EX1A-15 ADD EXHB 5 zabala_ex1501.htm UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

EXHIBIT 15.1

 

ZABALA FARMS GROUP, LLC.

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

 

The following unaudited pro forma combined financial statements give effect to the merger between , on the one hand, Zabala Farms Group, LLC (the “ZFG and on the other hand, Smart Initiatives, LLC, (“Smart”), Valley View Enterprises, LLC, (“Valley”) and Target Equity, LLC (“Target”). 

 

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Unaudited Pro Forma Condensed Consolidated Balance Sheet as of December 31, 2018 2
Unaudited Pro Forma Condensed Consolidated Statement of Operations for the Year Ended December 31, 2018 3

 

 

 

 

 

 

 

 

 

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ZABALA FARMS GROUP, LLC.

Pro Forma

Balance Sheet – Unaudited

December 31, 2018

 

  Zabala Farms Group, LLC   Valley View Enterprises LLC   Target Equity LLC   Smart Initiatives LLC   Proforma Adjustments   Proforma As Adjusted 
Assets                              
Current Assets                              
Cash  $–   $33,854   $444,952   $38,937   $–   $517,743 
Note receivable   –    1,000    500    –    –    1,500 
Investment in Salinas   –    3,873,415    3,624,300    2,000,000    –    9,497,715 
Deposit on Purchase Contract   193,050    265,000    –    –    –    458,050 
                               
Total Assets  $193,050   $4,173,269   $4,069,752   $2,038,937   $–   $10,475,008 
Liabilities and Partners' Equity                              
Current Liabilities                              
Accounts payable  $–   $–   $–   $23,514   $–   $23,514 
Note payable   –    14,550    –    2,400    –    16,950 
Other current liabilities   –    369,622    214,500    22,000    –    606,122 
Total Liabilities   –    384,172    214,500    47,914    –    646,586 
Partners' Equity                              
Paid in Capital   216,788    4,098,407    4,660,106    2,495,315    –    11,470,616 
Accumulated deficit   (23,738)   (309,310)   (804,854)   (504,292)   –    (1,642,194)
Total Partners' Equity   193,050    3,789,097    3,855,252    1,991,023    –    9,828,422 
Total Liabilities and Partners' Equity  $193,050   $4,173,269   $4,069,752   $2,038,937   $–   $10,475,008 

 

See notes to the unaudited pro forma combined financial statements.

 

 


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ZABALA ARMS GROUP, LLC.

Pro Forma

Statement of Operations for the Year Ended December 31, 2018 – Unaudited

 

  Zabala Farms Group, LLC   Valley View Enterprises LLC   Target Equity LLC   Smart Initiatives LLC   Proforma
Adjustments		   Proforma
As Adjusted		 
Revenue  $–   $332,936   $213,591   $250,815   $–   $797,342 
Operating Expenses                              
General and Administrative Expenses   288    252,491    1,018,445    55,874    –    1,327,098 
Offering Expense - Related Party   20,850    –    –    –    –    20,850 
Offering Expense   2,600    –    –    –    –    2,600 
Total Operating Expenses   23,738    252,491    1,018,445    55,874    –    1,350,548 
Net Income (Loss)  $(23,738)  $80,445   $(804,854)  $194,941   $–   $(553,206)
Membership units   1,384,615                   14,000,000    15,384,615 

 

See notes to the unaudited pro forma combined financial statements.

 

 

 

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ZABALA FARMS GROUP, LLC.

NOTES TO THE UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

Zabala Farms Group, LLC, a Delaware limited liability company (the “Company,” “ZFG,” “we,” “us,” and “our”) is offering up to 14,000,000 Class A Common Units of membership interests (the “Class A Units”), to members of Smart Initiatives, LLC, a California limited liability company (“Smart Initiatives”), the members of Target Equity, LLC, a California limited liability company (“Target Equity”) and the members of Valley View Enterprises, LLC, a California limited liability company (“Valley View”) in exchange for their respective membership interests in those entities. Smart Initiatives, Valley View and Target Equity are collectively referred to as the “Disappearing Entities.”

 

The Company and each of the Disappearing Entities have entered into a merger agreement pursuant to which, upon completion of the merger (the “Merger”), the Disappearing Entities will merge with and into the Company and the members of the Disappearing Entities will become members of the Company.

 

1. BASIS OF PRO FORMA PRESENTATION

 

The unaudited pro forma condensed combined balance sheets have been derived from the historical December 31, 2018 balance sheet of ZFG and Disappearing Entities. The pro forma balance sheet and statement of operations present this transaction as if they had been consummated as of December 31, 2018 as required under Article 11 of Regulation S-X.

 

Historical financial information has been adjusted in the pro forma balance sheet to pro forma events that are: (1) directly attributable to the Merger; (2) factually supportable; and (3) expected to have a continuing impact on the Company’s results of operations. The pro forma adjustments presented in the pro forma condensed combined balance sheet and statement of operations are described in Note 3— Pro Forma Adjustments.

 

The unaudited pro forma combined financial information is for illustrative purposes only. These companies may have performed differently had they actually been combined for the periods presented. You should not rely on the pro forma condensed combined financial 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 companies will experience after the merger.

 

2. ACCOUNTING PERIODS PRESENTED

 

Certain pro forma adjustments were made to conform ZFG accounting policies to the Company’s accounting policies as noted below.

 

The unaudited pro forma condensed combined balance sheet as of December 31, 2018 is presented as if the Merger under common control had occurred on December 31, 2018 and combines the historical balance sheet of the Company at December 31, 2018 and the historical balance sheets of the Disappearing Entities at December 31, 2018.

 

The unaudited pro forma condensed combined statement of operations of the Company and Disappearing Entities for the period ended December 31, 2018 are presented as if the merger under common control had taken place on December 31, 2018. The pro forma statement of operations for the period ended December 31, 2018 combines the historical results of the Company for the year ended December 31, 2018.

 

The unaudited pro forma combined statement of operations for the year ended December 31, 2018 has been prepared by combining the Company’s historical consolidated statement of operations for the year ended December 31, 2018, with the historical consolidated statements of income of the Disappearing Entities for the year ended December 31, 2018.

 

3. PRO FORMA ADJUSTMENTS

 

The adjustments included in the pro forma balance sheet and statement of operations are as follows:

 

·To record 14,000,000 Class A Common Units of Membership Interest of ZFG in exchange for 100% membership interest of Disappearing Entities under common control.

 

 

 

 

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