EX-99.1 18 v030731_ex99-1.htm
 
Exhibit 99.1
 
NATURALNANO, INC.
(A Development Stage Company)
PRO FORMA BALANCE SHEET
September 30, 2005 PRO FORMA
(UNAUDITED)

                   
PRO FORMA
          
PRO FORMA
  
   
NaturalNano, Inc.
  
Cementitious
Materials, Inc.
  
Adjustments
      
 Acquisition
September 30,
2005
 
Other
Capital
Adjustments
      
 September 30,
2005
 
Assets
                                                  
Current assets:
                                                  
Cash and cash equivalents
  
$
2,698,330
                    
$
2,698,330
              
$
2,698,330
  
Prepaid assets
    
250,000
                     
250,000
                
250,000
  
Other current assets
    
24,038
                     
24,038
                
24,038
  
                                                   
Total current assets
    
2,972,368
                     
2,972,368
                
2,972,368
  
                                                   
Property and equipment, net
    
29,346
                     
29,346
                
29,346
  
Investments
    
300,000
                      
300,000
                
300,000
  
                                                   
Total assets
  
$
3,301,714
  
$
0
              
$
3,301,714
              
$
3,301,714
  
                                                   
Liabilities and Stockholder's Equity (Accumulated Deficit)
  
                                                   
Liabilities
                                                 
Current liabilities:
                                                  
Accounts Payable
 
$
119,338
  
$
12,018
              
$
131,356
                
131,356
  
Accrued Payroll
    
112,604
                      
112,604
                
112,604
  
Accrued Expenses
    
175,093
                      
175,093
                
175,093
  
Due to Related Parties
          
81,556
                
81,556
                
81,556
  
Convertible Bridge Notes
    
4,156,000
                      
4,156,000
    
(4,156,000
)
  
(2
)
  
0
  
                                                   
                                                   
Total current liabilities
    
4,563,035
    
93,574
    
0
         
4,656,609
    
(4,156,000
)
        
500,609
  
                                                   
Other Liability
    
35,000
                      
35,000
                
35,000
  
Total Liabilities
    
4,598,035
    
93,574
    
0
         
4,691,609
    
(4,156,000
)
        
535,609
  
                                                   
Stockholder's Equity (Accumulated Deficit)
  
                                                   
Common stock
   
100,000
    
4,991
    
(100,000
)
  
(1
)
                        
                 
44,919
   
(1
)
  
49,910
    
10,470
    
(2
)
  
60,380
  
                                                   
Additional paid in capital
    
383,083
    
362,474
    
100,000
   
(1
)
                        
                 
(44,919
)
  
(1
)
                        
                 
(461,039
)
  
(3
)
  
339,599
    
4,145,530
    
(2
)
  
4,485,129
  
                                                   
Deficit accumulated in the development stage
    
(1,779,404
)
  
(461,039
)
  
461,039
   
(3
)
  
(1,779,404
)
              
(1,779,404
)
                                                   
Total stockholder's equity (accumulated deficit)
    
(1,296,321
)
  
(93,574
)
  
0
         
(1,389,895
)
  
4,156,000
         
2,766,105
 
                                                   
Total liabilities and stockholder's equity (deficiency)
  
$
3,301,714
  
$
0
  
$
0
        
$
3,301,714
  
$
0
        
$
3,301,714
  
 
See notes to financial statements
 
 
NaturalNano, Inc.
(A Development Stage Company)
PRO FORMA STATEMENT OF OPERATIONS
 
For the nine months ending September 30, 2005
(UNAUDITED)

               
PRO FORMA
      
PRO FORMA
      
   
NaturalNano, Inc.
  
Cementitious
Materials, Inc.
  
Adjustments
  
Acquisition
September 30,
2005
  
Other
Capital
Adjustments
  
September 30,
2005
      
                               
Operating expenses:
                                            
                                             
Research and development (see note "a")
  
$
293,492
              
$
293,492
        
$
293,492
        
General and administrative (see note "b")
    
1,597,065
 
$
25,745
          
1,622,810
         
1,622,810
       
     
1,890,557
   
25,745
         
1,916,302
         
1,916,302
       
                                             
Other (income) expense:
                                            
                                             
Interest expense
    
1,511
   
3,982
         
5,493
         
5,493
       
Investment (income)
    
(120,000
)
              
(120,000
)
        
(120,000
)
      
     
(118,489
)
  
3,982
         
(114,507
)
        
(114,507
)
      
                                             
Net loss
    
($1,772,068
)
  
($29,727
)
        
($1,801,795
)
        
($1,801,795
)
      
                                             
Loss per common share - basic and diluted
    
($0.18
)
  
($0.01
)
        
($0.04
)
        
($0.03
)
      
                                             
Weighted average shares outstanding
    
10,000,000
   
4,991,042
         
44,919,378
         
55,388,978
   
(1)(2
)
 
(a) Research and development expenses include stock based compensation of $17,500.
(b) General and administrative expense includes stock based compensation of $140,583.

See notes to financial statements
 
 
NaturalNano, Inc.
(A Development Stage Company)
PRO FORMA STATEMENT OF OPERATIONS
 
For the twelve months ending December 31, 2004
(UNAUDITED)

               
PRO FORMA
      
PRO FORMA
      
   
NaturalNano, Inc.
(a)
  
Cementitious
Materials, Inc.
  
Adjustments
  
Acquisition
December 31,
2004
  
Other
Capital
Adjustments
  
December 31,
2004
      
                               
Operating expenses:
                                            
                                             
Research and development
  
$
5,000
              
$
5,000
        
$
5,000
        
General and administrative
   
2,336
 
$
13,967
          
16,303
         
16,303
       
     
7,336
   
13,967
         
21,303
         
21,303
       
                                             
Other (income) expense:
                                            
                                             
Interest expense
          
2,312
         
2,312
         
2,312
       
     
0
   
2,312
         
2,312
         
2,312
       
                                             
Net loss
    
($7,336
)
  
($16,279
)
        
($23,615
)
        
($23,615
)
      
                                             
Loss per common share - basic and diluted
    
($0.00
)
  
($0.00
)
        
($0.00
)
        
($0.00
)
      
                                             
Weighted average shares outstanding
    
10,000,000
   
4,991,042
         
44,919,378
         
55,388,978
   
(1)(2
)
 
(a) Includes the period from December 22, 2004 (inception) to December 31, 2004.
 
See notes to financial statements
 

NOTES TO UNAUDITED PRO FORMA CONDENSED
FINANCIAL STATEMENTS

Basis of presentation 

As of November 29, 2005, NaturalNano,Inc.,(“NaturalNano”) Cementitious Materials, Inc. (“Cementitious”) and a wholly-owned subsidiary of Cementitious (the “Merger sub”) completed the previously announced merger whereby the Merger Sub merged with and into NaturalNano with NaturalNano becoming the surviving entity from the transaction, as a wholly owned subsidiary of Cementitious (the “Merger”). The transaction has been deemed a capital transaction accompanied by a recapitalization. Therefore, no goodwill will be recorded in the Merger.

The unaudited pro forma condensed balance sheet and statement of operations of NaturalNano have been prepared to give effect to
 
·
the merger of Cementitious with NaturalNano ;
 
·
the conversion of all indebtedness of NaturalNano outstanding at September 30, 2005 in exchange for 10,469,600 shares of Cementitious common stock.

The condensed pro forma financial statements have been prepared as if such transactions had taken place on September 30, 2005 for purposes of the pro forma condensed balance sheet and as if the transactions had taken place on January 1, 2004 for purposes of the pro forma condensed statements of operations.

The columns captioned NaturalNano represent the balance sheet of NaturalNano as of September 30, 2005 and the related statements of operations for the periods from December 22, 2004 (inception) through December 31, 2004 and for the nine months ended September 30, 2005. The columns captioned Cementitious represent the balance sheet of Cementitious as of September 30, 2005 and the related statements of operations for the year ended December 31, 2004 and for the nine months ended September 30, 2005.

We are providing this information to aid you in your analysis of the financial aspects of the Merger. The unaudited pro forma condensed financial statements described above should be read in conjunction with the historical financial statements of NaturalNano and Cementitious and the related notes thereto. The unaudited pro forma information is not necessarily indicative of the financial position or results of operations that may have actually occurred had the Merger taken place on the dates noted, or the future financial position or operating results of the combined company.

PRO FORMA ENTRIES:

(1) To reflect the issuance of 44,919,378 shares of Cementitious common stock as merger consideration with respect to all outstanding shares of common stock of NaturalNano.
(2) To reflect the issuance of 10,469,600 shares of Cementitious common stock relating to the November 29, 2005 outstanding convertible notes of NaturalNano.
(3) To reflect the recapitalization adjustment for the Merger.