EX-99.2 5 a91191exv99w2.txt EXHIBIT 99.2 EXHIBIT 99.2 S3I HOLDINGS, INC. PROFORMA CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2002 S3I HOLDINGS, INC. Proforma Consolidated Balance Sheet
S3I Holding, Inc. SecureSoft (formerly Axtion Proforma Systems, Inc. Foods, Inc.) Proforma Consolidated Balance Balance Adjustments Balance 12/31/02 12/31/02 DR CR 12/31/02 ----------- --------- ----------- ---------- ---------- (unaudited) (unaudited) (unaudited) ASSETS Current Assets Cash and Cash Equivalents $ 23,594 $ 916 $ 24,510 Prepaid Expenses -- 10,960 10,960 Accounts Receivable, Net 17,300 -- 17,300 Advances - Related Party 35,000 -- 35,000 Inventory 5,244 -- 5,244 ----------- --------- ---------- Total Current Assets 81,138 11,876 93,014 ----------- --------- ---------- Equipment, Net 19,226 16,214 35,440 ----------- --------- ---------- Other Assets Software Development Costs, Net 170,298 -- Deposits 8,345 -- 8,345 ----------- --------- ---------- Total Other Assets 178,643 -- 8,345 ----------- --------- ---------- Total Assets $ 279,007 $ 28,090 $ 136,799 =========== ========= ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable & Accrued Expenses $ 641,164 $ 21,316 $ 662,480 Current Portion of Long-Term Debt 195,032 -- 195,032 ----------- --------- ---------- Total Current Liabilities 836,196 21,316 857,512 ----------- --------- ---------- Long-Term Liabilities Convertible Debentures 120,000 -- 120,000 Notes Payable 72,500 -- 72,500 Notes Payable- Related Party 2,532 2,532 Less: Current Portion of Long-Term Debt (195,032) -- (195,032) ----------- --------- ---------- Total Long-Term Liabilities -- -- -- ----------- --------- ---------- Stockholders' Equity Preferred Stock, Authorized 10,000,000 Shares, No Par Value, None Issued and Outstanding -- -- -- Common Stock, Authorized 100,000,000 Shares, No Par Value, 22,684,197 Shares Issued and Outstanding 14,622 157,539 14,622 1,716,781 1,874,320 Additional Paid in Capital 2,023,222 -- 2,023,222 -- Retained Earnings (Deficit) (2,595,033) (150,765) 150,765 (2,595,033) ----------- --------- ---------- Total Stockholders Equity (557,189) 6,774 (720,713) ----------- --------- ---------- Total Liabilities and Stockholders Equity $ 279,007 $ 28,090 $ 136,799 =========== ========= ==========
2 S3I HOLDINGS, INC. Proforma Statement of Operations
S3I Holding, Inc. SecureSoft (formerly Axtion Systems, Inc. Foods, Inc.) Proforma For January 1, 2002 For January 1, 2002 Proforma Consolidated through through Adjustments Balance December 31, 2002 December 31, 2002 DR CR December 31, 2002 ----------------- ----------------- -- -- ----------------- (unaudited) (unaudited) (unaudited) Revenues $ 2,499,843 $ 13,362 $2,513,205 ----------- --------- ---------- Cost of Goods Sold 231,646 4,449 236,095 ----------- --------- ---------- Gross Profit (Loss) 2,268,197 8,913 2,277,110 ----------- --------- ---------- Selling, General & Administrative 2,167,337 91,386 2,258,723 ----------- --------- ---------- Total Operating Expenses (2,167,337) (91,386) 2,258,723 ----------- --------- ---------- Income (Loss) from Operations 100,860 (82,473) 18,387 ----------- --------- ---------- Other Income (Expense) (44,291) (16,414) (60,705) ----------- --------- ---------- Net Income (Loss) $ 56,569 $ (98,887) $ (42,318) =========== ========= ==========
3 S3I HOLDINGS, INC. Notes to Pro Forma Consolidated Financial Statements December 31, 2002 NOTE 1 - Summary of Transaction On April 16, 2003, the Company completed an Agreement and Plan of Share Exchange between S3I Holding, Inc. (formerly Axtion Foods, Inc.) a public California corporation (S3I) (the Company) and SecureSoft Systems, Inc. a private Delaware corporation (SecureSoft). Pursuant to the plan, the Company canceled 20,000,000 shares of common stock and issued 15,702,197 shares of common stock for all of the outstanding common stock of SecureSoft and changed its name to S3I Holdings, Inc. The reorganization was recorded as a reverse acquisition using the purchase method of accounting. NOTE 2 - Management Assumptions The pro forma consolidated balance sheet and statements of operations assumes that the entities were together as of December 31, 2002. The pro forma consolidated balance sheet assumes the cancellation of 20,000,000 shares of common stock and issuance of 15,702,197 shares of common stock and the elimination of the retained deficit of S3I. There are no proforma adjustments for the statement of operations. 4