Exhibit 99.2

 

PRO-FORMA COMBINED STATEMENT OF OPERATIONS

FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2013

 

   Cemtrex Inc.   ROB Group   Consolidation
Adjustments
   Combined
Proforma
 
Revenues                    
Total revenues  $13,673,531   $33,376,916       $47,050,447 
                     
Cost of revenues                    
Total cost of revenues   12,528,549    23,511,416         36,039,965 
Gross profit   1,144,982    9,865,500         11,010,482 
                     
Operating expenses                    
Selling, general and administrative   798,135    10,228,441         11,026,576 
Total operating expenses   798,135    10,228,441         11,026,576 
Operating income/(loss)   346,847    -362,941         -16,094 
                     
Other income (expenses)                    
Interest and financing costs   (45,850)   (297,893)        (343,743)
Interest and other income, net   -    -         - 
Total other income, net   (45,850)   (297,893)        (343,743)
                     
Income/(loss) before income taxes   300,997    (660,834)        (359,837)
Income tax benefit/(expense), net   (12,500)   -         (12,500)
Net income/(loss) applicable to common stockholders  $288,497   $(660,834)       $(372,337)
                     
Income/(loss) per common share                    
- basic  $0.01             $(0.01)
-diluted  $0.01             $(0.01)
                     
Weighted average common shares outstanding                    
- basic   40,599,129              40,599,129 
-diluted   40,599,129              40,599,129 

 

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PRO-FORMA COMBINED BALANCE SHEET

September 30, 2013

 

   Cemtrex Inc.   ROB Group   Acquisition
Adjustments
   Combined
Proforma
 
                 
ASSETS                    
Current Assets                    
Cash & Equivalents  $66,963         1,207,089(1)  $1,274,052 
Accounts Receivable, Net   641,264              641,264 
Accounts Receivable-related party   1,206,372              1,206,372 
Inventory -net  of allowance for inventory obsolescence   159,348    4,941,350         5,100,698 
Prepaid Expenses & Other Assets   432,131              432,131 
Total Current Assets   2,506,078    4,941,350    1,207,089    8,654,517 
                     
Property & Equipment, Net   9,323    981,593         990,916 
Due From Related Parties   354,150              354,150 
Goodwill   -              - 
Other   4,225    13,355         17,580 
Total Assets  $2,873,776   $5,936,298    1,207,089   $10,017,163 
                     
LIABILITIES AND STOCKHOLDERS EQUITY                    
Current Liabilities                    
Accounts Payable  $571,485             $571,485 
Accrued Expenses   63,625              63,625 
Accrued Income Taxes   -              - 
Other Liabilities   -              - 
Total Current Liabilities   635,110    -    -    635,110 
                     
Long term- Liabilities                    
Loan payable to Bank   -         4,006,500(1)   4,006,500 
Loan payable to Related party   1,107,484              1,107,484 
Notes payable to Shareholder   -         3,136,887(1)   3,136,887 
Total Liabilities   1,742,594    -    7,143,387    8,885,981 
                     
Commitments & Contingencies   -              - 
                     
Stockholders' Equity                    
Preferred stock, par value $0.001, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding   1,000              1,000 
Common stock, par value $0.001, 60,000,000 shares authorized, 40,599,129 shares issued and outstanding   40,599    33,388    (33,388)(1)   40,599 
Additional paid-in capital   165,730    5,902,910    (5,902,910)(1)   165,730 
Retained Earnings   923,853              923,853 
Accumulated other comprehensive income   -              - 
Total Stockholders' Equity   1,131,182    5,936,298    (5,936,298)   1,131,182 
                     
Total Liabilities & Stockholders' Equity  $2,873,776   $5,936,298    1,207,089   $10,017,163 

 

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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 notes explain the adjustments made:

 

1.To reflect the acquisition of ROB Group and the allocation of the purchase price on the basis of the fair values of the assets acquired and the liabilities assumed, the components of the purchase price and allocation to the assets and liabilities are as follows:

 

Loan from bank   2,799,411 
Loan from related party   3,136,887 
Total Purchase Price  $5,936,298 

 

Inventories  $4,941,350 
Property and Equipment   981,593 
Other long-term assets   13,355 
Net assets acquired  $5,936,298 

 

On October 31, 2013, the company acquired a loan from Sparkasse Bank of Germany in the amount of €3,000,000 ($4,006,500, based upon exchange rate on October 31, 2013) in order to fund the purchase of ROB Cemtrex GmbH. $2,799,411 of the proceeds went to direct purchase of ROB Cemtrex GmbH and $1,207,089 funded beginning operations. This loan carries interest of 4.95% per annum and is payable on October 30, 2021.

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

  Cemtrex Inc.  
       
Date:   February 3, 2015      
  By: /s/ Saagar Govil  
    Name: Saagar Govil  
    Title: CEO  

 

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