PRO-FORMA FINANCIAL INFORMATION
Published on August 10, 2011
Exhibit 99.3
MIDWEST ENERGY EMISSIONS CORP.
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED PRO FORMA BALANCE SHEET
JUNE 21, 2011
Pro forma financial information.
The transaction contemplated under the Merger Agreement is deemed to be a reverse acquisition, where China Youth Media, Inc. (the legal acquirer) is considered the accounting acquiree and Midwest Energy Emissions Corp. (the legal acquiree) is considered the accounting acquirer. The assets and liabilities will be transferred at their historical cost with the capital structure of China Youth Media, Inc.. China Youth Media, Inc. is deemed a continuation of the business of Midwest Energy Emissions Corp., and the historical financial statements of Midwest Energy Emissions Corp. will become the historical financial statements of China Youth Media, Inc.; therefore, we will provide a pro forma balance sheet to show the recapitalization of the company and the pro forma statement of operation through June 21, 2011.
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Midwest Energy Emissions Corp.
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China Youth
Media, Inc.
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Pro Forma
Adjustments
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Pro Forma
Combined
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ASSETS
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CURRENT ASSETS
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Cash
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$ | 13 | $ | 11,150 | $ | - | $ | 11,163 | ||||||||
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Other current asset
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579 | 1,876 | - | 2,455 | ||||||||||||
| Total current assets | 592 | 13,026 | - | 13,618 | ||||||||||||
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Property and Equipment, Net
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980,914 | 5,705 | - | 986,619 | ||||||||||||
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Other Asset
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License, Net of accumulated amortization
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85,295 | 2,000 | - | 87,295 | ||||||||||||
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TOTAL ASSETS
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$ | 1,066,801 | $ | 20,731 | $ | - | $ | 1,087,532 | ||||||||
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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CURRENT LIABILITIES
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Accounts payable and accrued expenses
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676,105 | 377,140 | - | 1,053,245 | ||||||||||||
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Advances payable - related party
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190,116 | - | - | 190,116 | ||||||||||||
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Note payable - related party
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140,242 | - | 140,242 | |||||||||||||
| Total current liabilities | 866,221 | 517,382 | - | 1,383,603 | ||||||||||||
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Note payable - related party
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1,125,016 | - | - | 1,125,016 | ||||||||||||
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Note payable
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276,145 | 50,000 | - | 326,145 | ||||||||||||
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Beneficial conversion feature
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- | (116,072 | ) | - | (116,072 | ) | ||||||||||
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TOTAL LIABILITIES
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2,267,382 | 451,310 | - | 2,718,692 | ||||||||||||
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STOCKHOLDERS' EQUITY (DEFICIT)
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Preferred stock, $0.001 par value: 2,000,000 shares authorized;
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Series A Preferred Stock, $0.001 par value; 500,000 shares authorized;
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zero shares issued and outstanding at June 21, 2011;
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- | - | - | - | ||||||||||||
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Series B Preferred Stock; $0.001 par value; 10,000 shares authorized;
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- | - | 10,000 | 10,000 | ||||||||||||
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10,000 shares issued and outstanding as of June 21, 2011
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- | |||||||||||||||
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Additional paid-in capital - Series B Preferred Stock
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- | - | - | - | ||||||||||||
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Common stock; $0.001 par value; 500,000,000 shares authorized;
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334,727,476 issued and outstanding as of June 21, 2011, respectively
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10,000 | 334,727 | (10,000 | )(A) | 334,727 | |||||||||||
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Additional paid-in capital
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337,218 | 23,746,266 | (24,511,572 | ) | (428,088 | ) | ||||||||||
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Accumulated other comprehensive income
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- | (16,910 | ) | 16,910 | (A) | - | ||||||||||
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Accumulated deficit
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(1,547,799 | ) | (24,494,662 | ) | 24,494,662 | (A) | (1,547,799 | ) | ||||||||
| Total stockholders' deficit | (1,200,581 | ) | (430,579 | ) | - | (1,631,160 | ) | |||||||||
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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$ | 1,066,801 | $ | 20,731 | $ | - | $ | 1,087,532 | ||||||||
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(A)
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- Reflects the recapitalization of China Youth Media, Inc. as a result of the merger agreement.
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1
MIDWEST ENERGY EMISSIONS CORP.
(A DEVELOPMENT STAGE COMPANY)
UNAUDITED PRO FORMA STATEMENT OF OPERATION
JUNE 21, 2011
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Midwest Energy
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China Youth
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Pro Forma
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Pro Forma
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Emissions Corp.
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Media, Inc.
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Adjustments
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Combined
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REVENUE
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Sales
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$ | - | $ | 22,451 | $ | (22,451 | ) |
(B)
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$ | - | |||||||
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Total revenue
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- | 22,451 | (22,451 | ) | - | ||||||||||||
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OPERATING EXPENSES
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License Maintenance Fees
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375,000 | - | - | 375,000 | |||||||||||||
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Research and development
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204,213 | - | - | 204,213 | |||||||||||||
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Selling, general and administrative expenses
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587,422 | 416,397 | (416,397 | ) |
(B)
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587,422 | |||||||||||
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Total operating expenses
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1,166,635 | 416,397 | (416,397 | ) | 1,166,635 | ||||||||||||
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Operating loss
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(1,166,635 | ) | (393,946 | ) | 393,946 |
(B)
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(1,166,635 | ) | |||||||||
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Other Income (expense)
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Interest income (expense)
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(28,138 | ) | (45,238 | ) | 45,238 |
(B)
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(28,138 | ) | |||||||||
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Foreign Exchage
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(711 | ) | - | - | (711 | ) | |||||||||||
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Rental Income
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- | - | - | - | |||||||||||||
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Loss on impairment
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- | (26,519 | ) | 26,519 |
(B)
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- | |||||||||||
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Gain on debt extinguishment
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- | 247,333 | (247,333 | ) |
(B)
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- | |||||||||||
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Total other income (expense)
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(28,849 | ) | 175,576 | (175,576 | ) | (28,849 | ) | ||||||||||
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NET LOSS
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$ | (1,195,484 | ) | $ | (218,370 | ) | 218,370 | (1,195,484 | ) | ||||||||
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Comprehensive Loss
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Foreign currency translation adjustment
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- | (16,910 | ) | 16,910 |
(B)
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- | |||||||||||
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Net loss
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(1,195,484.00 | ) | (218,370 | ) | 218,370 |
(B)
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(1,195,484 | ) | |||||||||
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COMPREHENSIVE LOSS
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$ | (1,195,484.00 | ) | $ | (235,280 | ) | $ | - | $ | (1,195,484 | ) | ||||||
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(B)
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– Reflects the recapitalization of China Youth Media, Inc. as a result of the reverse merger.
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