-----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, KhKGCdIy8KsbWTKYZE96tEU3FQGu9UiCCcIma9vtAZZtdM7EkZHH5rSC4SkXFycz M6vIU40BYnIo8ZLVgYbRKA== 0001144204-05-019875.txt : 20050624 0001144204-05-019875.hdr.sgml : 20050624 20050624153800 ACCESSION NUMBER: 0001144204-05-019875 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20040920 ITEM INFORMATION: Completion of Acquisition or Disposition of Assets ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050624 DATE AS OF CHANGE: 20050624 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WIRELESS AGE COMMUNICATIONS INC CENTRAL INDEX KEY: 0001130131 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-RADIO TV & CONSUMER ELECTRONICS STORES [5731] IRS NUMBER: 980336674 STATE OF INCORPORATION: NV FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-31338 FILM NUMBER: 05915062 BUSINESS ADDRESS: STREET 1: 1150 ROSE STREET STREET 2: REGINA CITY: REGINA STATE: A9 ZIP: S49 1Z6 BUSINESS PHONE: (306) 539-1666 MAIL ADDRESS: STREET 1: 1150 ROSE STREET STREET 2: REGINA CITY: REGINA STATE: A9 ZIP: S49 1Z6 FORMER COMPANY: FORMER CONFORMED NAME: LENNOC VENTURES INC DATE OF NAME CHANGE: 20001215 8-K/A 1 v019839_8ka.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------- FORM 8-K/A Amendment No. 1 Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) September 20, 2004 WIRELESS AGE COMMUNICATIONS, INC. (Exact name of registrant as specified in its charter) Nevada 001-313338 98-0336674 State or other jurisdiction of (Commission (IRS Employer Incorporation or organization File No.) Identification No.) 765 15th Sideroad, King City, Ontario, Canada, L7B 1K5 (Address of principal executive offices) (Zip Code) (905) 773-3529 (Registrant's telephone number, including area code) 1150 Rose Street, Regina, Saskatchewan, Canada S49 1Z6 (Former name, former address and former fiscal year, if changed since last report) 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 communication pursuant to Rule 425 under the Securities Ac (17 CFR 230.425) |_| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |_| Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |_| Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240. 13e-4(c)) TABLE OF CONTENTS Item 2.01 Completion of Acquisition or Disposition of Assets. Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits SIGNATURE Item 2.01 Completion of Acquisition or Disposition of Assets. On September 20, 2004, the Registrant filed Form 8-K describing its acquisition of Prime Battery Products Limited ("PBattery"). The Registrant herby amends such Form 8-K to provide audited financial statements and pro-forma financial information with respect to the acquisition of PBattery. Item 9.01 Financial Statements, Pro Forma Financial Information and Exhibits (a) Financial Statements of Businesses Acquired. 99.1 Financial statements of Prime Battery Products Limited 99.2 Pro Forma Financial information regarding Prime Battery Products Limited (b) Exhibits 23.1 Consent of Auditors. [Signature Page Follows] 2 SIGNATURE 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. Dated: June 24, 2005 WIRELESS AGE COMMUNICATIONS, INC. By:/s/ Gary N. Hokkanen ----------------------- Name: Gary N.Hokkanen Title: Chief Financial Officer 3 EX-23.1 2 v019839_ex23-1.txt Exhibit 23.1 MINTZ & PARTNERS LLP INDEPENDENT AUDITOR'S CONSENT We consent to the incorporation by reference in this Amendment Number 1 to the Form 8-K of Wireless Age Communications, Inc. of our report dated May 18, 2005, appearing in the audited financial statements of Prime Battery Products Limited for the years ended December 31, 2003 and 2002. Toronto, Canada June 20, 2005 /s/ MINTZ & PARTNERS LLP - ------------------------ MINTZ & PARTNERS LLP Chartered Accountant EX-99.1 3 v019839_ex99-1.txt Exhibit 99.1 PRIME BATTERY PRODUCTS LIMITED FINANCIAL STATEMENTS December 31, 2003 and 2002 (Stated in US Dollars) REPORT OF INDEPENDENT AUDITORS To the Directors, Prime Battery Products Limited We have audited the accompanying balance sheets of Prime Battery Products Limited as of December 31, 2003 and 2002 and the related statements of operations and retained deficit and cash flows for the periods then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits 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, the financial statements referred to above present fairly, in all material respects, the financial position of Prime Battery Products Limited as of December 31, 2003 and 2002 and the results of their operations and their cash flows for the periods then ended in conformity with generally accepted accounting principles in the United States of America. The accompanying financial statements have been prepared assuming the Company will continue as a going concern. At December 31, 2003 the Company had a working capital deficit of $88,638 and an accumulated deficit of $299,538. These conditions raise substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Toronto, Canada "MINTZ & PARTNERS LLP" May 18, 2005 PRIME BATTERY PRODUCTS LIMITED BALANCE SHEET December 31, 2003 and 2002 (Stated in US Dollars) - -------------------------------------------------------------------------------- ASSETS 2003 2002 - ------ ---- ---- Current Bank $ -- $ 42,897 Accounts receivable 7,162 122,124 Inventory 2,297 -- Prepaid and deposit 2,854 -- --------- --------- 12,313 165,021 Due from related parties 63,917 Property, plant and equipment - Note 3 8,624 -- --------- --------- $ 84,854 $ 165,021 ========= ========= LIABILITIES Current Bank indebtedness $ 1,214 $ -- Accounts payable and accrued liabilities 97,415 4,753 Income taxes payable 2,322 1,908 --------- --------- 100,951 6,661 --------- --------- Long term Due to related parties - Note 5 -- 155,930 Long term debt 283,440 -- --------- --------- 384,391 162,591 --------- --------- STOCKHOLDERS' EQUITY Common stock, no par value - Note 4 Unlimited shares authorized 100 shares issue and outstanding 1 1 Retained earnings (deficit) (299,538) 2,429 --------- --------- (299,537) 2,430 --------- --------- $ 84,854 $ 165,021 ========= ========= SEE ACCOMPANYING NOTES PRIME BATTERY PRODUCTS LIMITED STATEMENTS OF OPERATIONS AND RETAINED EARNINGS (DEFICIT) for the periods ended December 31, 2003 and 2002 (Stated in US Dollars) - -------------------------------------------------------------------------------- 2003 2002 ---- ---- (Jan 1 - Dec 31) (Nov 1 - Dec 31) ---------------- ---------------- Sales $ 1,189,196 $ 193,605 Cost of sales 999,944 163,588 ----------- ----------- Gross profit 189,252 30,017 ----------- ----------- Selling and administrative expenses Advertising and promotion 7,657 -- Bad debts 19,266 -- Bank charges and interest 2,205 -- Management fees 49,948 -- Office and general 13,490 -- Professional fees 8,329 -- Rent 11,970 -- Repairs and maintenance 697 -- Telephone and utilities 6,129 -- Travel and auto 13,197 -- Wages and consulting fees 200,008 25,660 ----------- ----------- Total selling and administrative expenses 332,896 25,660 ----------- ----------- Earnings (loss) from operations (143,644) 4,357 ----------- ----------- Amortization 2,266 -- Interest expense 144,962 -- ----------- ----------- Net income (loss) before under-noted items (290,872) 4,357 ----------- ----------- Other income (expenses) Other income 15,497 -- Foreign exchange (losses) (26,592) (11) ----------- ----------- Net income (loss) before income taxes (301,967) 4,346 Income taxes -- 1,917 ----------- ----------- Net income (loss) for the year $ (301,967) $ 2,429 Retained earnings (deficit) - beginning of year 2,429 -- ----------- ----------- Retained earnings (deficit) - end of year $ (299,538) $ 2,429 =========== =========== SEE ACCOMPANYING NOTES PRIME BATTERY PRODUCTS LIMITED STATEMENTS OF CASH FLOW for the periods ended December 31, 2003 and 2002 (Stated in US Dollars) - --------------------------------------------------------------------------------
2003 2002 ---- ---- (Jan 1 - Dec 31) (Nov 1 - Dec 31) ---------------- ---------------- Operating Activities Net income (loss) for the year $(301,967) $ 2,429 Items not involving cash: Amortization 2,266 -- --------- --------- (299,701) 2,429 --------- --------- Changes in operating assets and liabilities: Accounts receivable 114,962 (122,124) Accounts payable and accrued liabilities 92,663 6,662 Income taxes payable 414 -- Inventory (2,297) -- Prepaid and deposits (2,854) -- --------- --------- Cash (used in) operating activities (96,813) (113,033) --------- --------- Investing Activities Purchase of property, plant and equipment (10,890) -- --------- --------- Cash (used in) investing activities (10,890) -- --------- --------- Financing Activities Increase in long term debt 283,440 -- Increase (decrease) in due to/from related parties (219,848) 155,930 Increase bank indebtedness 1,214 -- --------- --------- Cash provided by financing activities 64,806 155,930 --------- --------- Increase (decrease) in cash during the year (42,897) 42,897 Cash, beginning of the year 42,897 -- --------- --------- Cash (Bank indebtedness), end of the year $ -- $ 42,897 ========= =========
SEE ACCOMPANYING NOTES PRIME BATTERY PRODUCTS LIMITED NOTES TO THE FINANCIAL STATEMENTS December 31, 2003 and 2002 (Stated in US Dollars) - -------------------------------------------------------------------------------- Note 1 Nature of Operations Prime Battery Products Limited ("Prime Battery") commenced selling batteries and ancilliary electronic products in Canada on November 1, 2002. Note 2 Summary of Significant Accounting Policies Basis of Presentation The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. Actual results may differ from these amounts. Allowance for Doubtful Accounts The Company records an allowance for doubtful accounts based on specifically identified amounts that management believes to be uncollectible. The criteria for allowance provision are determined based on historical experience and the Company's assessment of the general financial conditions affecting its customer base. If the Company's actual collections experience changes, revisions to the allowance may be required. Property, plant and equipment Property, plant and equipment are recorded at cost less accumulated amortization. Amortization is provided over estimated useful life of the assets using the following annual rates: Computer hardware 30% declining balance Property, plant and equipment are reviewed for impairment in accordance with Statement of Financial Accounting Standards ("SFAS") No. 144, "Accounting for the Impairment or Disposal of Long-lived Assets", which was adopted effective January 1, 2002. Under SFAS No. 144, these assets are tested for recoverability whenever events or changes in circumstances indicate that their carrying amounts may not be recoverable. An impairment charge is recognized for the amount, if any, which the carrying value of the asset exceeds the fair value. Prime Battery Products Limited Notes to the Financial Statements December 31, 2003 and 2002 (Stated in US Dollars) - ---------------------- Income Taxes The Company follows Statement of Financial Accounting Standards No. 109, "Accounting for Income Taxes"("FAS 109") which requires the use of the asset and liability method of accounting of income taxes. Under the assets and liability method of FAS 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and loss carry forwards and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled. Foreign Currency Translation The functional currency of the Company is Canadian dollars, which has been translated into US dollars, the reporting currency, in accordance with Statement of Financial Accounting Standards No. 52 "Foreign Currency Translation". Assets and liabilities are translated at the exchange rate at the balance sheet date and revenue and expenses are translated at the exchange rate at the date those elements are recognized. Any translation adjustments resulting are not included in determining net income but are included in other comprehensive income. Note 3 Property, Plant and Equipment 2003 2002 ------------------------------ ------ Accumulated Cost Amortization Net Net ---- ------------ --- --- Computer hardware $10,890 $2,266 $8,624 $ -- $10,890 $2,266 $8,624 $ -- Note 4 Capital Structure Capital Stock The Company is authorized to issue an unlimited number of common shares. Voting Rights The holders of shares of common stock are entitled to receive notice of, attend and vote at all meetings of stockholders. Each share of common stock carries one vote at such meetings. Prime Battery Products Limited Notes to the Financial Statements December 31, 2003 and 2002 (Stated in US Dollars) - ---------------------- Note 5 Due to related parties Amounts due from / (due to) related parties are non-interesting bearing with no specific terms of repayment. Amounts due from related at December 31, 2003 and 2002 were as follows: 2003 2002 --------- -------- A.C. Simmonds & Sons (division of Wireless Source Distribution Ltd.) (5,520) (78,507) Pivotal Self Services Technologies Inc. 10,619 (66,359) Prime Wireless Corporation 21,575 (11,064) Simmonds Capital Limited 34,423 - Trackpower, Inc. 2,820 - -------- --------- 63,917 (155,930) ======== ========= EX-99.2 4 v019839_ex99-2.txt Exhibit 99.2
WIRELESS AGE COMMUNICATIONS, INC. BALANCE SHEET AS AT JUNE 30, 2004 (in US dollars) Wireless Age Prime Battery Marlon Pro-forma Pro-forma Communications, Products Limited Distributors Adjustments Inc. Ltd. ASSETS Current Cash and cash equivalents (96,959) (508) 474,254 327,803 704,590 Accounts receivable-- trade 1,455,471 23,813 87,455 -- 1,566,739 Inventories 1,281,836 -- 368,754 -- 1,650,590 Investments 2,420,000 -- 449,260 (449,260) 2,420,000 Due to/from related 40,405 (222,459) -- -- (182,054) Prepaid and deposits 265,861 2,783 24,220 -- 292,864 ----------------------------------------------------------------------- ------------------ 5,366,614 (196,371) 1,403,943 (121,457) 6,452,729 ----------------------------------------------------------------------- ------------------ Capital Assets 414,988 6,997 29,807 -- 451,792 Intangible assets 1,892,188 -- -- -- 1,892,188 Goodwill 2,855,597 -- -- 693,571 3,549,168 ----------------------------------------------------------------------- ------------------ 10,529,387 (189,374) 1,433,750 572,114 12,345,877 ----------------------------------------------------------------------- ------------------ LIABILITIES Current Accounts payable and accruals 2,680,202 91,466 33,510 -- 2,805,178 Customer Deposits 15,753 -- -- -- 15,753 Current portion of long-term debt 2,539,222 -- -- -- 2,539,222 ----------------------------------------------------------------------- ------------------ 5,235,177 91,466 33,510 -- 5,360,153 ----------------------------------------------------------------------- ------------------ Long term debt 116,455 37,608 266,674 (189,521) 231,216 Non controlling interest 48,862 -- -- -- 48,862 ----------------------------------------------------------------------- ------------------ 5,400,494 129,074 300,184 (189,521) 5,640,231 ----------------------------------------------------------------------- ------------------ SHAREHOLDERS' EQUITY Common stock 21,111 75 161,327 (159,856) 22,657 Additional paid in capital 5,418,476 -- -- 1,595,642 7,014,118 Retained earnings (deficit) (373,843) (318,523) 989,653 (674,151) (376,864) Other comprehensive income 63,149 -- (17,414) -- 45,735 ----------------------------------------------------------------------- ------------------ 5,128,893 (318,448) 1,133,566 761,635 6,705,646 ----------------------------------------------------------------------- ------------------ 10,529,387 (189,374) 1,433,750 572,114 12,345,877 ----------------------------------------------------------------------- ------------------ Check row -- -- -- -- --
WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2003 (in US dollars) Wireless Age Prime Battery Marlon Pro-forma Pro-forma Communications Products Limited Distributors Adjustments Inc. Ltd. Product Sales-- product 7,111,822 1,189,196 877,817 (32,934) 9,145,901 Cost of sales-- product 5,411,072 999,944 560,296 -- 6,971,312 ----------------------------------------------------------------------- ----------------- Gross profit-- product 1,700,750 189,252 317,521 (32,934) 2,174,589 Commissions, residuals and royalties 2,156,747 -- -- -- 2,156,747 ----------------------------------------------------------------------- ----------------- Gross profit 3,857,497 189,252 317,521 (32,934) 4,331,336 Selling and administrative expenses 3,616,350 332,896 312,940 -- 4,262,186 ----------------------------------------------------------------------- ----------------- Earnings from operations 241,147 (143,644) 4,581 (32,934) 69,150 Amortization 249,223 2,266 5,940 -- 257,429 Interest expense 100,294 144,962 1,311 -- 246,567 ----------------------------------------------------------------------- ----------------- Loss before under-noted items (108,370) (290,872) (2,670) (32,934) (434,846) Other expenses Foreign exchange losses (gains) 84,951 26,592 -- -- 111,543 Other (income) (39,973) (15,497) (46,155) -- (101,625) ----------------------------------------------------------------------- ----------------- 44,978 11,095 (46,155) -- 9,918 ----------------------------------------------------------------------- ----------------- Loss before non-controlling interest and income taxes (153,348) (301,967) 43,485 (32,934) (444,764) Non-controlling interest 16,041 -- -- -- 16,041 ----------------------------------------------------------------------- ----------------- Loss before income taxes (137,307) (301,967) 43,485 (32,934) (428,723) Income taxes -- -- 7,366 -- 7,366 ----------------------------------------------------------------------- ----------------- Loss for the year (137,307) (301,967) 36,119 (32,934) (436,089) ======================================================================= ================ Loss per share (0.01) (0.02) ======================================================== ================= Weighted average number of common shares outstanding 17,537,022 700,000 1,475,563 19,712,585 ======================================================== =================
WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA INCOME STATEMENT FOR THE PERIOD ENDED JUNE 30, 2004 (in US dollars) Wireless Age Prime Battery Marlon Pro-forma Pro-forma Communications Products Limited Distributors Adjustments Inc. Ltd. Product Sales - product 5,395,592 24,393 396,384 -- 5,816,369 Cost of sales - product 4,369,675 2,223 229,323 -- 4,601,221 -------------------------------------------------------------------- --------------- Gross profit - product 1,025,917 22,170 167,061 -- 1,215,148 Commissions, residuals and royalties 1,153,786 -- -- -- 1,153,786 -------------------------------------------------------------------- --------------- Gross profit 2,179,703 22,170 167,061 -- 2,368,934 Selling and administrative expenses 2,340,309 256 167,189 -- 2,507,754 -------------------------------------------------------------------- --------------- Earnings (loss) from operations (160,606) 21,914 (128) -- (138,820) Amortization 114,600 1,226 2,535 -- 118,361 Interest expense 57,759 48,901 261 -- 106,921 -------------------------------------------------------------------- --------------- Loss before under-noted items (332,965) (28,213) (2,924) -- (364,102) Other expenses Foreign exchange losses (gains) (369) -- -- -- (369) Non-operating interest expense, net 107,770 -- -- -- 107,770 (Gain) on disposal of investments (275,594) -- -- -- (275,594) -------------------------------------------------------------------- --------------- (168,193) -- -- -- (168,193) -------------------------------------------------------------------- --------------- Loss before non-controlling interest (164,772) (28,213) (2,924) -- (195,909) Non-controlling interest (1,535) -- -- -- (1,535) -------------------------------------------------------------------- --------------- Net loss (166,307) (28,213) (2,924) -- (197,444) =================================================================== =============== Loss per share (0.01) (0.01) ======================================================= =============== Weighted average number of common shares outstanding 20,852,229 700,000 1,475,563 23,027,792 ======================================================= ===============
WIRELESS AGE COMMUNICATIONS, INC. PRO-FORMA INCOME STATEMENT FOR THE PERIOD ENDED SEPTEMBER 30, 2004 (in US dollars) Wireless Age Prime Battery Marlon Pro-forma Pro-forma Communications Products Limited Distributors Adjustments Inc. Ltd. (Jan 1 - Sep 30) (Jan 1 - Sep 15) (Jan 1 - Jul 29) (Jan 1 - Sep 30) Product Sales - product 8,615,026 24,479 456,380 -- 9,095,885 Cost of sales - product 6,929,064 2,230 268,436 -- 7,199,730 ------------------------------------------------------------------ -------------- Gross profit - product 1,685,962 22,249 187,944 -- 1,896,155 Commissions, residuals and royalties 1,818,489 -- -- -- 1,818,489 ------------------------------------------------------------------ -------------- Gross profit 3,504,451 22,249 187,944 -- 3,714,644 Selling and administrative expenses 3,549,271 333 201,463 -- 3,751,067 ------------------------------------------------------------------ -------------- Earnings (loss) from operations (44,820) 21,916 (13,519) -- (36,423) Amortization 174,610 1,639 2,960 -- 179,209 Interest expense 75,989 49,074 262 -- 125,325 ------------------------------------------------------------------ -------------- Loss before under-noted items (295,419) (28,797) (16,741) -- (340,957) Other expenses Foreign exchange losses (gains) 2,163 -- (3,856) -- (1,693) Non-operating interest expense, net 136,420 -- -- -- 136,420 Gain on disposal of investments (275,594) -- -- -- (275,594) Other (income) 1,932 -- -- -- 1,932 ------------------------------------------------------------------ -------------- (135,079) -- (3,856) -- (138,935) ------------------------------------------------------------------ -------------- Loss before non-controlling interest (160,340) (28,797) (12,885) -- (202,022) Non-controlling interest (1,535) -- -- -- (1,535) ------------------------------------------------------------------ -------------- Net loss (161,875) (28,797) (12,885) -- (203,557) ================================================================== ============== Loss per share (0.01) (0.01) -===================================================== ============== Weighted average number of common shares outstanding 21,348,566 700,000 1,475,563 23,524,129 ====================================================== ==============
WIRELESS AGE COMMUNICATIONS, INC. NOTES TO THE PRO-FORMA FINANCIAL STATEMENTS DECEMBER 31, 2003, JUNE 30, 2004 and SEPTEMBER 30, 2004 Note 1 BASIS OF PRESENTATION The accompanying pro-forma financial statements give effect to the acquisition of Prime Battery Products Limited ("PBattery") by Wireless Age Communications, Inc. ("Wireless") on September 16, 2004 and the acquisition of Marlon Distributors Ltd. ("Marlon") on July 30, 2004. The unaudited pro-forma financial statements of Wireless included herein have been prepared by management of Wireless in accordance with the generally accepted accounting principles of the United States of America. They have been prepared from information derived from the June 30, 2004 (unaudited), the September 30, 2004 (unaudited) and December 31, 2003 (audited) financial statements of Wireless, the June 30, 2004 (unaudited), the September 15, 2004 (unaudited) and the December 31, 2003 (audited) financial statements of PBattery and the June 30, 2004 (unaudited), the July 29, 2004 (unaudited) and the December 31, 2003 (audited) financial statements of Marlon, together with other information available to the corporations. The financial statements of Wireless at September 30, 2004 include the operating results of PBattery and Marlon from the dates of acquisition. In the opinion of management of Wireless, these unaudited pro-forma financial statements include all the adjustments necessary for fair presentation of the acquisition of PBattery and Marlon by Wireless as described below. The unaudited pro-forma financial statements should be read in conjunction with the historical financial statements and notes thereto of Wireless, PBattery and Marlon referred to above and included elsewhere in this Form 8-K/A. The Wireless unaudited pro-forma balance sheet has not been provided since this transactions occurred on September 16, 2004 and July 30, 2004 and the acquisitions have been recorded in the September 30, 2004 10QSB previously filed. The unaudited pro-forma financial statements of operations gives the effect to the acquisitions of PBattery and Marlon as if they had occurred at the start of the fiscal period beginning on January 1, 2003. These unaudited pro-forma financial statements are not necessarily indicative of the financial position or results of operations, which would have resulted if the combinations and related transactions had actually occurred on those dates. PBattery is a Canadian company, however, the financial statements of PBattery were prepared in accordance with the generally accepted accounting principles of the United States. The financial statements of PBattery and Marlon have been converted from Canadian dollars ("CDN") to United States dollars ("US") as follows: - Revenue and expenses for the one year period ended December 31, 2003 at the average rate of exchange in effect for the period of one Canadian dollar equals $0.749738 US. - Revenue and expenses for the six month period ended June 30, 2004 at the average rate of exchange in effect for the period of one Canadian dollar equals $0.746352 US. - Revenue and expenses for the nine month period ended September 30, 2004 at the average rate of exchange in effect for the period of one Canadian dollar equals $0.753837 US. Note 2 BUSINESS ACQUISITIONS PRIME BATTERY PRODUCTS LIMITED On September 16, 2004, Wireless acquired all of the issued and outstanding common shares of PBattery. Wireless entered into a share exchange agreement with the shareholders of PBattery whereby Wireless acquired the outstanding common shares of PBattery in exchange for 700,000 common shares of Wireless. The business combination is accounted for using the purchase method. The fair value of the assets and liabilities acquired are as follows: Current assets 2,135 Capital assets 6,668 Goodwill 589,795 Current liabilities (331,748) ---------- Net assets acquired at fair values $ 266,850 ========== Total consideration: 700,000 common shares of the Company 492,450 Less: Consideration allocated to purchase of net assets (225,600) ---------- $ 266,850 ========== The excess of purchase price over net assets acquired has been allocated to goodwill. Note 3 PRO-FORMA ADJUSTMENTS The unaudited pro-forma financial statements do not contain any pro-forma adjustments since no inter-company or similar transactions occurred during the period. Note 4 PRO-FORMA BASIC AND DILUTED EARNINGS (LOSS) PER SHARE Pro-forma basic and diluted earnings (loss) per share has been calculated using the historical weighted average number of shares previously reported and amended as if the pro-forma common shares of Wireless issued pursuant to the acquisition have been outstanding since the beginning of the periods. Diluted earnings per share include potentially dilutive effect of outstanding common stock options and warrants which are convertible to common shares. -----END PRIVACY-ENHANCED MESSAGE-----