ACROSS AMERICA REAL ESTATE EXCHANGE, INC. UNAUDITED CONDENSED CONSOLIDATED PRO FORMA FINANCIAL INFORMATION

Exhibit 99.2
 
UNAUDITED CONDENSED CONSOLIDATED PRO FORMA
FINANCIAL INFORMATION

On February 24, 2010, Across America Real Estate Exchange, Inc. (“AAEX”, the “Registrant, or the “Company”), entered an Agreement and Plan of Merger and Reorganization (the “Agreement”) with Accredited Members, Inc. (“AMI”). Pursuant to the Agreement, AMI merged with and into AAEX Acquisition Corp., a wholly owned subsidiary of AAEX and was the surviving entity in this transaction (the “Merger Transaction”).  As such, upon closing the Merger Transaction AMI became a wholly-owned subsidiary of the Registrant.  To effect the Merger Transaction, the Registrant acquired all of the outstanding shares of AMI by the issuance of an aggregate of 25,554,010 shares of common stock, representing approximately 89% of the outstanding common stock after the transaction.  The number of AAEX common shares received by AMI’s shareholders depended on the number of number of shares each held and that were outstanding at the closing of the Merger Transaction.   Additionally, upon the effective date of the transaction all outstanding AMI warrants, options and outstanding promissory notes were exchanged for options, warrants and promissory notes to acquire AAEX common stock on equivalent terms.  
 
The Registrant is a public shell company (as defined in Rule 12b-2 of the Exchange Act) at the date of the Merger Transaction.  Therefore, the Merger Transaction is being accounted for as a reverse acquisition and recapitalization.  AMI is the acquirer for accounting purposes, and AAEX is the acquired company.  Accordingly, AMI’s historical financial statements for periods prior to the transaction become those of AAEX, retroactively restated for, and giving effect to, the number of shares received in the Merger Transaction.  The accumulated deficit of AMI is carried forward after the acquisition.  Operations reported for periods prior to the Merger Transaction are those of AMI.  Earnings per share for the periods prior to the Merger Transaction are restated to reflect the equivalent number of shares outstanding. There were no significant accounting policy differences or other items which required adjustment in the accompanying unaudited pro forma consolidated statements of operations.

AMI, headquartered in Colorado Springs, Colorado, was formed in December 2008, to provide a system to strategically align investors with companies seeking funding sources. ▇▇▇’s process of doing this utilizes primarily two systems: an interactive website and conferences held several times per year across the country. AMI also provides institutional and individual investors with proprietary research on “microcap” and “small-cap” companies (companies that have a market capitalization of $300 million or less), and AMI sells business valuation reports that it prepares for customers. The Company’s services are sold in the form of customer memberships, which typically have terms of 90 day to one year.

On March 11, 2009, ▇▇▇ acquired customer contracts and related customer relationships from Edgewater Research, LLC (“EdgeWater” or the “Predecessor”), a Colorado Limited Liability Company. The EdgeWater customer contracts and related customer relationships were determined to meet the definition of a “business”, as defined by accounting standards.  AMI had no operations from its formation date to the date of the EdgeWater acquisition. The AMI financial statements for the period from January 1, 2009 through March 10, 2009 (the “Predecessor Period”) reflect the results of operations of EdgeWater. The financial statements for the period from March 11, 2009 through December 31, 2009 (the “Successor Period”) reflect the results of operations of AMI (the “Successor”). Accordingly, the results of operations of the Predecessor and the Successor are not comparable in all respects.

The accompanying unaudited condensed consolidated pro forma balance sheet as of December 31, 2009, gives effect to the Merger Transaction as if it had been consummated on December 31, 2009.  The condensed consolidated statement of operations for year ended December 31, 2009, gives effect to the Merger Transaction and AMI’s acquisition of the EdgeWater customer contracts and relationships as if it had been consummated on January 1, 2009.

The unaudited pro forma condensed consolidated financial information should be read in conjunction with the historical financial statements of AMI (included herein) as well as those of the Company. The unaudited pro forma condensed consolidated statement of operations does not purport to be indicative of the results of operations that would have actually been obtained had such transactions been completed as of the assumed dates and for the period presented, or which may be obtained in the future. The pro forma adjustments are described in the accompanying notes and are based upon available information and certain assumptions that the Company believes are reasonable.
 
 
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PROFORMA CONDENSED CONSOLIDATED BALANCE SHEET
  
(UNAUDITED)
  
                         
DECEMBER 31, 2009
  
                         
ASSETS
                        
               
Proforma
    
Proforma
  
 
AAEX
  
AMI
    
adjustments
    
total
  
 
(Historical)
  
(Historical)
              
Current assets:
                        
     Cash and cash equivalents
   $ 57,812     $ 564,883     $       $ 622,695  
     Accounts receivable
             143,570               143,570  
     Prepaid expenses and other
     1,894       99,244               101,138  
     Assets held for sale
             14,336               14,336  
     Subscription receivable
             10,000               10,000  
                                 
        Total current assets
     59,706       832,033               891,739  
                                 
Property and equipment, net
             215,894               215,894  
Intangible assets, net
             12,500               12,500  
                                 
      -       228,394               228,394  
                                 
    $ 59,706     $ 1,060,427     $       $ 1,120,133  
                                 
                                 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                        
                                 
Current liabilities:
                                
     Accounts payable
           $ 16,671     $       $ 28,121  
     Accrued expenses:
                                
          Related party
   $ 4,365                       4,365  
          Other
     11,450       42,975               54,425  
     Deferred revenue
             239,117               239,117  
     Note payable, related party
     185,000                       185,000  
          Total current liabilities
     200,815       298,763               499,578  
                                 
Convertible notes payable:
                                
   Related parties
             100,000               100,000  
   Other
             137,500               137,500  
                                 
              237,500                  
                                 
   Total liabilities
     200,815       536,263               737,078  
                                 
Stockholders' equity (deficit):
                                
     Common stock
     1,810       982       24,572   (A)     27,364  
     Additional paid-in capital
     77,614       2,112,238       (245,105 ) (A)     1,944,747  
     Accumulated loss
     (220,533 )     (1,589,056 )     220,533   (A)     (1,589,056 )
         Total stockholders' equity (deficit)
     (141,109 )     524,164               383,055  
                                 
    $ 59,706     $ 1,060,427             $ 1,120,133  
 
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PROFORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
  
 (UNAUDITED)
  
                                     
YEAR ENDED DECEMBER 31, 2009
  
                                     
                                     
         
AMI
              
         
Successor
    
Predecessor
                    
         
company
    
company
                    
         
March 11, through
    
January 1, through
          
Proforma
    
Proforma
  
   
AAEX
    
December 31, 2009
    
March 10, 2009
    
Total
    
adjustments
    
total
  
   
(Historical)
    
(Historical)
    
(Historical)
                    
                                     
Net revenue
         $ 226,783     $ 125,690     $ 352,473     $       $ 352,473  
Cost of revenue
           187,831       63,248       251,079               251,079  
                                               
Gross profit
           38,952       62,442       101,394               101,394  
                                               
                                               
Operating expenses:
                                              
     Selling, general and administrative
     22,218       1,609,348       35,265       1,644,613       12,500  (B)     1,679,331  
                                                 
Operating (loss) income
     (22,218 )     (1,570,396 )     27,177       (1,543,219 )     (12,500 )     (1,577,937 )
                                                 
Other income (expense):
                                                
     Interest expense:
                                                
          Related parties
     (16,907 )     (6,343 )             (6,343 )             (23,250 )
          Other
     (53,000 )     (18,384 )             (18,384 )             (71,384 )
     Other income
             6,067               6,067               6,067  
                                                 
      (69,907 )     (18,660 )             (18,660 )             (88,567 )
                                                 
Net (loss) income
   $ (92,125 )   $ (1,589,056 )   $ 27,177     $ (1,561,879 )   $ (12,500 )   $ (1,666,504 )
                                                 
Basic and diluted net loss per share
   $ (0.05 )                                   $ (0.06 )
                                                 
Basic and diluted weighted average number
                                                
   of common shares outstanding
     1,810,476                               25,554,010  (C)      27,364,486  
 
 
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NOTES TO UNAUDITED CONDENSED CONSOLIDATED
PRO FORMA FINANCIAL STATEMENTS
AS OF AND FOR THE YEAR ENDED DECEMBER 31, 2009

The following adjustments are made to the accompanying pro forma balance sheet and statement of operations:

(A)  
This entry is to give effect to the acquisition of AAEX by AMI, which is accounted for as a recapitalization in a reverse acquisition as a result of the issuance of 25,554,010 shares of AAEX common stock in exchange for the issued and outstanding shares of AMI as further described above and to reflect the entries to eliminate the accumulated deficit of AAEX

(B)  
This entry is to give effect to AMI’s acquisition of the customer contracts and relationships from EdgeWater as if this acquisition had occurred at the beginning of the period, resulting in additional amortization expense from the beginning of the period through the date the customer contracts and relationships were acquired (March 11, 2009).

(C)  
The pro forma net loss per share of common stock is based on the weighted average number of common shares outstanding after giving effect to the shares issued for the reverse acquisition.

 
 
 
 
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Filed: February 25th, 2010