| Exhibit 99.2 | ||||||||||||
| PRO-FORMA COMBINED STATEMENT OF OPERATIONS | ||||||||||||
| FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2012 | ||||||||||||
| Cemtrex Inc. | ROB Group | Combined Proforma | ||||||||||
| Revenues | ||||||||||||
| Total revenues | $ | 12,162,046 | $ | 43,507,661 | $ | 55,669,707 | ||||||
| Cost of revenues | ||||||||||||
| Total cost of revenues | 10,785,918 | 30,284,751 | 41,070,669 | |||||||||
| Gross profit | 1,376,128 | 13,222,910 | 14,599,038 | |||||||||
| Operating expenses | ||||||||||||
| Selling, general and administrative | 683,372 | 12,292,200 | 12,975,572 | |||||||||
| Total operating expenses | 683,372 | 12,292,200 | 12,975,572 | |||||||||
| Operating income/(loss) | 692,756 | 930,710 | 1,623,466 | |||||||||
| Other income (expenses) | ||||||||||||
| Interest and financing costs | (42,075 | ) | - | (42,075 | ) | |||||||
| Interest and other income, net | - | - | - | |||||||||
| Total other income, net | (42,075 | ) | - | (42,075 | ) | |||||||
| Income/(loss) before income taxes | 650,681 | 930,710 | 1,581,391 | |||||||||
| Income tax benefit/(expense), net | (2,482 | ) | - | (2,482 | ) | |||||||
| Net income/(loss) applicable to common stockholders | $ | 648,199 | $ | 930,710 | $ | 1,578,909 | ||||||
| Income/(loss) per common share | ||||||||||||
| - basic | $ | 0.02 | $ | 0.04 | ||||||||
| -diluted | $ | 0.02 | $ | 0.04 | ||||||||
| Weighted average common shares outstanding | ||||||||||||
| - basic | 39,823,129 | 39,823,129 | ||||||||||
| -diluted | 39,823,129 | 39,823,129 | ||||||||||
| 1 |
| PRO-FORMA COMBINED STATEMENT OF OPERATIONS | ||||||||||||
| FOR THE SIX MONTHS ENDED MARCH 31, 2013 | ||||||||||||
| Cemtrex Inc. | ROB Group (six months ended June 30) | Combined Proforma | ||||||||||
| Revenues | ||||||||||||
| Total revenues | $ | 5,806,508 | $ | 15,987,179 | $ | 21,793,687 | ||||||
| Cost of revenues | ||||||||||||
| Total cost of revenues | 4,918,864 | 13,242,686 | 18,161,550 | |||||||||
| Gross profit | 887,644 | 2,744,493 | 3,632,137 | |||||||||
| Operating expenses | ||||||||||||
| Selling, general and administrative | 548,581 | 6,171,142 | 6,719,723 | |||||||||
| Total operating expenses | 548,581 | 6,171,142 | 6,719,723 | |||||||||
| Operating income/(loss) | 339,063 | (3,426,649 | ) | (3,087,586 | ) | |||||||
| Other income (expenses) | ||||||||||||
| Interest and financing costs | (20,021 | ) | (144,659 | ) | (164,680 | ) | ||||||
| Interest and other income, net | - | (52,969 | ) | (52,969 | ) | |||||||
| Total other income, net | (20,021 | ) | (197,628 | ) | (217,649 | ) | ||||||
| Income/(loss) before income taxes | 319,042 | (3,624,277 | ) | (3,305,235 | ) | |||||||
| Income tax benefit/(expense), net | (95,700 | ) | (67 | ) | (95,767 | ) | ||||||
| Net income/(loss) applicable to common stockholders | $ | 223,342 | $ | (3,624,344 | ) | $ | (3,401,002 | ) | ||||
| Income/(loss) per common share | ||||||||||||
| - basic | $ | 0.01 | $ | (0.08 | ) | |||||||
| -diluted | $ | 0.01 | $ | (0.08 | ) | |||||||
| Weighted average common shares outstanding | ||||||||||||
| - basic | 40,599,129 | 40,599,129 | ||||||||||
| -diluted | 40,599,129 | 40,599,129 | ||||||||||
| 2 |
| PRO-FORMA COMBINED BALANCE SHEET | ||||||||||||
| March 31, 2013 | ||||||||||||
| ASSETS | Cemtrex Inc. | ROB Group | Combined Proforma | |||||||||
| Current Assets | ||||||||||||
| Cash & Equivalents | $ | 333,045 | $ | - | $ | 333,045 | ||||||
| Accounts Receivable, Net | 293,155 | - | 293,155 | |||||||||
| Accounts Receivable-related party | 354,786 | - | 354,786 | |||||||||
| Inventory -net of allowance for inventory obsolescence | 196,844 | 4,941,350 | 5,138,194 | |||||||||
| Prepaid Expenses & Other Assets | 393,808 | - | 393,808 | |||||||||
| Total Current Assets | 1,571,638 | 4,941,350 | 6,512,988 | |||||||||
| Property & Equipment, Net | 20,466 | 1,201,950 | 1,222,416 | |||||||||
| Due From Related Parties | 80,000 | 80,000 | ||||||||||
| Goodwill | - | 113,518 | 113,518 | |||||||||
| Other | 6,270 | 13,355 | 19,625 | |||||||||
| Total Assets | $ | 1,678,374 | $ | 6,270,173 | $ | 7,948,547 | ||||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||||||
| Current Liabilities | ||||||||||||
| Accounts Payable | $ | 320,709 | $ | 320,709 | ||||||||
| Accrued Expenses | 38,522 | 38,522 | ||||||||||
| Accrued Income Taxes | - | - | ||||||||||
| Other Liabilities | - | - | ||||||||||
| Total Current Liabilities | 359,231 | - | 359,231 | |||||||||
| Long term- Liabilities | ||||||||||||
| Loan payable to Bank | - | 3,133,286 | 3,133,286 | |||||||||
| Loan payable to Related party | 476,458 | 3,136,887 | 3,613,345 | |||||||||
| Notes payable to Shareholder | - | - | ||||||||||
| Total Liabilities | 835,689 | 6,270,173 | 7,105,862 | |||||||||
| Commitments & Contingencies | - | - | - | |||||||||
| Stockholders' Equity | ||||||||||||
| Preferred stock, par value $0.001, 10,000,000 shares | ||||||||||||
| authorized, 1,000,000 shares issued and outhstanding | 1,000 | 1,000 | ||||||||||
| Common stock, par value $0.001, 60,000,000 shares | ||||||||||||
| authorized, 40,599,129 shares issued and outstanding | 40,599 | 40,599 | ||||||||||
| Additional paid-in capital | 165,730 | 165,730 | ||||||||||
| Retained Earnings | 635,356 | 635,356 | ||||||||||
| Accumulated other comprehensive income | - | - | ||||||||||
| Total Stockholders' Equity | 842,685 | - | 842,685 | |||||||||
| Total Liabilities & Stockholders' Equity | $ | 1,678,374 | $ | 6,270,173 | $ | 7,948,547 | ||||||
| 3 |
NOTES TO PRO-FORMA COMBINED FINANCIAL STATEMENTS (unaudited)
The pro-forma adjustments are preliminary and are based on our estimate of the fair value and useful lives of the assets acquired and have been prepared to illustrate the estimated effect of the acquisition.
In accordance with Accounting Standards Codification ("ASC") 805, Business Combinations ("ASC 805"), the total purchase consideration is allocated to the net tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values as of October 31, 2013 (the acquisition date). The purchase price was allocated based on the information currently available, and may be adjusted after obtaining more information regarding, among other things, asset valuations, liabilities assumed, and revisions of preliminary estimates.
The following tables summarize the components of the purchase price and the estimated fair values of the assets acquired and liabilities assumed at the acquisition date:
| Loan from bank | 3,133,286 | |||
| Loan from related party | 3,136,887 | |||
| Total Purchase Price | $ | 6,270,173 |
| Inventories | $ | 4,941,350 | ||
| Property and Equipment | 1,201,950 | |||
| Goodwill | 113,518 | |||
| Other long-term assets | 13,355 | |||
| Net assets acquired | $ | 6,270,173 |
| 4 |