Form: 8-K/A

Current report filing

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