Full Press Release Details
SINOVAC BIOTECH LTD. 6K/A #2, PRO FORMA FINANCIAL
SINOVAC BIOTECH LTD.
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(formerly Net-Force Systems Inc.)
Pro-forma Consolidated Financial Statements
(Expressed in U.S. Dollars)
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Accountant's Compilation Report
Pro-forma Consolidated Balance Sheet
Pro-Forma Consolidated Statement of Stockholders' Equity
Pro-Forma Consolidated Statement of Operations
Notes to Pro-forma Consolidated Financial Statements
MOORE STEPHENS ELLIS FOSTER LTD.
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CHARTERED ACCOUNTANTS
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1650 West 1st Avenue
Vancouver, BC Canada V6J 1G1
Telephone: (604) 734-1112 Facsimile: (604) 714-5916
Website: www.ellisfoster.com
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ACCOUNTANT'S COMPILATION REPORT
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To the Board of Directors and Stockholders
SINOVAC BIOTECH LTD.
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(formerly Net-Force Systems Inc.)
We have compiled the accompanying pro-forma consolidated balance sheet of
Sinovac Biotech Ltd. (formerly Net-Force Systems Inc.) as at June 30, 2003 and
the pro-forma consolidated statements of stockholders' equity and operations for
the six months ended June 30, 2003 in accordance with statements on Standards
for Accounting and Review Services issued by the American Institute of Certified
A compilation is limited to presenting in the form of pro-forma consolidated
financial statements information that is the representation of management. We
have not audited or reviewed the accompanying pro-forma consolidated financial
statements and accordingly, do not express an opinion or any other form of
Management has elected to omit substantially all of the disclosure required by
generally accepted accounting principles. If the omitted disclosures were
included in the pro-forma consolidated financial statement, they might influence
the user's conclusions about the Company's pro-forma consolidated financial
position. Accordingly, these pro-forma consolidated financial statements are not
designed for those who are not informed about such matters.
Vancouver, Canada "MOORE STEPHENS ELLIS FOSTER LTD."
November 3, 2003 Chartered Accountants
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MS An independently owned and operated member of Moore Stephens North America,
Inc. Members in principal cities throughout North America. Moore Stephens North
America, Inc. is a member of Moore Stephens International Limited, members in
principal cities throughout the world.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
The accompanying notes are an integral part of these financial statements.
SINOVAC BIOTECH LTD.
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(formerly Net-Force Systems Inc.)
Notes to Pro-forma Consolidated Financial Statements
(Unaudited - See Accountant's Compilation Report)
(Expressed in U.S. Dollars)
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1. Basis of Presentation
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These pro-forma consolidated financial statements have been prepared solely
for submission to U.S. Securities and Exchange Commission in connection
with the acquisition of Sinovac Biotech Co., Ltd. ("Sinovac"), by Net-Force
Systems Inc. ("Net-Force").
These pro-forma consolidated financial statements have been prepared to
give effect to the acquisition of Sinovac Biotech Co., Ltd. ("Sinovac")
which was completed on September 24, 2003, as if it had occurred on June
30, 2003. Net-Force changed its name to Sinovac Biotech Ltd. effective
These pro-forma consolidated financial statements are not necessarily
indicative of the actual results which would have been attained had the
combination been in effect on the date indicated or which may be attained
These pro-forma consolidated financial statements have been prepared from
information derived from the audited consolidated financial statements of
Net-Force as at April 30, 2003 and the audited financial statements of
Sinovac as at June 30, 2003, included elsewhere herein and as filed in Form
6-K. These pro-forma consolidated financial statements should be read in
conjunction with the historical financial statements and notes thereto of
both of Net-Force for the year ended April 30, 2003 and Sinovac for the six
months ended June 30, 2003.
SINOVAC BIOTECH LTD.
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(formerly Net-Force Systems Inc.)
Notes to Pro-forma Consolidated Financial Statements
(Unaudited - See Accountant's Compilation Report)
(Expressed in U.S. Dollars)
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2. Share Exchange Agreements and Assumptions
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On June 11, 2003, Net-Force issued 25,000 shares to an individual for
consulting services rendered.
(b) Share Exchange Agreements
Pursuant to a share exchange agreement dated September 24, 2003,
Net-Force agreed to issue 10,000,000 common stocks in exchange for 51%
interest in Sinovac.
As part of the above transaction, Net-Force would dispose of its
wholly owned subsidiary, Net Force Entertainment, Inc. and all of its
assets and liabilities to a company controlled by its president and
Chief Executive Officer for $100 and then become a non-operating shell
company. Therefore, the above transactions resulted in the management