EX-99.2 3 proforma.htm PRO FORMA proforma.htm
 
 
Item 9.01(b) Pro forma Financial Information
 



 
PRO FORMA FINANCIAL INFORMATION
 
The following unaudited  pro forma combined financial information is based on the historical financial statements of Axion International, Inc. (“Axion”) and Analytical Surveys, Inc. (“ASI”) and gives effect to the acquisition (the “Acquisition”) of Axion by ASI. The Acquisition will be accounted for as a reverse merger in the form of a recapitalization with Axion as the successor.  The pro forma balance sheet assumes the Acquisition occurred as of December 31, 2007.  The pro forma statement of operations assumes the Acquisition occurred as of January 1, 2007.
 
The unaudited pro forma combined financial information should be read in conjunction with the notes thereto and with the historical financial statements and related notes of ASI and Axion.  The uaudited pro forma combined financial information is presented for illustrative purposes only. It is not necessarily indicative of the operating results or financial position that would have occurred if the Acquisition had been consummated at the beginning of the period indicated, nor is such information indicative of the future operating results or financial position after the Acquisition.  The pro forma adjustments are based on currently available information and certain assumptions and estimates; however, the actual amounts may differ from the pro forma amounts.
 
On March 20, 2008 (the “Effective Date”), ASI consummated the transaction contemplated by the Agreement and Plan of Merger (the “Merger Agreement”), among ASI, Axion Acquisition Corp., a Delaware corporation and direct wholly-owned subsidiary of ASI (the “Merger Sub”), and Axion.  Pursuant to the Merger Agreement, the Merger Sub was merged into Axion, with Axion continuing as the surviving corporation and a wholly-owned subsidiary of ASI.   Pursuant to the merger, each issued and outstanding share of Axion became 190,519 shares of common stock of ASI, or 36,762,521 shares in the aggregate constituting approximately 90.7% of the issued and outstanding capital stock of ASI.
 

 
 
 


 
PRO FORMA UNAUDITED CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Balance Sheet as of December 31, 2007
 
The following pro forma unaudited consolidated financial information gives effect to the acquisition of Analytical Surveys, Inc. (the “Acquisition”). This pro forma balance sheet assumes the transactions occurred as of December 31, 2007.  The pro forma unaudited consolidated financial information is presented for illustrative purposes only. It is not necessarily indicative of the operating results or financial position that would have occurred if the Acquisition had been consummated at the beginning of the period indicated, nor is such information indicative of the future operating results or financial position of Axion or ASI after the Acquisition.

AXION INTERNATIONAL, INC. AND ANALYTICAL SURVEYS, INC.
PRO FORMA COMBINED BALANCE SHEET
December 31, 2007
(UNAUDITED)
 
 
Axion International, Inc.
    
Analytical Surveys, Inc.
    
Pro Forma Adjustments
          
Post Acquisition
  
ASSETS
                            
                             
CURRENT ASSETS
                            
Cash and cash equivalents
 $ 480,104     $ 153,835     $ (75,000 )   (1 )   $ 558,939  
Accounts receivable, net
   -       97,636       -             97,636  
Prepaid expenses and other current assets
   26,903       30,418       -             57,321  
Assets held for resale
   -       -       -             -  
Total Current Assets
   507,007       281,889       (75,000 )           713,896  
                                     
Oil and gas properties, net of depletion
   -       555,428       -             555,428  
Property and equipment, net
   11,397       9,741       -             21,138  
Intangible assets, net
   68,284       -       -             68,284  
Total Assets
 $ 586,688     $ 847,058     $ (75,000 )         $ 1,358,746  
                                     
LIABILITIES AND SHAREHOLDERS' EQUITY
                                    
                                     
CURRENT LIABILITIES
                                    
Convertible debenture, net of discount
 $ -     $ 1,073,705     $ -           $ 1,073,705  
Capital leases payable
   -       8,669       -             8,669  
Accounts payable
   -       47,476       -             47,476  
Accrued liabilities
   25,754       236,847       -             262,601  
Accrued payroll
   18,732       154,243       -             172,975  
Total Current Liabilities
   44,486       1,520,940       -             1,565,426  
                                     
Asset retirement obligations
           6,293                     6,293  
SHAREHOLDERS' EQUITY
                                    
Common Stock, $1.00 par value; 183.36 shares  issued and outstanding
   183       -       (183 )   (1 )     -  
Additional paid-in capital
   610,996       -       183     (1 )     611,179  
Common Stock, 100,000,000 shares authorized, no par value, 4,009,728 shares actual and 38,943,292 pro forma shares  issued and outstanding
   -       38,136,353       (38,136,353 )   (1 )     -  
Deficit accumulated during development stage/Accumulated deficit
   (68,977 )     (38,816,528 )     38,061,353     (1 )     (824,152 )
Total Shareholders' Equity (Deficit)
   542,202       (680,175 )     (75,000 )           (212,973 )
                                     
Total Liabilities & Shareholders' Equity
 $ 586,688     $ 847,058     $ (75,000 )         $ 1,358,746  

AXION INTERNATIONAL, INC. AND  ANALYTICAL SURVEYS, INC.
PRO FORMA COMBINED BALANCE SHEET
NOTES
DECEMBER 31, 2007
 
(1)
Adjustment (reduction in) common stock/paid in capital was computed as follows:
             
Fair value of net assets acquired:
         $ 847,058  
Consideration given:
              
Fair value of liabilities assumed
   $ 1,527,233          
Direct expenses associated with acquisition –assumed to be paid at closing
     75,000       1,602,233  
Net liabilities acquired over fair value of assets, recorded as increase in deficit accumulated during development stage
           $ 755,175  

 


 
 
 

PRO FORMA UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
For the quarter and year ended December 31, 2007
 
The following pro forma unaudited consolidated financial information gives effect to the Acquisition and assumes the transactions occurred as of January 1, 2007. The pro forma unaudited consolidated financial information is presented for illustrative purposes only. It is not necessarily indicative of the operating results or financial position that would have occurred if the Acquisition had been consummated at the beginning of the period indicated, nor is such information indicative of the future operating results or financial position of Axion or ASI, after the Acquisition.

AXION INTERNATIONAL, INC. AND  ANALYTICAL SURVEYS, INC.
PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE QUARTER ENDED DECEMBER 31, 2007
(UNAUDITED)
 
 
Axion International, Inc.
  
Analytical Surveys, Inc.
  
Effect of
Analytical Surveys, Inc. Acquisition
  
Post
Acquisition
  
Revenue
$
—
  
$
143,157
  
$
—
  
$
143,157
  
Operating expenses
  
68,977
    
227,853
          
296,830
  
Loss from operations
  
(68,977
 )
  
(84,696
 )
  
—
    
(153,673
 )
Other (income) expense, net
  
—
    
106,566
    
—
    
106,566
  
Loss before income taxes
  
(68,977
 )
  
(191,262
 )
  
—
    
(260,239
 )
Provision for income taxes
  
—
    
—
    
—
    
—
  
Net loss
  
(68,977
 )
  
(191,262
 )
  
—
    
(260,239
 )
Dividends on preferred stock
  
—
    
4,940
    
—
    
4,940
  
Net loss available to common shareholders
$
(68,977
 )
$
(196,202
 )
$
—
  
$
(265,179
 )
Weighted average shares outstanding – basic and diluted
  
128.29
    
3,789,256
    
24,441,555
    
28,230,939
  
Loss per share –basic and diluted
$
(537.66
 ) 
$
(0.05
 ) 
      
$
(0.10
 ) 

Pro forma earnings per share are computed giving effect to 190,519 common shares of Analytical Surveys, Inc., exchanged for each share of Axion International, Inc.

 
 
 

AXION INTERNATIONAL, INC. AND  ANALYTICAL SURVEYS, INC.
PRO FORMA COMBINED STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
(UNAUDITED)
 
 
Axion International, Inc.
  
Analytical Surveys, Inc.
  
Effect of
Analytical Surveys, Inc. Acquisition
  
Post
Acquisition
  
Revenue
$
—
  
$
585,682
  
$
—
  
$
585,682
  
Operating expenses
  
68,977
    
3,580,290
    
 
   
3,649,267
  
Loss from operations
  
(68,977
 )
  
(2,994,608
 )
  
—
    
(3,063,585
 )
Other (income) expense, net
  
—
    
(1,539,384
 )
  
—
    
(1,539,384
 )
Loss before income taxes
  
(68,977
 )
  
(4,533,992
 )
  
—
    
(4,602,969
 )
Provision for income taxes
  
—
    
—
    
—
    
—
  
Net loss
  
(68,977
 )
  
(4,533.992
 )
  
—
    
(4,602,969
 )
Dividends on preferred stock
  
—
    
19,600
    
—
    
19,600
  
Net loss available to common shareholders
$
(68,977
 )
$
(4,533,592
 )
$
—
  
$
(4,622,569
 )
Weighted average shares outstanding – basic and diluted
  
105.82
    
3,784,517
    
20,160,615
    
23,945,238
  
Loss per share –basic and diluted
$
(651.83
 ) 
$
(0.05
 ) 
      
$
(0.19
 ) 

Pro forma earnings per share are computed giving effect to 190,519 common shares of Analytical Surveys, Inc., exchanged for each share of Axion International, Inc.