-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, EN/V+elOWwPqk42yiuPdpygnzBEYOodTaEBqUSEa5vrxmOdNr2pfJ9X8SQZJtIJp BWKzfgha6YxdscmZe7xkhg== 0001108017-07-000445.txt : 20070625 0001108017-07-000445.hdr.sgml : 20070625 20070625171548 ACCESSION NUMBER: 0001108017-07-000445 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20060511 ITEM INFORMATION: Unregistered Sales of Equity Securities ITEM INFORMATION: Regulation FD Disclosure ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070625 DATE AS OF CHANGE: 20070625 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PAIVIS, CORP ./NV/ CENTRAL INDEX KEY: 0001076607 STANDARD INDUSTRIAL CLASSIFICATION: TELEPHONE COMMUNICATIONS (NO RADIO TELEPHONE) [4813] IRS NUMBER: 860871787 STATE OF INCORPORATION: NV FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-30074 FILM NUMBER: 07939417 BUSINESS ADDRESS: STREET 1: 3475 LENOX ROAD STREET 2: SUITE 400 CITY: ATLANTA STATE: 2Q ZIP: 30326 BUSINESS PHONE: 4046012885 MAIL ADDRESS: STREET 1: 3475 LENOX ROAD STREET 2: SUITE 400 CITY: ATLANTA STATE: 2Q ZIP: 30326 FORMER COMPANY: FORMER CONFORMED NAME: APO HEALTH INC /NV/ DATE OF NAME CHANGE: 20010628 FORMER COMPANY: FORMER CONFORMED NAME: INTERNETFINANCIALCORP COM INC DATE OF NAME CHANGE: 20000229 FORMER COMPANY: FORMER CONFORMED NAME: CARIBBEAN VENTURES INC /NV/ DATE OF NAME CHANGE: 19990112 8-K/A 1 pav8k.htm 8K/A pav8k.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K/A

CURRENT REPORT
PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):
May 11, 2006

PAIVIS, CORP.
(Exact name of registrant as specified in its charter)
 
Nevada
00030074
86-0871787
(State or other Jurisdiction
of Incorporation)
(Commission File
Number)
(IRS Employer
Identification No.)
 
#400 - 3475 Lenox Road, Atlanta Georgia 30326
(Address of principal executive offices) (Zip code)
 
Registrant’s telephone number, including area code: (404-601-2885)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
[  ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
-1-


Item 1.01 Entry Into Material Definitive Agreement

This Current Report on Form 8-K/A amends the Current Report filed by the Registrant on April 25, 2006. On April 21, 2006, APO Health, Inc., a Nevada corporation (“APO”), entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with APO Health Acquisition Corp, Inc., a Nevada corporation and wholly-owned subsidiary of APO (“APO Acquisition”), and Jupiter Global Holdings, Corp., a Nevada corporation (“Jupiter”). The Merger Agreement provided that upon the terms and subject to the conditions set forth in the Merger Agreement, APO Acquisition will merge with and into Jupiter, with Jupiter being the surviving corporation and a wholly-owned subsidiary of APO.

Item 2.01 Completion of Acquisition or Disposition of Assets

On May 11, 2006, the above-referenced parties to the Agreement and Plan of Merger consummated the Merger Agreement and the Merger Agreement became effective as of May 11, 2006, the date that the Articles of Merger were accepted for filing by the Nevada Secretary of State. As of May 11, 2006, APO changed its name to PAIVIS, Corp. (“PAIVIS”).

As of May 11, 2006, each share of Common Stock of Jupiter issued and outstanding immediately prior to the Effective Time of the Merger Agreement was converted into and become a right to receive 0.46232085067036500 of a share of common stock of APO (the “Conversion Price”), and are automatically canceled and retired and cease to exist as of the Effective Time of the Merger. Although the Effective Date of the Merger was May 11, 2006, trading in the common shares of Jupiter did not cease until May 18, 2006, resulting in the Registrant’s conclusion that the actual date that Merger Shares were to issue to Jupiter shareholders, was May 18, 2006
 
The Merger Agreement provides that the Shares of Common Stock to be received by Jupiter (now PAIVIS) shareholders will not be registered under the Securities Act of 1933, or the securities laws of any state, and absent an exemption from registration contained in such laws, cannot be transferred, hypothecated, sold or otherwise disposed of until; (i) a registration statement with respect to such securities is declared effective under the Securities Act of 1933, or (ii) PAIVIS receives an opinion of counsel for PAIVIS that an exemption from the registration requirements of the Securities Act is available.

A copy of the Merger Agreement is filed as Exhibit 10.1 to Form 8-K filed by APO on April 25, 2006 and is incorporated by reference herein. The foregoing summary of the Merger Agreement is qualified by the Merger Agreement in its entirety.
 
Item 3.02 Unregistered Sales of Equity Securities

On May 18, 2006, and pursuant to the consummation of the Merger Agreement, the Registrant agreed to issue 4,623,208,507 Common Shares (the “Shares”) to the shareholders of Jupiter as of the effective date of the Merger Agreement, subsequently determined to be May 18, 2006. The Common Shares were to issue under the Merger Agreement as  restricted securities and were exempt from registration under § 5 of the Securities Act of 1933, as the issuances are deemed exempt from registration under §3(a)(9), §4(1) and 4(2) of the Securities Act of 1933.

Item 7.01    Regulation FD Disclosure.

The information set forth under this Item 7.01, including Exhibit 99.1 attached hereto, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act, except as shall be expressly set forth by specific reference in any such filing. Attached hereto as Exhibit 99.1 is a Press Release issued by the Registrant on May 15, 2006 regarding the consummation and effectiveness of the Merger Agreement.
 
-2-

 
Item 9.01    Financial Statements and Exhibits.
 (a) Financial Statements of Businesses Acquired.
The financial statements required by this Item 9.01 are included in the Exhibits of this filing.

 (b) Pro Forma Financial Information.
The pro forma financial information required by this Item 9(b) are included in the Exhibits of this filing.

(c) Exhibits
 
 
Exhibit
Number
Description

 
2.1
Merger Agreement dated April 21, 2006 filed on April 25, 2006 incorporated by reference
 
9.1
 
9.2
 
99.1
  
-3-

 
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 thereunto duly authorized.
 
 
 
PAIVIS, CORP.
Dated: June 25, 2007 
A
 
 
 
 
 
 
By:  
/s/ Gregory Bauer
 
_______________________________
Gregory Bauer, President and CEO
 
Pr
 
-4-




EX-9.1 2 ex91.htm AUDITED FINANCIAL STATEMENTS OF BUSINESSES ACQUIRED. ex91.htm
Exhibit 9.1
 
 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)
CONSOLIDATED FINANCIAL STATEMENTS
 
DECEMBER 31, 2005 AND 2004
-1-

To the Stockholders and Board of Directors
Jupiter Global Holdings Corp. and Subsidiaries
(Formerly Livestar Entertainment Group Inc.)

We have audited the accompanying consolidated balance sheet of Jupiter Global Holdings Corp. and Subsidiaries (formerly Livestar Entertainment Group Inc.) as of December 31, 2005, and the related consolidated statements of operations, stockholders’ deficiency, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. The financial statements as of and for the year ended December 31, 2004 were audited by other auditors and their opinion dated August 12, 2005 contained an explanatory paragraph expressing substantial doubt regarding the Company’s ability to continue as a going concern.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, these consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2005, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles in the United States of America.
 
The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1(c) to the consolidated financial statements, the Company has accumulated a deficit of $14,708,206, has not attained profitable operations and is dependent upon obtaining adequate financing to fulfill its business activities. These factors raise substantial doubt that the Company will be able to continue as a going concern. Management’s plans in regard to these matters are discussed in Note 1(c). The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



Jaspers + Hall, PC
September 27, 2006
-2-

JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

CONSOLIDATED BALANCE SHEETS
(Stated in U.S. Dollars)

   
DECEMBER 31
 
   
2005
   
2004
 
             
ASSETS
           
Current
           
Cash
  $
88,070
    $
8,240
 
Goods and Services Tax recoverable
   
6,269
     
3,757
 
Accounts Receivable
   
82,158
     
-
 
Prepaid expense, advances and other
   
59,204
     
8,496
 
     
235,701
     
20,493
 
                 
Capital Assets (Note 3)
   
258,464
     
5,972
 
Goodwill
   
2,095,076
     
-
 
Minority Interest in Subsidiaries
   
555,656
         
                 
    $
3,144,897
    $
26,465
 
                 
LIABILITIES
               
Current
               
Accounts payable and accrued liabilities
  $
4,075,888
     
2,306,523
 
Loans and advances payable (Note 4)
   
1,640,968
     
738,581
 
                 
     
5,716,856
     
3,045,104
 
                 
STOCKHOLDERS’ DEFICIENCY
               
Capital Stock (Notes  7and 8)
               
Authorized:
               
10,000,000,000 common shares, par value $0.0001 per share
               
200,000,000 preferred shares, par value $0.0001 per share
               
                 
Issued and outstanding:
               
5,222,073,640 common shares at December 31, 2005, and 27,569,926 at December 31, 2004
   
522,207
     
2,757
 
80,060,000 series B preferred shares and 1 Series A preferred share at December 31, 2005 and December 31, 2004
   
8,006
     
8,006
 
                 
Additional paid-in capital
   
11,656,034
     
5,818,445
 
                 
Accumulated Deficit
    (14,708,206 )     (8,847,847 )
Dividends Paid
    (50,000 )        
      (2,571,959 )     (3,018,639 )
                 
    $
3,144,897
    $
26,465
 
The accompanying notes are an integral part of these consolidated financial statements.
-3-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Stated in U.S. Dollars)

   
YEAR ENDED
 
   
DECEMBER 31
 
   
2005
   
2004
 
             
Revenue
           
Telecom
  $
1,276,430
    $
-
 
                 
Cost of Sales and Operating Costs
   
1,185,143
     
-
 
     
91,287
      -  
                 
Expenses
               
Administrative services
   
53,693
     
29,660
 
Amortization
   
49,868
     
33,521
 
Business development
   
13,252
     
444,597
 
Consulting
   
1,290,404
     
900,270
 
Debt Retirement Expense
   
1,412,309
     
-
 
Foreign exchange
   
7,682
     
59,883
 
Investor relations
   
12,126
     
26,684
 
Marketing
   
6,176
     
10,120
 
Office, rent and sundry
   
207,104
     
276,593
 
Professional fees
   
156,918
     
304,111
 
Travel
   
67,694
     
134,248
 
Wages and benefits
   
2,728,799
     
1,767,306
 
     
6,006,025
     
3,986,993
 
                 
Loss Before The Following
   
5,914,738
     
3,986,993
 
                 
Minority Interest In Loss of Subsidiary
    (54,379 )    
-
 
                 
Loss From Continuing Operations
  $
5,860,359
    $
3,986,993
 
                 
Loss From Discontinued Operations   $ -     $ 681,273  
                 
Net Loss for the Period
  $
5,860,359
     
4,668,266
 
                 
Net Loss Per Share, Basic and diluted
  $ (0.01 )   $ (1.84 )
                 
Weighted Average Number of Common Shares Outstanding
   
1,340,917,279
     
2,536,592
 
 
The accompanying notes are an integral part of these consolidated financial statements.

 
-4-

JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

CONSOLIDATED STATEMENTS OF CASH FLOWS
(Stated in U.S. Dollars)

             
   
YEARS ENDED
 
   
DECEMBER 31
 
   
2005
   
2004
 
             
Cash Flows From Operating Activities
           
Loss for the period from operations
  $ (5,860,359 )   $ (4,668,266 )
                 
Adjustments To Reconcile Net Loss To Net Cash Used By Operating Activities
               
Amortization
   
49,868
     
33,521
 
Stock based compensation
   
2,536,900
     
1,587,753
 
Debt Retirement Inducement expense
   
1,412,309
     
-
 
Stock issued for services
   
344,391
     
238,360
 
                 
Change in working capital items:
               
Accounts receivable
    (44,825 )    
-
 
Goods and Services Tax recoverable
    (2,512 )    
2,864
 
Prepaid expense
    (42,039 )    
69,975
 
Accounts payable and accrued liabilities
   
460,038
     
899,997
 
Advances receivable written off as business development
   
-
     
281,219
 
Other Adjustments
   
73,104
     
-
 
      (1,073,125 )     (1,554,577 )
                 
Cash Flows From Investing Activities
               
Purchase of capital assets
   
-
      (32,764 )
Purchase 80% interest in subsidiary assets
    (265,000 )    
-
 
Cash acquired in Acquisition of Subsidiary Interests
   
12,261
     
-
 
                 
      (252,739 )     (32,764 )
                 
Cash Flows From Financing Activities
               
Shares issued for cash
   
1,529,046
     
1,138,021
 
Share subscriptions received
   
-
      (1,450 )
Loans and advances payable
    (123,352 )    
442,668
 
     
1,405,694
     
1,580,689
 
                 
(Decrease) Increase In Cash
   
79,830
      (6,652 )
                 
Cash, Beginning of Period
   
8,240
     
14,892
 
                 
Cash (Bank Indebtedness), End of Period
  $
88,070
    $
8,240
 
                 
                 
Supplemental Disclosure of Cash Flow  Information
               
Interest paid
  $
-
    $
-
 
Income Taxes paid
   
-
     
-
 
                 
 
The accompanying notes are an integral part of these consolidated financial statements.
 
-5-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY

YEARS ENDED DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)
 
   
PREFERRED STOCK
   
PREFERRED STOCK
               
ADDITIONAL
             
   
SERIES A
   
SERIES B
   
COMMON STOCK
   
PAID-IN
             
   
SHARES
   
AMOUNT
   
SHARES
   
AMOUNT
   
SHARES
   
AMOUNT
   
CAPITAL
   
DEFICIT
   
TOTAL
 
                                                       
Balance, December 31, 2003
   
1
    $
-
     
-
    $
-
     
140
    $
-
    $
2,638,674
    $ (4,179,581 )   $ (1,540,907 )
                                                                         
Shares issued for debt
   
-
     
-
     
-
     
-
     
800,026
     
80
     
104,320
     
-
     
104,400
 
Shares issued for services
   
-
     
-
     
-
     
-
     
14,412,565
     
1,441
     
236,919
     
-
     
238,360
 
Shares issued for cash
   
-
     
-
     
-
     
-
     
12,356,802
     
1,236
     
1,136,785
     
-
     
1,138,021
 
Addition shares issued due 1 for 2000 stock split
   
-
     
-
     
-
     
-
     
393
     
-
     
-
     
-
     
-
 
Shares issued for debt
   
-
     
-
     
80,060,000
     
8,006
     
-
     
-
     
113,994
     
-
     
122,000
 
Stock based compensation
   
-
     
-
     
-
     
-
     
-
     
-
     
1,587,753
     
-
     
1,587,753
 
Loss for the period
   
-
     
-
     
-
     
-
     
-
     
-
     
-
      (4,668,266 )     (4,668,266 )
                                                                         
Balance, December 31, 2004
   
1
     
-
     
80,060,000
     
8,006
     
27,569,926
     
2,757
     
5,818,445
      (8,847,847 )     (3,018,639 )
                                                                         
Shares issued for debt
   
-
     
-
     
-
     
-
     
2,003,587,874
     
200,359
     
330,136
     
-
     
530,495
 
Shares issued for services
   
-
     
-
     
-
     
-
     
533,674,688
     
53,367
     
291,023
     
-
     
344,391
 
Shares issued for cash
   
-
     
-
     
-
     
-
     
2,657,238,153
     
265,724
     
1,263,321
     
-
     
1,529,045
 
Stock based compensation
   
-
     
-
     
-
     
-
     
-
     
-
     
3,953,109
     
-
     
3,953,109
 
Dividend declared
                           
-
                              (50,000 )     (50,000 )
Loss for the period
   
-
     
-
     
-
     
-
     
-
     
-
              (5,860,359 )     (5,860,359 )
             
-
                                                         
Balance, December 31, 2005
   
1
    $
-
     
80,060,000
    $
8,006
     
5,222,070,641
    $
522,207
    $
11,656,034
    $ (14,758,206 )   $ (2,571,959 )
 
The accompanying notes are an integral part of these consolidated financial statements.
 
-6-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

1. NATURE OF OPERATIONS

a) 
Organization

The Company was incorporated in the State of Nevada, U.S.A., on October 12, 2000.  During the year ended December 31, 2004, the Company consolidated its issued and outstanding common shares on a 1 new share for 2,000,000 old share basis.  The consolidation, otherwise known as a reverse stock split, happened over two periods as disclosed in note 7.

All common stock and per share amounts listed in these consolidated financial statements have been adjusted to reflect the stock consolidations.  During the year ended December 31, 2005, the Company changed its name to Jupiter Global Holdings Corp. from Livestar Entertainment Group Inc.

b) 
Business Activities

As at December 31, 2005 the Company’s focus is the continued advancement as a holding company with interests in the telecom industry. At this time, the Company does not plan to operate in any other business segment, and all unrelated businesses have been consolidated under discontinued operations.
 
 
c) 
Going Concern

Since inception, the Company has suffered recurring losses, net cash outflows from operations and, at December 31, 2005, has accumulated a deficit of $14,708,206 and a working capital deficiency of $5,481,115.  The Company expects to continue to incur substantial losses to complete the development of its business.  Since its inception, the Company has funded operations through common stock issuances and related party loans in order to meet its strategic objectives.  Management believes that sufficient funding will be available to meet its business objectives, including anticipated cash needs for working capital, and is currently evaluating several financing options.  However, there can be no assurance that the Company will be able to obtain sufficient funds to continue the development of and, if successful, to commence the sale of its products and services under development.  As a result of the foregoing, there exists substantial doubt about the Company’s ability to continue as a going concern.  These consolidated financial statements do not include any adjustments that might result if the Company is unable to realize its assets and settle its obligations in the normal course of business.

2.
SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America.  Because a precise determination of many assets and liabilities is dependent upon future events, the preparation of consolidated financial statements for a period necessarily involves the use of estimates which have been made using careful judgment.

The consolidated financial statements have, in management’s opinion, been properly prepared within reasonable limits of materiality and within the framework of the significant accounting policies summarized below:

 
a)
Consolidation
 
These consolidated financial statements include the accounts of the Company, its 100% owned subsidiaries, LIVESTAR Entertainment Canada Inc., 1615496 Ontario Ltd., 1614718 Ontario Inc., RRUN Labs Incorporated, LIVESTAR Entertainment Establishment Ltd., LIVESTAR Entertainment Events International Inc., its 80% owned subsidiary, Macro Communications Inc., its 67% owned subsidiary, RAHX, Inc., and its 51% owned subsidiary LIVE & Cool One, Inc..
-7-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

2.
SIGNIFICANT ACCOUNTING POLICIES (CONT.)

 
b)
Investments
 
Investments in companies owned less than 20% are recorded at the lower of cost or fair market value.
 
 
c)
Income Taxes
 
The Company has adopted Statement of Financial Accounting Standards No. 109 – “Accounting for Income Taxes” (SFAS 109). This standard requires the use of an asset and liability approach for financial accounting and reporting on income taxes. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized.

 
d)
Amortization
 
Capital assets are being amortized over their estimated useful lives on the straight-line basis at the following rates:

Computer equipment
3 years
Computer software
3 years
Office furniture and equipment
5 years

 
e)
Stock Based Compensation

The Company accounts for stock based employee compensation arrangements in accordance with the provisions of Statement of Financial Accounting Standards No. 123 – “Accounting for Stock Based Compensation” (SFAS No. 123). Under SFAS No.123,  Compensation expense is recognized based on the Fair Market Value of the options granted.
 
 
f)
Financial Instruments
 
The Company’s financial instruments consist of cash, accounts receivable, Goods and Services Tax recoverable, accounts payable and accrued liabilities, and loans and advances payable.

Unless otherwise noted, it is management’s opinion that the Company is not exposed to significant interest or credit risks arising from these financial instruments.  The fair value of these financial instruments is recorded at their approximate carrying values, unless otherwise noted.
 
 
g)
Net Loss Per Share
 
Basic earnings per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding in the period.  Diluted earnings per share takes into consideration common shares outstanding (computed under basic earnings per share) and potentially dilutive common stock equivalents including warrants, options and convertible instruments.  Diluted loss per share equals loss per share as the exercise of any common stock equivalents would be anti-dilutive.

 
h)
Foreign Currency Translation

Transaction amounts denominated in foreign currencies are translated at exchange rates prevailing at transaction dates.  Carrying values of monetary assets and liabilities are adjusted at each balance sheet date to reflect the exchange rate at that date.  Non-monetary assets and liabilities are translated at the exchange rate on the original transaction date.  Gains and losses from restatement of foreign currency monetary and non-monetary assets and liabilities are included in the statements of operations.  Revenues and expenses are translated at the rates of exchange prevailing on the dates such items are recognized in the statements of operations.
 
 
i)
Revenue Recognition
 
The Company recognizes its Telecom revenue upon the sale and activation of a telephone calling card.

-8-


JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

3.
CAPITAL ASSETS

 
2005
 
 
COST
 
ACCUMULATED
 
NET BOOK
 
 
 
 
AMORTIZATION
 
VALUE
 
                   
Computer equipment
  $
18,016
    $
16,161
    $
1,855
 
Office furniture and equipment
   
1,063,065
     
806,456
     
256,609
 
                         
    $
1,081,081
    $
822,617
    $
258,464
 
 
2004
 
     
ACCUMULATED
 
NET BOOK
 
 
COST
 
AMORTIZATION
 
VALUE
 
                         
Computer equipment
  $
14,897
    $
8,943
    $
5,954
 
Office furniture and equipment
   
7,663
     
7,645
     
18
 
                         
    $
23,016
     
17,044
     
5,972
 

4.
LOANS AND ADVANCES
 
All loans and advances payable are past due or are repayable within one year and are unsecured.  As at the year ended 2005, loans and advances consisted of
 
   
2005
   
2004
 
             
Convertible Loans & Advances
           
- past due
  $
506,416
    $
285,788
 
- due within one year
   
186,181
     
226,576
 
             
512,364
 
Non Convertible Loans & Advances
   
948,370
     
226,217
 
                 
Total Loans & Advances Payable
  $
1,640,967
    $
738,581
 

The past due convertible loans and advances were issued in the years ended December 31, 2004.  They are now past due.  The holders have not demanded payment.  The amounts are non-interest bearing and are convertible at the option of the holder.
 
-9-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

4.
LOANS AND ADVANCES  (CONT.)

a)
Of the Loans and Advances that are not convertible into Common Stock, additional details have been listed below:
   
2005
   
2004
 
   
AMOUNT
   
AMOUNT
 
             
Bears no interest
  $
400,878
    $
81,385
 
Bears no interest,  paid Loan fee of  $3,300 for 2005; $10,000 for 2004
   
75,800
     
65,500
 
Bears an interest rate of 10% and paid loan fees of $6,000
   
-
     
62,000
 
Accrued Loan Fees on Convertible Debt
   
-
     
13,100
 
Accrued Interest to be paid on Convertible Debt
   
471,692
     
4,232
 
                 
Total Loan & Advances Payable – non convertible
  $
948,370
    $
226,217
 


b)
All of the Loans and Advances convertible into Common Stock are convertible only at the option of the holder.  Additional details are listed below:

   
2005
   
2004
 
   
AMOUNT
   
AMOUNT
 
             
Convertible at a rate to be agreed between the Company and the holder within 48 hrs of holder’s request for conversion, bears interest rate of 5%
  $
111,276
    $
102,000
 
Convertible at a rate to be agreed between the Company and the holder within 48 hrs of request for conversion, bears no interest rate
   
180,811
     
114,500
 
Convertible at a rate to be mutually agreed between the Company and the holder, bears no interest rate
   
10,076
     
10,076
 
Convertible at $0.02 per share, bears no interest
   
1,400
     
1,855
 
Convertible at $0.12 per share, bears no interest
   
12,898
     
12,479
 
Convertible after June 30, 2006 at $0.02 per share, bears no interest
   
161,215
     
160,796
 
Convertible after June 30, 2006 at $0.05 per share, bears no interest
   
107,951
     
110,658
 
Convertible upon request at $.0016 per share, bears interest rate of 8%
   
106,970
      -  
                 
Convertible loans and advances
  $
692,597
    $
512,364
 
 
-10-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

4.
LOANS AND ADVANCES (CONT.)
 
$287,094 of the convertible loans and advances are due to related parties.  During the year ended December 31, 2005, conversion privileges on $269,166 of the related party amounts were extended from June 30, 2004 to June 30, 2006.
 
The fair value of the convertible notes and advances at December 31, 2005 and 2004 is not determinable due to uncertainties relating to the timing and nature of eventual settlement.
 
5.
ACQUSITION
 
In September 2005, the Company closed an Agreement and Plan of Acquisition to acquire 80% interest in Macro Communications Inc. for the value of $2,000,000 consisting of $90,000 cash and a $1,910,000 promissory note.  As a result of this transaction, Macro Communications became a reporting majority owned subsidiary of the Company.
 
6.
STOCK DIVIDEND
 
The Company set July 8, 2005 as the record date for all shares to receive a prorate dividend of its 5,000,000 shares of VOXBOX World Telecom, Inc. common stock.
In October, 2005 the Company executed the aforementioned dividend and therefore on a prorate basis issued all 5,000,000 shares of VOXBOX World Telecom, Inc. stock to its shareholders as a restricted stock dividend.
 
7.
CAPITAL STOCK

During the year 2004, the Company restructured its capital stock.  On June 24, 2004, the company amended its authorized common stock from 1,000,000,000 shares to 10,000,000,000 shares.  In addition, during the year ended December 31, 2004, the Company completed common stock consolidations of 1,000 shares for 1 share on September 1, 2004 and 2000 shares for 1 share on November 8, 2004.  All references to common shares and per share amounts in these Financial Statements have been adjusted to reflect the effect of these consolidated stock consolidations.

8.
CONVERTIBLE PREFERRED STOCK

a)
The Company’s Series A Preferred Shares have Conversion & Voting Rights of 40 Common Shares for 1 Preferred Share.  During the year ended December 31, 2004, Series A Preferred Shares experienced the same 2,000,000:1 consolidation as the common stock, leaving 1 Series A Preferred Share outstanding at December 31, 2004.

b)
On May 27, 2004, the Company issued 60,000,000 Series B Preferred Stock for the cancellation of $102,000 of debt owed to a director.  Series B Preferred Stock has a Conversion Right of 1 Common Share for 1 Preferred Share and is convertible at the option of the holder for a period of 10 years from the date of issuance.  Series B convertible preferred stock has Voting Right of 50 Common Shares for 1 Preferred Share.  During the first consolidation of common stock in 2004, these shares were consolidated on a 1 for 1,000 shares basis, leaving 60,000 post consolidation Series B Preferred Shares outstanding.  On October 12, 2004, the rights of the Series B Preferred Shares were amended to include Anti-dilutive rights; and thus, the 60,000 Series B Preferred Shares were not subject to the 2000:1 share consolidation of November 8, 2004.  On October 19, 2004, the Company issued an additional 80,000,000 Series B Preferred Shares for non cash consideration of the cancellation of $20,000 of debt owed to a director.

Dividends shall be paid with respect to shares of Series B convertible Preferred Stock only as dividends are paid with respect to the shares of common stock of the corporation.  Shares of Series B convertible preferred stock shall only receive dividends to which they would be entitled if they were converted into shares of common stock immediately prior to the payment of the dividend.

As a result of the issuance of the 80,060,000 Series B preferred shares to a director of the Company, the director holds voting rights of the equivalent of 4,003,000,000 common shares which as at December 31, 2005 represents 43% of total shareholder votes available.
-11-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

9.
STOCK OPTIONS AND WARRANTS OUTSTANDING

a)
Stock Options

On January 30, 2004, March 5, 2004, May 6, 2004, June 28, 2004, August 2, 2004, and November 3, 2004 respectively, the Board of Directors approved six Employee Stock Incentive Plans (“ESIP”) for the Year 2004 under which designated officers and employees of the Company and its subsidiaries may be granted stock options.  The plans are administered by the Company’s Board of Directors, who have substantial discretion to determine the persons, amounts, time of exercise, price, exercise terms, and restrictions on the options.

ESIP plans 1 to 4 for the Year 2004 are variable stock option plans.  The minimum exercise price for options granted under the plans is 85% of the fair market value of the underlying common stock on the date of exercise of the option.  The Company records 15% of the market value of the underlying shares on the date of exercise as the intrinsic value of these options.

ESIP plans 5 and 6 for the Year 2004 are fixed stock option plans.  The exercise price for options granted is a minimum of 85% of the fair market value of the underlying common stock on the date of grant.  The Company records 15% of the market value of the underlying shares on the date of grant as the intrinsic value of these options.

On November 1, 2005, the Board of Directors approved one Employee Stock Incentive Plans (“ESIP”) for the Year 2005 under which employees and consultants of the Company and its subsidiaries may be granted stock options.  The plans are administered by the Company’s Board of Directors, who have substantial discretion to determine the persons, amounts, time of exercise, price, exercise terms, and restrictions on the options.

The ESIP plan for Year 2005 is variable stock option plan.  The minimum exercise price for options granted under the plan is 85% of the fair market value of the underlying common stock on the date of exercise of the option.  The Company records 15% of the market value of the underlying shares on the date of exercise as the intrinsic value of these options.

Options granted under these plans have a 10 year expiry, and vest immediately.  At December 31, 2005, 5,730,840,000 employee options remained available for grant.
 
-12-

JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)
 
9.
STOCK OPTIONS AND WARRANTS OUTSTANDING (CONT)

Under the plans above, the Company was authorized to grant up to a total of 2,790,076,500 common shares.  Options granted under these plans have a 10 year expiry, and vest immediately.  At December 31, 2005, 7,000,000 employee options remained available for grant.

During the year ended December 31, 2004, 12,356,802 options were exercised on behalf of employees on a cashless basis through an outside broker for proceeds to the Company of $1,138,021.  During the year ended December 31, 2005, 2,657,238,153 options were exercised on behalf of employees on a cashless basis through an outside broker for proceeds to the Company of $1,529,046.

As at December 31, 2005, options were outstanding and exercisable for the purchase of common shares as follows:
 
NUMBER
OF SHARES
 
GRANT DATE PRICE
PER SHARE
 
EXPIRY
DATE
           
356,250
 
$
0.0090
 
November 20, 2014
10,477,250
 
$
0.0110
 
November 29, 2014
7,877,925
 
$
0.0290
 
February 16, 2015
93,315,647
 
$
0.0011
 
November 7, 2015
 
         
112,027,072
         
 
A summary of the changes in stock options for the years ended December 31, 2005 and 2004 is presented below:

   
NUMBER
OF
OPTIONS
   
GRANT DATE
WEIGHTED AVERAGE
EXERCISE PRICE
 
             
Balance, December 31, 2003
   
7
     
126,215
 
                 
Granted
   
51,076,534
     
0.08
 
Exercised
    (12,356,802 )     (0.23 )
Expired
    (1,060,137 )     (0.62 )
                 
Balance, December 31, 2004
   
37,659,602
    $
0.021
 
                 
Granted
   
2,892,000,000
     
0.001
 
Exercised
    (2,657,632,528 )    
0.001
 
Expired
    (160,000,002 )    
0.004
 
                 
Balance, December 31, 2005
   
112,027,072
    $
0.002
 

 
b)
Share Purchase Warrants

As at December 31, 2005, share purchase warrants were outstanding for the purchase of common shares as follows:
 
NUMBER
OF SHARES
 
PRICE
PER SHARE
EXPIRY DATE
         
  1
 
$
20,000
May 28, 2006
 2
 
$
6,000,000
September 17, 2006
         
 3
       
 
A summary of the changes in shares which may be purchased on exercise of warrants for the year ended December 31, 2005 is presented below:

   
NUMBER
OF
SHARES
   
WEIGHTED
AVERAGE
EXERCISE
PRICE
 
             
Balance, December 31, 2003
   
42
     
901,429
 
                 
Cancelled
    (20 )     (810,000 )
                 
Balance, December 31, 2004
   
22
    $
984,545
 
                 
Cancelled
    (19 )     (504,368 )
                 
Balance, December 31, 2005
   
3
    $
4,0006,667
 

At December 31, 2005, a total of 3 warrants remain issued and outstanding, and underlie the shares listed in the table above.
 
 
-13-

JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)
 
10.
STOCK BASED COMPENSATION
 
a) 
Non-Employees
 
On March 12, 2004, the Board of Directors approved the 2004 Compensation Plan for Consultants and Others, for the issue to employees and consultants of up to 75 shares of common stock at a price of $4,000 for fees for services performed or to be performed.  Pursuant to the plan, 65 shares have been issued for services and a total of 10 shares remain available for issuance under the plan at December 31, 2004.

On July 1, 2004, the Board of Directors approved the Non-Employee Director and Consultants Retainer Stock Plan (“NESP”),No. 1,for the issue to employees, directors and consultants of up to 350,000 shares of common stock at a price of $0.0007 for fees for services performed or to be performed.  The Company transferred all authorized common shares available for grant to the ESIP Plan #4 for the Year 2004 pursuant to the terms of the Plan.  No common shares remain to be issued under NESP No.1.

On August 2, 2004, the Board of Directors approved NESP No. 2 for the issue to employees, directors and consultants of up to 198,840,000 shares of common stock at a price of $0.0002 for fees for services performed or to be performed.  During the year 2004, and 2005, 198,840,000 common shares were issued for services and the settlement of debt.  No common shares remain available for issue under NESP No.2.

On November 3, 2004, the Board of Directors approved NESP No. 3 for the issue to employees, directors and consultants of up to 500,000,000 shares of common stock at a price of $0.0001 for fees for services performed or to be performed.  No shares were issued under this plan during the year.  On January 5, 2005, the Board of Directors reduced the number of the common shares available for this Plan.  At December 31, 2005, 3,000,000 shares remain available for issue under the Plan.

In addition to the plans above, a total of 2,003,587,874 common shares were issued during the year to settle outstanding debts.

Shares issued to non-employees are recorded at the market price of the shares on the date service agreements are entered into.  In the year 2005, the Company recorded $342,814 (2004 -$238,360) of non-cash consulting expense.
 
b) 
Employees
 
During the period ended December 31, 2005, the Company recorded stock based compensation of $2,482,423 (2004 - $1,587,753) as wages and benefits in the consolidated statement of operations.  Of the amount expensed, $2,097,762  (2004 - $457,404) represents the intrinsic value of the options granted and exercised under the various ESIP plans.

For options granted and exercised during 2004 and 2005, fair value approximates the recorded amounts due to their limited term, generally less than two weeks.  The fair value of the options granted and outstanding at the end of the year was estimated at the date of grant using the Black-Scholes option pricing model with the following assumptions:

 
2005
2004
         
Risk-free interest rate
 
3.70%
 
1.97%
Expected term of options
 
1 month
 
4 months
Expected volatility
 
95%
 
311%
Dividend yield
 
nil
 
Nil

Black-Scholes is a widely accepted stock option pricing model.  However, the ultimate value of stock options granted will depend on the actual lives of the options and future price levels of the Company’s stock.

Had the Company determined compensation cost based on fair values for its employees stock options, the net loss would have increased by $508,611 for the period ended December 31, 2005, (2004 - $211,502) as indicated below:

   
2005
   
2004
 
             
Net loss, as reported
  $ (5,860,359 )   $ (4,668,266 )
                 
Add:  Stock based compensation expense included in net loss, as reported
   
2,126,507
     
1,587,753
 
                 
Deduct:  Stock based compensation expense determined under fair value method
    (2,635,118 )     (1,799,255 )
                 
Net loss, pro-forma
  $ (6,368,971 )   $ (4,879,768 )
                 
Net loss per share (basic and diluted), as reported
  $ (0.01 )   $ (1.84 )
                 
Net loss per share (basic and diluted), pro-forma
  $ (0.01 )   $ (1.92 )

-14-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)


11.
RELATED PARTY TRANSACTIONS

a)
Included in accounts payable at December 31, 2005 is $89,794 (2004 - $523,203) owing to directors or companies controlled by directors.

b)
Included in loans and advances payable at December 31, 2005 is $291,148 (2004 - $351,289) owing to directors or a companies controlled by directors.
 
c)
During the year ended December 31, 2005, the Company incurred $200,000 (2004 - $200,004) in consulting expense paid to directors with companies controlled by directors.
 
d)
During the year ended December 31, 2005, the Company incurred $51,969 (2004 - $26,456) in administration, office, and equipment rental expenses with companies controlled by directors.

12.
SUPPLEMENTAL DISCLOSURE OF NON CASH FINANCING AND INVESTING ACTIVITIES

During the years ended December 31, 2005 and 2004, the Company had the following non-cash financing and investing activities:

   
2005
   
2004
 
             
Shares issued for debt and services
  $
873,309
    $
342,760
 
                 
                 
Series B convertible preferred shares issued for debt owing to a director
 
$                          nil
    $
122,000
 
                 
 
-15-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)


13.
COMMITMENTS

a)
Previous to December 31, 2005, the Company executed Management Services Memorandums with two separate companies controlled by two directors to provide Management Services.  Subsequent to December 31, 2005, the memorandums provide for performance bonuses and total annual compensation as follows:

Year ended December 31, 2006
  $
300,000
 
Year ended December 31, 2007
  $
15,000
 
Year ended December 31, 2008
  $
-
 

b)
Prior to December 31, 2005, the Company signed consulting agreements for services to be performed in the next fiscal year totalling $122,000.
 
c)
During the year ended December 31, 2005, the Company signed short term lease agreements for office space, and related services, in both Las Vegas, Nevada, and Atlanta, Georgia.  The agreements provide for payments as follows:
 
Year ended December 31, 2006
  $
123,701
 
Year ended December 31, 2007
  $
-
 
Year ended December 31, 2008
  $
-
 
 
14.
INCOME TAXES

A reconciliation of income taxes at statutory rates with the reported taxes is as follows:

   
2005
   
2004
 
             
Statutory rate
    34 %     34 %
                 
Provision for income taxes based on statutory rate
  $ (1,990,000 )   $ (1,580,000 )
Non-deductibles
   
-
     
384,000
 
Income tax recovery
    (1,990,000 )     (1,196,000 )
Unrecognized benefit of operating loss carry forwards
   
1,990,000
     
1,196,000
 
Income tax recovery
  $
-
    $
-
 

-16-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

14.
INCOME TAXES (CONT)

Significant components of the Company’s future tax assets based on statutory tax rates are as follows:

   
2005
   
2004
 
             
Future tax assets
           
Loss carryforwards
  $
4,513,000
    $
2,520,000
 
Valuation allowance
    (4,513,000 )     (2,520,000 )
                 
    $
-
    $
-
 

The Company has approximately $13,273,359 (2004 - $7,413,000) of operating loss carryforwards which expire beginning in 2020.

The Company has provided a valuation allowance against its deferred tax assets given that it is more likely than not that these benefits will not be realized.

15.
BUSINESS SEGMENTS

During the year ended December 31, 2005, the Company had decided to change the focus of its operations to Telecommunications, focused in the single geographic area of North America.  As a result, all other businesses have been consolidated under discontinued operations.

-17-

 
JUPITER GLOBAL HOLDINGS CORP.
(Formerly Livestar Entertainment Group Inc.)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2005 AND 2004
(Stated in U.S. Dollars)

16.
SUBSEQUENT EVENTS

a)
Subsequent to December 31, 2005, the Company did not grant any new stock options.  Subsequent to December 31, 2005, 114,494,500 shares have been exercised providing proceeds of to the Company of $43,924.

b)
Subsequent to December 31, 2005, the Company filed with the State of Nevada is previously approved amendment of its authorized preferred share stock from 200,000,000 to 500,000,000 shares
 
c)
Subsequent to December 31, 2005, the Company issued 4,483,051,215 shares at $0.0001 per share for the reduction of debt in the amount of $512,155.
 
d)
Subsequent to December 31, 2005, the Company issued 182,851,084 shares at $0.0002 per share for the services valued in the amount of $34,832.

e)
Subsequent to December 31, 2005, the Company issued 120,000,000 Preferred Shares Series B at $0.0009 per share to directors of the Company for the reduction of debt in the amount of $111,000.
 
f)
Subsequent to December 31, 2005, the Company issued 50,000,000 Preferred Shares Series C at $0.01 per share for the acquisition of the remaining 20% of Macro Communications Inc. for a value of $500,000.  As a result, Macro Communications Inc. becomes a 100% wholly owned subsidiary of the Company.
 
g)
On April 21, 2006, the Company entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with PAIVIS, Corp. (f/k/a APO Health, Inc)., a Nevada corporation (“APO”), APO Health Acquisition Corp, Inc., a Nevada corporation and wholly-owned subsidiary of APO (“APO Acquisition”).  As per the Merger Agreement provided that upon the terms and subject to the conditions set forth in the Merger Agreement, APO Acquisition merged with and into Jupiter, with Jupiter being the surviving corporation and a wholly-owned subsidiary of APO.

-18-

EX-9.2 3 ex92.htm PRO FORMA FINANCIAL INFORMATION ex992.htm
Exhibit 9.2
 
UNAUDITED PRO FORMA CONDENSED
 COMBINED FINANCIAL STATEMENTS


On April 21, 2006, APO Health, Inc., a Nevada corporation (“APO”), entered into a definitive Agreement and Plan of Merger (the “Merger Agreement”) with APO Health Acquisition Corp, Inc., a Nevada corporation and wholly-owned subsidiary of APO (“APO Acquisition”), and Jupiter Global Holdings, Corp., a Nevada corporation (“Jupiter”). The Merger Agreement provided that upon the terms and subject to the conditions set forth in the Merger Agreement, APO Acquisition will merge with and into Jupiter, with Jupiter being the surviving corporation and a wholly-owned subsidiary of APO.
 
On May 11, 2006, the above-referenced parties to the Agreement and Plan of Merger consummated the Merger Agreement and the Merger Agreement became effective as of May 11, 2006, the date that the Articles of Merger were accepted for filing by the Nevada Secretary of State. As of May 11, 2006, APO changed its name to PAIVIS, Corp. (“PAIVIS”), and a trading symbol for PAIVIS will be announced shortly.
 
As of May 11, 2006, each share of Common Stock of Jupiter issued and outstanding immediately prior to the Effective Time of the Merger Agreement was converted into and become a right to receive 0.46232085067036500 of a share of common stock of APO (the “Conversion Price”), and are automatically canceled and retired and cease to exist as of the Effective Time of the Merger. Although the Effective Date of the Merger was May 11, 2006, trading in the common shares of Jupiter did not cease until May 18, 2006, resulting in the Registrant’s conclusion that the actual date that Merger Shares were to issue to Jupiter shareholders, was May 18, 2006.
 
The aggregate consideration is estimated to be $14,000,750, based on management’s estimate of the fair market value of the common and preferred stock based on the market prices at the time of transaction.

Because the owners of JUPITER held approximately 85% of PAIVIS’s outstanding common stock after the Combination, and in addition to the Company’s analysis of other criteria used for determining which entity is the accounting acquirer under SFAS No.141, Jupiter is deemed to be the acquiring company for accounting purposes and the Combination has been accounted for using the reverser merger method of accounting for business combinations in accordance with accounting principles generally accepted in the United States. The audited financial statements of JUPITER for the two years ended December 31, 2004 and 2003 are attached as an exhibit to this Form 8-K/A.

Under this method of accounting, the combined company will allocate the fair market value of $14,000,750.  The unaudited pro forma condensed combined financial statements are based on respective historical consolidated financial statements included in this Form 8-K/A and the audited financial statements of PAIVIS for each of the two years ended September 30, 2006 and 2005 which are included in the PAIVIS on Form 10-KSB, filed with the Securities and Exchange Commission.
 
The unaudited pro forma consolidated balance sheet combine the historical balance sheets of the PAIVIS and Jupiter as of September 30, 2006, giving effect to the transaction described in the Agreement dated April 12, 2006 (“Acquisition”) as if it had occurred on October 1, 2005.
 
The unaudited pro forma consolidated statements of operations combine the historical statements of operations of the PAIVIS and Jupiter for the year ended September 30, 2006, giving effect to the transaction as if it had occurred on October 1, 2005.

The unaudited pro forma condensed combined financial statements data is based on estimates and assumptions described in the notes to them. This data is presented for information purposes only and is not intended to represent or be indicative of the consolidated results of operations or financial condition of PAIVIS that would have been reported had the merger been completed as of the dates presented, and should not be taken as representative of future consolidated results of operations or financial condition of PAIVIS.

The unaudited pro forma condensed combined financial statements should be read in conjunction with the related notes included in this Form 8-K/A and the audited financial statements of PAIVIS which are included in the PAIVIS Annual Report on Form 10-KSB, filed with the Securities and Exchange Commission and the audited financial statements of Jupiter which are attached as exhibits to this Form 8-K/A. The unaudited pro forma condensed combined financial statements are not necessarily indicative of what the actual results of operations and financial position would have been had the merger taken place on October 1, 2005, and do not indicate future results of operations or financial position.
 
-1-

 
PAIVIS Corp.
Pro-forma Consolidated Balance Sheet    
September 30, 2006   
(Stated in US Dollars)   
 
                               
   
PAIVIS Corp
   
JUPITER Global Holdings Corp
   
Adjustments
         
Pro-forma
 
                               
ASSETS
                             
                               
Cash
  $
514
    $
88,163
          $       $
88,678
 
Accounts Receivable
   
-
     
407,034
                   
407,034
 
Tax Recoverable
   
-
     
7,453
                   
7,453
 
Prepaid Expenses
   
-
     
28,009
                   
28,009
 
Advance to Subsidiary
   
86,939
     
-
      (86,939 )  
(a)
         
                                         
    $
87,454
    $
530,660
    $ (86,939 )           $
531,174
 
                                         
Goodwill
   
-
     
3,103,499
     
3,146,456
   
(b)
     
6,249,955
 
Investments
   
14,000,750
     
-
      (14,000,750 )  
(b)
     
-
 
Capital Assets
   
-
     
100,961
     
-
             
100,961
 
                                         
    $
14,088,204
    $
3,735,120
    $ (10,941,234 )           $
6,882,090
 
                                         
                                         
LIABILITIES
                                       
Current
                                       
A/P & Accrued Expenses
  $
93,695
    $
4,866,316
    $
-
            $
4,960,011
 
Loans and Advances payable
   
278,441
     
2,376,680
     
-
             
2,655,121
 
Advances from Parent
   
-
     
86,939
      (86,939 )  
(a)
     
-
 
                                         
    $
372,135
    $
7,329,936
    $ (86,939 )           $
7,615,132
 
                                         
Minority  interest
   
-
     
7,147
     
-
             
7,147
 
                                         
STOCKHOLDERS’ DEFICIENCY
                                       
                                         
Share Capital
                                       
Common Stock
   
6,112
     
1,001,304
      (1,001,304 )  
(b)
     
6,112
 
Preferred Stock
   
379
     
25,005
      (25,005 )  
(b)
     
379
 
Additional Paidin Capital
   
16,448,832
     
12,313,571
      (12,313,571 )  
(b)
     
16,448,832
 
Deficit
    (2,739,255 )     (16,941,843 )    
2,485,586
              (17,195,512 )
                                         
    $
13,716,068
    $ (3,594,816 )   $ (10,854,294 )           $ (733,042 )
                                         
    $
14,088,204
    $
3,735,120
    $ (10,941,234 )           $
6,882,090
 
                                         
                                         
 
 
-2-


 
PAIVIS Corp.
Pro-forma Consolidated Income Statement 
Year Ended September 30, 2006    
(Stated in US Dollars)  
 
                                         
   
PAIVIS Corp
   
JUPITER Global Holdings Corp
   
Pro-forma
                 
                                         
                                         
                                         
Revenue
  $
-
    $
6,904,783
    $
6,904,783
                 
                                         
Cost of services
   
-
      (6,746,835 )     (6,746,835 )                
                                         
Expenses
    (253,669 )     (3,989,659 )     (4,243,328 )                
                                         
Loss  from operations
  $ (253,669 )   $ (3,831,711 )   $ (4,085,380 )                
                                         
Minority Interest in loss of Subsidiary
                   
-
                 
                                         
Net Loss
                  $ (4,085,380 )                
                                         
 
-3-

 
NOTES TO THE UNAUDITED PRO FORMA CONDENSED
                        COMBINED FINANCIAL STATEMENTS FOR SEPTEMBER 30, 2006

The unaudited pro forma condensed combined financial statements have been prepared in accordance with generally accepted accounting principles in the United States after eliminating all material intercompany accounts and transactions. The acquisition is being accounted for under the reverser merger of accounting.

The purchase price is allocated as follows:

       
Fair Market Value of stock given in acquisition
  $
14,000,750
 
         
Comprised of:
       
Stock Consideration
   
10,854,294
 
Goodwill
   
3,146,456
 
     
 
 
Total Purchase Consideration
  $
14,000,750
 
   
 
 
         
         
Common Stock
   
1,001,304
 
Preferred Stock
   
25,005
 
Additional Paid in Capital
   
12,313,571
 
Accumulated Deficit
    (2,485,586 )
     
 
 
    $
10,854,294
 

Under the terms of the agreement and in accordance with SFAS No. 141, for accounting purposes, Jupiter has been deemed to be the acquirer.  As at the date of transactions, the fair market value of stock given in the acquisition is estimated to be $14,000,750, and is allocated as indicated above.  These numbers do not include the effects, if any; of adjustments that might result from the amortization of any potential identifiable intangible assets (separate from goodwill) or impairment of the goodwill recognized. In addition, there have been no allocations towards reorganization costs.

The following pro forma adjustments have been recorded to reflect the acquisition:

Condensed Combined Balance Sheet--adjustments to reflect the acquisition as if it had occurred on October 1, 2005:

(a)   The elimination of inter company advance of $86,939.
(b)   The adjustment to record goodwill, inter company investment, pre-acquisition shareholder’s equity and accumulated deficit.

The unaudited pro forma condensed combined information reflects our best estimates; however the actual financial position and results of operations may differ from the pro forma amounts reflected herein because of various factors, including, without limitation, access to additional information, changes in value and changes in operating results between the date of preparation of the unaudited pro forma condensed combined financial information and the date on which the acquisition closed.  However, in the opinion of management any final adjustments will not be material to the future financial position and/or results of operations of PAIVIS Corp.

 
-4-

EX-99.1 4 ex991.htm PRESS RELEASE DATED MAY 15, 2006 ex991.htm EXHIBIT 99.1

 
Paivis, Corp. (Formerly APO Health, Inc.) and Jupiter Global Holdings, Corp. Announce Final Closing of Merger Agreement
 
2006-05-15 11:57 ET - News Release
 
Also News Release (U-JPHC) JUPITER GLOBAL HOLDINGS CORP
 
OCEANSIDE, NY -- (MARKET WIRE) -- 05/15/06
 
Paivis, Corp. (formerly APO Health, Inc.) ("Paivis") (OTC BB: APOA) and Jupiter Global Holdings, Corp. ("Jupiter") (OTC: JPHC) today jointly announced their closing of the Definitive Agreement and Plan of Merger (the "Merger Agreement") dated April 21, 2006, pursuant to which Paivis acquired, through a wholly-owned subsidiary, 100% of the issued and outstanding common shares of Jupiter, and Jupiter became a wholly-owned subsidiary of Paivis. As consideration in the merger transaction, Paivis has agreed to exchange shares of its common stock with Jupiter's shareholders at an exchange ratio that valued the Jupiter shares at $0.005 per common share whereby Jupiter shareholders will receive approximately 0.46232 of a share of Paivis common stock. No fractional shares will be issued in the share exchange.
 
A new symbol will be assigned reflecting the name change from APO Health, Inc. to Paivis, Corp. The current management of Paivis and Jupiter will not continue with the successor entity. A new team of experienced management will be brought in, and the current management of Macro Communications, Inc., the core operating subsidiary of Jupiter, will take a leading role in the management of the merged companies.
 
Jan Stahl, the departing Chief Executive Officer of Paivis, commented, "We are pleased to have been able to reach a closing of the transaction and we welcome the Jupiter shareholders as Paivis shareholders and feel very strongly on the new combined entities moving forward."
 
Ray Hawkins, the Chief Executive Officer of Jupiter, commented further, "We are glad we achieved a closing of the Merger Agreement; the future is bright for the merged company."
 
Details, including but not limited to the specifics of the exchange ratio, regarding the consummation of the Merger Agreement will be filed by Paivis in a Current Report on Form 8-K with the U.S. Securities and Exchange Commission as required.
 
ABOUT PAIVIS, CORP. (FORMERLY APO HEALTH, INC.)
 
Paivis, Corp. (formerly APO Health, Inc.), a Nevada corporation, through its subsidiary distributes medical, dental and health and beauty aids products to dental and medical professionals and wholesalers throughout the United States.
 
ABOUT JUPITER GLOBAL HOLDINGS, CORP.
 
Jupiter Global Holdings, Corp., a Nevada corporation, is a holding company with interests and developments in a diverse number of growing industries. Jupiter plans to achieve a leadership position through the building of a synergistic network of innovative, profitable and global businesses.
 
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
 
The Private Securities Litigation Reform Act of 1995 (the "PSLRA") provides a "safe harbor" for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements.
 
Statements contained herein that are not based on historical fact , as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "will," "could" and other similar expressions, constitute forward-looking statements under the PSLRA. Paivis and Jupiter intend that such forward-looking statements be subject to the safe harbor created thereby. Such forward-looking statements are based on current assumptions but involve known and unknown risks and uncertainties that may cause Paivis and Jupiter actual results, performance or achievements to differ materially from current expectations. These risks include economic, competitive, governmental, technological and other factors discussed in Paivis and Jupiter annual, quarterly and other periodic public filings on record with the Securities and Exchange Commission which can be viewed free of charge on its website at http://www.sec.gov.
 
Please visit Jupiter's website: www.jupiterglobal.net
 
For more information regarding Jupiter, please contact:
 
Jupiter Global Shareholder Services
 
Phone: 1.800.963.6532
 
Email Address: Email Contact
 
For more Paivis information please contact:
 
Phone: 516-594-0005 x 221
 

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