EX-99.2 3 ex99-2.txt PROFORMA FINANCIAL STATEMENT EXHIBIT 99.2 INDEX TO FINANCIAL STATEMENTS Page No. -------- Chancellor Group, Inc. Pro-Forma Consolidated Financial Statements (Unaudited) as of December 31, 2012 Chancellor Group, Inc. Pro-Forma Consolidated Balance Sheets F-2 Chancellor Group, Inc. Pro-Forma Consolidated Statements of Operations F-3 Notes to Pro-Forma Consolidated Financial Statements F-4 F-1 CHANCELLOR GROUP, INC. PRO-FORMA CONSOLIDATED BALANCE SHEETS (UNAUDITED) DECEMBER 31, 2012
Chancellor The Group, Inc. Fuelist, LLC Adjustments Consolidated ------------ ------------ ----------- ------------ ASSETS CURRENT ASSETS Cash in bank $ 1,700,508 $ -- $ -- $ 1,700,508 Restricted cash 25,000 -- -- 25,000 Revenue receivable 5,500 -- -- 5,500 Income tax receivable 7,753 -- -- 7,753 Prepaid expenses 8,284 -- -- 8,284 ------------ ------------ ------------ ------------ Total Current Assets 1,747,045 -- -- 1,747,045 ------------ ------------ ------------ ------------ PROPERTY AND EQUIPMENT Leasehold costs - developed 57,580 -- -- 57,580 Accumulated depreciation and amortization (23,835) -- -- (23,835) ------------ ------------ ------------ ------------ Total Property and Equipment, net 33,745 -- -- 33,745 ------------ ------------ ------------ ------------ OTHER ASSETS Goodwill -- -- 427,200 427,200 Deposits 250 -- -- 250 ------------ ------------ ------------ ------------ Total Other Assets 250 -- 427,200 427,450 ------------ ------------ ------------ ------------ TOTAL ASSETS $ 1,781,040 $ -- $ 427,200 $ 2,208,240 ============ ============ ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 34,175 $ -- -- 34,175 Contributions payable -- -- 271,200 271,200 Accrued expenses 169 -- -- 169 ------------ ------------ ------------ ------------ Total Current Liabilities 34,344 -- 271,200 305,544 ------------ ------------ ------------ ------------ STOCKHOLDERS' EQUITY Series B preferred stock -- -- -- -- Common stock, $0.001 par value 69,560 -- 2,000 71,560 Paid-in capital 3,539,053 -- 154,000 3,693,053 Members' capital contributions -- -- -- -- Due from Members for Capital Contributions -- -- -- -- Retained earnings (deficit) (1,829,517) -- -- (1,829,517) Deficit accumulated during development stage -- -- -- -- Noncontrolling minority interest in Pimovi, Inc. (32,400) -- -- (32,400) Noncontrolling minority interest in Fuelist, LLC -- -- -- -- ------------ ------------ ------------ ------------ Total Stockholders' Equity 1,746,696 -- 156,000 1,902,696 ------------ ------------ ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,781,040 $ -- $ 427,200 $ 2,208,240 ============ ============ ============ ============
See the accompanying notes to the consolidated financial statements F-2 CHANCELLOR GROUP, INC. PRO-FORMA CONSOLIDATED STATEMENTS OF OPERATION (UNAUDITED) FOR THE YEAR ENDED DECEMBER 31, 2012
Chancellor The Group, Inc. Fuelist, LLC Adjustments Consolidated ------------ ------------ ----------- ------------ REVENUES, NET $ 110,127 $ -- $ -- $ 110,127 OPERATING EXPENSES Lease operating expenses 38,873 -- -- 38,873 Severance taxes 3,934 -- -- 3,934 Other operating expenses 28,051 -- -- 29,759 Investment professional and consulting expenses 83,076 -- -- 130,350 Administrative expenses 532,141 -- -- 537,786 Depreciation and amortization 5,020 -- -- 5,020 ---------- ---------- ---------- ---------- TOTAL OPERATING EXPENSES 691,095 -- -- 745,722 ---------- ---------- ---------- ---------- (LOSS) FROM OPERATIONS (580,968) -- -- (635,595) ---------- ---------- ---------- ---------- OTHER INCOME (EXPENSE) Interest income 4,079 -- -- 4,079 ---------- ---------- ---------- ---------- TOTAL OTHER INCOME (EXPENSE) 4,079 -- -- 4,079 ---------- ---------- ---------- ---------- FINANCING CHARGES Bank fees amortization 3,478 -- -- 3,478 ---------- ---------- ---------- ---------- TOTAL FINANCING CHARGES 3,478 -- -- 3,478 ---------- ---------- ---------- ---------- (LOSS) BEFORE PROVISION FOR INCOME TAXES (580,367) -- -- (580,367) ---------- ---------- ---------- ---------- Provision for Income Taxes (Benefit) -- -- -- -- ---------- ---------- ---------- ---------- NET (LOSS) OF CHANCELLOR, INC (580,367) -- -- (580,367) ---------- ---------- ---------- ---------- Net Loss Attributable to Noncontrolling Interest in Pimovi, Inc. 32,400 -- -- 32,400 ---------- ---------- ---------- ---------- NET LOSS $ (547,967) $ -- $ -- $ (547,967) ========== ========== ========== ==========
See the accompanying notes to the consolidated financial statements F-3 CHANCELLOR GROUP, INC. NOTES TO PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2012 (UNAUDITED) NOTE 1 - BASIS OF PRO-FORMA PRESENTATION On August 15, 2013, the Company entered into a binding term sheet with members of The Fuelist, LLC ("Fuelist"), a California limited liability company, whereby Chancellor agreed to acquire 51% ownership interest in Fuelist. As consideration for the ownership interest, Chancellor agreed to contribute to Fuelist a total of $271,200 in cash payable in 12 monthly installments of $22,600, beginning in August 2013. As additional consideration for the ownership interest, Chancellor contributed a total of 2,000,000 shares of newly issued common stock to Fuelist on Monday, August 19, 2013, valued at $156,000, or $0.078 per share. Also in the term sheet, the 2,000,000 shares of Chancellor common stock are deemed the property of the Founders irrespective of any future sales of the Company or outcomes, and in the event of any sale of the Company to a third party, the Founder's shares paid as part-consideration to the Company for the purchase of Chancellor's 51% shall remain the property of the Founders and those Founder's shares shall be transferred to the Founders before, or as part of, the closing of any such sale in the future to a third party. Fuelist is a development stage entity formed for the primary purpose of the development of a data-driven mobile and web technology platform that leverages extensive segment expertise and big data analysis tools to value classic vehicles. These tools will enable users to quickly find values, track valuations over time, and to identify investment and arbitrage opportunities in this lucrative market. Chancellor's fiscal year end is December 31st and Fuelist's fiscal year end is December 31st. However, Fuelist's separate company financial statements presented are as of August 31, 2013, and for the period May 1, 2013 (inception) through August 31, 2013 for the purpose of presenting pro-forma financial information for Chancellor. NOTE 2 - PRO-FORMA ADJUSTMENTS Adjustments included in the pro-forma financial statements are as follows: a. To record the issuance of 2,000,000 shares of Chancellor common stock to Fuelist and $271,200 contribution payable. F-4