UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

SCHEDULE 14A
 
Proxy Statement Pursuant to Section 14(a) of the Securities Exchange Act of 1934

Filed by the Registrant   þ
Filed by a Party other than the Registrant   o

Check the appropriate box:

þ Preliminary Proxy Statement
o  Confidential, For Use of the Commission Only (As Permitted by Rule 14a-6(e)(2))
o  Definitive Proxy Statement
o  Definitive Additional Materials
o  Soliciting Material under Rule 14a-12

BROOKLYN CHEESECAKE & DESSERTS COMPANY, INC.
(Name of Registrant as Specified In Its Charter)
 
 
(Name of Person(s) Filing Proxy Statement, if other than the Registrant)

Payment of Filing Fee (Check the appropriate box):

þ  No fee required
 
o  Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.

(1)  Title of each class of securities to which transaction applies:
(2)  Aggregate number of securities to which transaction applies:
(3)  Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was determined):
(4)  Proposed maximum aggregate value of transaction:
(5)  Total fee paid:

o  Fee paid previously with preliminary materials.
 
o  Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous filing by registration statement number, or the form or schedule and the date of its filing.

(1)  Amount Previously Paid:
(2)  Form, Schedule or Registration Statement No.: 
(3)  Filing Party: 
(4)  Date Filed:
 


 
 

 
 
January 29, 2015
 
TO OUR SHAREHOLDERS:

Our Board of Directors has called and invites you to attend a Special Meeting of Shareholders of Brooklyn Cheesecake & Desserts Company, Inc. (together with any subsidiaries, the “Company”, “Brooklyn Cheesecake”, “we”, “us” or “our”). This meeting will be held on February 23, 2015 at 12:30 p.m. Eastern Time at the Company’s headquarters located at 12540 Broadwell Road, Suite 1203, Milton, Georgia 30004.

At this meeting, you will be asked to authorize our Board of Directors to:

(1)
Authorize the change of the Company’s name from Brooklyn Cheesecake & Desserts Company, Inc. to Meridian Waste Solutions, Inc.
(2)
Amend the Articles of Incorporation for the Company to permit shareholders to approve action by written consent setting forth the action so taken, signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.

The enclosed Notice of Special Meeting of Shareholders contain details about the business to be conducted at the meeting. To ensure that your shares are represented at the meeting, we urge you to mark your choice on the enclosed proxy card, sign and date the card and return it promptly in the envelope provided.

Even if you plan to attend the meeting, you are requested to sign, date and return the proxy card in the enclosed envelope. If you attend the meeting after having returned the enclosed proxy card, you may revoke your proxy, if you wish, and vote in person. If you would like to attend and your shares are not registered in your own name, please ask the broker, trust, bank or other nominee that holds the shares to provide you with evidence of your share ownership.

Thank you for your support.
 
 
Sincerely,
   
January 29, 2015
/s/ Jeffrey Cosman
Jeffrey Cosman
Chief Executive Officer

   
Milton, GA
 
 
 
 

 
 
BROOKLYN CHEESECAKE & DESSERTS COMPANY, INC.
12540 Broadwell Road, Suite 1203,
Milton, GA 30004
(678) 871-7457

NOTICE OF SPECIAL
MEETING OF SHAREHOLDERS
TO BE HELD
FEBRUARY 23, 2015

To Our Shareholders:

Brooklyn Cheesecake & Desserts Company, Inc. (the “Company”) will hold a Special Meeting of Shareholders at the Company’s headquarters located at 12540 Broadwell Road, Suite 1203, Milton, Georgia 30004 on February 23, 2015, for the following purposes:

(1)
Authorize the change of the Company’s name from Brooklyn Cheesecake & Desserts Company, Inc. to Meridian Waste Solutions, Inc. (the “Name Change”); and
(2)
Amend the Articles of Incorporation for the Company to permit shareholders to approve action by written consent setting forth the action so taken, signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted (the “Written Consent Amendment”).

The holders of record of the Company’s common stock (“Common Stock”) at the close of business on January 28, 2015 are entitled to notice of and to vote at the Special Meeting with respect to the Name Change and Written Consent Amendment. The holders of record of at least a majority of the shares of Common Stock of the Company entitled to vote must be present in person or represented by proxy in order to hold the Special Meeting. Accordingly, it is important that your shares be represented at the meeting. Whether or not you plan to attend the Special Meeting, please complete the enclosed proxy card and sign, date and return it promptly in the enclosed postage-paid envelope. If you do plan to attend the Special Meeting in person, you may withdraw your proxy and vote personally on all matters brought before the Special Meeting. The Board of Directors recommends that you vote FOR the Name Change and Written Consent Amendment.  This matter is more fully described in the Proxy Statement accompanying this Notice.

 
By Order of the Board of Directors,

Date: January 29, 2015
/s/ Jeffrey Cosman
Jeffrey Cosman
Chief Executive Officer


 
 

 
 
TABLE OF CONTENTS
 
   
Page
     
GENERAL INFORMATION ABOUT THE PROXY STATEMENT AND SPECIAL MEETING
  1
     
ENTRY INTO MEMBERSHIP INTEREST PURCHASE AGREEMENT
  4
     
PROPOSAL1: AUTHORIZING TO CHANGE THE NAME OF THE COMPANY TO MERIDIAN WASTE SOLUTIONS, INC.
  5
     
PROPOSAL 2: AMENDING THE ARTICLES OF INCORPORATION TO ALLOW FOR ACTIONS TO BE APPROVED BY MAJORITY SHAREHOLDER WRITTEN CONSENT
  5
     
SHAREHOLDER PROPOSALS
  7
     
PROXY
   
     
EXHIBIT TABLE
  7
 
 
 
 
 

 
 
BROOKLYN CHEESECAKE & DESSERTS COMPANY, INC.
12540 Broadwell Road, Suite 1203, Milton, GA 30004
__________________________

PROXY STATEMENT
__________________________

SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD ON FEBRUARY 23, 2015

GENERAL INFORMATION ABOUT THE PROXY
STATEMENT AND SPECIAL MEETING

GENERAL

This Proxy Statement is being furnished to the shareholders of Brooklyn Cheesecake & Desserts Company, Inc. in connection with the solicitation of proxies by our Board of Directors (the “Board of Directors” or the “Board”) for use at the Special Meeting of Shareholders to be held at the Company’s headquarters located at 12540 Broadwell Road, Suite 1203, Milton, Georgia 30004 on February 23, 2015, and at any and all adjournments or postponements thereof (the “Special Meeting”) for the purpose set forth in the accompanying Notice of Special Meeting of Shareholders.  Accompanying this Proxy Statement is a proxy/voting instruction form (the “Proxy”) for the Special Meeting, which you may use to indicate your vote as to the proposal described in this Proxy Statement.  It is contemplated that this Proxy Statement and the accompanying form of Proxy will be first mailed to Brooklyn Cheesecake’s shareholders on or about February 9, 2015.

VOTING SECURITIES

Only shareholders of record as of the close of business on January 28, 2015 (the “Record Date”) will be entitled to vote at the Special Meeting and any adjournment or postponement thereof.  As of January 28, 2015, there were  9,963,418 shares of Common Stock (“Common Stock”), issued and outstanding and entitled to vote, representing approximately 36 holders of record, with each share of Common Stock entitled to one vote.  Shareholders may vote in person or by proxy.  As of January 29, 2015, there were 51 shares of Series A Preferred Stock (“Series A Preferred”), issued and outstanding and entitled to vote, with each one share of Series A Preferred having voting rights equal to (x) 0.019607 multiplied by the total issued and outstanding Common Stock eligible to vote at the time of the respective vote (the “Numerator”), divided by (y) 0.49, minus (z) the Numerator. As of January 29, 2015, there were 71,210 shares of Series B Preferred Stock (“Series B Preferred”), issued and outstanding and entitled to vote, representing three holders of record, with each share of Series B Preferred entitled to one vote.  The presence in person or by proxy of the holders of a majority of the total voting power of the issued and outstanding Common Stock, Series A Preferred and Series B Preferred is necessary to constitute a quorum at this meeting. In the absence of a quorum at the meeting, the meeting may be postponed or adjourned from time to time without notice, other than announcement at the meeting, until a quorum is formed. The enclosed Proxy reflects the number of shares that you are entitled to vote.  

The approval of at least a majority of the votes cast by the holders of Common Stock, Series A Preferred Stock and Series B Preferred Stock outstanding as of the record date and entitled to vote at the Special Meeting is required to approve the Name Change and Written Consent Amendment. Abstentions are counted as “shares present” at the meeting for purposes of determining the presence of a quorum, while broker non-votes (which result when a broker holding shares for a beneficial owner has not received timely voting instructions on certain matters from such beneficial owner) are not considered “shares present” with respect to any matter. Abstentions will operate in the same manner as a vote against such proposal.
 
VOTING OF PROXIES

All valid proxies received prior to the Special Meeting will be voted.  The Board of Directors recommends that you vote by proxy even if you plan to attend the Special Meeting.  To vote by proxy, you must fill out the enclosed Proxy, sign and date it, and return it in the enclosed postage-paid envelope.  Voting by proxy will not limit your right to vote at the Special Meeting if you attend the Special Meeting and vote in person.  However, if your shares are held in the name of a bank, broker or other holder of record, you must obtain a proxy executed in your favor, from the holder of record to be able to vote at the Special Meeting.
 
 
1

 
 
REVOCABILITY OF PROXIES

All Proxies which are properly completed, signed and returned prior to the Special Meeting, and which have not been revoked, will be voted in favor of the proposals described in this Proxy Statement unless otherwise directed. A shareholder may revoke his or her Proxy at any time before it is voted either by filing with the Secretary of the Company, at its principal executive offices located at 12540 Broadwell Road, Suite 1203, Milton, GA 30004, a written notice of revocation or a duly-executed Proxy bearing a later date or by attending the Special Meeting and voting in person.

DISSENTER’S RIGHTS

Holders of our voting securities do not have dissenter’s rights under New York law in connection with the proposals contemplated by this Proxy.

REQUIRED VOTE

Assuming the presence of a quorum at the Special Meeting:

The affirmative vote of a majority of the votes cast by the shares of Common Stock, Series A Preferred shares and/or Series B Preferred shares present at the meeting, in person or by proxy, and entitled to vote is required to approve the Name Change and Written Consent Amendment (the “Actions”).

Votes shall be counted by one or more persons who shall serve as the inspectors of election. The inspectors of election will canvas the shareholders present in person at the meeting, count their votes and count the votes represented by proxies presented.  For purposes of determining the votes cast with respect to any matter presented for consideration at the meeting, only those votes cast “FOR” or “AGAINST” are included. However, if a proxy is signed but no specification is given, the shares will be voted “FOR” the proposed name chance and amendment to the articles of incorporation.

SHAREHOLDERS LIST
 
For a period of at least ten days prior to the Special Meeting, a complete list of shareholders entitled to vote at the Special Meeting will be available at the principal executive offices of the Company located at 12540 Broadwell Road, Suite 1203, Milton, GA 30004 so that stockholders of record may inspect the list only for proper purposes.
 
EXPENSES OF SOLICITATION
 
The Company will pay the cost of preparing, assembling and mailing this proxy-soliciting material, and all costs of solicitation, including certain expenses of brokers and nominees who mail proxy material to their customers or principals.

PRINCIPAL SHAREHOLDERS

The following table sets forth, as of January 28, 2015, certain information with respect to the beneficial ownership of our Common Stock by each shareholder known by us to be the beneficial owner of more than 5% of our Common Stock and by each of our current directors and executive officers. Each person has sole voting and investment power with respect to the shares of Common Stock, except as otherwise indicated.

This table is prepared based on information supplied to us by the listed security holders, any Schedules 13D or 13G and Forms 3 and 4, and other public documents filed with the SEC.

 
2

 
 
Under the rules of the Securities and Exchange Commission, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest.

Shares of Common Stock which an individual or group has a right to acquire within 60 days pursuant to the exercise or conversion of options are deemed to be outstanding for the purpose of computing the percentage ownership of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person shown in the table below.

Shareholder
 
Common Stock Owned
Beneficially
   
Percent
of Class (1)
   
Series A Preferred Stock Owned
Beneficially
(2)
   
Percent
of Class (2)
 
Jeffrey Cosman, Chairman, Chief Executive Officer
    6,270,809 (3)     62.9 %(3)     51       100 %
                                 
All directors and officers as a group (1 person)
    6,270,809 (3)     62.9 %(3)     51       100 %
_______________
(1)  
Based on a total of  9,963,418 shares of Common Stock outstanding as of January 28, 2015, plus any shares of Common Stock deemed to be beneficially owned pursuant to warrants that are exercisable within 60 days from the above date.
(2)  
Based on a total of 51 shares of Series A Preferred outstanding as of January 29, 2015, plus any shares of Common Stock deemed to be beneficially owned pursuant to warrants that are exercisable within 60 days from the above date.
(3)  
Includes 3,822,809 shares of the common stock of the Company issued to Here to Serve Holding Corp. Mr. Cosman is the Chief Executive Officer and director of Here to Serve Holding Corp. and, accordingly, has sole voting power and sole dispositive power over such 3,822,809 shares.

There are no arrangements, known to the Company, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.

 
3

 
 
Entry Into Membership Interest Purchase Agreement
 
On October 17, 2014, Brooklyn Cheesecake & Desserts Company, Inc. (the “Company”) entered into that certain Membership Interest Purchase Agreement (the “Purchase Agreement”) by and among Here to Serve Holding Corp., a Delaware corporation, as seller (“Here to Serve”), the Company, as parent, Brooklyn Cheesecake & Dessert Acquisition Corp., a wholly-owned subsidiary of the Company, as buyer (the “Acquisition Corp.”), the Chief Executive Officer of the Company (the “Company Executive”), the majority shareholder of the Company (the “Company Majority Shareholder”) and certain shareholders of Here to Serve (the “Here to Serve Shareholders”), pursuant to which the Acquisition Corp acquired from Here to Serve all of Here to Serve’s right, title and interest in and to (i) 100% of the membership interests of Here to Serve – Missouri Waste Division, LLC d/b/a Meridian Waste, a Missouri limited liability company (“HTS Waste”); (ii) 100% of the membership interests of Here to Serve Technology, LLC, a Georgia limited liability company (“HTS Tech”); and (iii) 100% of the membership interests of Here to Serve – Georgia Waste Division, LLC, a Georgia limited liability company (“HTS Waste Georgia”, and together with HTS Waste and HTS Tech, collectively, the “Membership Interests”).  As consideration for the Membership Interests, on October 31, 2014 (the "Closing Date") (i) the Company issued to Here to Serve 9,054,134 shares of the Company’s common stock valued at $0.35 per share or $3,168.95 according to the closing price of the Company’s common stock on October 17, 2014, (the “Common Stock”); (ii) the Company issued to the holder of Class A Preferred Stock of Here to Serve (“Here to Serve’s Class A Preferred Stock”) 51 shares of the Company’s to-be-designated Class A Preferred Stock valued at $0.051 (the “Class A Preferred Stock”), which Class A Preferred Stock shall have the rights and preferences as described in the Purchase Agreement; (iii) the Company issued to the holder of Class B Preferred Stock of Here to Serve (Here to Serve’s Class B Preferred Stock”) an aggregate of 71,120 shares of the Company’s to-be-designated Class B Preferred Stock valued at $71 (the “Class B Preferred Stock”), which Class B Preferred Stock shall have the rights and preferences as described in the Purchase Agreement (the Common Stock, the Class A Preferred Stock and the Class B Preferred Stock are referred to as the “Purchase Price Shares;”), and (iv) the Company shall assume certain assumed liabilities valued at approximately $15,637,242 (the “Initial Consideration”).
 
As further consideration, on the Closing Date of the transaction contemplated under the Purchase Agreement, (i) in satisfaction of all accounts payable and shareholder loans, Here to Serve paid to the Company Majority Shareholder $70,000 and (ii) Here to Serve purchased from the Company Majority Shareholder 230,000 shares of the Company’s common stock for a purchase price of $230,000, with such shares cancelled immediately after such purchase.  Pursuant to the Purchase Agreement, to the extent Purchase Price Shares are issued to individual shareholders of Here to Serve at or upon closing of the Purchase Agreement: (i) shares of common stock of Here to Serve held by the individuals listed on Schedule 2.2 of the Purchase Agreement valued at $2,564,374.95 will be cancelled in accordance with such Schedule 2.2; (ii) 1,000,000 shares of Here to Serve’s Class A Preferred Stock valued at $1,000 will be cancelled; and (iii) 71,120 shares of Here to Serve’s Class B Preferred Stock valued at $7,121,000 will be cancelled (the “Additional Consideration”).
 
The closing of the Purchase Agreement resulted in a change of control of Brooklyn Cheesecake & Desserts Company, Inc.
 
The description of the Purchase Agreement set forth above is qualified in its entirety by reference to the full text of such Purchase Agreement filed on January 23, 2015 as Exhibit 10.1 to the Current Report on Form 8-K/A and is incorporated herein by reference.
 
 
4

 
 
PROPOSAL 1

AUTHORIZATION TO CHANGE THE NAME OF THE COMPANY TO MERIDIAN WASTE SOLUTIONS, INC.
 
Description of Proposal

The Name Change and Written Consent Amendment will become effective on the date that we file the Certificate of Amendment to the Certificate of Incorporation of the Company (the “Amendment”) with the Secretary of State of the State of New York.  We intend to file the Amendment with the Secretary of State of the State of New York promptly after the Special Meeting.

We currently expect to file the Amendment on or about February 23, 2015.

Prior to filing the amendment to the Articles of Incorporation reflecting the Name Change, we must first notify FINRA by filing the Issuer Company Related Action Notification Form no later than ten (10) days prior to the anticipated record date of the Name Change.  Our failure to provide such notice may constitute fraud under Section 10 of the Exchange Act.

Purposes and Effects of the Proposal

We believe that changing the name of the Company to Meridian Waste Solutions, Inc. will more accurately reflect and represent to the public the business of the Company.  In connection with the name change, we intend to file with FINRA a request to obtain a new ticker symbol.

Required Vote

The approval of the adoption of the Proposal for the authorization to change the name of the Company from Brooklyn Cheesecake & Desserts Company, Inc. to Meridian Waste Solutions, Inc. requires the affirmative vote of a majority of the votes of the outstanding shares of our Common Stock, Series A Preferred and Series B Preferred. Abstentions and broker non-votes are not affirmative votes and, therefore, will have the same effect as a vote against such proposal.

Recommendation of the Board of Directors

THE BOARD OF DIRECTORS HAS UNANIMOUSLY APPROVED THE PROPOSAL, AND UNANIMOUSLY RECOMMENDS THAT THE COMPANY'S SHAREHOLDERS VOTE FOR APPROVAL OF THE PROPOSAL TO AUTHORIZE THE NAME CHANGE.

PROPOSAL 2

AMENDING THE ARTICLES OF INCORPORATION TO ALLOW FOR ACTIONS TO BE APPROVED BY MAJORITY SHAREHOLDER WRITTEN CONSENT
 
Description of Proposal

The primary purpose of the Majority Consent Amendment is for general corporate purposes, including, without limitation, to facilitate capital raising, merger and acquisition opportunities, the issuance of stock dividends or stock splits, and other general corporate purposes.

The adoption of the Majority Consent Amendment would result in the holder(s) of all issued and outstanding shares of Series A Preferred, voting together by written consent, having the ability to authorize corporate actions on behalf of the shareholders, except as may be limited by applicable law.

 
5

 
 
The Majority Consent Amendment would be effected by amending the Company’s Certificate of Incorporation, as amended, to include the following new Article TENTH:

“TENTH: Whenever the Corporation’s shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent, setting forth the action so taken, signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.”
 
Possible Anti-takeover Effects of the Proposal

The Majority Consent Amendment, given that the Series A Preferred is issued and outstanding, could, under certain circumstances, result in discouraging, delaying or preventing a change in control of the Company.  For example, the holder(s) of all issued and outstanding shares of Series A Preferred, voting together by written consent, could veto a change in control approved by the Board of Directors.  The effect of such provisions could delay or frustrate a merger, tender offer or proxy contest, the removal of incumbent directors, or the assumption of control by shareholders, even if such proposed actions would be beneficial to our shareholders.  This could include discouraging bids even if such bid represents a premium over our then existing trading price and thereby prevent shareholders from receiving the maximum value for their shares.  Please note that the Majority Consent Amendment has not been proposed by the Board of Directors for an anti-takeover related purpose and the Board of Directors has no knowledge of any current efforts to obtain control of the Company or to effect large accumulations of our voting stock.

Purposes and Effects of the Proposal

The Board believes the Majority Consent Amendment is necessary and advisable in order to create flexibility in today’s competitive and rapidly changing environment. By allowing for increased flexibility in taking corporate actions, the effect of the Majority Consent Amendment is expected to facilitate potential strategic transactions, including, among other things, acquisitions, strategic partnerships, joint ventures, restructurings, business combinations and investments. Assurances cannot be provided that any such transactions will be consummated on favorable terms or at all, that they will enhance stockholder value or that they will not adversely affect the Company’s business or the trading price of the Common Stock.

Recommendation of the Board of Directors

THE BOARD OF DIRECTORS HAS UNANIMOUSLY APPROVED THE PROPOSAL, AND UNANIMOUSLY RECOMMENDS THAT THE COMPANY'S SHAREHOLDERS VOTE FOR APPROVAL OF THE MAJORITY CONSENT AMENDMENT

EXECUTIVE OFFICERS

EXECUTIVE COMPENSATION
 
Brooklyn Cheesecake & Desserts Company, Inc. Summary Compensation
 
The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officers paid by Brooklyn Cheesecake & Desserts Company, Inc. during the period from 2012 through 2014.
 
Name and Principal Position
 
Year
 
Salary
($)
   
Bonus
($)
   
Stock Awards
($)
   
Option Awards
($)
   
Non-Equity Incentive Plan Compensation
($)
   
Non-Qualified Deferred Compensation Earnings 
($)
   
All Other Compensation
($)
   
Totals
($)
 
Jeffrey S. Cosman(1)
 
2014
   
0
     
0
     
0
     
0
     
0
     
0
     
0
     
0
 
Chief Executive Officer
 
2013
   
0
     
0
     
0
     
0
     
0
     
0
     
0
     
0
 
and Director
 
2012
   
0
     
0
     
0
     
0
     
0
     
0
     
0
     
0
 
                                                                     
Anthony J. Merante(2)
 
2014
   
0
     
0
     
0
     
0
     
0
     
0
      0      
0
 
Former President, Former Chief Executive Officer
 
2013
   
0
     
0
     
0
     
0
     
0
     
0
      0      
0
 
and Former Chief Financial Officer
 
2012
   
0
     
0
     
0
     
0
     
0
     
0
      0      
0
 
 
(1) On October 31, 2014, Mr. Jeffrey S. Cosman was appointed Chief Executive Officer and Director of the Company.
(2) On October 31, 2014, Mr. Anthony J. Merante resigned from all officer positions with the Company. On November 19, 2014, Mr. Merante resigned from his position as Director of the Company.
 
 
6

 
 
Option Grants
 
There were no individual grants of stock options to purchase our common stock made to the executive officers named in the Summary Compensation Table from 2012 through 2014.

Employment Agreements

None.

COMPENSATION OF DIRECTORS

Currently the Company does not pay its board members for their service to the Board but, it may do so in the future.
 
SHAREHOLDER PROPOSALS

Proposals of shareholders intended to be included in the Proxy Statement relating to the Company’s 2014 Annual Meeting of Shareholders (the “2014 Annual Meeting”) pursuant to Rule 14a-8 under the Securities Exchange Act of 1934 (“Rule 14a-8”) must be received by the Company no later than 30 days prior to the date of printing and mailing our material for the 2014 Annual Meeting and must otherwise comply with the requirements of Rule 14a-8.

Proposals of shareholders submitted for consideration at the Company’s 2014 Annual Meeting, outside of the Rule 14a-8 process, must be received by the Company by the later of 60 days before the 2014 Annual Meeting. If such timely notice of a proposal is not given, the proposal may not be brought before the 2014 Annual Meeting.

A stockholder proposal is a stockholder's recommendation or requirement that the Company and/or the Board take action, which the stockholder intends to present at the 2014 Annual Meeting of the Company's stockholders. The proposal should state as clearly as possible the course of action that the stockholder believes the Company should follow and should be accompanied by a supporting statement. The proposal, including the accompanying supporting statement, may not exceed 500 words. The Company reserves the right to reject, rule out of order, or take other appropriate action with respect to any proposal that does not comply with these and other applicable requirements. As the rules of the SEC make clear, simply submitting a proposal does not guarantee that it will be included.

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16 of the Securities Exchange Act of 1934 requires the Company’s executive officers, directors and more than 10% shareholders (“Insiders”) to file with the Securities and Exchange Commission and the Company reports of their ownership of the Company’s securities.  Based upon the Company’s actual knowledge, all Section 16 reporting requirements applicable to Insiders during the fiscal year ended June 30, 2013 were satisfied on a timely basis.

OTHER MATTERS

The Board of Directors does not know of any matters other than those mentioned above to be presented to the meeting. If any other matters do come before the meeting, the persons named in the Proxy will exercise their discretion in voting thereof.

MISCELLANEOUS

All information contained in this Proxy Statement relating to the occupations, affiliations and securities holdings of directors and officers of the Company and their relationship and transactions with the Company is based upon information received from directors and officers. All information relating to any beneficial owners of more than 5% of the Company’s Common Stock is based upon information contained in reports filed by such owner with the Commission.
 
Exhibit No.
 
Description
     
99.1
 
Here to Serve Holding Corp.’s Audited financial statements for the fiscal years ended September 30, 2013 and September 30, 2012
     
99.2
 
Meridian Waste Services, LLC Audited financial statements for the fiscal years ended December 31, 2013 and 2012
     
99.3
 
Here to Serve Holding Corp.’s Unaudited financial statements for the nine months ended June 30, 2014 and 2013
     
99.4
 
Brooklyn Cheesecake & Desserts Company, Inc. Unaudited Pro Forma Information
 
     
   
By Order of the Board of Directors,
 
       
Date: January 29, 2015
  /s/ Jeffrey Cosman  
   
Jeffrey Cosman
 
   
Chief Executive Officer
 
       
 
 
7

 
 
 
o FOLD AND DETACH HERE AND READ THE REVERSE SIDE o
 
 
 
PROXY
 
BROOKLYN CHEESECAKE & DESSERTS COMPANY, INC.
 
 
SPECIAL MEETING OF SHAREHOLDERS — FEBRUARY 23, 2015
 
The undersigned shareholder of Brooklyn Cheesecake & Desserts Company, Inc. (the “Company”) hereby appoints Jeffrey Cosman as the attorney and proxy of the undersigned, with full power of substitution, to vote, as indicated herein, all the Common Stock of the Company standing in the name of the undersigned at the close of business on  February 22, 2015  at the Special Meeting of Shareholders of the Company to be held at the Company’s headquarters located at 12540 Broadwell Road, Suite 1203, Milton, Georgia 30004, at 12:30  PM Eastern Time on the 23rd day of February, 2015, and at any and all adjournments thereof, with all the powers the undersigned would possess if then and there personally present and especially (but without limiting the general authorization and power hereby given) to vote as indicated on the proposals, as more fully described in the Proxy Statement for the meeting on the following matters.
 
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS AND WILL BE VOTED FOR THE PROPOSALS LISTED BELOW UNLESS OTHERWISE INDICATED. THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE SPECIFICATIONS MADE, BUT IF NO CHOICES ARE INDICATED, THIS PROXY WILL BE VOTED FOR THE PROPOSAL LISTED BELOW.
 
 
(Continued, and to be marked, dated and signed, on the other side)
 
 
 

 
 
FOLD AND DETACH HERE AND READ THE REVERSE SIDE
PROXY BY MAIL
 
 
THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS AND WILL BE VOTED FOR THE ELECTION OF THE PROPOSED DIRECTORS AND FOR THE ABOVE PROPOSALS UNLESS OTHERWISE INDICATED. THIS PROXY WILL BE VOTED IN ACCORDANCE WITH THE SPECIFICATIONS MADE, BUT IF NO CHOICES ARE INDICATED, THIS PROXY WILL BE VOTED FOR THE ELECTION OF ALL NOMINEES AND FOR THE PROPOSALS LISTED BELOW.  
Please mark boxes [*] or [X] in blue or black ink.
  x
 
 
    FOR   AGAINST   ABSTAIN
1.Proposal: Authorizing the Company name change to Meridian Waste Solutions, Inc.
           
2. Proposal:Amending the Articles of Incorporation to allow majority shareholder written consent            
             
To  Authorizing the Company name change to Meridian Waste Solutions, Inc
  o   o   o
             
To  Amending the Articles of Incorporation to allow majority shareholder written consent, by adding the following new Article TENTH:
  o   o   o
“TENTH: Whenever the Corporation’s shareholders are required or permitted to take any action by vote, such action may be taken without a meeting on written consent, setting forth the action so taken, signed by the holders of outstanding shares having not less than the minimum number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon were present and voted.”
           
             
 
 
PROXY NUMBER:
               
                   
 
ACCOUNT NUMBER:
               
 
Signature _________________________ Print Name ________________________ Signature ________________________ Print Name ________________________ DATED: _____________________,
 
SIGNATURE(S) should be exactly as name or names appear on this Proxy. If stock is held jointly, each holder should sign. If signing is by attorney, executor, administrator, trustee or guardian, please give full title.
 
[Sign, date and return the Proxy Card promptly using the enclosed envelope.]
 
 
 



 
Exhibit 99.1
 
Here To Serve Holding Corp.
Consolidated Balance Sheets
For The Year Ended September 30, 2014
 
   
Successor
    Predecessor  
   
September 30,
             
   
2014
    December 31,  
   
(UNAUDITED)
   
2013
   
2012
 
ASSETS
                 
Current Assets
                 
Cash
  $ 384,166     $ 1,461,372     $ 1,646,556  
Accounts receivable, trade
    689,716       440,570       343,962  
Employee advance
    580       2,000       -  
Other receivables
            75,000       202  
Prepaid expenses
    198,715       189,521       117,281  
Total Current Assets
    1,273,177       2,168,463       2,108,001  
                         
Property and Equipment, net of accumulated
                       
depreciation of $580,695, $7,780,233 and $6,364,005 respectively
    7,583,214       4,810,603       4,137,649  
                         
Other Assets
                       
Loan to member
            50,000       -  
Capitalized software
    388,681       -       -  
Customer list, net of accumulated
                       
amortization of $1,167,288
    12,840,164       -       -  
Deposits
    8,303       8,303       8,303  
Loan fees, net of accumulated
                       
amortization of $7,030
    43,583       -       -  
Non-compete, net of accumulated
                       
amortization of $12,500
    137,500       -       -  
Total Other Assets
    13,418,231       58,303       8,303  
                         
TOTAL ASSETS
  $ 22,274,622     $ 7,037,369     $ 6,253,953  
                         
LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)
                       
Liabilities
                       
Current Liabilities
                       
Accounts payable
  $ 306,966     $ 239,739     $ 161,660  
Accrued expenses
    305,719       94,620       69,595  
Convertible notes payable
    568,146       -       -  
Deferred compensation
    729,000       -       -  
Deferred revenue
    1,993,062       1,910,465       1,744,578  
Notes due related parties
    276,250       -       -  
Other current liabilities
    910,555       50,000       -  
Current portion - long term debt
    1,195,333       1,211,299       1,042,664  
Total Current Liabilities
    6,285,031       3,506,123       3,018,497  
                         
Long-term notes payable
                       
Less:  current portion - long term debt
    9,352,211       1,991,508       1,957,365  
                         
Total Liabilities
    15,637,242       5,497,631       4,975,862  
                         
Shareholders' Equity (Deficit)
                       
Members' equity
    -       1,539,738       1,278,091  
Preferred stock
    2,071       -       -  
Common stock
    57,700       -       -  
Additional paid in capital
    14,209,518       -       -  
Accumulated deficit
    (7,631,909 )     -       -  
Total Shareholders' Equity (Deficit)
    6,637,380       1,539,738       1,278,091  
                         
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)
  $ 22,274,622     $ 7,037,369     $ 6,253,953  
 
 
 
1

 
Here To Serve Holding Corp.
Consolidated Statements of Operations
For The Year Ended September 30, 2014
 
   
Successor
    Predecessor  
   
Period from
   
Period from
           
   
Acquisition
   
January 1,
             
   
May 16, 2014 to
   
2014
             
   
September 30,
   
to May 15,
    Year Ended  
   
2014
   
2014
    December 31,  
   
UNAUDITED
   
UNAUDITED
   
2013
   
2012
 
Income
                       
Revenue
                       
Software sales
  $ 1,784     $ -     $ -     $ -  
Services
    4,827,855       4,246,558       11,349,872       10,249,774  
Total Revenue
    4,829,639       4,246,558       11,349,872       10,249,774  
                                 
Cost of Sales/Services
                               
Cost of Sales/Services
    3,153,111       2,671,187       6,968,847       5,978,694  
Depreciation
    561,259       504,515       1,411,440       1,542,889  
Total Cost of Sales/Services
    3,714,370       3,175,702       8,380,287       7,521,583  
                                 
Gross Profit
    1,115,269       1,070,856       2,969,585       2,728,191  
                                 
Expenses
                               
Bad debt expense
    13,280       -       42,508       17,951  
Bank, brokerage & credit card expense
    23,813       30,527       52,634       45,082  
Charitable contributions
    5,000       1,520       4,292       5,548  
Communication expense
    42,448       30,938       89,126       91,038  
Compensation and related expense
    567,108       240,894       703,688       572,761  
Depreciation and amortization
    1,205,982       5,748       13,537       10,232  
Dues & subscriptions
    450       57       2,229       2,676  
Information processing expense
    22,218       9,799       20,887       25,465  
Insurance/bond expense
    81,220       86,653       110,187       135,480  
Marketing expense
    40,300       37,596       95,403       116,187  
Office expense
    36,665       27,491       67,350       53,186  
Product development expense
    -       -       -       -  
Professional services
    606,007       44,733       63,997       33,059  
Rent
    98,348       126,936       249,793       134,778  
Repairs & maintenance
    13,040       24,532       19,268       3,835  
State & local taxes, licenses, permits
    4,320       9,365       17,595       26,311  
Travel & entertainment
    27,353       28,157       34,127       37,442  
Total Expenses
    2,787,552       704,946       1,586,621       1,311,031  
                                 
Other Income (Expenses):
                               
Miscellaneous income (loss)
    -       -       6,995       2,605  
Interest income
    -       -               1,004  
Gain (loss) on disposal of assets
    -       -       (6,250 )     15,134  
Political contributions
    -       -               (300 )
Loss on bad loans
    -       -       (403 )     (110,006 )
Interest expense
    182,420       52,559       (146,659 )     (159,964 )
Total Other Expenses
    182,420       52,559       (146,317 )     (251,527 )
                                 
Net Income (Loss) before income taxes
    (1,854,703 )     313,351       1,236,647       1,165,633  
                                 
Income tax expense
    -       -       -       -  
                                 
Net Income (Loss)
  $ (1,854,703 )   $ 313,351     $ 1,236,647     $ 1,165,633  
                                 
Basic Net Loss Per Share
    (0.04 )                        
                                 
Weighted Average Number of Shares Outstanding
                         
(Basic and Diluted)
    41,563,674                          
 
 
2

 
 
Here To Serve Holding Corp.
Statement of Changes in Shareholders' Equity (Deficit)
For The Year Ended September 30, 2014
 
   
Common Shares
   
Common Stock, Par
   
Preferred Shares
   
Preferred Stock, Par
   
Additonal Paid in Capital
   
Members' Equity
   
Accumulated Deficit
   
Total
 
Predecessor
                                               
Balance at December 31, 2011
                                          $ 1,192,458             $ 1,192,458  
                                                                 
Net income (loss)
                                            1,165,633               1,165,633  
Members' distributions
                                            (1,080,000 )             (1,080,000 )
                                                                 
Balance at December 31, 2012
                                            1,278,091               1,278,091  
                                                                 
Net income (loss)
                                            1,236,647               1,236,647  
Members' distributions
                                            (975,000 )             (975,000 )
                                                                 
Balance at December 31, 2013
                                            1,539,738               1,539,738  
                                                                 
UNAUDITED
                                                               
Net income, January 1, 2014 - May 15, 2014
                                            313,351               313,351  
Members' distributions, January 1, 2014 - May 15, 2014
                                            (585,000 )             (585,000 )
                                                                 
Balance at May 15, 2014
                                          $ 1,268,089             $ 1,268,089  
                                                                 
                                                                 
Successor
                                                               
Balance at May 16, 2014
    55,624,917     $ 55,625       2,071,210     $ 2,071     $ 13,879,593             $ (5,777,206 )   $ 8,160,083  
                                                                 
Common stock issued for services
    2,075,000       2,075       -       -       329,925               -       332,000  
Net loss
                                                    (1,854,703 )     (1,854,703 )
Balance September 30, 2014
    57,699,917     $ 57,700       2,071,210     $ 2,071     $ 14,209,518             $ (7,631,909 )   $ 6,637,380  
 
 
 
3

 
Here To Serve Holding Corp.
Consolidated Statements of Cash Flows
For The Year Ended September 30, 2014
 
   
Successor
    Predecessor  
   
Period from
   
Period from
             
   
Acquisition
   
January 1,
             
   
May 16, 2014 to
   
2014
             
   
September 30,
   
to May 15,
   
Year Ended
 
   
2014
   
2014
   
December 31,
 
   
UNAUDITED
   
UNAUDITED
   
2013
   
2012
 
OPERATING ACTIVITIES
                       
Net income (loss) from operations
  $ (1,854,703 )   $ 313,351     $ 1,236,647     $ 1,165,633  
Adjustment to reconcile net loss to net cash used in operating activities:
                         
Depreciation & Amortization
    1,767,240       510,263       1,424,979       1,553,121  
Stock issued to vendors for service
    332,000       -       -       -  
Increase in deferred compensation
    243,000       -       -       -  
(Gain) Loss on note conversions/sale of asset
    -       -       6,250       (15,134 )
Changes in working capital items:
                               
Accounts receivable
    (57,394 )     (154,097 )     (96,609 )     (73,290 )
Employee advance/other receivables
    (580 )     400       (126,798 )     75,021  
Prepaid expenses
    7,242       65,976       (72,240 )     (2,552 )
Other current assets
    -       -       -       55,297  
Accounts payable & accrued expenses
    445,128       89,309       103,102       98,054  
Deferred revenue
    114,957       (32,360 )     165,887       (56,854 )
Other current liabilities
    738,310       -       25,000       -  
Cash flow from operating activities
    1,735,200       792,842       2,666,218       2,799,296  
                                 
INVESTING ACTIVITIES
                               
Proceeds from sale of fixed assets
                    12,415       53,622  
Purchased capitalized software
    (14,662 )     -       -       -  
Acquisition of subsidiary
    123,841       -       -       -  
Purchased equipment
    (1,053,289 )     (170,888 )     (2,058,359 )     (1,815,160 )
Purchased software
    -       -       -       -  
Cash flow from investing activities
    (944,110 )     (170,888 )     (2,045,944 )     (1,761,538 )
                                 
FINANCING ACTIVITIES
                               
Member distributions
            (585,000 )     (975,000 )     (1,080,000 )
Loan from member
                    25,000       -  
Principle payments on notes payable
    (427,455 )     (449,498 )     (1,208,210 )     (1,151,370 )
Proceed from long-term notes payable
            -       1,352,752       1,626,941  
Cash flow from financing activities
    (427,455 )     (1,034,498 )     (805,458 )     (604,429 )
                                 
Net change in cash
    363,635       (412,544 )     (185,184 )     433,329  
Beginning cash
    20,531       1,461,372       1,646,556       1,213,227  
Ending Cash
  $ 384,166     $ 1,048,828     $ 1,461,372     $ 1,646,556  
                                 
Supplemental disclosure of cash flow information:
                               
Cash paid for income taxes
    -                          
Cash paid for interest
    98,272                          
                                 
Supplemental Non-Cash Investing and Financing Information:
                               
Common stock issued in connection with debt conversions
    -                          
Common stock issued to employees and officers
    -                          
Common stock issued for services
    332,000                          
Common stock issued to acquire software products
    -                          
Debt forgiveness former officer.
    -                          
Common stock issued in connection with acquisition
                               
of subsidiary
    -                          
Preferred stock issued in connection with acquisition
                               
of subsidiary
    -                          
 
 
4

 
 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 1 – EXPLANATION OF CHANGE IN ACCOUNTING BASIS

The merger of Here to Server Holding Corp. (HTSHC) and Meridian Waste Services, LLC became effective May 15, 2014.  The merger was accounted for by HTSHC using business combination accounting.  Under this method, the purchase price paid by the acquirer is allocated to the assets acquired and liabilities assumed as of the acquisition date based on the fair value.  By the application of “push-down” accounting, our assets, liabilities and equity were accordingly adjusted to fair value on May 15, 2014.  Determining the fair value of certain assets and liabilities assumed is judgmental in nature and often involves the use of significant estimates and assumptions.

Due to the application of “push-down” accounting, our financial statements are presented in two distinct periods to indicate the application of two different basis of accounting.  Periods prior to May 15, 2014 are identified herein as “Predecessor,” while periods subsequent to the HTSHC merger are identified as “Successor.”  As a result of the change in basis of accounting from historical cost to reflect the HTSHC’s purchase cost, the financial statements for Predecessor periods are not comparable to those of Successor periods.

The following notes, note #2 through note #13 are applicable to the unaudited periods of these financial statements.  Notes related to the audited periods are included in the audit report for Meridian Waste Services, LLC (Predecessor) which is included with this report.

NOTE 2 – ORGANIZATION AND NATURE OF OPERATIONS

Nature of Business

Currently the Company is operating under three separate Limited Liability Companies; Here To Serve Missouri Waste Division, LLC (“HTSMWD”), a Missouri Limited Liability Company, Here To Serve Technology Division, LLC (“HTST), a Georgia Limited Liability Company and Here To Serve Georgia Waste Division, LLC (“HTSGWD”), a Georgia Limited Liability Company.

Through acquisitions and restructuring, HTST has repositioned the Company’s presence in the software development industry.  By acquiring products developed for the mobile app market and by shifting the focus of future development, HTST is anticipating significant expansion into this growing business segment.

In 2014, HTSMWD purchased the assets of a large solid waste disposal company in the St. Louis, MO market.  This acquisition is considered the platform company for future acquisitions in the solid waste disposal industry.  HTSGWD was created to facilitate expansion in this industry throughout the Southeast.
 
 
 
5

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Accounting Basis

The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a September 30 fiscal year end.

Basis of Consolidation

The consolidated financial statements for the year ended September 30, 2014 include the operations of the Company and its wholly-owned subsidiaries, Here To Serve Missouri Waste Division, LLC and Here To Serve Technology, LLC.  The third subsidiary of the Company, Here To Serve Georgia Waste Division, LLC had no operations during the period. All significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period consolidated financial statements.

Cash and Cash Equivalents

Here To Serve Holding Corp considers all highly liquid investments with maturities of three months or less to be cash equivalents. At September 30, 2014 the Company had $384,166. 3

Deferred Revenue

The Company’s Missouri Waste Division bills one month in advance for the following three months.  The balance in deferred revenue represents amounts billed in July, August and September for services that will be provided during October, November and December.

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accounts payable, other liabilities, accrued interest, notes payable, and an amount due to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these consolidated financial statements.


 
6

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014


NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Impairment of long-lived assets

The Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less that the carrying amount of the asset.  The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.  During the year ending September 30, 2014, the Company experienced no losses due to impairment.

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that based on available evidence, which are not expected to be realized.

Use of Estimates

The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Accounts Receivable

At September 30, 2014 the Company had $689,716 of trade receivables.  Here to Serve – Missouri Waste Division, LLC, primarily owns these trade receivables.

Allowance for Doubtful Accounts

The Company provides an allowance for doubtful accounts equal to the estimated collection losses that will be incurred in collection of receivable related to commercial project invoices.  The estimated losses are based on managements’ evaluation of outstanding accounts receivable at the end of the accounting period.  At September 30, 2014, no such allowance was recorded.


 
7

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Intangible Assets

Intangible assets consist of assets acquired and costs incurred in connection with the development of the Company’s capitalized software. See note below.  The Company also has intangible assets related to the purchase of Meridian Waste Services, LLC.  See Note 4 below.
 
 
Capitalized Software

The company acquired a software product that is under further development. This asset will be amortized over a three to five year period using the straight-line method of depreciation for book purposes beginning when the software is completed.

Revenue Recognition

The Company recognizes revenue when there is persuasive evidence of that an arrangement exists, the revenue is fixed or determinable, the products are fully delivered or services have been provided and collection is reasonably assured.

Concentration of Credit Risks

The Company maintains its cash and cash equivalents in bank deposit accounts, which could, at times, exceed federally insured limits. The Company has not experienced any losses in such accounts; however, amounts in excess of the federally insured limit may be at risk if the bank experiences financial difficulties.

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. A diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. At September 30, 2014 the Company had a series of convertible notes outstanding that could be converted into approximately 14,488,784 common shares. These are not presented in the statement of operations since the company incurred a loss and the effect of these shares is anti- dilutive.

 
8

 

HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.

Recent Accounting Pronouncements

Here To Serve Holding Corp. , does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

NOTE 4 – PROPERTY AND EQUIPMENT

Property and equipment, including purchased and developed software is recorded at cost. The Company has depreciated or amortized these assets using the straight-line method over the useful lives of the asset. The useful lives are estimated to be between 2 and 7 years.

Property and equipment consisted of the following:
 
Furniture & office equipment
  $ 334,265  
Containers
    2,837,315  
Trucks
    4,992,329  
Total Property and Equipment
    8,163,909  
Less: Accumulated Depreciation
    (580,695 )
 Net Property and Equipment
  $ 7,583,214  
 
NOTE 5 – ACQUISITION

On May 15, 2014, the Company entered into an asset purchase agreement by and among the Company, HTSWD, Meridian Waste Services, LLC (“MWS”) and the members of MWS, pursuant to which HTSWD acquired certain assets and liabilities of MWS, in exchange for $11,500,000 cash, 13,191,667 shares of Class A Common Stock of HTSHC and 71,210 shares of Series B Cumulative Convertible Preferred Stock of HTSHC.

The purchase of MWS included the acquisition of assets of $22,532,242 and liabilities of $1,932,492.  The aggregate purchase price consisted of the following:
 
Cash     11,500,000  
Estimated value of common stock issued to sellers
    1,978,750  
Estimated value of preferred stock issued to sellers
    7,121,000  
    $ 20,599,750  

 
9

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 5 – ACQUISITION (CONTINUED)

The following table summarizes the estimated fair value of MWS assets acquired and liabilities assumed at the date of acquisition:
 
Cash   $ 500,000  
Accounts receivable
    632,322  
Prepaid expenses
    123,544  
Deposits
    8,303  
Containers
    2,710,671  
Furniture and equipment
    299,450  
Trucks
    4,100,500  
Customer lists
    14,007,452  
Non-compete agreement
    150,000  
Accounts payable and accrued expenses
    (54,387 )
Deferred revenue
    (1,878,105 )
    $ 20,599,750  
 
NOTE 6 – NOTES PAYABLE

The Company issued two promissory notes during the nine month period ended September 30, 2014. These notes totaled $200,000 and are generally convertible into common stock of the Company at discounts of 10 % to 20% of the lowest average trading prices for the stock during periods five to one day prior to the conversion date. These notes bears interest at 6% to 8%, are unsecured, and matures within one year of the date issued. The notes were issued to provide working capital for the Company.

The Company has issued a series of one year convertible promissory notes to finance operations. The notes were sold to Machiavelli Ltd. LLC and generally earned interest at 8%, and could be convertible into common stock of the Company at a discount 35% of the lowest average trading prices for the stock during periods five to three days prior to the conversion date. A number of these notes were converted into stock. The notes included a default interest rate of 12% if not paid at maturity or converted to common stock. All but four of the notes went to default. Total outstanding on these notes was $ 259,900 as of September 30, 2014. Due to the conversion feature included in the notes, the Company has recorded a premium expense on the notes totaling $67,253 and $197,021 as of September 30, 2014 and September 30, 2013, respectively. These amounts have been deducted as interest expense by the Company.
 
The Company also issued additional notes to other related parties prior to September 30, 2014. Two of these notes were issued to employees for services. James Canouse received note for $200,000 and J. N. Carter received a note for $20,000. The Canouse note had a premium expense of $107,692 and the Carter note had a premium expense of $10,769. In March 2011 Mr. Canouse converted $53,237 of his note to common stock.

At September 30, 2014 the Company had $844,396 outstanding in convertible notes.

 
10

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 6 – NOTES PAYABLE (CONTINUED)

At September 30, 2014, Here To Serve – Missouri Waste Division, LLC, a subsidiary of the Company, had $10,547,544 in Debt, of which $1,195,333 is current and $9,352,211 is long term.  $1,475,000 were notes Payable to the Sellers of Meridian as sub-debt and $9,072,544 in Long Term Debt payable to Comerica Bank, the Company’s Senior Lender.  At close, the notes payable to the sellers were five-year term sub-debt loans paying interest at 8%.  The Company’s Senior Secured Loan was a 4.75% two-year term based on a seven-year amortization schedule.  In addition, the Company had a working capital line of credit of $1,250,000 at 4.75%.  Finally, there is CAPEX line of credit of $750,000, of which the Company has drawn down $115,000 at close; again at 4.75% interest.

NOTE 7 – STOCK HOLDERS’ EQUITY

The Company has 400,000,000 shares of common stock authorized with a par value of $0.001 and 2,000,000 shares of Preferred stock with a par value of $0.001.  As of September 30, 2014 there are 57,699,917 common shares outstanding and 2,071,120 of Preferred shares outstanding.  During the year ended September 30, 2014, the company issued 3,344,142 shares of common stock in connection with note conversions and 3,207,288 shares to consultants for services.  In May, 2014, the company issued 13,191,666 shares and 71,120 shares of Preferred B shares in connection with the acquisition of subsidiary.

NOTE 8 – COMMITMENTS AND CONTINGENCIES

The Company has leased office space at 12540 Broadwell Rd., Suite 1203 Milton, GA 30004.

NOTE 9 – INCOME TAXES

As of September 30, 2014, the Company had net operating loss carry forwards of approximately $7,630,000 that may be available to reduce our tax liability in future years. We estimate the benefits of this loss carry forward at $2,670,000 if the Company produces sufficient taxable income. No adjustments to the financial statements have been recorded for this potential tax benefit.

NOTE 10 – FAIR VALUE MEASUREMENT

The Company has adopted new guidance under ASC Topic 820, effective January 1, 2009. New authoritative accounting guidance (ASC Topic 820-10-15) under ASC Topic 820, Fair Value Measurement and Disclosures, delayed the effective date of ASC Topic 820-10 for all
nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis, until 2009.

ASC Topic 820 establishes a fair value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data and requires disclosures for assets and liabilities measured at fair value based on their level in the hierarchy. Further

 
11

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 10 – FAIR VALUE MEASUREMENT (CONTINUED)

new authoritative accounting guidance (ASU No. 2009-05) under ASC Topic 820, provides clarification that in circumstances in which a quoted price in an active market for the
identical liabilities is not available, a reporting entity is required to measure fair value using one or more of the techniques provided for in this update.

The standard describes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

Level 1 – Quoted prices in active markets for identical assets and liabilities.
Level 2 – Input other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets of liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities.
Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The following table sets forth the liabilities at September 30, 2014, which is recorded on the balance sheet at fair value on a recurring basis by level within the fair value hierarchy. As required, these are classified based on the lowest level of input that is significant to the fair value measurement:
 
Description   9/30/2014     Quoted Prices in Active Markets for Identical Assets (Level 1)     Significant Other Observable Inputs (Level 2)     Significant Unobservable Inputs (Level 3)  
Convertible promissory note with embedded conversion option   $ 568,146     $ -     $ -     $ 568,146  
Total   $ 568,146     $ -     $ -     $ 568,146  
 
NOTE 11 – LEASES

The Company’s subsidiary Here to Serve Missouri Waste Division, LLC leases its office and warehouse facilities.  The lease agreement commenced September 1, 2010 and expires
August 30, 2017.  This lease was assigned to the Company when the subsidiary purchased Meridian Waste Services, LLC on May 16, 2014.  Future minimum lease payments at September 30, 2014 are as follows:

 
12

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 11 – LEASES (CONTINUED)
 
2014   $ 66,479  
2015
    271,915  
2016
    277,915  
2017
    283,915  
Thereafter
    -  
         
Total
    900,224  
 
Rent expense amounted to $88,973 for the year ended September 30, 2014.

NOTE 12 – BONDING

In connection with its normal activities, the Company may be required to acquire a Performance bond on contracts with customers.  There were not any performance bonds required for the year ended September 30, 2014.
 
NOTE 13 – SUBSEQUENT EVENTS

In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30th, 2014 through the date these financial statements were issued and has determined that the following would be included as subsequent events.

Membership Interest Purchase Agreement
On October 17, 2014, (the “Execution Date”), Brooklyn Cheesecake & Desserts Company, Inc. (the “Company”) entered into that certain Membership Interest Purchase Agreement (the “Purchase Agreement”) by and among Here to Serve Holding Corp., a Delaware corporation, as seller (“Here to Serve”), the Company, as parent, Brooklyn Cheesecake & Dessert Acquisition Corp., a wholly-owned subsidiary of the Company, as buyer (the “Acquisition Corp.”), the Chief Executive Officer of the Company (the “Company Executive”), the majority shareholder of the Company (the “Company Majority Shareholder”) and certain shareholders of Seller (the “Seller Shareholders”), pursuant to which the Acquisition Corp shall acquire from Here to Serve all of Here to Serve’s right, title and interest in and to (i) 100% of the membership interests of Here to Serve – Missouri Waste Division, LLC d/b/a Meridian Waste, a Missouri limited liability company (“HTS Waste”); (ii) 100% of the membership interests of Here to Serve Technology, LLC, a Georgia limited liability company (“HTS Tech”); and (iii) 100% of the membership interests of Here to Serve – Georgia Waste Division, LLC, a Georgia limited liability company (“HTS Waste Georgia”, and together with HTS Waste and HTS Tech, collectively, the “Membership Interests”).  As consideration for the Membership Interests, (i) the Company shall issue to Here to Serve 9,054,134 shares of the Company’s common stock, (the “Common Stock”); (ii) the Company shall issue to the holder of Class A Preferred Stock of Here to Serve (“Here to Serve’s Class A Preferred
 
 
13

 
HERE TO SERVE HOLDING CORP. , INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
September 30, 2014
 
NOTE 13 – SUBSEQUENT EVENTS (CONTINUED)

Stock”) 51 shares of the Company’s to-be-designated Class A Preferred Stock (the “Class A Preferred Stock”), which Class A Preferred Stock shall have the rights and preferences as described in the Purchase Agreement; (iii) the Company shall issue to the holder of Class B Preferred Stock of Here to Serve (Here to Serve’s Class B Preferred Stock”) an aggregate of 71,120 shares of the Company’s to-be-designated Class B Preferred Stock (the “Class B Preferred Stock”), which Class B Preferred Stock shall have the rights and preferences as described in the Purchase Agreement (the Common Stock, the Class A Preferred Stock and the Class B Preferred Stock are referred to as the “Purchase Price Shares;”), and (iv) the Company shall assume certain assumed liabilities (the “Initial Consideration”).

As further consideration, at the closing of the transaction contemplated under the Purchase Agreement, (i) in satisfaction of all accounts payable and shareholder loans, Here to Serve will pay to Company Majority Shareholder $70,000 and (ii) Here to Serve will purchase from Company Majority Shareholder 230,000 shares of the Company’s common stock for a purchase price of $230,000, with such shares to be cancelled immediately after such purchase.  Pursuant to the Purchase Agreement, to the extent Purchase Price Shares are issued to individual shareholders of Here to Serve at or upon closing of the Purchase Agreement: (i) shares of common stock of Here to Serve held by the individuals listed on Schedule 2.2 of the Purchase Agreement will be cancelled in accordance with such Schedule 2.2; (ii) 1,000,000 shares of Here to Serve’s Class A Preferred Stock will be cancelled; and (iii) 71,120 shares of Here to Serve’s Class B Preferred Stock will be cancelled (the “Additional Consideration”).

In addition to the foregoing, the closing of the Purchase Agreement is contingent upon the satisfaction of the closing conditions set forth in the Purchase Agreement.  The closing of the Purchase Agreement will result in a change of control of Brooklyn Cheesecake & Desserts Company, Inc.

CLOSING OF THE AGREEMENT
 
As described above, on October 17, 2014, the Company entered into the Purchase Agreement which resulted in the Company acquiring the LLC Membership Interests. In exchange, the Company issued to the entities described above, their designees or assigns, the Initial Consideration and the Additional Consideration.

The directors and majority shareholders of the Company have approved the Purchase Agreement and the transactions contemplated under the Purchase Agreement. The directors of Here to Serve and the Here to Serve Shareholders have approved the Purchase Agreement and the transactions contemplated thereunder. Immediately following the above described transactions, the Company changed its business plan to that of Here to Serve.
 
 
14

 
 


 
Exhibit 99.2
 
MERIDIAN WASTE SERVICES, LLC

Financial Statements
 
For the Years Ended December 31, 2013 and 2012
 
 

 
 

 

MERIDIAN WASTE SERVICES, LLC
Table of Contents
For the Years Ended December 31, 2013 and 2012

FINANCIAL STATEMENTS
 
Page
       
 
Report of Independent Registered Public Accounting Firm
 
1
       
 
Balance Sheets
 
2
       
 
Statements of Income
 
4
       
 
Statements of Members' Equity
 
5
       
 
Statements of Cash Flows
 
6
       
 
Notes to Financial Statements
 
7 - 14

 
 
 

 
 
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Stockholder and Board of Directors
Meridian Waste Services, LLC


We have audited the accompanying balance sheets of Meridian Waste Services, LLC as of December 31, 2013 and 2012 and the related statements of operations, changes in members’ equity, and cash flows for each of the two years in the period ended December 31, 2013. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Meridian Waste Services, LLC as of December 31, 2013 and 2012 and the results of their operations and their cash flows for the each of the two years in the period ended December 31, 2013 in conformity with accounting principles generally accepted in the United States of America.
 
/s/ D’Arelli Pruzansky, P.A.
Certified Public Accountants

Boca Raton, Florida
August 7, 2014

 
1

 
 
MERIDIAN WASTE SERVICES, LLC
Balance Sheets
December 31,
 
ASSETS            
   
2013
   
2012
 
             
CURRENT ASSETS
           
Cash
  $ 1,461,372     $ 1,646,556  
Accounts receivable, less allowances for doubtful
    440,569       343,962  
accounts of $42,509 in 2013 and $0 in 2012                
Employee Advances
    2,000       -  
Note receivable - related party
    75,000       202  
Prepaid expenses
    81,128       68,459  
Prepaid insurance
    108,393       48,822  
                 
                 
Total Current Assets     2,168,462       2,108,001  
                 
PROPERTY AND EQUIPMENT
               
Equipment and fixtures
    116,429       69,162  
Furniture and fixtures
    18,351       18,351  
Containers, carts, and roll off
    3,568,631       2,727,517  
Vehicles
    8,887,425       7,686,624  
                 
Total Property and Equipment     12,590,836       10,501,654  
Less:  accumulated depreciation
    7,780,233       6,364,005  
                 
Net Property and Equipment     4,810,603       4,137,649  
                 
OTHER ASSETS
               
Loan to member
    50,000       -  
Deposits
    8,303       8,303  
                 
Total Other Assets     58,303       8,303  
                 
TOTAL ASSETS
  $ 7,037,368     $ 6,253,953  
 
 
2

 
 
MERIDIAN WASTE SERVICES, LLC
Balance Sheets - continued
December 31,
 
LIABILITIES AND MEMBERS' EQUITY
           
             
CURRENT LIABILITIES
           
Accounts payable
  $ 239,739     $ 161,660  
Accrued payroll and payroll tax
    94,620       69,595  
Current portion of long-term liabilities
    1,211,299       1,042,664  
Deferred revenue
    1,910,465       1,744,578  
Deposit
    25,000       -  
Loan from member
    25,000       -  
                 
Total Current Liabilities
    3,506,123       3,018,497  
                 
LONG-TERM LIABILITIES
               
Long-term liabilities, less current maturities
    1,991,508       1,957,365  
                 
Total Liabilities
    5,497,631       4,975,862  
                 
MEMBERS' EQUITY
    1,539,737       1,278,091  
                 
Total Members' Equity
    1,539,737       1,278,091  
                 
TOTAL LIABILITIES AND MEMBERS' EQUITY
  $ 7,037,368     $ 6,253,953  
 
 
3

 
 
MERIDIAN WASTE SERVICES, LLC
Statements of Income
For the Years Ended December 31,
 
   
2013
   
2012
 
   
Amount
   
Amount
 
             
Service revenues
  $ 11,247,773     $ 10,076,570  
Recycling income
    102,099       173,204  
Total Income
    11,349,872       10,249,774  
                 
Cost of Services
    8,380,287       7,521,583  
                 
Gross Profit
    2,969,585       2,728,191  
                 
General and Administrative Expenses
               
Compensation and related expenses
    703,688       612,578  
Rent expense
    249,793       134,778  
Advertising expense
    95,403       116,187  
Depreciation expense
    13,541       10,232  
Other general and administrative expenses
    524,197       437,256  
                 
Total General and Administrative Expenses
    1,586,622       1,311,031  
                 
Income from Operations
    1,382,963       1,417,160  
                 
Other Income (Expense)
               
Miscellaneous income
    6,995       2,605  
Interest income
    -       1,004  
Gain(Loss) on disposal of assets
    (6,250 )     15,134  
Political contributions
    -       (300 )
Loss on bad loans
    (403 )     (110,006 )
Interest expense
    (146,659 )     (159,964 )
                 
Total Other Income (Expense)
    (146,317 )     (251,527 )
                 
NET INCOME
  $ 1,236,646     $ 1,165,633  
 
 
4

 
 
MERIDIAN WASTE SERVICES, LLC
Statements of Changes in Members' Equity
For the Years Ended December 31, 2013 and 2012
 
Members' Equity - December 31, 2011
  $ 1,192,458  
         
Net Income
    1,165,633  
         
Shareholder Distributions
    (1,080,000 )
         
Members' Equity - December 31, 2012
    1,278,091  
         
Net Income
    1,236,646  
         
Shareholder Distributions
    (975,000 )
         
Members' Equity - December 31, 2013
  $ 1,539,737  
 
 
 
5

 
 
MERIDIAN WASTE SERVICES, LLC
Statements of Cash Flows
For the Years Ended December 31
 
   
2013
   
2012
 
             
Cash Flows from Operating Activities
           
Net income
  $ 1,236,646     $ 1,165,633  
Adjustments to reconcile net income to net cash
               
provided by operating activities
               
Allowance for doubtful accounts
    42,509          
Depreciation and amortization
    1,424,979       1,553,121  
Change in assets - (increase) decrease
               
Accounts receivable
    (139,117 )     (73,290 )
Other receivables
    (76,798 )     75,021  
Prepaid insurance
    (59,571 )     6,689  
Prepaid expenses
    (12,669 )     (9,241 )
Loan to member
    (50,000 )        
Letter of credit
    -       50,297  
Deposits
    -       5,000  
Gain/Loss on sale of asset
    6,250       (15,134 )
Change in liabilities - increase (decrease)
               
Accounts payable
    78,077       89,899  
Accrued expenses
    -       (9,203 )
Accrued payroll and payroll taxes
    25,025       17,358  
Deferred revenue
    165,887       (56,854 )
Deposit
    25,000       -  
Total Adjustments
    1,429,572       1,633,663  
                 
Net Cash Provided by Operating Activities
    2,666,218       2,799,296  
                 
Cash Flows from Investing Activities
               
Proceeds from sale of fixed assets
    12,415       53,622  
Purchase of property and equipment
    (705,607 )     (188,219 )
Net Cash Used in Investing Activities
    (693,192 )     (134,597 )
                 
Cash Flows from Financing Activities
               
Member distributions
    (975,000 )     (1,080,000 )
Loan from member
    25,000          
Principal payments on notes
    (1,208,210 )     (1,151,370 )
Net Cash Used in Financing Activities
    (2,158,210 )     (2,231,370 )
                 
Net Increase (Decrease) in Cash
    (185,184 )     433,329  
                 
Cash - Beginning of Year
    1,646,556       1,213,227  
                 
Cash - End of Year
  $ 1,461,372     $ 1,646,556  
 
 
 
6

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NATURE OF OPERATIONS – The Company was organized December 9, 2004 as a Limited Liability Company under the laws of the State of Missouri.  The Company is taxed as an S Corporation.  Meridian Waste Services LLC (the Company) is primarily in the business of residential and commercial waste hauling and has contracts with various cities and municipalities.  The majority of the Company’s customers are located in the St. Louis metropolitan area.

BASIS OF ACCOUNTING - The Company follows accounting principles generally accepted in the United States of America, accordingly it utilizes the accrual method of accounting whereby revenues are recorded when earned and expenses are recorded when incurred.

CONCENTRATIONS OF RISK – The Company maintains its cash balances at one financial institution located in St. Louis, MO.  At various times during the year the account balances exceed the Federally insured limits.  The Company has not experienced any losses on the accounts and management believes it is not exposed to any significant risk on cash.

The Company has significant revenue with two major municipal customers.  These customers accounted for approximately 52.66% and 57.83% of revenue for the years ended December 31, 2013 and 2012, respectively.

   
2013
   
2012
 
             
Customer A
    31.58 %     34.72 %
Customer B
    21.08 %     23.11 %
      52.66 %     57.83 %


CASH AND CASH EQUIVALENTS – For purposes of the statement of cash flows, the Company considers money market funds, certificates of deposit, Treasury bills, and any other short-term debt securities with a maturity of three months or less at the time of purchase to be cash equivalents.

USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

INCOME TAXES – The members elected to have the Company’s income taxed as an “S” Corporation under provisions of the Internal Revenue Code; therefore, taxable income or loss is reported to the individual members for inclusion on their personal tax returns.  No provision for federal and state income taxes is included in these statements.
 
 
7

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

ACCOUNTS RECEIVABLE – Accounts receivable is carried at the original invoice amount.  Customers are billed every three months in advance and payment is due the 15th of the first month of their billing cycle.  If payment is not received, the customer is placed on stop service.  The previous billing cycle is reviewed for stop service accounts.  Uncollected accounts are written off at that time and charged directly against revenue.

Accounts receivable aging at December 31:
 
   
2013
   
2012
 
             
0-30 days
  $ 398,767     $ 308,338  
31-60 days
    19,796       17,813  
61-90 days
    7,836       5,680  
Over 90 days
    56,679       12,131  
Allowance
    (42,509 )     -  
    $ 440,569     $ 343,962  
 
ALLOWANCE FOR DOUBTFUL ACCOUNTS – The Company provides an allowance for doubtful accounts equal to the estimated collection losses that will be incurred in collection of receivables related to commercial project invoices.  The estimated losses are based on managements’ evaluation of outstanding accounts receivable at the end of the year.  Allowance for doubtful accounts was $42,509 and $0 at December 31, 2013 and 2012, respectively.

PREPAID EXPENSES – The Company prepays and amortizes the costs of sponsorship agreements and calendar costs over 12 months.  Software support agreements are amortized over 12 months.  The cost of performance bonds are amortized over 12 months.  Prepaid expenses at December 31, 2013 and 2012 respectively, consisted of the following:
 
   
2013
   
2012
 
             
Advertising
  $ 50,492     $ 34,146  
Software support
    7,240       5,320  
Performance bonds
    23,396       19,184  
Rent
  $ -     $ 9,809  
      81,128         68,459  

 
8

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

PROPERTY AND EQUIPMENT - Property and equipment is stated at cost.  Depreciation is computed using the straight-line method over the following estimated useful lives of the assets.
 
    YEARS
Trucks
 
5 years
Containers and carts   7 years
Leasehold Improvements   7-15 years
Furniture and equipment
 
5-7 years
Office equipment
 
3-7 years
 
Depreciation expense amounted to $1,424,979 and $1,553,121 for the years ended December 31, 2013 and 2012, respectively.

Expenditures for major renewals and betterment that extend the useful lives of property and equipment are capitalized.  Expenditures for maintenance and repairs are charged to expense as incurred.

IMPAIRMENT OF LONG-LIVED ASSETSIn accordance with Accounting Standards Codification 360-10, “Property, Plant and Equipment”, the Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable.  The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset.  The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value.  As of December 31, 2013 and 2012, the Company did not impair any long-lived assets.

FAIR VALUE OF FINANCIAL INSTRUMENTS – The Company adopted ASC topic 820, “Fair Value Measurements and Disclosures” (ASC 820), formerly SFAS No. 157 “Fair Value Measurements,” effective January 1, 2009.  ASC 820 defines “fair value” as the price that would be received for an asset or paid to transfer a liability (and exit price0 in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.  There was no impact relating to the adoption of ASC 820 to the Company’s financial statements.

ASC 820 also describes three levels of inputs that may be used to measure fair value:

Level 1:  Observable inputs that reflect unadjusted quoted prices for identical assets or liabilities traded in active markets.
Level 2:  Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs that are generally unobservable.  These inputs may be used with internally developed methodologies that result in management’s best estimate of fair value.

Financial instruments consist principally of cash, accounts receivable, prepaid expenses, accounts payable, accrued liabilities and other current liabilities.  The carrying amounts of such financial instruments in the accompanying balance sheets approximate their fair values due to their relatively short-term nature.  The fair value of long-term debt
 
 
9

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED

is based on current rates at which the Company could borrow funds with similar remaining maturities.  The carrying amounts approximate fair value.  It is management’s opinion that the Company is not exposed to any significant currency or credit risks arising from these financial instruments.

ADVERTISING - The Company expenses advertising costs as they are incurred except for Sponsorship and calendar costs which is capitalized and amortized over 12 months.  Advertising expense amounted to $95,403 and $116,187 for the years ended December 31, 2013 and 2012, respectively.

REVENUE RECOGNITION Our revenues are generated from the fees we charge for waste collection, transfer, disposal and recycling.  The fees charged for our services are generally defined in our service agreements and vary based on contract-specific terms such as frequency of service, weight, volume and the general market factors influencing a region’s rates. We generally recognize revenue as services are performed.

DEFERRED REVENUE – The Company bills one month in advance for the following three months.   The balance in this account consists of amounts billed in October, November, and December for:
 
   
2013
   
2012
 
             
January
  $ 812,515     $ 735,865  
February
    655,837       610,047  
March
    442,113       398,666  
    $ 1,910,465     $ 1,744,578  

COST OF SERVICES – Costs of services includes expenses that are directly attributable to generating service revenues.  Cost of services at December 31, 2013 and 2012 respectively, consisted of the following:
 
   
2013
   
2012
 
             
Labor costs
  $ 2,772,312     $ 2,514,803  
Landfill costs
    1,541,692       1,228,786  
Depreciation
    1,411,438       1,542,889  
Fuel costs
    1,113,879       1,000,096  
Repairs and maintenance
    1,037,037       870,726  
Vehicle insurance
    164,331       83,281  
Property taxes
    147,046       130,881  
Other direct costs
            150,121  
    $ 8,380,287     $ 7,521,583  
 
 
10

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
 NOTE B - LONG-TERM DEBT

  Long-term debt consists of the following:
 
   
2013
   
2012
 
Notes payable in monthly installments to 1st Source Bank totaling $31,405, including interest at 6%, secured by equipment. Maturing from 2014 to 2016.
  $   761,994     $   1,082,162  
                 
Note Payable to Ford Motor Credit, interest at 5%, monthly payments of $1,165, matures August 2015, secured by vehicle.
         21,405           33,983  
                 
Note Payable to KIA Motors, interest at 4.9%, monthly payments of $401, matures August 2015, secured by a vehicle.
         7,940           12,753  
                 
Notes Payable in monthly installments to TCF Equipment Finance totaling $41,755, including interest ranging from 4.42% to 4.67%, secured by equipment.  Maturing from 2014 to 2017.
    1,157,327       1,080,188  
                 
Notes Payable in monthly installments to Wells Fargo Equipment Finance, Inc. totaling $27,271, including interest ranging from 4.75% to 4.95%, secured by equipment.  Maturing from 2014 to 2017.     733,090       537,587  
                 
Notes Payable in monthly installments to US Bank Equipment Finance totaling $14,490, including interest ranging from 4.25% to 5.25%, secured by equipment.  Maturing from 2016 to 2017.
          521,051             253,356  
                 
TOTAL DEBT     3,202,807       3,000,029  
                 
     Less current maturities     1,211,299       1,042,664  
                 
         TOTAL LONG-TERM DEBT   $ 1,991,508     $ 1,957,365  
 
 
11

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE B - LONG-TERM DEBT – CONTINUED
 
The aggregate principal maturities of long-term debt at December 31, 2013 are as follows:

2014
  $ 1,211,299  
2015
    1,129,965  
2016
    671,948  
2017
    189,595  
Thereafter
     -  
         
      TOTAL DEBT
  $ 3,202,807  
 
NOTE C - RELATED PARTY TRANSACTIONS

 
As of December 31, 2013, the Company had a demand note receivable with an outstanding balance of $75,000 from BRK Holding LLC which is owned by the Company’s members.

 
As of December 31, 2013, the Company had a demand note receivable with an outstanding balance of $50,000 from J. Reich, a member of the Company.

 
In September of 2013, C. Barcom, an officer of the Company, made a loan to the Company of $25,000.  Repayment is due upon demand.

NOTE D - LEASES
 
The Company leases its office and warehouse facilities.  The lease agreement commenced September 1, 2010 and expires August 30, 2017.  Future minimum lease payments at December 31, 2013 are as follows:

2014
  $ 265,915  
2015
    271,915  
2016
    277,915  
2017
    283,915  
Thereafter
    -  
         
TOTAL
  $ 1,099,660  

Rent expense amounted to $249,793 and $134,778 for the years ended December 31, 2013 and 2012, respectively.
 
 
12

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE E - COMPENSATED ABSENCES
 
Employees are entitled to holiday and vacation time throughout the year based on length of service.  Unused vacation time is paid to employees at the end of employment.  Accrued vacation pay at December 31, 2013 and 2012 was deemed immaterial and not accrued.

NOTE F – CASH FLOW INFORMATION

 
Operating activities reflect interest paid of $146,659 and $159,964 during 2013 and 2012, respectively.

 
Noncash investing and financing activity during 2013 and 2012:

   
2013
   
2012
 
Acquisition of equipment
           
    Cost of equipment
  $ 2,058,359     $ 1,815,160  
    Less notes payable
    1,352,752       1,626,941  
                 
     Cash payments for equipment
  $ 705,607     $ 188,219  
 
NOTE G – COMMITMENTS AND CONTINGENCIES

The Company is involved in various claims against the Company, arising in the normal course of business.  Management believes that their insurance coverage will be sufficient to pay potential liabilities, if any.
 
NOTE H – BONDING

In connection with its normal activities, the Company may be required to acquire a Performance bond on contracts with customers.  There were not any performance bonds required for the years ended December 31, 2013 and 2012.
 
 
13

 
 
MERIDIAN WASTE SERVICES, LLC
Notes to Financial Statements
For the Years Ended December 31, 2013 and 2012
 
NOTE I – NEW ACCOUNTING PRONOUNCEMENTS

In February 2013, the Financial Accounting Standards Board issued an Accounting Standards Update to the Comprehensive Income Topic in the Accounting Standards Codifications.  This update requires separate presentation of the components that are reclassified out of accumulated other comprehensive income either on the face of the financial statements or in the notes to the financial statements.  This update also requires companies to disclose the income statement line items impacted by any significant reclassifications, such as the gains and losses on cash flow hedges and defined benefit pension adjustments.  The adoption of the standard did not have an impact on our consolidated financial condition, results of operations or cash flows.

Other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the financial statements upon adoption.
 
NOTE J – SUBSEQUENT EVENTS

 
The Company has evaluated subsequent events through July 16, 2014, the date the financial statements were available to be issued.

 
On May 15, 2014 the Company signed an asset purchase agreement with Here To Serve – Missouri Waste Division, LLC, a Missouri limited liability company.  A down payment has been received in the amount of $25,000 which is recorded as a current liability on the Company’s books.




Exhibit 99.3
 
Here To Serve Holding Corp.
Balance Sheets
 
 
   
September 30,
2013
   
September 30,
2012
 
ASSETS
           
Current Assets
           
Cash
  $ 495     $ 9,615  
Advances To Officers
    -       17,254  
Total Current Assets
    495       26,869  
                 
Property and Equipment, net of accumulated depreciation
               
of $7,090 and $4,389, respectively
    -       2,701  
                 
Other Assets
               
Capitalized Software
    279,608       -  
Purchased Software, net of accumulated
               
amortization of $0 and $19,814, respectively.
    -       2,414  
Total Other Assets
    279,608       2,414  
                 
TOTAL ASSETS
  $ 280,103     $ 31,984  
                 
LIABILITIES & SHAREHOLDERS' DEFICIT
               
Liabilities
               
Current Liabilities
               
Accounts Payable
  $ 442     $ 10,691  
Accrued Salaries
    -       66,300  
Convertible Notes Payable
    578,306       616,767  
Accrued Interest Payable
    166,619       92,988  
Notes due related parties
    550,929       334,262  
Other Current Liabilities
    14,208       2,519  
Total Current Liabilities
    1,310,504       1,123,527  
                 
Shareholders' Deficit
               
Preferred Stock - Par Value $.001,Authorized 2,000,000, Outstanding  2,000,000 and 2,000,000, respectively
    2,000       2,000  
Common Stock - Par Value $0.001, Authorized 400,000,000, Outstanding  25,020,704 and 4,863,495, respectively
    25,021       4,864  
Additional Paid iIn Capital
    2,728,977       2,489,087  
Accumulated Deficit
    (3,786,399 )     (3,587,494 )
Total Shareholder's Deficit
    (1,030,401 )     (1,091,543 )
TOTAL LIABILITIES & SHAREHOLDERS' DEFICIT
  $ 280,103     $ 31,984  
 
See accompanying notes to financial statements.
 
 
1

 
 
Here To Serve Holding Corp.
Statements of Operations
For the Year Ended September 30,
 
Income
 
2013
   
2012
 
Revenue
           
Software sales
  $ 6,128     $ 21,966  
Consulting services
    38,624       69,900  
Other income
    3,267       326  
Total Revenue
    48,019       92,192  
                 
Expense
               
Compensation and Related Expense
    21,139       230,712  
Depreciation and Amortization
    9,571       97,807  
Branch Office Expense
    -       8,096  
Professional Services
    8,330       45,078  
Information Processing Expense
    12,801       37,223  
Marketing Expense
    15,904       18,639  
Bank, Brokerage, and Credit Card Expense
    3,219       6,070  
Impairment Expense
    -       214,440  
Product Development Expense
    50,290       1,781  
Communication Expense
    4,131       4,601  
State & Local Taxes
    1,698       2,435  
Travel & Entertainment
    24       5,395  
Dues and Subscriptions
    316       2,328  
Miscellaneous expenses
    -       2,764  
Bad Debts
    -       34,675  
Total Expenses
    127,423       712,044  
                 
Loss From Operations
    (79,404 )     (619,852 )
                 
Other Expenses
               
Loss on Note Conversions
    -       61,141  
Interest Expense
    119,501       89,794  
Loss on Sale of Marketable Securities
    -       5,703  
      119,501       156,638  
                 
Net Loss before income taxes
  $ (198,905 )   $ (776,490 )
                 
Income tax expense
    -       -  
                 
Net Loss
    (198,905 )     (776,490 )
                 
Basic and Diluted Net Loss Per Share
  $ (0.02 )   $ (0.31 )
                 
Weighted Average Number Of Shares Outstanding (Basic and Diluted)
    11,496,462       2,515,516  
 
See accompanying notes to financial statements.
 
 
2

 
 
Here To Serve Holding Corp.
Statements of Shareholders' Deficit
For The Years Ended September 30, 2013 and 2012
 
   
Common Shares
   
Common Stock, Par
   
Preferred Shares
   
Preferred Stock, Par
   
Additonal Paid in Capital
   
Accumulated Deficit
   
Total
 
                                           
Balance September 30, 2011
    906,724     $ 907       2,000,000     $ 2,000     $ 1,378,337     $ (2,811,004 )   $ (1,429,760 )
Common stock issued in connection with debt conversions
    1,859,271       1,859       -       -       398,697       -       400,556  
Common stock issued to employees and officers
    150,000       150       -       -       119,850       -       120,000  
Common stock issued to vendors for settlement of accounts payable
    20,000       20       -       -       7,680       -       7,700  
Common stock issued for cash
    1,927,500       1,928       -       -       188,573       -       190,501  
Accrued salaries forgiven- former officer
    -       -       -       -       395,950       -       395,950  
Net loss
    -       -       -       -       -       (776,490 )     (776,490 )
Balance September 30, 2012
    4,863,495     $ 4,864       2,000,000     $ 2,000     $ 2,489,087     $ (3,587,494 )   $ (1,091,543 )
                                                         
                                                         
Common stock issued in connection with debt conversions
    1,121,500       1,121       -       -       41,545       -       42,666  
Common stock issued to employees and officers
    13,100,000       13,100       -       -       55,200       -       68,300  
Common stock issued to vendors for settlement of accounts payable
    500,000       500       -       -       9,500       -       10,000  
Common stock issued to acquire software products
    4,285,714       4,286       -       -       92,743       -       97,029  
Common stock issued for cash
    1,150,000       1,150       -       -       16,350       -       17,500  
Accrued expenses forgiven- former officer
    -       -       -       -       24,552       -       24,552  
Fractional shares cancelled due to reverse stock split
    (5 )     -       -       -       -       -       -  
Net loss
    -       -       -       -       -       (198,905 )     (198,905 )
Balance September 30, 2013
    25,020,704     $ 25,021       2,000,000     $ 2,000     $ 2,728,977     $ (3,786,399 )   $ (1,030,401 )
 
See accompanying notes to financial statements.
 
 
3

 
 
Here To Serve Holding Corp.
Statements of Cash Flows
For the Years Ended September 30, 2013 and 2012
 
   
2013
   
2012
 
OPERATING ACTIVITIES
           
Net loss from operations
  $ (198,905 )   $ (776,490 )
Adjustment to reconcile net loss to net cash used in operating activities:
               
Depreciation & Amortization
    9,571       97,807  
Stock issued to vendors for service
    10,000       7,700  
Stock based compensation
    2,000       120,000  
Premium Expense
    41,666       11,846  
Loss on note conversions
    -       61,141  
Impairment Expense
    -       214,440  
Note for services
    -       20,000  
Loss on sale of marketable securities
    -       5,703  
Bad debt expense
    -       34,675  
Changes in working capital items:
               
Accounts payable
    14,053       1,634  
Accounts receivable
    -       (3,175 )
Advances to officers
    17,254       (17,254 )
Other current liabilities
    11,689       1,339  
Accrued interest payable
    73,631       79,244  
Cash flow from operating activities
  $ (19,041 )   $ (141,390 )
                 
INVESTING ACTIVITIES
               
Proceeds from sale of marketable securities
    -       19,297  
Purchased capitalized software
    -       (76,914 )
Purchased equipment
    -       (795 )
Purchased software
    (7,579 )     (44 )
Cash flow from investing activities
  $ (7,579 )   $ (58,456 )
                 
FINANCING ACTIVITIES
               
Proceeds from common stock sold
    17,500       190,501  
Related party loans
    -       -  
Cash Contributed Officer
    -       -  
Cash flow from financing activities
  $ 17,500     $ 190,501  
                 
Net change in cash
    (9,120 )     (9,345 )
Beginning cash
    9,615       18,960  
Ending Cash
  $ 495     $ 9,615  
                 
Supplemental disclosure of cash flow information:
               
Cash paid for income taxes
    -       -  
Cash paid for interest
    -       -  
                 
Supplemental Non-Cash Investing and Financing Information:
               
Common stock issued in connection with debt conversions
    41,544       339,416  
Common stock issued to employees and officers
    66,300       -  
Common stock issued to vendors for settlement of accounts payable
    -       -  
Common stock issued to acquire software products
    97,029       -  
Debt forgiveness former officer.
    24,553       395,950  
 
See accompanying notes to financial statements.
 
 
4

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012
 
NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS
 
Nature of Business
 
Here To Serve Holding Corp. f/k/a F3 Technologies, Inc. (“the Company” or “Here To Serve,”) was incorporated in the State of Delaware on September 22, 1983. In 2013, the Company changed its name to Here To Serve Holding Corp.

Here To Serve is an Atlanta based Software-as-a-Service (SaaS) development company and application service provider that offers innovative on-demand web and mobile solutions to businesses and consumers.
 
Here To Serve Holding Corp. began operations in March 2002.  Until 2009, the Company focused on developing software, implementing its initial marketing strategy, and building customer relationships. In 2009, the Company transitioned to a “public business entity” when its stock began trading on the OTC Market exchange under the symbol FTCH, and took initial steps to raise adequate capital to complete its business plan. Over the next several years, the Company completed a number of successful software development contracts but failed to finalize development of its own primary priority products. As a result, revenue declined and capital market confidence in the Company diminished. On September 05, 2013,  the CEO and  Secretary of Here To Serve Holding Corp. was replaced.
 
Effective April 30, 2013 the Company affected a 1 for 200 reverse stock split, reducing the number of issued and outstanding common shares from 1,546,999,105 to approximately 7,734,984. The effect of this reverse stock split have been applied retroactively for all periods presented.
 
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Accounting Basis
 
The Company uses the accrual basis of accounting and accounting principles generally accepted in the United States of America (“GAAP” accounting). The Company has adopted a September 30 fiscal year end.
  
Cash and Cash Equivalents
 
Here To Serve considers all highly liquid investments with maturities of three months or less to be cash equivalents.  At September 30, 2013 and September 30, 2012, the Company had $495 and $9,615 of cash, respectively.

Fair Value of Financial Instruments
 
The Company’s financial instruments consist of cash, accounts payable, other liabilities, accrued interest, notes payable, and an amount due to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

Income taxes
 
The Company accounts for income taxes pursuant to the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires, among other things, an asset and liability approach to calculating deferred income taxes. The asset and liability approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities
 
 
5

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

A valuation allowance is provided to offset any net deferred tax assets for which management believes it is more likely than not that the net deferred asset will not be realized.
 
The Company follows the provisions of the ASC 740 -10 related to, Accounting for Uncertain Income Tax Positions. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for uncertain tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company believes its tax positions will be highly certain of being upheld upon examination. As such, the Company has not recorded a liability for uncertain tax benefits.
 
The Company has adopted ASC 740-10-25 Definition of Settlement, which provides guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits and provides that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished. For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open. Management has not yet determined for which tax years the Company may have unfiled tax returns. Therefore, as of September 30, 2013, all tax years ending September 30, 2012 and prior may be subject to audit.

Use of Estimates
 
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period.  Actual results could differ from those estimates. Significant estimates in 2013 and 2012 include stock-based compensation, and the useful lives and valuation of property and equipment and intangible assets.
 
Accounts Receivable
 
The Company had no accounts receivable, at September 30, 2013 and 2012.

Intangible Assets
 
Intangible assets consist of assets acquired and costs incurred in connection with the development of the Company’s capitalized software.

Revenue Recognition
 
The Company recognizes revenue when there is persuasive evidence that an arrangement exists, the revenue is fixed or determinable, the products are fully delivered or services have been provided and collection is reasonably assured
 
 
6

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
 
Impairment of long-lived assets
 
The Company periodically reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be fully recoverable. The Company recognizes an impairment loss when the sum of expected undiscounted future cash flows is less than the carrying amount of the asset. The amount of impairment is measured as the difference between the asset’s estimated fair value and its book value. The Company charges $214,440 to impairment expense in the year ended September 30, 2012.

Concentration of Credit Risks
 
The Company maintains its cash and cash equivalents in bank deposit accounts, which could, at times, exceed federally insured limits.  The Company has not had balances exceeding such limits and has not experienced any losses in such accounts; however, amounts in excess of the federally insured limit may be at risk if the bank experiences financial difficulties. The Company reviews the credit worthiness of its banks on a periodic basis.
 
Basic Income (Loss) Per Share
 
Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. At September 30, 2013 the Company had a series of convertible notes outstanding that could be converted into approximately 39,170,000 common shares. These are not included in the diluted shares outstanding since the company incurred a loss and the effect of these shares would be anti-dilutive.

Stock-Based Compensation
 
Stock-based compensation to employees is accounted for at fair value in accordance with ASC Topic 718. Compensation for share-based payments to employees is based on their grant date fair value from the beginning of the fiscal period in which the recognition provisions are first applied. In December 2012 the Company issued 150,000 shares of common stock to employees as incentive compensation. To date, the Company has not adopted a stock option plan and has not granted any stock options.
 
Non-employee Stock-based Compensation

The cost of stock based compensation awards issued to non-employees for services are recorded at either fair value of the services rendered or the instrument issued in exchange for such services, whichever is more readily determinable, based on their grant-date fair value from the beginning of the fiscal period in which the recognition provisions are first applied.
 
Recent Accounting Pronouncements
 
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.
 
 
7

 

HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 3 – PROPERTY AND EQUIPMENT
 
Property and equipment is recorded at cost. The Company has depreciated the equipment using the straight-line method over the useful lives of the equipment. The useful lives are estimated to be between 3 and 7 years.
 
At September 30, 2012 equipment consisted of:

   
2013
   
2012
 
Equipment
  $ 7,090     $ 7,090  
                 
Total Equipment
    7,090       7,090  
Less: Accumulated Depreciation
  $ (7,090 )   $ (4,389 )
Equipment, net
  $ -     $ 2,701  
                 
                 
Purchased Software
  $ 22,228     $ 22,228  
                 
Total Purchased Software
    22,228       22,228  
Less: Accumulated Amortization
  $ (22,228 )   $ (19,814 )
Purchased Software, net
  $ -     $ 2,414  
 
NOTE 4 – NOTES RECEIVABLE

In June and August of 2010 the Company received two convertible notes receivable, totaling $62,000, from Tivus Inc., a public company, to formalize the amount due to the Company for work completed on Tivus’s website. In August 2011, November 2011, and June 2012 the Company converted $37,000 of the notes to common stock of Tivus and sold the stock at a loss of $16,568 on these transactions, of which $5,703 was recorded as of September 30, 2012. The remaining $25,000 was deemed uncollectible and could not be converted to common stock of Tivus. The Company recorded a charge to bad debt expense for $25,000 on September 30, 2012.NOTE 5 – CAPITALIZED SOFTWARE

The Company acquired a software product in September 2013, from Covi Point, LLC, a company owned by our CEO. This asset will be amortized over a three to five year period using a straight-line method of depreciation for book purposes once placed in service. The asset was purchased, for approximately $272,000, by the issuance of convertible notes in the amount of $175,000 and the issuance of 4,285,714 common shares of the Company to the shareholders of Covi.

The value of the assets of Covi were determined using the sellers original cost basis, which approximated the fair value of the consideration paid due to the related party nature of the transaction. The acquisition was accounted for as an asset purchase.
 
NOTE 6 – NOTE PAYABLE

Previously, beginning January 8, 2008 the Company issued a series of one year convertible promissory notes to finance operations. The notes were issued to a related party, generally earned interest at 8%, and could be
 
 
8

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 6 – NOTE PAYABLE (CONTINUED)

convertible into common stock of the Company at a discount 35% of the lowest average trading prices for the stock during periods five to three days prior to the conversion date.  A number of these notes were converted into stock.  The notes included a default interest rate of 12% if not paid at maturity or converted to common stock. All but four of the notes went to default. Total outstanding on these notes was $375,900 and $400,900 as of September 30, 2013 and 2012 respectively. Due to the conversion feature included in the notes, the Company has recorded a premium expense on the notes totaling $202,406 and $215,867 as of September 30, 2013 and 2012 respectively. These amounts have been included in interest expense by the Company at the time the notes were recorded.

The Company also issued three notes to related parties between June 2010 and April 2012. Two of these notes were issued to employees for services and totaled $220,000 with a premium of $118,461, which has also been included in interest expense by the Company at the time the notes were recorded. The third note, in the amount of $25,000, was issued for cash. This note had a premium of $37,500 which has been included in interest expense by the Company at the time the note was issued. The Company issued three promissory notes during the twelve month period ended September 30, 2013 to related parties as part of the acquisition of the Covi Point software product and notes. These notes totaled $175,000 and are generally convertible into common stock of the Company at discounts of 10 % to 20% of the lowest average trading prices for the stock during periods five to one day prior to the conversion date. These notes bears interest at 6% to 8%, are unsecured, and matures (including premium payable), within one year of the date issued. The Company recorded a premium expense on these notes totaling $41,667 at the time the notes were issued. This amount has been included in interest expense by the Company. Total outstanding on these notes was $579,166 and $362,499 as of September 30, 2013 and 2012 respectively.
 
NOTE 7 – STOCKHOLDERS’ EQUITY
 
The Company has 400,000,000 shares of common stock authorized with a par value of $0.001 and 2,000,000 shares of Preferred stock with a par value of $0.001. Effective April 30, 2013 the Company effected a 1 for 200 reverse stock split. There were 25,020,704 common shares outstanding and 2,000,000 Preferred shares outstanding at September 30, 2013.

During the year ended September 30, 2012, the Company issued a total of 3,956,771 shares of common stock.

The Company issued 1,859,271 shares of common stock in connection with various debt conversions throughout the year. The notes payable were to be converted at a 35% discount to the average bid price on the three days prior to the date of conversion. The conversions prices ranged from $0.02 to $3.86.  The conversions were not done at the agreed conversions terms resulting in an additional net loss of $61,141 for the year ended September 30, 2012, which has been recorded as other expenses.

The Company issued 150,000 shares of common stock to employees and officers, of which 25,000 shares were issued at $0.40 per share, the fair market value, and 125,000 shares at $0.88 per share, the fair market value, based on the current quoted trading price. The total amount recorded as compensation expense was $120,000.

The Company issued 20,000 shares of common stock, of which 5,000 shares were issues at $0.16 per share, the fair market value, and 15,000 shares at $0.46, the fair market value.

The Company sold 1,927,500 shares of common stock for cash, at prices ranging from $0.04 to $0.28 per share.

The Company eliminated $395,950 of accrued salaries payable to the former CEO in accordance with his debt settlement agreement. This was recorded against additional paid in capital.
 
 
9

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 7 – STOCKHOLDERS’ EQUITY (CONTINUED)

During the year ended September 30, 2013, the Company issued a total of  20,157,214 shares of common stock.

The Company issued 1,121,500 shares of common stock in connection with various debt conversions throughout the year. The notes payable were to be converted at a 35% discount to the average bid price on the three days prior to the date of conversion. The conversions price was $0.038.

The Company issued 13,000,000 shares of common stock to the former CEO, in exchange for settlement of accrued salaries. The shares were issued $0.0051 which is the fair market value at time of issuance.

The Company issued 100,000 shares of common stock to an employee, at $0.02 per share, the fair market value at the time of issuance.

The Company issued 500,000 shares of common stock to a vendor for settlement of accounts payable, at $0.02 per share, the fair market at the time of issuance.

The Company issued 4,285,714 shares of common stock as part of the acquisition of software products from Covi Point, LLC. See note 5. The shares were issued $0.0226, the fair market value at time of issuance

The Company sold 1,150,000 shares of common stock for cash, at $0.015 per share.

The Company mitigated $24,552 of expenses payable to the former CEO in accordance with his debt settlement agreement. This was recorded against additional paid in capital.
 
NOTE 8 – COMMITMENTS AND CONTINGENCIES
 
The Company has no leased office space at the present time. Management shares an office with Machiavelli Ltd.
LLC, a related party, in Alpharetta, Georgia and currently is not obligated to pay rent.

NOTE 9 – GOING CONCERN

As reflected in the accompanying financial statements, the Company had an accumulated deficit of $3,786,399 and a working capital deficit of $1,310,009 at September 30, 2013, net loss for the year ended September 30, 2013 of $198,905 and cash used in operations of $19,041. While the Company is attempting to increase sales, the growth has yet to achieve significant levels to fully support its daily operations. Management’s plans with regards to this going concern are as follows:

While the Company believes in the viability of its strategy to improve sales volume and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent on the Company’s ability to further implement its business plan and generate greater revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. Management believes that the actions presently taken to further implement its business plan and general additional revenues provide the opportunity for the Company to continue as a going concern. The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern.  However, the Company had limited revenues as of September 30, 2013 but was able to raise additional working capital in October 2013. See subsequent events.
 
 
10

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 10 - INCOME TAXES
 
The Company is not current in its tax filings as of September 30, 2013. Management estimates that the Company has net operating loss carry forwards for federal income tax purposes of approximately $2.1 million at September 30, 2013, the unused portion of which, if any, expires in year 2033. The Company accounts for income taxes under Accounting Standards Codification 740, Income Taxes “ASC 740”. ASC 740 requires the recognition of deferred tax assets and liabilities for both the expected impact of differences between the financial statements and the tax basis of assets and liabilities, and for the expected future tax benefit to be derived from tax losses and tax credit carry forwards. ASC 740 additionally requires the establishment of a valuation allowance to reflect the likelihood of realization of deferred tax assets.  Internal Revenue Code Section 382 “IRC 382” places a limitation on the amount of taxable income that can be offset by carry forwards after a change in control (generally greater than a 50% change in ownership).  

The table below summarizes the difference between the Company’s effective tax rate and the statutory federal rate as follows for the periods ended September 30, 2013 and 2012:

   
2013
   
2012
 
             
Computed "expected" expense (benefit)
    (35 ) %     (35 ) %
State tax expense (benefit), net of federal effect
    (5 ) %     (5 ) %
Stock based compensation
    2 %     6 %
Convertible note premium and losses
    7 %     4 %
Increase in valuation allowance
    31 %     30 %
 
Deferred tax assets and liabilities are provided for significant income and expense items recognized in different years for tax and financial reporting purposes. The components of the net deferred tax assets for the years ended September 30, 2013 and 2012 were as follows:

Deferred tax assets:
 
2013
   
2012
 
             
Net operating loss carry forward
    848,000       790,000  
Total deferred tax asset
    848,000       790,000  
Less: valuation allowance
    (848,000 )     (790,000 )
Net deferred tax asset
    -       -  
 
The Company has fully reserved the deferred tax asset due to substantial uncertainty of the realization of any tax assets in future periods. The valuation allowance was increased by $58,000 from the prior year.
 
 
11

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 11 – FAIR VALUE MEASUREMENT
 
The Company has adopted new guidance under ASC Topic 820, effective January 1, 2009. New authoritative accounting guidance (ASC Topic 820-10-15) under ASC Topic 820, Fair Value Measurement and Disclosures, delayed the effective date of ASC Topic 820-10 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis, until 2009.
 
ASC Topic 820 establishes a fair value hierarchy, giving the highest priority to quoted prices in active markets and the lowest priority to unobservable data and requires disclosures for assets and liabilities measured at fair value based on their level in the hierarchy. Further new authoritative accounting guidance (ASU No. 2009-05) under ASC
Topic 820 provides clarification that in circumstances in which a quoted price in an active market for the identical liabilities is not available, a reporting entity is required to measure fair value using one or more of the techniques provided for in this update.

The standard describes a fair value hierarchy based on three levels of input, of which the first two are considered observable and the last unobservable, that may be used to measure fair value, which are the following:

Level 1 – Quoted prices in active markets for identical assets and liabilities.

Level 2 – Input other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets of liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability. There were no fair value transactions at September 30, 2013 and 2012. NOTE 12 – IMPAIRMENT OF ASSETS

During the twelve months ended September 30, 2012 the Company reviewed the status of internally developed software. Management concluded that the completion of the development program would be too expensive for the Company to absorb and that the projected final product may not be of competitive when compared to similar products developed by other companies.  Accordingly, it was decided to terminate the project and expense the unamortized capitalized software of $214,440. The amount was charged against earnings for the twelve months ended September 30, 2012.

NOTE 13 – RELATED PARTY TRANSACTIONS

On September 10, 2012 the Company eliminated $395,950 of accrued salaries owed the former CEO.

In December 2012, the Company issued 125,000 shares of common stock to the former CEO as compensation.

The Company issued three notes to related parties between June 2010 and April 2012. Two of these notes were issued to employees for services and totaled $220,000 with a premium of $118,461, which has also been deducted as interest expense by the Company at the time the notes were recorded. The third note, in the amount of $25,000, was issued for cash. This note had a premium of $37,500 which has been deducted as interest expense by the Company at the time the note was issued. Total outstanding on these notes was $579,166 and $362,499 as of September 30, 2013 and 2012 respectively.
 
 
12

 
 
HERE TO SERVE HOLDING CORP.
NOTES TO THE FINANCIAL STATEMENTS
SEPTEMBER 30, 2013 AND 2012

NOTE 13 – RELATED PARTY TRANSACTIONS (CONTINUED)
 
On September 5, 2013 the Company replaced its CEO and Secretary. In the transaction the Company eliminated $24,553 of accrued expenses owed to the former CEO.

In June 2013 the former CEO of the Company, issued 13,000,000 shares of common stock to himself. This stock was subsequently transferred to Jeffrey Cosman upon his assumption as Chief Executive Officer of the Company. To date, the Company has not adopted a stock option plan and has not granted any stock options.

NOTE 14 – SUBSEQUENT EVENTS

On October 2, 2013 the Company issued a convertible note to a related party for $20,000. The note bears interest at 8%, is convertible into common stock of the Company, at a 25% discount to the three days average bid price on the three days prior to the date of conversion and matures within a year.

On October 29, 2013 the Company issued a convertible note to a related party for $100,000. The note bears interest at 10%, is convertible into common stock of the Company, at a 25% discount to the three days average bid price on the three days prior to the date of conversion and matures within a year.
 
On November 5, 2013 the Company changed the name to Here To Serve Holding Corp. Here To Serve is a Waste Management Company and Software as a Service (SaaS) platform provider that creates mobile and cloud based platforms and applications for industries ranging from law enforcement and municipalities to entertainment and B2B enterprises. Its products includes; Interactive Defense SystemTM, for law enforcement and other municipal departments; cConnectsTM, for efficient communication and fleet/asset management using mobile and web based portals; and FargoTubeTM (http://www.fargotube.com), a scalable and mobile platform for online distribution and social networking of entertainment professionals and their content. 
 
In accordance with ASC 855-10, the Company has analyzed its operations subsequent to September 30, 2013 through the date these financial statements were issued and has determined that it does not have any material subsequent events to disclose in these financial statements other than the events described above.
 
13

 


Exhibit 99.4
 
Brooklyn Cheesecake & Desserts Company, Inc.
 
Introduction to Unaudited Pro Forma Combined Financial Information
 
The following unaudited pro forma combined financial information is presented to estimate effects of our purchase of the LLC’s owned by Here to Serve Holding Corp.

On October 17, 2014 Brooklyn Cheesecake & Desserts Company, Inc. (the “Company”) entered into a membership interest purchase agreement with Here to Serve Holding Corp. (“HTSHC”) a Delaware Corporation and the shareholders of HTSHC, whereby the Company agreed to issue 9,054,134 shares of the Company for the interest in the following LLC’s:  Here to Serve – Missouri Waste Division, LLC, Here to Serve Technology Division, LLC and Here to Serve – Georgia Waste Division (“LLC’s”).  At closing, the Company issued 9,054,134 shares of the Company’s common stock to the HTSHC shareholders who obtained 89% voting control and management control of the Company.  The financial statements of the Company and the consolidated financial statements of the LLC’s after the acquisition will include the balance sheets at historical cost, the historical results of the Company and the LLC’s and the results of the Company from the acquisition date.

Upon closing of the transaction, the Company’s officers and directors resigned and a new board of directors and new officer were appointed which consist of Jeff S. Cosman and Rachel M. Cosman.  Following the closing, Mr. Cosman was also appointed as Chief Executive Officer and Chairman of the board of the Company and Mrs. Cosman was appointed as Secretary of the Company.

The unaudited pro forma combined financial information assumes the Membership Interest Purchase Agreement was consummated as of January 1, 2013.  The financial statements of the Company included in the following unaudited pro forma combined financial information are derived from the audited financial statements of the Company for the year ending December 31, 2013 and the unaudited financial statements of the LLC’s for the same period.  The pro forma combined financial information for the nine months ending September 30, 2014 are derived from unaudited financial statements of the Company and the LLC's for the nine months ending September 30, 2014.

The information presented in the unaudited pro forma combined financial information does not purport to represent what our financial position would have been had the membership interest purchase agreement occurred as of the dates indicated, nor is it indicative of our financial position for any period.  You should not rely on this information as being indicative of the historical results that would have been achieved had the companies always been consolidated or the future results that the consolidated company will experience after the Membership Interest Purchase Agreement Transaction.

The pro forma adjustments are based upon available information and certain assumptions that the Company believes is reasonable under the circumstances.  The unaudited pro forma combined financial information should be read in conjunction with the historical financial statements and related notes of the Company.
 
 
1

 
 
Brooklyn Cheesecake & Desserts Company, Inc.
Unaudited Pro Forma Adjustments to Combined Financial Statements
31-Dec-13
 
(a) to record impact of merger with Meridian Waste Services, LLC
 
   
Debit
   
Credit
 
             
Employee advance
  $ -     $ 2,000  
Property & equipment, net
            4,810,603  
Property & equipment, net
    7,420,348          
Intangible assets, net
    14,233,065          
Deposits
            38,300  
Notes payable related party
            1,475,000  
Other current liabilities
    25,000          
Other current liabilities
            70,325  
Current portion - long term debt
    1,211,299          
Current portion - long term debt
            1,225,000  
Notes payable
    1,225,000          
Notes payable
    1,991,508          
Notes payable
            9,500,000  
Series B convertible preferred stock
            71  
Common stock
            13,192  
Additional paid in capital
    1,539,737          
Additional paid in capital
            9,086,487  
Cost of sales/services - depreciation
            1,411,438  
Depreciation & amortization
            13,541  
Depreciation & amortization
    2,801,490          
Depreciation & amortization
    16,871          
Depreciation & amortization
    30,000          
Intangible assets, net
            2,848,361  
Depreciation & amortization
    12,476          
Cost of sales/services - depreciation
    1,300,408          
Property & equipment, net
            1,312,884  
                 
    $ 31,807,202     $ 31,807,202  
                 
                 
(b) to record impact of merger with Brooklyn Cheescake & Desserts Company, Inc.
 
                 
Cash
  $ -     $ 1,078  
Accounts receivable, related party
            47,725  
Intangible assets, net
            19,125  
Accounts payable & accrued expenses
    24,340          
Notes payable - related party
    94,744          
Accumulated earnings (deficit)
            40,873  
Licensing fee - related party
    13,375          
Sales, general & administrative expense
      23,658  
Treasury stock
    300,000          
Cash
            150,000  
Notes payable - related party
            150,000  
                 
    $ 432,459     $ 432,459  
 
 
2

 
 
                     
Pro Forma Adjustments
     
   
HTSHC
   
MWD
   
BCKE
   
Debit
   
Credit
   
Pro Forma
 
Current Assets:
                                   
Cash
  $ 9,760     $ 1,461,372     $ 1,078     $ -     $ 151,078     $ 1,321,132  
Accounts receivable, trade
            440,569                               440,569  
Accounts receivable, related party
      125,000       47,725               47,725       125,000  
Employee advance
            2,000                       2,000       -  
Prepaid expenses
            189,521                               189,521  
Total current assets
    9,760       2,218,462       48,803       -       200,803       2,076,222  
                                                 
Other Assets:
                                               
Property & equipment, net
    957       4,810,603               7,420,348       6,123,487       6,108,421  
Capitalized software
    298,287                                       298,287  
Intangible assets, net
                    19,125       14,233,065       2,867,486       11,384,704  
Deposits
    38,300       8,303                       38,300       8,303  
                                                 
Total assets
  $ 347,304     $ 7,037,368     $ 67,928     $ 21,653,413     $ 9,230,076     $ 19,875,937  
                                                 
                                                 
Current Liabilities:
                                               
Accounts payable & accrued expenses
  $ 204,749     $ 334,359     $ 24,340     $ 24,340     $ -     $ 539,108  
Notes payable - related party
    569,262       25,000       94,744       94,744       1,625,000       2,219,262  
Convertible notes payable
    489,074                                       489,074  
Deferred revenue
            1,910,465                               1,910,465  
Deferred compensation
    243,000                                       243,000  
Other current liabilities
            25,000               25,000       70,325       70,325  
Current portion - long term debt
            1,211,299               1,211,299       1,225,000       1,225,000  
Total current liabilities
    1,506,085       3,506,123       119,084       1,355,383       2,920,325       6,696,234  
                                                 
Long-Term Liabilities:
                                               
Notes payable
            1,991,508               3,216,508       9,500,000       8,275,000  
                                                 
Total liabilities
  $ 1,506,085     $ 5,497,631     $ 119,084     $ 4,571,891     $ 12,420,325     $ 14,971,234  
                                                 
Stockholders' Equity (Deficit):
                                               
Series A convertible preferred stock
                                         
($.001 parvalue; 2,000,000 shares authorized;
                                 
 2,000,000 shares issued & outstanding)
  $ 2,000     $ -     $ -     $ -     $ -     $ 2,000  
Series B convertible preferred stock
                                         
($.001 parvalue; 71,210 shares authorized;
                                         
71,208 shares issued & outstanding)
                              71       71  
Common stock
                                               
($.001 parvalue; 400,000,000 shares authorized;
                                 
 57,699,917 shares issued & outstanding)
    36,457               28,482               13,192       78,131  
Treasury stock
                            300,000               (300,000 )
Additional paid in capital
    4,217,282       1,539,737       13,585,672       1,539,737       9,086,487       26,889,441  
Accumulated earnings (deficit)
    (5,414,520 )             (13,665,310 )     4,174,620       1,489,510       (21,764,940 )
Total shareholders' equity (deficit)
    (1,158,781 )     1,539,737       (51,156 )     6,014,357       10,589,260       4,904,703  
                                                 
Total Liabilities & Stockholders Equity (Deficit)
  $ 347,304     $ 7,037,368     $ 67,928     $ 10,586,248     $ 23,009,585     $ 19,875,937  
 
 
3

 
 
                     
Pro Forma Adjustments
     
   
HTSHC
   
MWD
   
BCKE
   
Debit
   
Credit
   
Pro Forma
 
                                     
Revenue:
                                   
Sales
  $ 406     $ -     $ -     $ -     $ -     $ 406  
Services
            11,349,872                               11,349,872  
Licensing fee - related party
                    13,375       13,375               -  
Total revenue
    406       11,349,872       13,375       13,375       -       11,350,278  
                                                 
Cost of Sales/Services
                                            -  
Cost of Sales/Services
            6,968,849                               6,968,849  
Depreciation
            1,411,438               1,300,408       1,411,438       1,300,408  
Total cost of sales/services
    -       8,380,287       -       1,300,408       1,411,438       8,269,257  
                                                 
Gross profit
    406       2,969,585       13,375       1,313,783       1,411,438       3,081,021  
                                                 
Operating expenses:
                                               
Sales, general & adminstrative expense
    1,554,647       1,573,484       23,658               23,658       3,128,131  
Depreciation & amortization
    136       13,541               2,860,837       13,541       2,860,973  
Total operating expenses
    1,554,783       1,587,025       23,658       2,860,837       37,199       5,989,104  
                                                 
Income (Loss) from Operations
    (1,554,377 )     1,382,560       (10,283 )     4,174,620       1,448,637       (2,908,083 )
                                                 
Other Income (Expense):
                                               
Miscellaneous income
            6,995                               6,995  
Gain (loss) on disposal of assets
    -       (6,250 )                             (6,250 )
Gain (loss) on note conversion
    (23,913 )                                     (23,913 )
Interest (expense)
    (59,831 )     (146,659 )                             (206,490 )
Total other income (expense)
    (83,744 )     (145,914 )     -       -       -       (229,658 )
                                                 
Net Income (Loss)
  $ (1,638,121 )   $ 1,236,646     $ (10,283 )   $ 4,174,620     $ 1,448,637     $ (3,137,741 )
 
 
4

 
 
depreciation:
                 
actual, 2 months ending 06/30/2014
    218,814              
12 months
            1,312,884        
admin
                    12,476  
cos
                    1,300,408  
                         
amortization:
                       
customer list - 5 years
    14,007,452       2,801,490          
finance charges - 3 years
    50,613       16,871          
non-compete - 5 years
    150,000       30,000       2,848,361  
                         
              4,161,245          
 
 
 
5

 
 
Brooklyn Cheesecake & Desserts Company, Inc.
Unaudited Pro Forma Adjustments to Combined Financial Statements
9/30/2014
 
(a) to record impact of merger with Meridian Waste Services, LLC
 
   
Debit
   
Credit
 
             
Depreciation & amortization
  $ -     $ 17,028  
Cost of sales/services - depreciation
          $ 486,972  
Depreciation & amortization
    1,400,745          
Depreciation & amortization
    8,436          
Depreciation & amortization
    15,000          
Intangible assets, net
            1,424,181  
Depreciation & amortization
    21,390          
Cost of sales/services - depreciation
    635,052          
Property & equipment, net
            152,442  
                 
    $ 2,080,623     $ 2,080,623  
                 
                 
(b) to record impact of merger with Brooklyn Cheescake & Desserts Company, Inc.
 
                 
Cash
  $ -     $ 1,078  
Accounts receivable, related party
            54,403  
Intangible assets, net
            16,125  
Accounts payable & accrued expenses
    21,464          
Notes payable - related party
    105,105          
Accumulated earnings (deficit)
            51,156  
Licensing fee - related party
    6,678          
Sales, general & administrative expense
            10,485  
                 
    $ 133,247     $ 133,247  
 
 
 
6

 
 
                     
Pro Forma Adjustments
       
   
HTSHC
   
MWD
   
BCKE
   
Debit
   
Credit
   
Pro Forma
 
Current Assets:
                                   
Cash
  $ 384,166           $ 1,078     $ -     $ 1,078     $ 384,166  
Accounts receivable, trade
    689,716                                     689,716  
Accounts receivable, related party
                  54,403               54,403       -  
Employee advance
    580                                     580  
Prepaid expenses
    198,715                                     198,715  
Total current assets
    1,273,177       -       55,481       -       55,481       1,273,177  
                                                 
Other Assets:
                                               
Property & equipment, net
    7,583,214                               152,442       7,430,772  
Capitalized software
    388,681                                       388,681  
Intangible assets, net
    13,021,247               16,125               1,440,306       11,597,066  
Deposits
    8,303                                       8,303  
                                                 
Total assets
  $ 22,274,622     $ -     $ 71,606     $ -     $ 1,648,229     $ 20,697,999  
                                                 
                                                 
Current Liabilities:
                                               
Accounts payable & accrued expenses
  $ 612,685     $ -     $ 21,464     $ 21,464     $ -     $ 612,685  
Notes payable - related party
    276,250               105,105       105,105               276,250  
Convertible notes payable
    568,146                                       568,146  
Deferred revenue
    1,993,062                                       1,993,062  
Other current liabilities
    1,639,555                                       1,639,555  
Current portion - long term debt
    1,195,333                                       1,195,333  
Total current liabilities
    6,285,031       -       126,569       126,569       -       6,285,031  
                                                 
Long-Term Liabilities:
                                               
Notes payable
    9,352,211                                       9,352,211  
                                                 
Total liabilities
  $ 15,637,242     $ -     $ 126,569     $ 126,569     $ -     $ 15,637,242  
                                                 
Stockholders' Equity (Deficit):
                                               
Series A convertible preferred stock
                                         
($.001 parvalue; 2,000,000 shares authorized;
                                         
 2,000,000 shares issued & outstanding)
  $ 2,000     $ -     $ -     $ -     $ -     $ 2,000  
Series B convertible preferred stock
                                         
($.001 parvalue; 71,210 shares authorized;
                                         
 71,210 shares issued & outstanding)
    71                                       71  
Common stock
                                               
($.001 parvalue; 400,000,000 shares authorized;
                                 
 57,699,917 shares issued & outstanding)
    57,700               28,482                       86,182  
Additional paid in capital
    14,209,518               13,585,672                       27,795,190  
Accumulated earnings (deficit)
    (7,631,909 )             (13,669,117 )     2,087,301       565,641       (22,822,686 )
Total shareholders' equity (deficit)
    6,637,380       -       (54,963 )     2,087,301       565,641       5,060,757  
                                                 
Total Liabilities & Stockholders Equity (Deficit)
  $ 22,274,622     $ -     $ 71,606     $ 2,213,870     $ 565,641     $ 20,697,999  
 
 
7

 
 
                     
Pro Forma Adjustments
       
   
HTSHC
   
MWD
   
BCKE
   
Debit
   
Credit
   
Pro Forma
 
                                     
Revenue:
                                   
Sales
  $ 1,784                       $ -     $ 1,784  
Services
    4,827,855       4,251,674                           9,079,529  
Licensing fee - related party
                    6,678       6,678               -  
Total revenue
    4,829,639       4,251,674       6,678       6,678       -       9,081,313  
                                                 
Cost of Sales/Services
                                               
Cost of Sales/Services
    3,153,111       2,524,064                               5,677,175  
Depreciation
    561,259       486,972               635,052       486,972       1,196,311  
Total cost of sales/services
    3,714,370       3,011,036       -       635,052       486,972       6,873,486  
                                                 
Gross profit
    1,115,269       1,240,638       6,678       641,730       486,972       2,207,827  
                                                 
Operating expenses:
                                               
Sales, general & adminstrative expense
    1,581,570       690,383       10,485               10,485       2,271,953  
Depreciation & amortization
    1,205,982       17,028               1,445,571       17,028       2,651,553  
Total operating expenses
    2,787,552       707,411       10,485       1,445,571       27,513       4,923,506  
                                                 
Income (Loss) from Operations
    (1,672,283 )     533,227       (3,807 )     2,087,301       514,485       (2,715,679 )
                                                 
Other Income (Expense):
                                               
Interest expense
    (182,420 )     (183,205 )                             (365,625 )
Total other income (expense)
    (182,420 )     (183,205 )     -       -       -       (365,625 )
                                                 
Net Income (Loss)
  $ (1,854,703 )   $ 350,022     $ (3,807 )   $ 2,087,301     $ 514,485     $ (3,081,304 )
 
 
8

 
 
depreciation:
                       
actual, 2 months ending 06/30/2014
    218,814                    
6 months
            656,442              
admin
                    21390        
cos
                    635,052        
                               
amortization:
                             
customer list - 5 years
    14,007,452       1,400,745               466915.1  
finance charges - 3 years
    50,613       8,436               2811.833  
non-compete - 5 years
    150,000       15,000               5000  
                                 
              2,080,623               474726.9  
 
9

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