Acquisition
 3 Months Ended
Mar. 31, 2012
Notes to Financial Statements  
Acquisition

 

ACQUISITION

On January 18, 2012 the Company completed the acquisition of 100% of the equity of Aviation Fuel International, Inc., a Florida corporation (“AFI”). AFI is a purchaser and reseller of aviation fuel for commercial and private aircraft. The consideration for the acquisition of AFI consisted of 7,400,000 shares of restricted common stock and a note payable in the amount of $1,000,000. As part of the acquisition, the Company recorded goodwill in the amount of $2,557,033. Various items contributed to the amount recorded as goodwill such as net present value of forecasted cash flows, current fuel sales contracts, and a non-compete agreement with the President of AFI who has highly valued contacts and experience in the industry.

Following is a pro-forma statement of operations for the quarters ended March 31, 2012 and 2011 as though the acquisition of AFI had occurred at the beginning of each quarter.

   For the Three Months Ended
   March 31,
   2012  2011
       
NET SALES  $—     $4,540,255 
           
COST OF SALES   —      4,275,990 
           
GROSS MARGIN   —      264,265 
           
Total Selling, General and          
 Administrative Expenses   70,353    291,265 
           
LOSS FROM OPERATIONS   (70,353)   (27,000)
           
OTHER INCOME (EXPENSES)          
           
Interest expense   (25,537)   —   
           
Total Other Income (Expenses)   (25,537)   —   
           
LOSS BEFORE INCOME TAXES   (95,890)   (27,000)
           
INCOME TAX EXPENSE   —      —   
           
NET LOSS  $(95,890)  $(27,000)
           
BASIC AND DILUTED:          
Net loss per common share  $(0.01)  $(0.05)
           
Weighted average shares outstanding   8,290,824    512,167