EX-99.3 11 bimi1002148kex99_3.htm

EXHIBIT 99.3

American Cannabis Company, Inc.
F/K/A Brazil Interactive Media, Inc.
Unaudited Pro Forma Condensed Combined Balance Sheets
AS OF JUNE 30, 2014
               
   Brazil Interactive Media, Inc.  Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting  Pro Forma Adjustment    Pro Forma Combined Total
ASSETS                      
CURRENT ASSETS                      
Cash and cash equivalents  $—     $302,187   $—       $302,187 
Prepaid expenses and other current assets   —      45,047    —        45,047 
Due from related party   215,642         (215,642)B    —   
Accounts receivable, net   —      —      —        —   
Total current assets   215,642    347,234    (215,642)     347,234 
PROPERTY AND EQUIPMENT, net   —      2,728    —        2,728 
Total assets  $215,642   $349,962   $(215,642)    $349,962 
LIABILITIES AND SHAREHOLDERS’ EQUITY                      
CURRENT LIABILITIES                      
Deferred revenue  $—     $116,642   $—       $116,642 
Due to directors   —      3,006    —        3,006 
Accrued expenses   —      51,215    —        51,215 
Accrued payroll liabilities   —      2,834    —        2,834 
Convertible note payable, net of discount   36,204    —      —        36,204 
Accounts payable   58,467    46,579    —        105,046 
Total current liabilities   94,671    220,276    —        314,947 
DUE TO RELATED PARTIES   —      215,642    (215,642)B    —   
Total liabilities   94,671    435,918    (215,642)     314,947 
SHAREHOLDERS’ EQUITY                      
Preferred stock, $0.01 par value, 5,000,000 shares authorized; - 0- shares issued and outstanding   —      —      —        —   
Common stock,  $0.00001 par value, 100,000,000 shares authorized; 40,425,000  shares issued and outstanding   404    10    (10)A    404 
Additional paid in capital   7,414,647    990    10 A    7,415,647 
Retained earnings (loss)   (7,294,080)   (86,956)          (7,381,036)
Total shareholders’ equity   120,971    (85,956)   —        35,015 
Total liabilities and shareholders’ equity  $215,642   $349,962   $(215,642)    $349,962 

 

 F-1 
 

(A)On May 15, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), between the Company, Cannamerica, Inc., Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”), and Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting, Inc., a Colorado corporation (“ACC”). Pursuant to the Merger Agreement, Merger Sub will be merged with and into ACC through a reverse triangular merger transaction upon the terms and subject to the conditions of the Merger Agreement, and in accordance with the General Corporation Law of the State of Delaware. Pursuant to the transactions contemplated by the Merger Agreement, (i) each share of common stock of ACC will be exchanged for shares of the Company based on a ratio of 3,171.0628 to one, (ii) ACC shall continue as the surviving corporation after the transactions contemplated by the Merger Agreement, (iii) each share of common stock of Merger Sub will be converted into and exchanged for one share of common stock of ACC and (iv) the Company shall change its name to “American Cannabis Company, Inc.” ACC was incorporated as Hollister & Blacksmith, Inc. on March 5, 2013 under the laws of the State of Colorado, and is based out of Denver, Colorado. On May 16, 2014, the Company entered into a Separation and Exchange Agreement (the “Separation Agreement”), by and among the Company, BIMI, Inc., a Delaware corporation and wholly-owned subsidiary of the Company, and Brazil Investment Holding, LLC (“Holdings”), a Delaware limited liability company and the majority stockholder of the Company. Pursuant to the Separation Agreement, the Company agreed to distribute all shares of common stock of BIMI, Inc. held by the Company in exchange for all of the common stock held by Holdings, thereby resulting in a complete separation of BIMI, Inc. (the “Separation”). The Company and BIMI, Inc. each shall retain all assets and liabilities in its respective name, and shall take any and all actions necessary so that (i) the Company will own or be liable for all existing Company assets and liabilities and (ii) BIMI, Inc. will own or be liable for all existing BIMI, Inc. assets and liabilities, including all assets and liabilities of BIMI Inc.’s subsidiaries.  The Separation Agreement further provides that all intercompany agreements by and between the Company, or any of its subsidiaries, and BIMI Inc., or any of its subsidiaries, are terminated except for confidentiality, non-disclosure or release of liability agreements.  The foregoing descriptions of the Merger Agreement and Separation Agreement do not purport to be complete and are qualified in their entirety by the terms of the Merger Agreement, which is filed as an exhibit to the Form 8-K filed by the Company with the Securities and Exchange Commission on May 15, 2014 and the terms of the Separation Agreement, which is filed as an exhibit to the Form 8-K filed by the Company with the Securities and Exchange Commission on May 20, 2014.  Further, additional information relevant to the transactions contemplated by the Merger  Agreement and Separation Agreement can be found in the Company’s Preliminary Information Statement filed on Schedule 14C with the Securities and Exchange Commission on May 29, 20 14, as amended June 16, 2014 and July 29, 2014.
(B)Elimination of Due to/From account between BRAZIL INTERACTIVE MEDIA, INC and HOLLISTER & BLACKSMITH, INC.

 F-2 
 

American Cannabis Company, Inc.
F/K/A Brazil Interactive Media, Inc.
UNAUDITED Pro Forma CONDENSED COMBINED Statement of Operations
For The Six Months Ended June 30, 2014
   Brazil Interactive Media, Inc.  Hollister & Blacksmith, Inc.
d/b/a American Cannabis Consulting
  Pro Forma
Adjustment
  Pro Forma
Combined Total
REVENUES                    
Consulting and advisory  $—     $127,404   $—     $127,404 
Equipment & supplies   —      9,638    —      9,638 
Total revenues  $—     $137,042        $137,042 
                     
COST OF REVENUES                    
Cost of consulting and advisory   —      74,889    —      74,889 
Cost of equipment & supplies   —      9,017    —      9,017 
Total cost of revenues   —      83,906    —      83,906 
                     
GROSS PROFIT   —      53,136    —      53,136 
                     
OPERATING EXPENSES                    
General and administrative expenses   1,527,010    95,893    —      1,622,903 
Selling and marketing expenses   —      47,517    —      47,517 
Total operating expenses   1,527,010    143,410    —      1,670,420 
                     
INCOME (LOSS) FROM OPERATIONS   (1,527,010)   (90,274)   —      (1,617,284)
                     
OTHER INCOME (EXPENSES)                    
Gain on debt forgiveness   96,193         —      96,193 
Interest expense   (36,204)   (261)   —      (36,465)
Total other income (expenses)   59,989    (261)   —      59,728 
                     
NET INCOME (LOSS)  $(1,467,021)  $(90,535)  $—     $(1,557,556)
                     
                     
Basic and fully diluted net income per common share    N/A      N/A    $—     $(0.04)
                     
Weighted average common shares outstanding      N/A         N/A        —         44,213,023  
 F-3 
 

AMERICAN CANNABIS COMPANY, INC.
F/K/a Brazil Interactive Media, Inc.
UNAUDITED Pro Forma CONDENSED COMBINED Statement of Operations
For The Year Ended December 31, 2013
             
   Brazil Interactive Media, Inc.  Hollister & Blacksmith, Inc. d/b/a American Cannabis Consulting  Pro Forma Adjustment  Pro Forma Combined Total
REVENUES                    
Consulting and advisory  $—     $70,273   $—     $70,273 
Equipment & supplies   —      5,063    —      5,063 
Total revenues  $—     $75,336        $75,336 
                     
COST OF REVENUES                    
Cost of consulting and advisory   —      19,197    —      19,197 
Cost of equipment & supplies   —      4,060    —      4,060 
Total cost of revenues   —      23,257    —      23,257 
                     
GROSS PROFIT   —      52,079    —      52,079 
                     
OPERATING EXPENSES                    
General and administrative expenses   3,144,536    13,530    —      3,158,066 
Selling and marketing expenses   —      19,608    —      19,608 
Total operating expenses   3,144,536    33,138    —      3,177,674 
                     
INCOME (LOSS) FROM OPERATIONS   (3,144,536)   18,941    —      (3,125,595)
                     
                     
NET INCOME (LOSS)  $(3,144,536)  $18,941   $—     $(3,125,595)
                     
                     
Basic and fully diluted net income per common share    N/A      N/A    $—     $(0.16)
                     
Weighted average common shares outstanding    N/A      N/A     —      19,059,940 
 F-4