Net loss $ (265,614) $ (100,391)
  Adjustments to reconcile net loss to net cash used in operating activities:        
      Depreciation and amortization   26,348   16,111
Change in operating assets and liabilities:        
Accounts receivable   (330,806)   (188,120)
Inventory   (12,465)   (102,203)
Prepaid expenses   7,005   28,025
Accounts payable   819,599   2,936
Unearned income   9,444   (13,504)
Commissions payable   (3,465)   (499,142)
Net cash provided by (used in) operating activities   250,047   (856,288)
         
Cash flow (used for)/provided by investing activities   --   --
         
Cash flow used for financing activities        
Proceeds from payments of notes payable, net of repayments   602,616   711,144
Net member contributions (conversion of notes payable)   (880,120)   149,366
Net cash (used in) provided by financing activities   (277,504)   860,510
         
Net (decrease)/increase in cash   (27,458)   4,222
Cash at beginning of the year   37,874   59,171
Cash at end of the year $ 10,416 $ 63,393
         
Supplemental Disclosures:        
Interest paid $ -- $ --
Income taxes paid $                               --    $                               --   

 

The accompanying notes are an integral part of these condensed financial statements.

 
 

Energie LLC

Notes to Condensed Financial Statements

(Unaudited)

 

1.Organization and Basis of Presentation

 

Organization and Operations – Energie, LLC (“Energie” or “the Company”) was established on November 29, 2001 as a limited liability company in the state of Delaware and is engaged in the import and sale of specialized interior lighting solutions to the architecture and interior design markets in North America. The Company is headquartered in Wheat Ridge, Colorado and also maintains a production and assembly facility in Zeeland, Michigan.

 

Energie has organically developed an end-to-end production and distribution platform for imported lighting products featuring HID, fluorescent, and LED technologies. Long term contracts with five European manufacturers and one in Taiwan provide Energie with exclusive North American distribution rights to over 270 total products in 37 categories. After processing any modifications necessary to meet UL standards and building code requirements, the products are sold to customers through a network of over 60 independent lighting sales agents. In addition to a 15% commission structure, the sales force is provided with promotional materials, product training, and technical support by the Company.

 

Basis of Preparation - The accompanying unaudited interim condensed financial statements have been prepared on the same basis as the annual audited financial statements and in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission (“SEC”) for interim financial statements. In the opinion of management, such unaudited information includes all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation of this interim information. All intercompany transactions have been eliminated in consolidation. Operating results and cash flows for interim periods are not necessarily indicative of results that can be expected for the entire year. The information included in this report should be read in conjunction with our audited financial statements and notes thereto included in Exhibit 99.1 of this Form 8-K.

 

Going Concern and Managements’ Plans – The condensed financial statements as of and for the three months ended March 31, 2014 and 2013 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. The Company reported net losses of $265,614 and $100,391, respectively, for the three months ended March 31, 2014 and 2013. The Company also has a members’ deficit of $2,140,660 at March 31, 2014 and negative working capital of $2,833,092 at March 31, 2014.

 

The future success of the Company is dependent on its ability to attract additional capital and, ultimately, upon its ability to develop future profitable operations. There can be no assurance that the Company will be successful in obtaining financing, or that it will attain positive cash flows.

 

 

2.Subsequent Events

 

No events occurred subsequent to March 31, 2014, that would require adjustment to the accompanying financial statements or footnotes.