|
The table below summarizes net loss for the periods shown as though
the Acquisition occurred as of January 1, 2010:
| |
For the Year |
| Ended |
| December 31, |
| 2011 |
| Net Loss |
$ |
(5,719,703) |
The pro forma net loss has been adjusted for the following:
| 1 |
Elimination of Acquisition costs incurred during the year ended December 31, 2011 of $319,000 which is assumed to have been incurred prior to January 1, 2010 for the purpose of presentation in the pro forma statement of operations. |
| 2 |
Recognition of an additional $77,000 of net loss from discontinued operations for the operations of China Youth Media, Inc., in the years ended December 31, 2011. These loses are operational costs were associated of the subsidiaries that are in process of being dissolved (see Note 1) which is assumed to have begun as of January 1, 2010 for the purpose of pro forma presentation. |
| 3 |
Elimination of the $3,555,000 of impairment expense for the year ended December 31, 2011 as amount is related to the impairment of goodwill which is assumed to have occurred prior to January 1, 2010 for the purpose of pro forma presentation. |
| 4 |
Prior to the reverse merger, Midwest (now MES, Inc.) was taxed as an S corporation and therefore income and losses were passed through to the stockholders. Upon completion of the reverse merger, Midwest Energy Emissions Corp. became a taxable C corporation. However, this pro forma does not include an income tax accrual due to the significant losses and a 100% valuation allowance applied against net deferred tax assets. |
|