EX-1 3 j1761_ex1.htm EX-1 Prepared by MerrillDirect
E-SYNERGIES, INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF MAY 31, 2001
             
 (Unaudited)
 
  e-Synergies, Inc.
Consolidated
  Xceed Acquisition   Pro forma Consolidating Entries   Pro forma
e-Synergies, Inc.
   
 
 
 
 
   
                   
ASSETS  
                   
Current Assets                  
  Cash $ 172,218   $ -   $ -   $ 172,218    
  Accounts receivable (net) 299,512   3,500,000   -   3,799,512    
  Due from affiliate 13,100   -   -   13,100    
  Prepaid expenses 1,350   73,801   -   75,151    
  Other current assets 36,640   -   -   36,640    
 
 
 
 
   
  Total current assets 522,820   3,573,801   -   4,096,621    
 
 
 
 
   
                   
Property and Equipment (net) 410,145   1,098,295   -   1,508,440    
 
 
 
 
   
                   
Other Assets                  
  Investment in HealthStar Corp. 1,662,500   -   -   1,662,500    
  Intangible assets (net) 210,855   1,489,700 (1) (279,319 ) 1,421,236    
  Refundable deposits 3,113   666,524   -   669,637    
 
 
 
 
   
  Total Other Assets 1,876,468   2,156,224   (279,319 ) 3,753,373    
 
 
 
 
   
                   
Total Assets $ 2,809,433   $ 6,828,320   $ (279,319 ) $ 9,358,434    
 
 
 
 
   
                   
                   
                   
                   
LIABILITES AND STOCKHOLDERS' EQUITY  
                   
Current Liabilities                  
  Bank overdraft $ 62,034   $ -   $ -   $ 62,034    
  Accounts payable and accrued expenses 1,023,286   97,052   -   1,120,338    
  Accrued payroll and related expenses -   421,648   -   421,648    
  Current portion of long-term debt 18,127   -   -   18,127    
  Due to Affiliate 741,809   -   -   741,809    
  Notes payable, bank -   3,000,000   -   3,000,000    
  Loans payable 46,429   -   -   46,429    
  Taxes withheld from wages 91,663   -   -   91,663    
  Other current liabilities 63,563   -   -   63,563    
 
 
 
 
   
  Total current liabilities 2,046,911   3,518,700   -   5,565,611    
 
 
 
 
   
                   
Long-Term Debt, net of current maturities 26,123   -   -   26,123    
 
 
 
 
   
                   
Minority Interest in Subsidiary (135,600 ) -   -   (135,600 )  
 
 
 
 
   
                   
Total Liabilities 1,937,434   3,518,700   -   5,456,134    
 
 
 
 
   
                   
Stockholders' Equity                  
  Common stock 155   -   -   155    
  Additional paid-in-capital 4,466,166   -   -   4,466,166    
  Retained earnings (3,667,509 ) 3,309,620   (279,319 ) (637,208 )  
  Accumulated other comprehensive income 73,187   -   -   73,187    
 
 
 
 
   
  Total Stockholders' equity 871,999   3,309,620   (279,319 ) 3,902,300    
 
 
 
 
   
                   
Total Liabilities and Stockholders' Equity $ 2,809,433   $ 6,828,320   $ (279,319 ) $ 9,358,434    
 
 
 
 
   
   

(1)   To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period.

 

E-SYNERGIES. INC.
 PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED MAY 31, 2001
             
(Unaudited)
             
    e-Synergies, Inc.
Consolidated
  Xceed
Acquisition
  Pro forma
Consolidating
Entries
  Pro forma
e-Synergies, Inc.
Consolidated
   
   

 

 

 

   
                     
  Revenues $ 1,470,139   $ 18,215,378   $ -   $ 19,685,517    
   
 
 
 
   
                     
  Operating Expenses:                  
    Cost of products sold 899,336   -   -   899,336    
    Direct expenses 1,011,028   10,611,963   -   11,622,991    
    Selling, general and administrative 1,946,277   8,155,449   -   10,101,726    
    Depreciation and amortization 131,799   6,711,928 (1) 279,319   7,123,046    
   
 
 
 
   
    3,988,440   25,479,340   279,319   29,747,099    
   
 
 
 
   
                     
  Operating Loss (2,518,301 ) (7,263,962 ) (279,319 ) (10,061,582 )  
   
 
 
 
   
                     
  Other Income (Expense):                  
    Interest and dividend income -   68,112   -   68,112    
    Interest expense (28,773 ) (5,383 ) -   (34,156 )  
    Loss from write-off of worthless investment in securities (251,000 ) -   -   (251,000 )  
    Miscellaneous income 9,134   107,614   -   116,748    
   
 
 
 
   
    (270,639)   170,343   -   (100,296 )  
   
 
 
 
   
                     
  Loss from continuing operations (2,788,940 ) (7,093,619 ) (279,319 ) (10,161,878 )  
                     
  Discontinued Operations                  
    Loss from operations of disposed subsidiary (219,822 ) -   -   (219,822 )  
   
 
 
 
   
                     
  Loss Before Minority Interest and Extraordinary Item (3,008,762 ) (7,093,619 ) (279,319 ) (10,381,700 )  
                     
  Minority Interest In Loss of Subsidiary 105,261   -   -   105,261    
   
 
 
 
   
                     
  Income Before Extrodinary Item (2,903,501 ) (7,093,619 ) (279,319 ) (10,276,439 )  
                     
  Extraordinary Item                  
    Gain on sale of subsidiary, net of tax 1,085,850   -   -   1,085,850    
   
 
 
 
   
                     
  Net Income (Loss) $ (1,817,651 ) $ (7,093,619 ) $ (279,319 ) $ (9,190,589 )  
   
 
 
 
   
                     
  Basic and Diluted Net Loss Per Common Share:                  
    Income (loss) before extraordinary item $ (2.16 )         $ (7.39 )  
    Extraordinary item 0.78           0.78    
   
         
   
    $ (1.38 )         $ (6.61 )  
   
         
   
                     
  Weighted Average Number of Common Shares Outstanding 1,390,762           1,390,762    
   
         
   

 

E-SYNERGIES, INC.
 PRO FORMA CONSOLIDATED BALANCE SHEET
AS OF AUGUST 31, 2000
           
(Unaudited)
           
    e-Synergies, Inc. Consolidated   Xceed Acquisition   Pro forma Consolidating Entries   Pro forma  e-Synergies, Inc. Consolidated    
   
 
 
 
   
                     
  ASSETS  
                     
  Current Assets                  
    Cash $ 339,478   $ -   $ -   $ 339,478    
    Accounts receivable (net) 545,007   3,500,000   -   4,045,007    
    Unbilled services 168,819   -   -   168,819    
    Prepaid expenses 17,170   73,801   -   90,971    
    Miscellaneous receivables 57,995   -   -   57,995    
    Other current assets 12,271   -   -   12,271    
   
 
 
 
   
    Total current assets 1,140,740   3,573,801   -   4,714,541    
   
 
 
 
   
                     
  Property And Equipment (net) 433,777   1,098,295   -   1,532,072    
   
 
 
 
   
                     
  Other Assets                  
    Intangible assets (net) 242,165   1,489,700   (372,425 ) 1,359,440    
    Investments 250,314   -   -   250,314    
    Due from affiliates 142,503   -   -   142,503    
    Other assets 26,291   666,524   -   692,815    
   
 
 
 
   
    Total Other Assets 661,273   2,156,224   (372,425 ) 2,445,072    
   
 
 
 
   
                     
  Total Assets $ 2,235,790   $ 6,828,320   $ (372,425 ) $ 8,691,685    
   
 
 
 
   
                     
                     
                     
  LIABILITES AND STOCKHOLDERS' EQUITY  
                     
  Current Liabilities                  
    Accounts payable and accrued expenses $ 1,337,028   $ 518,700   $ -   $ 1,855,728    
    Short-term bank borrowings 94,186   -   -   94,186    
    Current portion of long-term debt 24,597   -   -   24,597    
    Notes payable - bank -   3,000,000   -   3,000,000    
    Due to affiliates 110,490   -   -   110,490    
    Loans payable 7,097   -   -   7,097    
    Taxes withheld from wages 109,935   -   -   109,935    
    Deferred revenues 93,010   -   -   93,010    
    Other current liabilities 22,080   -   -   22,080    
   
 
 
 
   
    Total current liabilities 1,798,423   3,518,700   -   5,317,123    
   
 
 
 
   
                     
  Long-Term Debt, net of current maturities 143,053   -   -   143,053    
   
 
 
 
   
                     
  Minority Interest in Subsidiaries (16,992 ) -   -   (16,992 )  
   
 
 
 
   
                     
   
 
 
 
   
  Total Liabilities 1,924,484   3,518,700   -   5,443,184    
   
 
 
 
   
                     
  Stockholders' Equity                  
    Common stock 8,570   -   -   8,570    
    Additional paid-in-capital 3,238,431   -   -   3,238,431    
    Retained earnings (2,917,526 ) 3,309,620   (372,425 ) 19,669    
    Accumulated other comprehensive income (18,169 ) -   -   (18,169 )  
   
 
 
 
   
    Total stockholders' equity 311,306   3,309,620   (372,425 ) 3,248,501    
   
 
 
 
   
                     
  Total Liabilities and Stockholders' Equity $ 2,235,790   $ 6,828,320   $ (372,425 ) $ 8,691,685    
   
 
 
 
   
           

(1)   To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period.

 

E-SYNERGIES, INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
             
(Unaudited)
             
    e-Synergies, Inc. Consolidated   Xceed Acquisition   Proforma Consolidating Entries   Pro forma
e-Synergies, Inc.
Consolidated
   
   

 

 

 

   
                     
  Revenues $ 4,338,415   $ 81,940,417   $ -   $ 86,278,832    
                     
  Operating Expenses:                  
    Cost of products sold 992,493   -   -   992,493    
    Cost of revenues 2,725,344   48,055,742   -   50,781,086    
    Selling, general and administrative 2,228,518   28,747,660   -   30,976,178    
    Depreciation and amortization 114,915   1,166,993 (1) 372,425   1,654,333    
   
 
 
 
   
    6,061,270   77,970,395   372,425   84,404,090    
   
 
 
 
   
                     
  Operating Income (Loss) (1,722,855 ) 3,970,022   (372,425 ) 1,874,742    
   
 
 
 
   
                     
  Other Income (Expense):                  
    Equity earnings on investment (686 ) -   -   (686 )  
    Miscellaneous income 7,531   (2,645,406 ) -   (2,637,875 )  
    Interest expense (61,626 ) (82,002 ) -   (143,628 )  
   
 
 
 
   
    (54,781)   (2,727,408 ) -   (2,782,189 )  
   
 
 
 
   
                     
  Income (Loss) Before Income Taxes and Minority Interest (1,777,636 ) 1,242,614   (372,425 ) (907,447 )  
                     
  Minority Interest In Income of Subsidiaries (12,150 ) -   -   (12,150 )  
   
 
 
 
   
                     
  Income (Loss) Before Income Taxes (1,789,786 ) 1,242,614   (372,425 ) (919,597 )  
                     
  Provision for Income Taxes -   53,096       53,096    
   
 
 
 
   
                     
  Net Income (Loss) $ (1,789,786 ) $ 1,189,518   $ (372,425 ) $ (972,693 )