EX-99.2 3 ex99_2.txt Exhibit 99.2 UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
September 30, 2003 --------------------------------------------------------- Historical ------------------------- First Mogel Deltavision, Management Pro Forma Pro Forma Inc. Group, Inc. Adjustments Combined --------------------------------------- --------- ASSETS Current assets Cash and cash equivalents $ -- $ -- $ -- $ -- -------------------------------------- --------- Total current assets -- -- -- -- Due from affilate -- -- -- -- Deposit -- -- -- -- Goodwill -- -- 46,040(a) 46,040 Net assets of Mogel Management Group, Inc. -- -- 13,960(a) 13,960 -------------------------------------- --------- Total assets $ -- $ -- $ 60,000 $ 60,000 ====================================== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 1,200 $ -- $ -- $ 1,200 Accounts payable - related party 67,087 -- -- 67,087 Due to officers 42,386 -- -- 42,386 --------- Notes payable to shareholders -- -- 64,500(a) 60,900 -------------------------------------- --------- Total current liabilities 110,673 -- 64,500 171,573 Commitments and contingencies -- -- -- -- Stockholders' equity: Common stock, $0.001 par value; 50,000,000 shares authorized; 1,342,000 shares issued and outstanding 1,342 -- -- 1,342 Additional paid in capital 101,269 -- -- 101,269 Deficit accumulated during the development stage (213,284) -- (4,500)(b) (214,184) -------------------------------------- --------- Total stockholders' equity (110,673) -- (4,500) (111,573) -------------------------------------- --------- Total liabilities and stockholders' equity $ -- $ -- $ 60,000 $ 60,000 ====================================== =========
June 30, 2003 --------------------------------------------------------- Historical ------------------------- First Mogel Deltavision, Management Pro Forma Pro Forma Inc. Group, Inc. Adjustments Combined --------------------------------------- --------- ASSETS Current assets Cash and cash equivalents $ -- $ -- $ -- $ -- -------------------------------------- --------- Total current assets -- -- -- -- Due from affilate -- -- -- -- Deposit -- -- -- -- Goodwill -- -- 46,040(a) 46,040 Net assets of Mogel Management Group, Inc. -- -- 13,960(a) 13,960 -------------------------------------- --------- Total assets $ -- $ -- $ 60,000 $ 60,000 ====================================== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 500 $ -- $ -- $ 500 Accounts payable - related party 65,467 -- -- 65,467 Due to officers 40,868 -- -- 40,868 Notes payable to shareholders -- -- 63,600(a) 63,600 -------------------------------------- --------- Total current liabilities 106,835 -- 63,600 170,435 Commitments and contingencies -- -- -- -- Stockholders' equity: Common stock, $0.001 par value; 50,000,000 shares authorized; 1,342,000 shares issued and outstanding 1,342 -- -- 1,342 Additional paid in capital 101,269 -- -- 101,269 Deficit accumulated during the development stage (209,446) -- (3,600)(b) (213,046) -------------------------------------- --------- Total stockholders' equity (106,835) -- (3,600) (110,435) Total liabilities and stockholders' equity $ -- $ -- $ 60,000 $ 60,000 ====================================== =========
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
Three Months Ended September 30, 2003 ---------------------------------------------------------------- First Mogel Deltavision, Management Pro Forma Pro Forma Inc. Group, Inc. Adjustments Combined -------------------------------------------- ----------- Revenue $ -- $ -- $ -- $ -- General and administrative expenses 3,838 -- -- 3,838 -------------------------------------------- ----------- Loss from operations (3,838) -- -- (3,838) Interest expense -- -- 900(b) 900 -------------------------------------------- ----------- Loss from operations before income taxes (3,838) -- (900) (4,738) Provision for income taxes -- -- -- -- -------------------------------------------- ----------- Net loss $ (3,838) $ -- $ (900) $ (4,738) ============================================ =========== Basic and diluted net loss per share $ (0.00) $ -- $ -- $ (0.00) Weighted average shares outstanding 1,342,000 -- -- 1,342,000
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
Year Ended June 30, 2003 ---------------------------------------------------------------- First Mogel Deltavision, Management Pro Forma Pro Forma Inc. Group, Inc. Adjustments Combined -------------------------------------------- ----------- Revenue $ -- $ -- $ -- $ -- General and administrative expenses 35,162 -- -- 35,162 -------------------------------------------- ----------- Loss from operations (35,162) -- -- (35,162) Interest expense -- -- 3,600(b) 3,600 -------------------------------------------- ----------- Loss from operations before income taxes (35,162) -- (3,600) (38,762) Provision for income taxes -- -- -- -- -------------------------------------------- ----------- Net loss $ (35,162) $ -- $ (3,600) $ (38,762) ============================================ =========== Basic and diluted net loss per share $ (0.03) $ -- $ -- $ (0.03) Weighted average shares outstanding 1,342,000 -- -- 1,342,000
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION 1. BASIS OF PRESENTATION The following unaudited pro forma condensed combined financial statements give effect to the acquisition by First Deltavision, Inc. ("the Company") of Mogel Management Group, Inc. ("MMG, Inc.") This acquisition was completed on January 1, 2004. The accompanying Unaudited Pro Forma Condensed Combined Statements of Operations (the "Pro Forma Statements of Operations") for the year ended June 30, 2003 and the three months ended September 30, 2003 give effect to the acquisition of MMG, Inc., accounted for as a purchase business combination, as if it had occurred on July 1, 2002. The Pro Forma Statements of Operations are based on historical results of operations of the Company and MMG, Inc. for the year ended June 30, 2003 and the three months ended September 30, 2003. The Unaudited Pro Forma Condensed Combined Balance Sheet (the "Pro Forma Balance Sheet") gives effect to the acquisition as if it had occurred on July 1, 2002. MMG, Inc. was incorporated on October 2, 2003 and does not have historical results of operations for the year ended June 30, 2003 and the three months ended September 30, 2003. The Pro Forma Statements of Operations and Pro Forma Balance Sheet and accompanying notes (the "Pro Forma Financial Information") should be read in conjunction with, and are qualified by reference to, the historical financial statements of the Company and MMG, Inc. and the related notes thereto. The Pro Forma Financial Information is intended for informational purposes only and is not necessarily indicative of the future financial position or future results of operations of the Company after the acquisition of MMG, Inc., or of the financial position or results of operations of the Company that would have actually occurred had the acquisition of MMG, Inc. been effected on July 1, 2002. 2. PRO FORMA ASSUMPTIONS The acquisition has been accounted for under the purchase method of accounting. The following represents the preliminary allocation of the purchase price over the historical net book values of the acquired assets and assumed liabilities of MMG, Inc. at December 31, 2003, and is included for illustrative pro forma purposes only. Assuming the transaction had occurred on December 31, 2003, the allocation would have been as follows: Value of promissory notes issued by the Company $60,000 ------- Preliminary allocation of purchase price to: Cash $8,534 Deposit 7,794 Due from affiliate 7,632 Accounts payable (10,000) Goodwill 46,040 ------- $60,000 ------- The purchase price of MMG, Inc. of $60,000 consists of three promissory notes issued to the shareholders of MMG, Inc. The promissory notes bear interest at 6% per annum and are due on December 31, 2004. MMG, Inc. previously had agreed to issue a warrant to purchase up to 972,000 shares of MMG, Inc.'s common stock pursuant to a certain consulting agreement. MMG, Inc. has cancelled this certain consulting agreement and has cancelled the issuance of this warrant. The unaudited condensed pro foma financial information assume that this warrant was cancelled and not issued. 3. PRO FORMA ADJUSTMENTS The pro forma financial information reflects the following adjustments: (a) To record the preliminary allocation of the purchase price to goodwill and the net assets of MMG, Inc. as of December 31, 2003. (b) To record interest expense on the promissory notes issued by the Company. 4. EARNINGS PER SHARE Basic and diluted loss per share for each period are calculated by dividing pro forma net loss by the weighted average outstanding shares used to calculate loss per share in the historical period.