paos_ex103.htm

EXHIBIT 10.3
  
  	 AMERINAC HOLDING CORP. AND SUBSIDIARIES

	 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 AMERINAC HOLDING CORP.
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Unaudited Pro Forma Condensed Consolidated Balance Sheets
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 June 30, 2017
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 ASSETS
	  

	  
	  

	  
	  
	 Historical 
	  
	  
	 Historical 
	  
	  
	 Pro Forma 
	  
	  
	 Pro 
	  

	 Current assets:
	  
	 Amerinac 
	  
	  
	 Prime 
	  
	  
	 Adjustments 
	  
	  
	 Forma 
	  

	 Cash
	  
	$	1,131,275	  
	  
	$	154,971	  
	  
	$	(1,254,971	)	 a
	$	31,275	  

	 Accounts receivable - net
	  
	  
	1,043,389	  
	  
	  
	353,673	  
	  
	  
	-	  
	  
	  
	1,397,062	  

	 Inventories - net
	  
	  
	1,897,414	  
	  
	  
	699,905	  
	  
	  
	-	  
	  
	  
	2,597,319	  

	 Escrow receivable
	  
	  
	1,000,000	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	1,000,000	  

	 Escrow deposit
	  
	  
	500,000	  
	  
	  
	-	  
	  
	  
	(500,000	)	 a
	  
	-	  

	 Other current assets
	  
	  
	264,200	  
	  
	  
	428,958	  
	  
	  
	-	  
	  
	  
	693,158	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total current assets
	  
	  
	5,836,278	  
	  
	  
	1,637,507	  
	  
	  
	(1,754,971	)	  
	  
	5,718,814	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Property, plant and equipment - net
	  
	  
	54,152	  
	  
	  
	5,859,819	  
	  
	  
	-	  
	  
	  
	5,913,971	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Other assets:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Other 
	  
	  
	3,382	  
	  
	  
	29,005	  
	  
	  
	-	  
	  
	  
	32,387	  

	 Goodwill
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	2,352,409	  
	 b
	  
	2,352,409	  

	 Total other assets
	  
	  
	3,382	  
	  
	  
	29,005	  
	  
	  
	2,352,409	  
	  
	  
	2,384,796	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total
	  
	$	5,893,812	  
	  
	$	7,526,331	  
	  
	$	597,438	  
	  
	$	14,017,581	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Current liabilities:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Lines of credit
	  
	$	497,438	  
	  
	$	6,491,268	  
	  
	$	(6,491,268	)	 c
	$	497,438	  

	 Accounts payable and accrued expenses
	  
	  
	858,779	  
	  
	  
	5,709,486	  
	  
	  
	(5,623,345	)	 c
	  
	944,920	  

	 Loans payable
	  
	  
	-	  
	  
	  
	5,387,547	  
	  
	  
	(5,387,547	)	 c
	  
	-	  

	 Advance from third party
	  
	  
	-	  
	  
	  
	1,579,119	  
	  
	  
	(1,579,119	)	 c
	  
	-	  

	 Officer loans
	  
	  
	-	  
	  
	  
	1,265,329	  
	  
	  
	(1,265,329	)	 c
	  
	-	  

	 Income taxes payable
	  
	  
	22,831	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	22,831	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total current liabilities
	  
	  
	1,379,048	  
	  
	  
	20,432,749	  
	  
	  
	(20,346,608	)	  
	  
	1,465,189	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Long-term liabilities - notes payable
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	8,000,000	  
	 d
	  
	8,000,000	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total liabilities
	  
	  
	1,379,048	  
	  
	  
	20,432,749	  
	  
	  
	(12,346,608	)	  
	  
	9,465,189	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Stockholders' equity (deficiency):
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Common stock, $.001 par value; 1,500,000 shares authorized, 358,333 issued and 261,636 outstanding at June 30, 2017
	  
	  
	358	  
	  
	  
	1,800	  
	  
	  
	(1,800	)	 c
	  
	358	  

	 Treasury stock, $.001 par value; 96,697 shares held in treasury
	  
	  
	(97	)	  
	  
	-	  
	  
	  
	-	  
	  
	  
	(97	)
	 Additional paid-in capital
	  
	  
	14,119,501	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	14,119,501	  

	 Accumulated deficit 
	  
	  
	(9,604,998	)	  
	  
	(12,908,218	)	  
	  
	12,945,846	  
	  
	  
	(9,567,370	)
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total stockholders' equity (deficiency)
	  
	  
	4,514,764	  
	  
	  
	(12,906,418	)	  
	  
	12,944,046	  
	  
	  
	4,552,392	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total liabilities and stockholders' equity (deficiency)
	  
	$	5,893,812	  
	  
	$	7,526,331	  
	  
	$	597,438	  
	  
	$	14,017,581	  



  
 
    
  	a.	Decrease in cash and escrow for purchase of Prime Metals & Alloys, Inc. LLC
	b.	An increase in goodwill to reflect the estimated value of the assets acquired from Prime Metals and Alloys, Inc. on the closing date.
	c.	Elimination of items not assumed in the transaction.
	d.	An increase in notes payable to acquire the assets of Prime Metals and Alloys, Inc. on the closing date.


  
  	 
	1
	 
 
	 


  
  	 AMERINAC HOLDING CORP. AND SUBSIDIARIES

	 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	  
	 AMERINAC HOLDING CORP.

	 Unaudited Pro Forma Condensed Consolidated Statements of Income

	 Six Months Ended June 30, 2017



  
   
 	  
	  
	 Historical
	  
	  
	 Historical
	  
	  
	 Pro
 Forma
	  
	  
	 Pro
	  

	  
	  
	 Amerinac 
	  
	  
	 Prime 
	  
	  
	 Adjustments 
	  
	  
	 Forma 
	  

	 Net revenue
	  
	$	4,133,305	  
	  
	$	11,786,894	  
	  
	$	-	  
	  
	$	15,920,199	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Cost of goods sold
	  
	  
	3,295,704	  
	  
	  
	10,445,687	  
	  
	  
	-	  
	  
	  
	13,741,391	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Gross profit
	  
	  
	837,601	  
	  
	  
	1,341,207	  
	  
	  
	-	  
	  
	  
	2,178,808	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Operating expenses:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 General and administrative expenses
	  
	  
	968,539	  
	  
	  
	1,001,175	  
	  
	  
	-	  
	  
	  
	1,969,714	  

	 Professional and consulting fees
	  
	  
	204,111	  
	  
	  
	48,572	  
	  
	  
	-	  
	  
	  
	252,683	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Total operating expenses
	  
	  
	1,172,650	  
	  
	  
	1,049,747	  
	  
	  
	-	  
	  
	  
	2,222,397	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 (Loss) income before other (expense) income
	  
	  
	(335,049	)	  
	  
	291,460	  
	  
	  
	-	  
	  
	  
	(43,589	)
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Other income(expense):
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Interest
	  
	  
	(263,372	)	  
	  
	(165,783	)	  
	  
	-	  
	  
	  
	(429,155	)
	 Impairment loss
	  
	  
	-	  
	  
	  
	(17,751	)	  
	  
	  
	  
	  
	  
	(17,751	)
	 Change in fair value of put option
	  
	  
	(213,000	)	  
	  
	-	  
	  
	  
	-	  
	  
	  
	(213,000	)
	 Gain on sale
	  
	  
	3,409,184	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	3,409,184	  

	 Other expense
	  
	  
	(3,765	)	  
	  
	23,705	  
	  
	  
	-	  
	  
	  
	19,940	  

	 Total other income (expense)
	  
	  
	2,929,047	  
	  
	  
	(159,829	)	  
	  
	-	  
	  
	  
	2,769,218	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Income from continuing operations before provision for income taxes
	  
	  
	2,593,998	  
	  
	  
	131,631	  
	  
	  
	-	  
	  
	  
	2,725,629	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Provision for income taxes 
	  
	  
	(731	)	  
	  
	-	  
	  
	  
	-	  
	  
	  
	(731	)
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Income from continuing operations
	  
	  
	2,593,267	  
	  
	  
	131,631	  
	  
	  
	-	  
	  
	  
	2,724,898	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Discontinued operations:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Income (loss) from discontinued operations, net
	  
	  
	992,853	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	992,853	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Net income applicable to common stockholders
	  
	$	3,586,120	  
	  
	$	131,631	  
	  
	$	-	  
	  
	$	3,717,751	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Basic earnings per share applicable to common stockholders:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Continuing operations
	  
	  
	8.67	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	9.11	  

	 Discontinued operations
	  
	  
	3.32	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	3.32	  

	 Net income
	  
	  
	11.99	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	12.43	  

	 Diluted earnings per share applicable to common stockholders:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Continuing operations
	  
	  
	8.67	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	9.11	  

	 Discontinued operations
	  
	  
	3.32	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	3.32	  

	 Net income
	  
	  
	11.99	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	12.43	  

	 Weighted average shares outstanding:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Basic
	  
	  
	299,146	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	299,146	  

	 Diluted
	  
	  
	299,146	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	299,146	  


 
 
  	 
	2
	 
 
	 


   
  	 AMERINAC HOLDING CORP. AND SUBSIDIARIES

	 UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

	 

	 AMERINAC HOLDING CORP.

	 Unaudited Pro Forma Condensed Consolidated Statements of Income

	 Year Ended December 31, 2016



  
    
 	  
	  
	 Historical
	  
	  
	 Historical
	  
	  
	 Pro
 Forma
	  
	  
	 Pro
	  

	  
	  
	 Amerinac 
	  
	  
	 Prime 
	  
	  
	 Adjustments 
	  
	  
	 Forma 
	  

	 Net revenue
	  
	$	22,608,024	  
	  
	$	22,587,083	  
	  
	$	-	  
	  
	$	45,195,107	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Cost of goods sold
	  
	  
	17,479,599	  
	  
	  
	18,774,272	  
	  
	  
	-	  
	  
	  
	36,253,871	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Gross profit
	  
	  
	5,128,425	  
	  
	  
	3,812,811	  
	  
	  
	-	  
	  
	  
	8,941,236	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Operating expenses:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 General and administrative expenses
	  
	  
	3,615,873	  
	  
	  
	1,777,185	  
	  
	  
	-	  
	  
	  
	5,393,058	  

	 Professional and consulting fees
	  
	  
	275,620	  
	  
	  
	123,890	  
	  
	  
	-	  
	  
	  
	399,510	  

	 Total operating expenses
	  
	  
	3,891,493	  
	  
	  
	1,901,075	  
	  
	  
	-	  
	  
	  
	5,792,568	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 (Loss) income before other (expense) income
	  
	  
	1,236,932	  
	  
	  
	1,911,736	  
	  
	  
	-	  
	  
	  
	3,148,668	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Other income(expense):
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Interest
	  
	  
	(908,146	)	  
	  
	(362,134	)	  
	  
	-	  
	  
	  
	(1,270,280	)
	 Change in fair value of put option
	  
	  
	(121,658	)	  
	  
	-	  
	  
	  
	-	  
	  
	  
	(121,658	)
	 Impairment loss
	  
	  
	-	  
	  
	  
	(1,715,091	)	  
	  
	  
	  
	  
	  
	(1,715,091	)
	 Other expense
	  
	  
	2,700	  
	  
	  
	24,445	  
	  
	  
	-	  
	  
	  
	27,145	  

	 Total other income (expense)
	  
	  
	(1,027,104	)	  
	  
	(2,052,780	)	  
	  
	-	  
	  
	  
	(3,079,884	)
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Income before provision for income taxes
	  
	  
	209,828	  
	  
	  
	(141,044	)	  
	  
	-	  
	  
	  
	68,784	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Provision for income taxes 
	  
	  
	40,749	  
	  
	  
	-	  
	  
	  
	-	  
	  
	  
	40,749	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Net income applicable to common stockholders
	  
	$	250,577	  
	  
	$	(141,044	)	  
	$	-	  
	  
	$	109,533	  

	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Net income per share applicable to common stockholders:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Basic
	  
	  
	1.46	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	0.64	  

	 Diluted
	  
	  
	1.39	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	0.61	  

	 Weighted average shares outstanding:
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  

	 Basic
	  
	  
	171,118	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	171,118	  

	 Diluted
	  
	  
	180,088	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	  
	180,088	  


 
 
  
  	3