EX-99.4 2 v336047_ex99-4.htm EXHIBIT 99.4

 

Exhibit 99.4

  

INTRODUCTION TO UNAUDITED PRO FORMA COMBINED FINANCIAL INFORMATION

 

On December 21, 2012, Advanced Cloud Storage, Inc. (the “Registrant”) authorized an amendment to its Articles of Incorporation (the “Amendment”) to change its name to Montalvo Spirits, Inc., to increase the number of its authorized shares of capital stock from 75,000,000 to 310,000,000 shares which 300,000,000 shares were designated common stock, par value $0.001 per share (the “Common Stock”) and 10,000,000 shares were designated “blank check” preferred stock, par value $0.001 per share (the “Preferred Stock”) and to effect a forward split such that 32.4552 shares of Common Stock were issued for every 1 share of Common Stock issued and outstanding immediately prior to the Amendment (the “Forward Split”). Also on December 21, 2012, the Registrant entered into an Agreement and Plan of Share Exchange (the “Exchange Agreement”) with Casa Montalvo Holdings, Inc., a California corporation (“Casa Montalvo”), whereby the Registrant acquired all of the issued and outstanding capital stock of Casa Montalvo in exchange (the “Exchange”) for approximately 59,000,000 post-split shares of Common Stock. Simultaneously therewith, the Registrant accepted a subscription of a private placement offering of Two Hundred Thousand (200,000) shares of its Common Stock, on a post-Split basis, at an aggregate purchase price of One Hundred Thousand Dollars ($100,000).

 

The following unaudited pro forma condensed combined financial statements are presented to illustrate the estimated effects of the Exchange. The unaudited pro forma combined financial statements were prepared using the historical financial statements of the Registrant and Casa Montalvo. The unaudited pro forma combined financial information should be read in conjunction with the Registrant’s audited financial statements as of and for the year ended March 31, 2012 which are included in its March 31, 2012 Annual Report on Form 10-K. The financial information of the Registrant is filed together with this Unaudited Pro Forma Condensed Combined Financial Statements on Form 8-K.

 

The unaudited pro forma combined balance sheet as of September 30, 2012 combines the unaudited balance sheet of the Registrant as of September 30, 2012 and the unaudited balance sheet of Casa Montalvo as of September 30, 2012 and assumes that the Exchange was consummated on September 30, 2012.

 

The unaudited pro forma combined statements of operations for the interim period ended September 30, 2012 assumes that the Exchange was consummated at the beginning of the period presented. The unaudited pro forma combined statement of operations for the interim period ended September 30, 2012 combines the unaudited statement of operations of the Registrant for the six months ended September 30, 2012 with the unaudited statements of operations of Casa Montalvo for the nine months ended September 30, 2012.

 

The unaudited pro forma combined statements of operations for the interim period ended December 31, 2011 assumes that the Exchange was consummated at the beginning of the period presented. The unaudited pro forma combined statement of operations for the interim period ended December 31, 2011 combines the unaudited statement of operations of the Registrant for the nine months ended December 31, 2011 with the audited statements of operations of Casa Montalvo for the period from inception through December 31, 2011.

 

The information presented in the unaudited pro forma condensed combined financial statements does not purport to represent what our financial position or results of operations would have been had the Exchange occurred as of the dates indicated, nor is it indicative of our future financial position or results of operations for any period. You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been combined or the future results that the combined company will experience after the Exchange.

 

The unaudited pro forma adjustments are based upon available information and certain assumptions that we believe are reasonable under the circumstances.

 

 

 
 

 

 

ADVANCED CLOUD STORAGE, INC.
(A Development Stage Company)
Pro Forma Consolidated Balance Sheets

  

 

           CASA Montalvo     Montalvo Spirit   Pro Forma
Adjustments 
 Notes     Combined 
          September 30, 2012   September 30, 2012        
           (Unaudited)     (Unaudited)         
 ASSETS                         
 CURRENT ASSETS                         
          Cash       $  6,436     $                    -  $  100,000   d   $  106,436 
          Prepaid expenses                                      -     2,099          2,099 
          Inventories        350,993                        -         350,993 
                             
                  Total Current Assets        357,429      2,099    100,000      459,528 
                             
                  TOTAL ASSETS       $  357,429     $  2,099   $  100,000     $  459,528 
                             
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                         
 CURRENT LIABILITIES                         
          Accounts payable and accrued liabilites       $  220,321     $  8,834         $  229,155 
          Advances from stockholders              9,809          9,809 
          Bank overdraft        973                        -         973 
          Advance from officer        150                        -         150 
          Note payable        31,000                        -         31,000 
          Notes payable - related parties        21,000                        -         21,000 
                             
                  Total Current Liabilities        273,444      18,643                        -     292,087 
                             
 LONG-TERM LIABILITIES                         
          Notes payable - related parties, net of current
           maturities 
      324,000                324,000 
                             
                  Total Liabilities        597,444      18,643                        -     616,087 
                             
 COMMITMENTS AND CONTINGENCIES                         
                             
 STOCKHOLDERS'EQUITY (DEFICIT)                         
          Preferred stock: $0.001 par value, 10,000,000
         shares authirozied; none issued or
         outstanding 
                                    -                       -                               -
          Common stock, $0.001 par value, 300,000,000
         shares authorized 10,237,250 and
         66,900,012 shares issued and outstanding
         respectively
      15,360      10,237   $  (10,000)  a.    66,900 
                      1,818   b     
                      64,645   c     
                      200   d     
                      (15,360)  e     
                             
   Additional paid-in capital        51,740      9,253    10,000   a.    83,656 
                      (1,818)  b     
                      (64,645)  c     
                      99,800   d     
                      15,360   e     
                      (36,034)  f     
                             
  Deficit accumulated during the development
          stage 
      (307,115)     (36,034)   36,034   f    (307,115)
                             
    Total Stockholders' Equity (Deficit)        (240,015)     (16,544)   100,000      (156,559)
                             
                             
TOTAL LIABILITIES AND STOCKHOLDERS'
      EQUITY (DEFICIT) 
   $  357,429     $  2,099   $  100,000     $  459,528 
                             

 

 

 

 
 

 

 

 

 

 a   To record retirement of 10,000,000 shares of common stock at par                       
                         
 b   To record issuance of 1,817,891 shares for 100% of Casa Montalvo common stock               
                         
 c   To record forward stock split of 32.4552                       
         Original shares outstanding        10,237,250               
         Shares cancelled        (10,000,000)              
         Shares issued for Casa Montalvo        1,817,891               
         Shares outstanding prior to forward split        2,055,141      $   2,055.14        
         Forward split ratio 1:32.4552        32.4552               
         Post split shares        66,700,012               
         Less shares originally outstanding        (2,055,141)              
         Increase in shares        64,644,871               
   Increase in shares at par value of $0.001        64,645               
                         
 d   To record shares issued and proceeds received from subscription offering of 200,000 shares of common stock
at a price of $0.50 per share on a post-split basis  
         Common stock - 200,000 @ $0.001 par        200               
         Additional Paid in Capital - $100,000 less $200         99,800               
                         
 e   To reclass Casa Montalvo's common stock to Additional Paid in Capital in connection with the reverse acquisition         
                         
 f   To reclassify Montalvo Spirit’s accumulated deficit as additional paid-in capital in connection with the recapitalization of Montalvo Spirit     

 

 

 

 

 

F-2
 

 

ADVANCED CLOUD STORAGE, INC.
(A Development Stage Company)
Pro Forma Consolidated Statements of Operations

 

  

 

            CASA           Montalvo Spirits              
           For the Nine Months           For the Nine Months           
          Ended         Ended          
          September 30, 2012         September 30, 2012   Pro Forma
Adjustment
    Pro Forma
          (Unaudited)         (Unaudited)         Combined
                                       
NET SALES      $  16,148           $                                -    $         $  16,148 
                                       
COST OF GOODS SOLD       11,573                                          -             11,573 
                                       
GROSS PROFIT       4,575                                          -                               -     4,575 
                                       
OPERATING EXPENSES                                  
        Selling       13,410                          13,410 
        Salaries and wages       162,000                          162,000 
        Consulting       54,000                          54,000 
        Professional Fees                   3,284              3,284 
        General and administrative       27,585            1,500              29,085 
                                       
            Total Operating Expenses       256,995            4,784              261,779 
                                       
LOSS FROM OPERATIONS       (252,420)           (4,784)                               -     (257,204)
                                       
OTHER (INCOME) EXPENSE                                  
       Interest expense       3,929                          3,929 
                                       
            Total Other (Income) Expense       3,929                                          -                               -     3,929 
                                       
                                       
LOSS BEFORE INCOME TAXES       (256,349)           (4,784)             (261,133)
                                       
        Income tax provision                                     -                                         -                               -      
                                       
NET LOSS      $ (256,349)         $ (4,784)   $                           -    $  (261,133)
                                       
NET LOSS PER COMMON SHARE                                   
         - Basic and diluted     $ (0.02)         $ (0.00)           $ (0.00)
                                       
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                              
         - Basic and diluted       15,337,655            10,237,250              66,900,012 

 

  

 

F-3
 

 

Advanced Cloud Storage, Inc.
(A Development Stage Company)
Pro Forma Consolidated Statements of Operations

 

    CASA Montalvo     Advanced Cloud              
    For the Period     For the Nine Months              
    through     Ended              
    December 31, 2011     December 31, 2011     Pro Forma Adjustment     Pro Forma  
          (Unaudited)           Combined  
                         
NET SALES   $ -     $ -     $       $ -  
                                 
COST OF GOODS SOLD     -       -               -  
                                 
GROSS PROFIT     -       -       -       -  
                                 
OPERATING EXPENSES                                
Selling     33,224                       33,224  
Salaries and wages     7,500                       7,500  
Consulting     -                       -  
General and administrative     9,650       1,835               11,485  
                                 
Total Operating Expenses     50,374       3,335               53,709  
                                 
LOSS FROM OPERATIONS     (50,374 )     (3,335 )     -       (53,709 )
                                 
OTHER (INCOME) EXPENSE                                
Interest expense     392       -               392  
                                 
Total Other (Income) Expense     392       -       -       392  
                                 
LOSS BEFORE INCOME TAXES     (50,766 )     (3,335 )             (54,101 )
                                 
Income tax provision     -       -       -          
                                 
NET LOSS   $ (50,766 )   $ (3,335 )   $ -     $ (54,101 )
                                 
NET LOSS PER COMMON SHARE                                
- Basic and diluted   $ (0.00 )   $ (0.00 )           $ (0.00 )
                                 
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING                                
- Basic and diluted     15,248,330       10,237,250               66,900,012  

  

 

F-4