EX-99.3 4 v028107_ex99-3.txt Exhibit 99.3 CSI BUSINESS FINANCE, INC. UNAUDITED PRO FORMA COMBINED BALANCE SHEET JUNE 30, 2005
CSI Business Health Express Finance, Inc. USA, Inc. Adjustments Pro Forma ============================================= ============ ASSETS CURRENT ASSETS Cash $ 19,413 $ 22,351 $ -- $ 41,764 Prepaid expense 2,188 4,992 -- 7,180 Minimum lease payments receivable 152,854 -- -- 152,854 Assets of discontinued operations -- 126 (126) A -- --------------------------------------------- ------------ Total current assets 174,455 27,469 (126) A 201,798 --------------------------------------------- ------------ NONCURRENT ASSETS Minimum lease payments receivable 215,783 -- -- 215,783 Fixed assets, net 833 2,251 (1,551) 1,533 Debt issue costs -- 5,000 -- 5,000 Deposits -- 4,433 -- 4,433 Intangible assets, net 27,647 -- -- 27,647 --------------------------------------------- ------------ Total noncurrent assets 244,263 11,684 (1,551) 254,396 --------------------------------------------- ------------ TOTAL ASSETS $ 418,718 $ 39,153 $ (1,677) $ 456,194 ============ ============ ============ ============ LIABILITIES AND SHAREHOLDERS' DEFICIT CURRENT LIABILITIES Accounts payable $ 3,934 $ 26,211 $ -- $ 30,145 Accrued liabilities 1,383 -- -- 1,383 Unearned income 65,783 -- -- 65,783 Accrued interest payable -- 73,244 (5,188) B 68,056 Accrued interest payable--related party -- 25,627 (25,627) B -- Accrued compensation and related taxes--related parties -- 199,978 (199,978) A -- Notes payable--related party -- 171,660 (171,660) B -- Notes payable--net of debt discount -- 533,333 -- 533,333 Convertible debenture -- 14,200 -- 14,200 Liabilities of discounted operations -- 223,906 (23,906) A 200,000 Advances from parent 101,612 -- -- 101,612 --------------------------------------------- ------------ Total current liabilities 172,712 1,268,159 (426,359) 1,014,512 --------------------------------------------- ------------ NONCURRENT LIABILITIES Unearned income 41,005 -- -- 41,005 Convertible debenture -- 60,000 (60,000) B -- --------------------------------------------- ------------ Total noncurrent liabilities 41,005 60,000 (60,000) 41,005 --------------------------------------------- ------------ COMMITMENTS AND CONTINGENCIES -- -- -- -- SHAREHOLDERS' DEFICIT Preferred stock 2 -- -- 2 Convertible Preferred Stock Series A -- -- 1,000 C 1,000 Common stock 10 30,020 110,197 B,C 140,227 Common stock issuable -- 19,000 -- 19,000 Additional paid-in-capital 200,988 10,075,493 (10,235,710) A,B,C,D 40,771 Retained earnings (deficit) 4,001 (11,413,519) 10,609,195 D (800,323) --------------------------------------------- ------------ Total shareholders' deficit 205,001 (1,289,006) 484,682 (599,323) --------------------------------------------- ------------ TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 418,718 $ 39,153 $ (1,677) $ 456,194 ============ ============ ============ ============
A To eliminate assets and liabilities not assumed in the merger. B To adjust liabilities to amounts assumed in the merger. C To record 100,000 shares of preferred stock issued in accordance with the Share Exchange Agreement. D To record merger expense for the net liabilites acquired as part of the Share Exchange Agreement. CSI BUSINESS FINANCE, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2005
CSI Business Health Express Finance, Inc. USA, Inc. Adjustments Pro Forma ============================================= ============ REVENUE Lease income $ 41,311 $ -- $ -- $ 41,311 Fee income 47,113 -- -- 47,113 --------------------------------------------- ------------ 88,424 -- -- 88,424 --------------------------------------------- ------------ OPERATING EXPENSES Salaries and benefits 32,106 -- -- 32,106 Commissions 3,828 -- -- 3,828 General and administrative -- 141,864 (141,864) A -- Business development, travel and entertainment 634 -- -- 634 Depreciation and amortization 5,887 -- -- 5,887 Rent 5,114 -- -- 5,114 Professional fees 10,797 -- -- 10,797 Debt issue cost -- 10,111 -- 10,111 Depreciation -- 487 (487) A -- Other 8,151 -- -- 8,151 Merger expense -- -- 804,324 C 804,324 --------------------------------------------- ------------ Total expenses 66,517 152,462 661,973 880,952 --------------------------------------------- ------------ OTHER INCOME (EXPENSE) Interest expense, net -- (55,696) 1,650 A (54,046) Other income -- 5,349 (5,349) A -- --------------------------------------------- ------------ Total other income (expense) -- (50,347) (3,699) (54,046) LOSS FROM DISCONTINUED OPERATIONS -- (621) 621 A -- --------------------------------------------- ------------ Income (loss) before provision for income taxes 21,907 (203,430) (665,051) (846,574) --------------------------------------------- ------------ INCOME TAX PROVISION 4,010 -- (4,010) D -- --------------------------------------------- ------------ NET INCOME (LOSS) 17,897 (203,430) (661,041) (846,574) Preferred dividends paid 12,000 -- (12,000) B -- --------------------------------------------- ------------ INCOME APPLICABLE TO COMMON SHARES $ 5,897 $ (203,430) $ (649,041) $ (846,574) ============ ============ ============ ============ Net Income (Loss) Per Share-basic and diluted $ 5.90 $ (0.01) $ (0.01) ============ ============ ============ Weighted average number of shares outstanding during the year--basic and diluted 1,000 33,273,130 159,226,866 ============ ============ ============
A To eliminate revenue and expenses that do not relate to on-going operations. B To reflect redemption of the Preferred Stock in July, 2005. C To record merger expense for the net liabilities acquired as a part of the Share Exchange Agreement. D To record income tax effect. CSI BUSINESS FINANCE, INC. UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS FOR THE YEAR ENDED DECEMBER 31, 2004
CSI Business Health Express Finance, Inc. USA, Inc. Adjustments Pro Forma ============================================= ============ REVENUE Lease income $ 6,653 $ -- $ -- $ 6,653 Franchise fee revenue -- 70,000 (70,000) A -- Royalty revenue -- 17,779 (17,779) A -- --------------------------------------------- ------------ 6,653 87,779 (87,779) 6,653 --------------------------------------------- ------------ OPERATING EXPENSES Salaries and benefits -- 431,457 (431,457) A -- Commissions -- -- -- -- General and administrative -- 323,961 (323,961) A -- Business development, advertising and promotion -- 27,258 (27,258) A -- Depreciation and amortization 953 1,010 (1,010) A 953 Rent -- -- -- -- Professional fees 2,825 -- -- 2,825 Debt issue cost -- 80,894 -- 80,894 Bad debt expense -- 17,970 (17,970) A -- Merger expense -- -- 804,324 C 804,324 Other -- -- -- -- --------------------------------------------- ------------ Total expenses 3,778 882,550 2,668 888,996 --------------------------------------------- ------------ OTHER INCOME (EXPENSE) Interest expense, net -- (73,694) 3,000 (70,694) Other income -- (780) 780 A -- --------------------------------------------- ------------ Total other income (expense) -- (74,474) 3,780 (70,694) --------------------------------------------- ------------ LOSS FROM CONTINUING OPERATIONS 2,875 (869,245) (86,667) (953,037) LOSS FROM DISCONTINUED OPERATIONS -- (419,820) 419,820 A -- --------------------------------------------- ------------ Income before provision for income taxes 2,875 (1,289,065) 333,153 (953,037) INCOME TAX PROVISION 771 -- (771) D -- --------------------------------------------- ------------ NET INCOME (LOSS) 2,104 (1,289,065) 333,924 (953,037) Preferred dividends paid 4,000 -- (4,000) B -- --------------------------------------------- ------------ INCOME APPLICABLE TO COMMON SHARES $ (1,896) $ (1,289,065) $ 337,924 $ (953,037) ============ ============ ============ ============ Net Loss Per Share-Basic and Diluted: Loss from continuing operations $ (1.90) $ (0.05) $ (0.01) Loss from discontinued operations -- (0.03) -- ------------ ------------ ------------ Net (Loss) Per Share-basic and diluted $ (1.90) $ (0.08) $ (0.01) ============ ============ ============ Weighted average number of shares outstanding during the year--basic and diluted 1,000 16,812,569 159,226,866 ============ ============ ============
A To eliminate revenue and expenses that do not relate to on-going operations. B To reflect redemption of the Preferred Stock in July, 2005. C To record merger expense for the net liabilities acquired as a part of the Share Exchange Agreement. D To record the income tax effect.