FRESH START PRIVATE MANAGEMENT, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
BALANCE SHEET
JUNE 30, 2011

   
Fresh Start Private
    
Fresh Start
                          
   
Management, Inc.
    
Private, Inc.
    
Adjustments
              
   
2011
    
2011
    
DR
    
CR
    
Note 4
  
Consolidated
ASSETS
                                
Current assets:
                                
Cash
   $ 1,116     $ 8,060                     $ 9,176  
Accounts receivable
     -       353,444                       353,444  
Deferred Cost
     -       38,982                       38,982  
                                           
Total current assets
     1,116       400,486                       401,602  
Note and interest receivable
     90,380                     90,380       a     -  
Fixed assets, net
Other assets
     -       3,680                           3,680  
      License
     3,970,575                                   3,970,575  
     Deposit
     -       2,278                           2,278  
Total other assets
                                         3,972,853  
Total assets
   $ 4,062,071     $ 406,444                         $ 4,378,135  
                                               
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
                                              
Current liabilities:
                                              
Accounts payable
     19,381       344,970                           364,351  
Advance receivable from customer
             17,000                           17,000  
Deferred revenue
     -       133,629                           133,629  
Note payable - related party
     16,313                                   16,313  
        Loans payable from related parties
     -       216,244                           216,244  
Total current liabilities
     35,694       711,843                           747,537  
                                               
Long-term liabilities
                                              
     Notes payable-related party
     -       90,380       90,380               a     -  
                                                 
Total Liabilities
     35,694       802,223                             747,537  
Stockholders’ Equity (Deficit):
                                                
Common stock subscribed
     4,070,575       -                             4,070,575  
Common stock, $0.001 par value; 16,000,000 shares authorized,; 16,000,000 issued and outstanding
             16,000       16,000                 b     -  
                                                 
Common stock, $0.001 par value; 200,000,000 shares authorized,; 75,430,000 issued and outstanding
     75,430                       16,000         b     91,430  
Additional paid-in capital
     18,000       -       137,628               b     (119,628 )
Accumulated deficit
     (137,628 )     (411,779 )             137,628       b     (411,779 )
                                                 
Total stockholders’ equity (deficit)
     4,026,377       (395,779 )                           3,630,598  
Total liabilities and stockholders' equity (deficit)
   $ 4,062,071     $ 406,444                           $ 4,378,135  

 
 
 
 
 
 

 
FRESH START PRIVATE MANAGEMENT, INC.

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2011

 

 
   
Fresh Start Private
    
Fresh Start
                          
   
Management, Inc.
    
Private, Inc.
    
Adjustments
              
   
2011
    
2011
    
DR
    
CR
    
Note 4
    
Consolidated
  
                                     
Revenue
   $ -       334,080                       $ 334,080  
                                           
Cost of revenue
     -       166,071                         166,071  
                                           
Gross profit
     -       168,009                         168,009  
                                           
Costs and Expenses:
                                          
 Consulting fees
     10,000       141,570             10,000       b       141,570  
 Office and general
     688       210,900             688       b       210,900  
 Professional fees
     6,688       37,294             6,688       b       37,294  
                                               
Total costs and expenses
     17,376       389,764                             389,764  
                                               
Operating income (loss)
     (17,376 )     (221,755 )                           (221,755 )
Other Income (loss)
                                              
Interest (expense)
             (1,310 )           1,310       a       -  
Interest income
     1,310               1,310                 a       -  
                                                 
Net loss
   $ (16,066 )   $ (223,065 )                           $ (221,755 )
                                                 
Net earnings (loss) per share:
                                                
Basic and diluted
   $ (0.01 )   $ (0.01 )                           $ (0.00 )
                                                 
Weighted average common shares outstanding, basic and diluted
     75,430,000       16,000,000                               75,430,000  

 

 
 
 
 


FRESH START PRIVATE MANAGEMENT, INC
NOTES TO THE UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2011

1. Basis of Presentation

Pursuant to a common stock share exchange agreement dated October 31, 2011 between Fresh Start Private Management, Inc (the “Company”) and Fresh Start Private, Inc. (“Fresh Start”); the Fresh Start shareholders agree to exchange all of their common stock in Fresh Start for 31.3% of the total restricted outstanding and issued shares of the Company.

Since not all information required for annual financial statements is included herein; the following unaudited pro forma condensed consolidated financial statements presented below should be read in conjunction with the Company’s Form 8K for the six months ended June 30, 2011 and the Fresh Start Private, Inc’s financial statements for the period ended June 30, 2011. These statements have been prepared in accordance with accounting principles generally accepted in the United States and are expressed in U.S. dollars.

The following unaudited pro forma condensed consolidated financial statements as of June 30, 2011 are presented as if the merger occurred on January 1, 2011.

The unaudited pro forma condensed consolidated financial statements are presented for informational purposes only and are not necessarily indicative of what our financial position and results of operations actually would have been for the periods presented, nor do such financial statements purport to represent the results of future periods. The pro forma adjustments are based upon available information.

Based on a review of the accounting policies of Fresh Start, it is the Company management’s opinion that there are no material accounting differences between the accounting policies of Fresh Start Private, Inc. and Fresh Start Private Management, Inc.

It is management’s opinion that these pro forma financial statements include all adjustments necessary for the fair presentation, in all material respects, of the proposed transaction described above in accordance with US GAAP applied on a basis consistent with the Company’s accounting policies.   No potential costs savings, non-recurring charges, or credits are anticipated by the Company’s management subsequent to completion of the transactions.

 2. Business Acquisition

The share exchange agreement as described above is intended to qualify as a tax-free exchange pursuant to Section 351 and 368(a)(1)(B) of the Internal Revenue Code of 1986, as amended.

3. Pro Forma Assumptions

The unaudited pro forma consolidated financial statements incorporate the following pro forma assumptions:

a) All of the Fresh Start Private Inc’s. common shareholders agree to exchange all of their common stock in Fresh Start Private Management Inc., equal to 100% of the issued and outstanding shares, for 37,000,000 of the Company’s restricted common shares representing 31.3% of the total number of issued and outstanding shares of the Company as of October 31, 2011
b.) The exchange agreement will be accounted for as a reverse merger and a tax-free reorganization.

4. Unaudited Pro Forma Adjustments
a.) To record the Notes payable issued by Fresh Start Private Inc. to the Company and related accrued interest and interest (expense) and income
b.) These adjustments reflect the recapitalization as a result of the transactions related to the share exchange

5. Pro Forma Share Capital

Pro forma share capital at reverse merged date has been determined as follows:
 
 Issued common shares of:      Number of shares     Par Value     Additional Paid-in capital     Amount  
 Fresh Start Private Management, Inc.      118,141,938       118,142       18,000       130,430  
 Fresh Start Private, Inc.     0       0       0       0  
                                 
 Pro-forma balance      118,141,938       118,142       18,000       130,430