|
Delaware
|
000-55205
|
46-5482689
|
|
(STATE OR OTHER JURISDICTION OF INCORPORATION OR ORGANIZATION)
|
(COMMISSION FILE NO.)
|
(IRS EMPLOYEE IDENTIFICATION NO.)
|
|
Exhibit No.
|
Description
|
|
|
|
|
99.1
|
Audited Financial Statements of Quality Circuit Assembly, Inc., as of December 31, 2015 and 2014, and as of March 31, 2016 and 2015 (unaudited)
|
|
99.2
|
Alpine 4 Technologies Ltd. and Quality Circuit Assembly, Inc., Pro Forma Consolidated Financial Statements (unaudited)
|
|
|
|
Page
|
|
|
|
|
|
Reports of Independent Registered Public Accounting Firms
|
|
|
|
|
|
|
|
|
Report of MaloneBailey, LLP
|
F-2
|
|
|
|
|
|
Financial Statements:
|
|
|
|
|
|
|
|
|
Balance Sheets
|
F-3
|
|
|
|
|
|
Statements of Operations
|
F-4
|
|
|
|
|
|
|
|
Statements of Stockholders' Equity
|
F-5
|
|
|
|
|
|
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Statements of Cash Flows
|
F-6
|
|
|
|
|
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Notes to Financial Statements
|
F-7 to F-12
|


|
QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||
|
BALANCE SHEETS
|
||||||||||||
|
3/31/2016
|
12/31/2015
|
12/31/2014
|
||||||||||
|
(Unaudited)
|
(Audited)
|
(Audited)
|
||||||||||
|
ASSETS
|
||||||||||||
|
CURRENT ASSETS:
|
||||||||||||
|
Cash
|
$
|
222,825
|
$
|
365,221
|
$
|
224,290
|
||||||
|
Accounts receivable
|
1,095,419
|
1,091,953
|
1,038,192
|
|||||||||
|
Inventory
|
949,785
|
949,362
|
910,960
|
|||||||||
|
Prepaids
|
53,535
|
12,193
|
13,047
|
|||||||||
|
Total current assets
|
2,321,564
|
2,418,729
|
2,186,489
|
|||||||||
|
NON-CURRENT ASSETS:
|
||||||||||||
|
Property, plant and equipment
|
1,356,711
|
1,356,711
|
1,522,164
|
|||||||||
|
Less: Accumulated depreciation
|
(1,223,940
|
)
|
(1,190,448
|
)
|
(1,270,339
|
)
|
||||||
|
Net Property, plant and equipment
|
132,771
|
166,263
|
251,825
|
|||||||||
|
Total non-current assets
|
132,771
|
166,263
|
251,825
|
|||||||||
|
TOTAL ASSETS
|
$
|
2,454,335
|
$
|
2,584,992
|
$
|
2,438,314
|
||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||
|
CURRENT LIABILITIES:
|
||||||||||||
|
Accounts payable
|
$
|
652,628
|
$
|
655,942
|
$
|
505,960
|
||||||
|
Credit Card payable
|
-
|
25,043
|
17,152
|
|||||||||
|
Accrued expenses
|
141,444
|
91,941
|
123,388
|
|||||||||
|
Notes payable
|
-
|
19,940
|
19,344
|
|||||||||
|
Notes payable, related parties
|
-
|
10,000
|
-
|
|||||||||
|
Income tax payable
|
-
|
45,410
|
210,969
|
|||||||||
|
Deferred revenue
|
202,049
|
202,049
|
-
|
|||||||||
|
Total current liabilities
|
996,121
|
1,050,325
|
876,813
|
|||||||||
|
NON-CURRENT LIABILITIES:
|
||||||||||||
|
Long-term debt
|
-
|
39,522
|
59,460
|
|||||||||
|
Deferred tax liability
|
25,327
|
21,560
|
6,499
|
|||||||||
|
Total non-current liabilities
|
25,327
|
61,082
|
65,959
|
|||||||||
|
TOTAL LIABILITIES
|
1,021,448
|
1,111,407
|
942,772
|
|||||||||
|
STOCKHOLDERS' EQUITY:
|
||||||||||||
|
Common stock
|
240,000
|
240,000
|
240,000
|
|||||||||
|
Dividends
|
(129,253
|
)
|
(129,253
|
)
|
-
|
|||||||
|
Accumulated earnings
|
1,322,140
|
1,362,838
|
1,255,542
|
|||||||||
|
Total stockholders' equity
|
1,432,887
|
1,473,585
|
1,495,542
|
|||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
2,454,335
|
$
|
2,584,992
|
$
|
2,438,314
|
||||||

|
QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||||||
|
STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
For Three Months Ended
|
For the Year Ended
|
|||||||||||||||
|
3/31/2016
|
3/31/2015
|
12/31/2015
|
12/31/2014
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
(Audited)
|
|||||||||||||
|
Revenue
|
$
|
1,788,654
|
$
|
1,844,084
|
$
|
7,513,844
|
$
|
6,671,747
|
||||||||
|
Cost of revenue
|
1,337,083
|
1,391,216
|
5,736,354
|
4,944,783
|
||||||||||||
|
Gross Profit
|
451,571
|
452,868
|
1,777,490
|
1,726,964
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
General and administrative expenses
|
490,091
|
334,047
|
1,404,526
|
1,367,057
|
||||||||||||
|
Depreciation
|
33,492
|
33,492
|
100,280
|
88,845
|
||||||||||||
|
Amortization
|
-
|
-
|
-
|
-
|
||||||||||||
|
Total operating expenses
|
523,583
|
367,539
|
1,504,806
|
1,455,902
|
||||||||||||
|
Income/(Loss) from operations
|
(72,012
|
)
|
85,329
|
272,684
|
271,062
|
|||||||||||
|
Other expenses
|
||||||||||||||||
|
Interest expense
|
456
|
655
|
2,064
|
3,862
|
||||||||||||
|
(Gain) on disposal of fixed assets
|
-
|
-
|
(34,062
|
)
|
-
|
|||||||||||
|
Total other expenses
|
456
|
655
|
(31,998
|
)
|
3,862
|
|||||||||||
|
Income/(Loss) before income tax
|
(72,468
|
)
|
84,674
|
304,682
|
267,200
|
|||||||||||
|
Income tax
|
(31,770
|
)
|
37,121
|
197,386
|
165,901
|
|||||||||||
|
Net Income/(Loss)
|
$
|
(40,698
|
)
|
$
|
47,553
|
$
|
107,296
|
$
|
101,299
|
|||||||
|
Weighted average shares outstanding :
|
||||||||||||||||
|
Basic
|
240,000
|
240,000
|
240,000
|
240,000
|
||||||||||||
|
Diluted
|
240,000
|
240,000
|
240,000
|
240,000
|
||||||||||||
|
Loss per share
|
||||||||||||||||
|
Basic
|
$
|
(0.17
|
)
|
$
|
0.20
|
$
|
0.45
|
$
|
0.42
|
|||||||
|
Diluted
|
$
|
(0.17
|
)
|
$
|
0.20
|
$
|
0.45
|
$
|
0.42
|
|||||||
|
QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||||||||||
|
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
|
||||||||||||||||||||
|
Common Stock
|
||||||||||||||||||||
|
|
Shares
|
Share
Capital
|
Distributions (Dividend)
|
Retained
Earning
|
Total
Stockholders'
Equity
|
|||||||||||||||
|
Balance - December 31, 2013
|
240,000
|
$
|
240,000
|
$
|
-
|
$
|
1,154,243
|
$
|
1,394,243
|
|||||||||||
|
Net Income (Loss)
|
101,299
|
101,299
|
||||||||||||||||||
|
Balance - December 31, 2014 (audited)
|
240,000
|
$
|
240,000
|
$
|
-
|
$
|
1,255,542
|
$
|
1,495,542
|
|||||||||||
|
Net Income (Loss)
|
107,296
|
107,296
|
||||||||||||||||||
|
(Dividend)
|
(129,253
|
)
|
(129,253
|
)
|
||||||||||||||||
|
Balance - December 31, 2015 (audited)
|
240,000
|
$
|
240,000
|
$
|
(129,253
|
)
|
$
|
1,362,838
|
$
|
1,473,585
|
||||||||||
|
Net Income (Loss)
|
(40,698
|
)
|
(40,698
|
)
|
||||||||||||||||
|
Balance - March 31, 2016 (unaudited)
|
240,000
|
$
|
240,000
|
$
|
(129,253
|
)
|
$
|
1,322,140
|
$
|
1,432,887
|
||||||||||
|
QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||||||
|
STATEMENT OF CASH FLOWS
|
||||||||||||||||
|
For Three Months Ended
|
For the Year Ended
|
|||||||||||||||
|
3/31/2016
|
3/31/2015
|
12/31/2015
|
12/31/2014
|
|||||||||||||
|
(Unaudited)
|
(Unaudited)
|
(Audited)
|
(Audited)
|
|||||||||||||
|
OPERATING ACTIVITIES:
|
||||||||||||||||
|
Net Income/(Loss)
|
$
|
(40,698
|
)
|
$
|
47,553
|
$
|
107,296
|
$
|
101,299
|
|||||||
|
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
|
||||||||||||||||
|
Depreciation
|
33,492
|
33,492
|
100,280
|
88,845
|
||||||||||||
|
(Gain) on distribution of fixed assets
|
-
|
-
|
(34,062
|
)
|
-
|
|||||||||||
|
Change in current assets and liabilities:
|
||||||||||||||||
|
Accounts receivable
|
(3,466
|
)
|
(252,027
|
)
|
(53,761
|
)
|
(71,671
|
)
|
||||||||
|
Inventory
|
(423
|
)
|
(415,114
|
)
|
(38,402
|
)
|
48,090
|
|||||||||
|
Prepaids
|
(41,342
|
)
|
13,047
|
854
|
(13,047
|
)
|
||||||||||
|
Accounts payable
|
(3,314
|
)
|
545,887
|
149,982
|
(110,758
|
)
|
||||||||||
|
Accrued expenses
|
24,461
|
(8,238
|
) |
(23,556
|
)
|
(124,203
|
)
|
|||||||||
|
Deferred revenue
|
-
|
-
|
202,049
|
-
|
||||||||||||
|
Taxes payable
|
(41,645
|
)
|
(74,106
|
)
|
(150,498
|
)
|
208,633
|
|||||||||
|
Net cash provided by (used in) operating activities
|
(72,935
|
)
|
(109,506
|
)
|
260,182
|
127,188
|
||||||||||
|
INVESTING ACTIVITIES:
|
||||||||||||||||
|
Capital expenditures
|
-
|
(12,065
|
)
|
(79,304
|
)
|
(18,513
|
)
|
|||||||||
|
Net cash used in investing activities
|
-
|
(12,065
|
)
|
(79,304
|
)
|
(18,513
|
)
|
|||||||||
|
FINANCING ACTIVITIES:
|
||||||||||||||||
|
Proceeds from issuances of notes payable, related party
|
-
|
-
|
45,000
|
-
|
||||||||||||
|
Repayments of notes payable
|
(59,461
|
)
|
(4,770
|
)
|
(19,342
|
)
|
(22,399
|
)
|
||||||||
|
Repayments of related party loan
|
(10,000
|
)
|
-
|
(35,000
|
)
|
(72,624
|
)
|
|||||||||
|
Dividends
|
-
|
-
|
(30,605
|
)
|
-
|
|||||||||||
|
Net cash used in financing activities
|
(69,461
|
)
|
(4,770
|
)
|
(39,947
|
)
|
(95,023
|
)
|
||||||||
|
NET INCREASE IN CASH
|
(142,396
|
)
|
(126,341
|
)
|
140,931
|
13,652
|
||||||||||
|
CASH, BEGINNING BALANCE
|
365,221
|
224,290
|
224,290
|
210,638
|
||||||||||||
|
CASH, ENDING BALANCE
|
$
|
222,825
|
$
|
97,949
|
$
|
365,221
|
$
|
224,290
|
||||||||
|
CASH PAID FOR:
|
||||||||||||||||
|
Interest
|
$
|
456
|
$
|
655
|
$
|
2,362
|
$
|
3,862
|
||||||||
|
Income taxes
|
$
|
47,500
|
$
|
118,435
|
$
|
350,952
|
$
|
-
|
||||||||
|
NON CASH TRANSACTION:
|
||||||||||||||||
|
Distribution of fixed assets to owners
|
$
|
-
|
$
|
-
|
$
|
98,648
|
$
|
-
|
||||||||

|
Mar 31,
2016
|
Dec 31,
2015
|
Dec 31,
2014
|
||||||||||
| (Unaudited) | ||||||||||||
|
Raw materials
|
$
|
463,024
|
$
|
391,845
|
$
|
396,388
|
||||||
|
WIP
|
309,939
|
351,697
|
333,712
|
|||||||||
|
Finished goods
|
163,822
|
192,820
|
167,860
|
|||||||||
|
In-Transit
|
13,000
|
13,000
|
13,000
|
|||||||||
|
$
|
949,785
|
$
|
949,362
|
$
|
910,960
|
|||||||
|
Mar 31,
2016
|
Dec 31,
2015
|
Dec 31,
2014
|
||||||||||
|
(Unaudited)
|
||||||||||||
|
Automobiles & trucks
|
$
|
-
|
$
|
-
|
$
|
238,155
|
||||||
|
Machinery & Equipment
|
1,191,843
|
1,191,843
|
1,119,141
|
|||||||||
|
Office furniture & fixtures and software
|
164,868
|
164,868
|
164,868
|
|||||||||
|
Less: Accumulated Depreciation
|
(1,223,940
|
)
|
(1,190,448
|
)
|
(1,270,339
|
)
|
||||||
|
|
$
|
132,771
|
$
|
166,263
|
$
|
251,825
|
||||||
|
2016
|
2017
|
2018
|
2019
|
Total
|
||||||||||||||||
|
Loan Payable
|
$
|
19,940
|
$
|
20,633
|
$
|
17,279
|
$
|
1,610
|
$
|
59,462
|
||||||||||

|
Related Party Notes Payable
|
||||||||||||
|
|
Borrowings
|
Payments
|
Related
Party
Note
Payable
Balance
|
|||||||||
|
Balance - December 31, 2014
|
$ | $ |
$
|
-
|
||||||||
|
|
||||||||||||
|
Borrowings
|
45,000
|
45,000
|
||||||||||
|
Payments
|
(35,000
|
)
|
(35,000
|
)
|
||||||||
|
|
||||||||||||
|
Balance - December 31, 2015
|
$
|
45,000
|
$
|
(35,000
|
)
|
$
|
10,000
|
|||||
|
|
||||||||||||
|
Payments
|
(10,000
|
)
|
(10,000
|
)
|
||||||||
|
|
||||||||||||
|
Balance - March 31, 2016 (unaudited)
|
$
|
45,000
|
$
|
(45,000
|
)
|
$
|
-
|
|||||
|
2016
|
2017
|
2018
|
2019
|
2020
|
Total
|
|||||||||||||||||||
|
Capital Lease
|
$
|
422,997
|
$
|
571,499
|
$
|
584,763
|
$
|
599,382
|
$
|
614,366
|
$
|
2,793,007
|
||||||||||||
|
|
|
Page
|
|
|
|
|
|
Pro Forma Consolidated Financial Statements:
|
|
|
|
|
Pro Forma Consolidated Balance Sheet as of March 31, 2016
|
PF-2
|
|
Pro Forma Consolidated Statements of Operations for the three months ended March 31, 2016
|
PF-3
|
|
|
|
|
|
|
|
Pro Forma Consolidated Statements of Operations for the year ended December 31, 2015
|
PF-4
|
|
|
|
|
|
|
Notes to Pro Forma Consolidated Financial Statements (unaudited)
|
PF-5
|
|
ALPINE 4 TECHNOLOGIES, LTD. and QUALITY CIRCUIT ASSEMBLY, INC.
|
|||||||||||||||||
|
PRO FORMA CONSOLIDATED BALANCE SHEET
|
|||||||||||||||||
|
as of MARCH 31, 2016
|
|||||||||||||||||
| (unaudited) | |||||||||||||||||
|
Pro forma
|
Pro forma
|
||||||||||||||||
|
Alpine 4
|
QCA
|
Adjustments
|
Consolidated
|
||||||||||||||
|
ASSETS
|
|||||||||||||||||
|
CURRENT ASSETS:
|
|||||||||||||||||
|
Cash
|
$
|
342,786
|
$
|
222,825
|
$
|
(22,825
|
)
|
a
|
$
|
542,786
|
|||||||
|
Accounts receivable
|
179
|
1,095,419
|
-
|
1,095,598
|
|||||||||||||
|
Inventory
|
222,930
|
949,785
|
-
|
1,172,715
|
|||||||||||||
|
Prepaids
|
-
|
53,535
|
-
|
53,535
|
|||||||||||||
|
Total current assets
|
565,895
|
2,321,564
|
(22,825
|
)
|
2,864,634
|
||||||||||||
|
NON-CURRENT ASSETS:
|
|||||||||||||||||
|
Property, plant and equipment
|
-
|
1,356,711
|
(99,826
|
)
|
a
|
1,256,885
|
|||||||||||
|
3,895,000
|
b
|
3,895,000
|
|||||||||||||||
|
Less: Accumulated depreciation
|
-
|
(1,223,940
|
)
|
1,223,940
|
a
|
-
|
|||||||||||
|
Net Property, plant and equipment
|
-
|
132,771
|
5,019,114
|
5,151,885
|
|||||||||||||
|
Intangibles
|
150,000
|
-
|
150,000
|
a
|
300,000
|
||||||||||||
|
Less: Accumulated depreciation
|
(8,333
|
)
|
-
|
-
|
(8,333
|
)
|
|||||||||||
|
Net Intangibles
|
141,667
|
-
|
150,000
|
291,667
|
|||||||||||||
|
Deposits and other assets
|
-
|
-
|
546,667
|
c
|
546,667
|
||||||||||||
|
Goodwill
|
-
|
-
|
2,440,760
|
a
|
2,440,760
|
||||||||||||
|
Total non-current assets
|
141,667
|
132,771
|
8,156,541
|
8,430,979
|
|||||||||||||
|
TOTAL ASSETS
|
$
|
707,562
|
$
|
2,454,335
|
$
|
8,133,716
|
$
|
11,295,613
|
|||||||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|||||||||||||||||
|
CURRENT LIABILITIES:
|
|||||||||||||||||
|
Accounts payable
|
$
|
504,822
|
$
|
652,628
|
$
|
-
|
$
|
1,157,450
|
|||||||||
|
Credit Card payable
|
-
|
-
|
-
|
-
|
|||||||||||||
|
Accrued expenses
|
12,500
|
141,444
|
-
|
153,944
|
|||||||||||||
|
Deferred revenue
|
998
|
202,049
|
(202,049
|
)
|
a
|
998
|
|||||||||||
|
Short-term debt
|
-
|
-
|
117,766
|
a
|
117,766
|
||||||||||||
|
740,098
|
d
|
740,098
|
|||||||||||||||
|
Notes payable, related parties
|
108,635
|
-
|
-
|
108,635
|
|||||||||||||
|
Advances from related parties
|
342,500
|
342,500
|
|||||||||||||||
|
Financing Obligation Lease S/T
|
59,456
|
b
|
59,456
|
||||||||||||||
|
Convertible notes payable, net of discount of $162,422 (including related parties of $0)
|
131,928
|
-
|
131,928
|
||||||||||||||
|
Total current liabilities
|
1,101,383
|
996,121
|
715,271
|
2,812,775
|
|||||||||||||
|
NON-CURRENT LIABILITIES:
|
|||||||||||||||||
|
Long-term debt
|
-
|
-
|
1,882,234
|
a
|
1,882,234
|
||||||||||||
|
169,223
|
d
|
169,223
|
|||||||||||||||
|
Financing Obligation Lease L/T
|
6,590,544
|
b
|
6,590,544
|
||||||||||||||
|
Deferred tax liability
|
25,327
|
320,983
|
a
|
346,310
|
|||||||||||||
|
Total non-current liabilities
|
-
|
25,327
|
8,962,984
|
8,988,311
|
|||||||||||||
|
TOTAL LIABILITIES
|
1,101,383
|
1,021,448
|
9,678,255
|
11,801,086
|
|||||||||||||
|
STOCKHOLDERS' EQUITY/(DEFICIT):
|
|||||||||||||||||
|
Preferred stock, $0.0001 par value, 5,000,000 shares authorized, none issued and outstanding
|
-
|
-
|
-
|
-
|
|||||||||||||
|
Class A Common stock, $0.0001 par value, 500,000,000 shares authorized, 5,869,981 and 8,505,039 shares issued and outstanding
|
587
|
-
|
75
|
e
|
662
|
||||||||||||
|
Class B Common stock, $0.0001 par value, 100,000,000 shares authorized, 1,600,000 and 0 shares issued and outstanding
|
160
|
-
|
-
|
160
|
|||||||||||||
|
QCA Common stock
|
-
|
240,000
|
(240,000
|
)
|
a
|
-
|
|||||||||||
|
Dividends
|
-
|
(129,253
|
)
|
129,253
|
a
|
-
|
|||||||||||
|
Additional paid-in capital
|
13,904,881
|
-
|
637,425
|
e
|
14,542,306
|
||||||||||||
|
Accumulated earnings/(deficit)
|
(14,299,449
|
)
|
1,322,140
|
(1,322,140
|
)
|
a
|
(14,299,449
|
)
|
|||||||||
|
(637,500
|
)
|
e
|
(637,500
|
)
|
|||||||||||||
|
(111,652
|
)
|
f
|
(111,652
|
)
|
|||||||||||||
|
Total stockholders' equity/(deficit)
|
(393,821
|
)
|
1,432,887
|
(1,544,539
|
)
|
(505,473
|
)
|
||||||||||
|
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
707,562
|
$
|
2,454,335
|
$
|
8,133,716
|
$
|
11,295,613
|
|||||||||

|
ALPINE 4 TECHNOLOGIES, LTD. and QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||||||
|
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
FOR THE THREE MONTHS ENDED MARCH 31, 2016
|
||||||||||||||||
| (unaudited) | ||||||||||||||||
|
Pro forma
|
||||||||||||||||
|
Alpine 4
|
QCA
|
Adjustments
|
Consolidated
|
|||||||||||||
|
Revenue
|
$
|
7,115
|
$
|
1,788,654
|
$ |
$
|
1,795,769
|
|||||||||
|
Cost of revenue
|
82
|
1,337,083
|
1,337,165
|
|||||||||||||
|
Gross Profit
|
7,033
|
451,571
|
-
|
458,604
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
General and administrative expenses
|
167,148
|
490,091
|
657,239
|
|||||||||||||
|
Depreciation
|
-
|
33,492
|
33,492
|
|||||||||||||
|
Total operating expenses
|
167,148
|
523,583
|
-
|
690,731
|
||||||||||||
|
Income/(Loss) from operations
|
(160,115
|
)
|
(72,012
|
)
|
-
|
(232,127
|
)
|
|||||||||
|
Other expenses
|
||||||||||||||||
|
Interest expense
|
(130,120
|
)
|
456
|
(129,664
|
)
|
|||||||||||
|
Total other expenses
|
(130,120
|
)
|
456
|
-
|
(129,664
|
)
|
||||||||||
|
Income/(Loss) before income tax
|
(290,235
|
)
|
(72,468
|
)
|
-
|
(362,703
|
)
|
|||||||||
|
Income tax
|
-
|
(31,770
|
)
|
(31,770
|
)
|
|||||||||||
|
Net Income/(Loss)
|
$
|
(290,235
|
)
|
$
|
(40,698
|
)
|
$
|
-
|
$
|
(330,933
|
)
|
|||||
|
Weighted average shares outstanding :
|
||||||||||||||||
|
Basic
|
16,705,956
|
-
|
16,705,956
|
|||||||||||||
|
Diluted
|
16,705,956
|
-
|
16,705,956
|
|||||||||||||
|
Loss per share
|
||||||||||||||||
|
Basic
|
$
|
(0.02
|
)
|
$
|
-
|
$ |
$
|
(0.02
|
)
|
|||||||
|
Diluted
|
$
|
(0.02
|
)
|
$
|
-
|
$ |
$
|
(0.02
|
)
|
|||||||

|
ALPINE 4 TECHNOLOGIES, LTD. and QUALITY CIRCUIT ASSEMBLY, INC.
|
||||||||||||||||
|
PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
|
||||||||||||||||
|
FOR THE YEAR ENDED DECEMBER 31, 2015
|
||||||||||||||||
| (UNAUDITED) | ||||||||||||||||
|
Pro forma
|
Pro forma
|
|||||||||||||||
|
Alpine 4
|
QCA
|
Adjustments
|
Consolidated
|
|||||||||||||
|
Revenue
|
$
|
21,840
|
$
|
7,513,844
|
$ |
$
|
7,535,684
|
|||||||||
|
Cost of revenue
|
1,170
|
5,736,354
|
5,737,524
|
|||||||||||||
|
Gross Profit
|
20,670
|
1,777,490
|
-
|
1,798,160
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||
|
General and administrative expenses
|
13,293,644
|
1,404,526
|
14,698,170
|
|||||||||||||
|
Depreciation
|
-
|
100,280
|
100,280
|
|||||||||||||
|
Total operating expenses
|
13,293,644
|
1,504,806
|
-
|
14,798,450
|
||||||||||||
|
Income/(Loss) from operations
|
(13,272,974
|
)
|
272,684
|
-
|
(13,000,290
|
)
|
||||||||||
|
Other expenses
|
||||||||||||||||
|
Interest expense
|
(131,006
|
)
|
2,064
|
(128,942
|
)
|
|||||||||||
|
Loss/(Gain) on disposal of fixed assets
|
(34,062
|
)
|
||||||||||||||
|
Total other expenses
|
(131,006
|
)
|
(31,998
|
)
|
-
|
(128,942
|
)
|
|||||||||
|
Income/(Loss) before income tax
|
(13,403,980
|
)
|
304,682
|
-
|
(13,099,298
|
)
|
||||||||||
|
Income tax
|
-
|
197,386
|
197,386
|
|||||||||||||
|
Net Income/(Loss)
|
$
|
(13,403,980
|
)
|
$
|
107,296
|
$
|
-
|
$
|
(13,296,684
|
)
|
||||||
|
Weighted average shares outstanding :
|
||||||||||||||||
|
Basic
|
7,773,850
|
-
|
7,773,850
|
|||||||||||||
|
Diluted
|
7,773,850
|
-
|
7,773,850
|
|||||||||||||
|
Loss per share
|
||||||||||||||||
|
Basic
|
$
|
(1.72
|
)
|
$
|
-
|
$
|
$
|
(1.71
|
)
|
|||||||
|
Diluted
|
$
|
(1.72
|
)
|
$
|
-
|
$
|
$
|
(1.71
|
)
|
|||||||

|
a
|
To allocate the purchase price of $5,000,000 consisting of $3,000,000 in cash and a convertible 5% interest bearing note of $2,000,000. Conversion of the note is not allowed for first six months and the conversion price is $10 per share of common stock.
|
|
Purchase
Allocation
|
||||
|
Cash
|
$
|
200,000
|
||
|
Accounts Receivable
|
1,095,419
|
|||
|
Inventory
|
930,783
|
|||
|
Property, Plant & Equipment
|
1,256,885
|
|||
|
Prepaid
|
53,535
|
|||
|
Intangibles
|
150,000
|
|||
|
Goodwill
|
2,440,760
|
|||
|
Accounts Payable
|
(652,628
|
)
|
||
|
Accrued Expenses
|
(128,444
|
)
|
||
|
Deferred Tax Liability
|
(346,310
|
)
|
||
|
|
$
|
5,000,000
|
||
|
b.
|
To record the financing obligation lease of a building. QCA closed a financing lease obligation for $7,000,000 of which $3,000,000 was used to pay the cash portion of the QCA purchase, and the balance was used to purchase a building. QCA leased the building for 15 years at $58,000 per month in rent. There was also a debit issuance cost of $350,000.
|
|
c.
|
To record restricted cash collateralizing a letter of credit of $500,000, and $46,667 rent deposit on a building which were required under the financing obligation described in note b.
|
|
d.
|
To record the line of credit and loan to acquire cash for purchase of QCA with a third party lender. A line of credit was obtained on QCA's outstanding accounts receivable, inventory and equipment of $909,321. QCA drew on the line of credit an additional $187,001 for working capital.
|
|
e.
|
To recordo Terry Protto for employment services and 250,000 shares of Alpine 4 Class A Common stock to a broker for fees on the building transaction, described in Note b.
|
|
f.
|
Adjust retained earnings for the financing obligation transaction described in Note b. Three months interest ($44,986) and depreciation ($66,666).
|
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