EX-99 3 ex992.htm ICEWEB UNAUDITED PRO FORMA FINANCIAL INFORMATION

Exhibit 99.2

 

UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

 

The following Unaudited Pro Forma Combined Financial Statements of IceWeb, Inc. and Inline Corporation gives effect to the acquisition of assets of Inline Corporation, under the purchase method of accounting prescribed by Accounting Principles Board Opinion No. 16, Business Combinations. These pro forma statements are presented for illustrative purposes only. The pro forma adjustments are based upon available information and assumptions that management believes are reasonable. The Unaudited Pro Forma Combined Financial Statements do not purport to represent what the results of operations or financial position of IceWeb would actually have been if the acquisition had in fact occurred on January 1, 2007 nor do they purport to project the results of operations or financial position of IceWeb for any future period or as of any date, respectively.

 

These Unaudited Pro Forma Combined Financial Statements do not give effect to any restructuring costs or to any potential cost savings or other operating efficiencies that could result from the merger between IceWeb and Inline.

 

You should read the financial information in this section along with IceWeb’s historical financial statements and accompanying notes in prior Securities and Exchange Commission filings and in this amended Current Report on Form 8-K.

 

1


IceWEB, Inc.
Unaudited Pro Forma Combined Balance Sheet
September 30, 2007

 

 

 

Pro Forma Adjustments

CURRENT ASSETS:

Inline

IceWEB

Debit

Credit

Pro Forma

Cash

256,510

1,092,470

-

(a)   1,311,318

37,662

Accounts receivable, net

102,438

5,115,428

-

-

5,217,866

Inventory, Net

407,138

8,097

-

-

415,235

Prepaid expenses

-

27,718

-

-

27,718

Other current assets

31,374

-

-

-

31,374

 

797,460

6,243,714

-

1,311,318

5,729,856

 

 

 

 

 

 

OTHER ASSETS:

 

 

 

 

 

Property and equipment, net

467,390

344,728

-

-

812,118

Deposits

20,500

53,956

-

-

74,456

Intangible assets, net of accumulated amortization of $80,000)

-

211,305

(a)   1,588,162

(b)     529,387

1,270,080

Total Assets

1,285,350

6,853,702

1,588,162

1,840,705

7,886,510

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

Accounts payable and accrued liabilities

316,756

5,805,256

-

-

6,122,012

Notes payable

131,000

2,293,560

-

-

2,424,560

Notes payable - related party

-

115,767

-

-

115,767

Deferred revenue

-

10,456

-

-

10,456

Total current liabilities

447,756

8,225,039

-

-

8,672,795

 

 

 

 

 

 

Long-Term Liabilities

 

 

 

 

 

Notes Payable

290,673

98,716

-

-

389,389

 

 

 

 

 

 

Total Liabilities

738,429

8,323,755

-

-

9,062,184

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

Preferred Stock ($.001 par value; 10,000,000 shares authorized)

-

-

-

-

-

Series A convertible preferred stock ($.001 par value; 456,667 shares issued and outstanding)

-

457

-

-

457

Series B convertible preferred stock ($.001 par value; 1,833,334 shares issued and outstanding)

 

1,833

-

-

1,833

Common stock ($.001 par value; 1,000,000,000 shares authorized; 13,593,671 shares issued and 13,431,171 shares outstanding)

45,000

13,042

-

503

58,545

Additional paid in capital

-

12,248,779

-

276,341

12,525,120

Accumulated deficit

501,921

(13,721,164)

529,387

-

(13,748,630)

Treasury stock, at cost, (162,500 shares)

-

(13,000)

-

-

(13,000)

 

 

 

 

 

 

Total Stockholders’ Deficit

546,921

(1,470,053)

529,387

276,844

(1,175,674)

 

 

 

 

 

 

Total Liabilities and Stockholders’ Deficit

1,285,350

6,853,702

529,387

276,844

7,886,510

 

2


IceWEB, Inc.
Unaudited Pro Forma Combined Statement of Operations
For the twelve months ended September 30, 2007

 

 

 

Pro Forma Adjustments

 

Inline

IceWEB

Debit

Credit

Pro Forma

 

 

 

 

 

 

Sales

$   2,433,964

18,732,069

-

-

21,166,033

 

 

 

 

 

 

Cost of sales

1,020,639

16,811,274

-

-

17,831,913

 

 

 

 

 

 

Gross profit

1,413,325

1,920,795

-

-

3,334,120

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Marketing and selling

93,983

192,816

-

-

286,799

Depreciation and amortization

36,132

351,400

(c)   529,387

 

916,919

Research and development

130,000

-

-

-

130,000

General and administrative

1,787,251

3,834,829

 

 

5,622,080

Total Operating Expenses

2,047,366

4,379,045

529,387

-

6,955,798

 

 

 

 

 

 

Loss From Operations

(634,041)

(2,458,250)

529,387

-

(3,621,678)

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

Gain/(loss) from sale of assets

-

153,319

-

-

153,319

Interest income

3,635

3,402

 

 

7,037

Interest expense

(26,723)

(548,594)

-

-

(575,317)

 

 

 

 

 

 

Total other income (expenses):

(23,088)

(391,873)

-

-

(414,961)

 

 

 

 

 

 

Net loss

$  (657,129)

$ (2,850,123)

$  529,387

$      -

$ (4,036,639)

 

 

 

 

 

 

 

 

 

 

 

 

Basic income (loss) per common share

-

-

-

-

$          (0.39)

 

 

 

 

 

 

Weighted average common shares outstanding basic

-

-

-

-

10,393,830

 

3


IceWEB, Inc.
Unaudited Pro Forma Combined Statement of Operations
For the three months ended December 31, 2007

 

 

 

Pro Forma Adjustments

 

Inline

IceWEB

Debit

Credit

Pro Forma

 

 

 

 

 

 

Sales

$   1,642,228

$   4,212,732

-

-

$   5,854,960

 

 

 

 

 

 

Cost of sales

796,032

3,613,816

-

-

4,409,848

 

 

 

 

 

 

Gross profit

846,196

598,916

-

-

1,445,112

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

Marketing and selling

685

29,405

-

-

30,090

Depreciation and amortization expense

7,256

75,831

(c)   132,347

-

215,434

Research and development

32,500

-

-

-

32,500

General and administrative

655,857

1,006,948

-

-

1,662,805

 

 

 

 

 

 

Total Operating Expenses

696,298

1,112,184

132,347

-

1,940,829

 

 

 

 

 

 

Income (loss) From Operations

149,898

(513,268)

132,347

-

(495,717)

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

Interest income

475

924

-

-

1,399

Interest expense

(2,869)

(97,636)

-

-

(100,505)

 

 

 

 

 

 

Total other income (expenses):

(2,394)

(96,712)

-

-

(99,106)

 

 

 

 

 

 

Net income (loss)

$      147,504

$     (609,980)

$      132,347

$         -

$     (594,823)

 

 

 

 

 

 

Basic income (loss) per common share

-

-

-

-

$           (0.04)

 

 

 

 

 

 

Weighted average common shares outstanding basic

-

-

-

-

13,305,466

 

4


Unaudited Pro forma Adjustments to Combined Financial Statements

 

 

(a) To record the impact of the acquisition of Inline Corporation by IceWEB

 

 

Debit

 

Credit

Cash

 

-

 

1,311,318

Intangible assets

1,588,162

 

-

Common stock

-

 

503

Additional Paid in capital

-

 

276,341

 

 

1,588,162

 

1,588,162

 

 

 

 

 

 

 

 

 

 

(b) To record one year’s amortization expense of intangible assets acquired

 

 

 

 

 

 

 

Debit

 

Credit

Amortization expense

529,387

 

-

Accumulated amortization expense

-

 

529,387

 

 

529,387

 

529,387

 

 

 

 

 

 

 

 

 

 

(c) To record three month’s amortization expense of intangible assets acquired

 

 

 

 

 

 

 

Debit

 

Credit

Amortization expense

132,347

 

-

Accumulated amortization expense

-

 

132,347

 

 

132,347

 

132,347

 

5