EX-99.3 9 d22100_ex99-3.htm

EXHIBIT 99.3

VISUAL MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
(FORMERLY WILDON PRODUCTIONS INC.)

PRO-FORMA FINANCIAL STATEMENTS

VISUAL MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
(FORMERLY WILDON PRODUCTIONS INC.)

PRO-FORMA FINANCIAL STATEMENTS

          The accompanying unaudited pro forma consolidated financial statements of Visual Management Systems, Inc. and subsidiaries (formerly Wildon Productions Inc.) (the “Company”) give effect to the (a) merger (the “Merger”) of the Company’s wholly-owned subsidiary, VMS Acquisition Corp., with and into Visual Management Systems Holding, Inc., a New Jersey Corporation (“VMS”) and (b) 1-for-7 reverse split (the “Reverse Split”)of the Company’s common stock, $.01 par value (the “Common Stock”), which become effective on July 9, 2007 as if such transactions had occurred on May 31, 2007 for balance sheet data and March 1, 2006 for Statement of Operations Data.

          In connection with the Merger, the Company acquired 100% of the issued and outstanding capital stock of VMS in exchange for 5,218,000 shares of the Company’s Common Stock, and certain holders of Common Stock agreed to cancel 476,429 shares (after giving effect to the Reverse Split) of Common Stock at the time of the Merger. Under the terms of the Merger Agreement, each share of VMS Common Stock outstanding prior to the Merger (10,436,000 shares) was converted into .50 shares of Common Stock at the time of the Merger. As a result, VMS’ former stockholders became the majority shareholders of the Company and VMS became a wholly-owned subsidiary of the Company.

          The acquisition of VMS by the Company has been accounted for as a reverse merger because on a post-merger basis, the former VMS shareholders hold a majority of the outstanding shares of the Company’s Common Stock. As a result, VMS was deemed to be the acquirer for accounting purposes.

          In the opinion of the Company’s management, the unaudited pro forma consolidated balance sheet and unaudited pro forma statement of loss include all adjustments necessary for the fair presentation of the transactions in accordance with the requirements of the Securities Exchange Commission. The unaudited pro forma consolidated financial statements are prepared for illustrative purposes only and may not be indicative of the financial position or operating results that would have occurred if the transactions had been completed on March 1, 2006. Furthermore, the reported unaudited pro forma consolidated statement of loss is not necessarily indicative of the operating results that may be obtained by the Company.

VISUAL MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
(FORMERLY WILDON PRODUCTIONS INC.)

PRO-FORMA STATEMENT OF OPERATIONS

FOR THE THREE MONTHS ENDED MAY 31, 2007

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Visual
Management
Systems, Inc.
(formerly Wildon
Productions Inc.)

 

Visual
Management
Systems Holding,
Inc. and
Subsidiaries

 

Pro Forma
Combined

 

 

 

  

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues - net

 

 

—

 

 

 

1,629,589

 

 

 

 

1,629,589

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

—

 

 

 

816,706

 

 

 

 

816,706

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

—

 

 

 

812,883

 

 

 

 

812,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

40,094

 

 

 

1,584,151

 

 

 

 

1,624,245

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(40,094

)

 

 

(771,268

)

 

 

 

(811,362

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt conversion expense

 

 

—

 

 

 

—

 

 

 

 

—

 

 

Interest income

 

 

—

 

 

 

—

 

 

 

 

—

 

 

Interest expense

 

 

—

 

 

 

4,477

 

 

 

 

4,477

 

 

Miscellaneous (income) expense

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

—

 

 

 

4,477

 

 

 

 

4,477

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(40,094

)

 

 

(775,745

)

 

 

 

(815,839

)

 

 

 

    

 

 

    

 

 

 

    

 

 

VISUAL MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
(FORMERLY WILDON PRODUCTIONS INC.)

PRO-FORMA STATEMENT OF OPERATIONS

FOR THE 12 MONTHS ENDED FEBRUARY 28, 2007

 
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Visual
Management
Systems, Inc.
(formerly Wildon
Productions Inc.)

 

Visual
Management
Systems Holding,
Inc. and
Subsidiaries

 

Pro Forma
Combined

 

 

 

  

 

  

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues - gross

 

$

 

 

 

 

 

 

 

 

 

 

 

 

Less: deferred revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

          discounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues - net

 

 

0

 

 

 

4,818,232

 

 

 

 

4,818,232

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues

 

 

0

 

 

 

2,715,497

 

 

 

 

2,715,497

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

0

 

 

 

2,102,735

 

 

 

 

2,102,735

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

78,979

 

 

 

4,239,662

 

 

 

 

4,318,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(78,979

)

 

 

(2,136,927

)

 

 

 

(2,215,906

)

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expenses

 

 

 

 

 

 

—

 

 

 

 

 

 

 

Debt conversion expense

 

 

 

 

 

 

264,990

 

 

 

 

264,990

 

 

Interest income

 

 

 

 

 

 

(247

)

 

 

 

(247

)

 

Interest expense

 

 

 

 

 

 

55,835

 

 

 

 

55,835

 

 

Miscellaneous (income) expense

 

 

 

 

 

 

(1,223

)

 

 

 

(1,223

)

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

—

 

 

 

319,356

 

 

 

 

319,356

 

 

 

 

    

 

 

    

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(78,979

)

 

 

(2,456,283

)

 

 

 

(2,535,262

)

 

 

 

    

 

 

    

 

 

 

    

 

 

VISUAL MANAGEMENT SYSTEMS, INC. AND SUBSIDIARIES
(FORMERLY WILDON PRODUCTIONS INC.)
PRO-FORMA CONSOLIDATING BALANCE SHEET
MAY 31, 2007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Visual
Management
Systems, Inc.
(Formerly
Wildon
Productions
Inc.)

 

Visual
Management
Systems Holding,
Inc. and
Subsidiaries

 

Pro Forma
Adjustments

 

Pro Forma
Combined

 

 

 

  

 

  

 

  

 

  

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

14,864

 

 

-0

 

 

—

 

 

 

14,864

 

Accounts Receivable

 

—

 

 

484,872

 

 

—

 

 

 

484,872

 

Intercompany Receivable

 

—

 

 

—

 

 

—

 

 

 

—

 

Inventory

 

—

 

 

717,643

 

 

—

 

 

 

717,643

 

Prepaid Expenses

 

—

 

 

50,592

 

 

—

 

 

 

50,592

 

 

 

  

 

 

  

 

 

  

 

 

    

 

 

 

14,864

 

 

1,253,107

 

 

—

 

 

 

1,267,971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property and Equipment - net

 

—

 

 

326,934

 

 

—

 

 

 

326,934

 

Equipment Under Capital Leases - net

 

—

 

 

26,022

 

 

—

 

 

 

26,022

 

Deposits

 

—

 

 

97,957

 

 

—

 

 

 

97,957

 

Intangibles - net

 

—

 

 

3,338

 

 

—

 

 

 

3,338

 

 

 

  

 

 

  

 

 

  

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,864

 

 

1,707,358

 

 

—

 

 

 

1,722,222

 

 

 

  

 

 

  

 

 

  

 

 

    

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Bank Overdraft

 

—

 

 

81

 

 

 

 

 

 

81

 

Accounts Payable

 

4,120

 

 

1,709,798

 

 

—

 

 

 

1,713,918

 

Interco Payable

 

—

 

 

—

 

 

—

 

 

 

—

 

Accrued Expenses

 

21,012

 

 

232,521

 

 

—

 

 

 

253,533

 

Deferred Revenues

 

—

 

 

62,889

 

 

—

 

 

 

62,889

 

Sales Tax Payable

 

—

 

 

52,275

 

 

—

 

 

 

52,275

 

Current Portion of Long-Term Debt

 

—

 

 

78,997

 

 

—

 

 

 

78,997

 

Current Portion of Obligations Under Capital Leases

 

—

 

 

—

 

 

—

 

 

 

—

 

 

 

  

 

 

  

 

 

  

 

 

    

 

 

 

25,132

 

 

2,136,561

 

 

—

 

 

 

2,161,693

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term Debt - net of current portion

 

—

 

 

275,779

 

 

—

 

 

 

275,779

 

Obligations Under Capital Leases - net of current portion

 

—

 

 

20,995

 

 

—

 

 

 

20,995

 

Loans Payable Stockholders

 

—

 

 

4,622

 

 

—

 

 

 

4,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Stock

 

2,035

 

 

33,084

 

 

—

 

 

 

35,119

 

Additional Paid-In Capital

 

111,965

 

 

3,856,350

 

 

—

 

 

 

3,968,315

 

Treasury Stock

 

—

 

 

(150,000

)

 

—

 

 

 

(150,000

)

 

 

 

 

 

  

 

 

 

 

 

    

 

Accumulated Deficit

 

(124,268

)

 

(4,470,033

)

 

—

 

 

 

(4,594,301

)

 

 

  

 

 

  

 

 

  

 

 

    

 

 

 

(10,268

)

 

(730,599

)

 

—

 

 

 

(740,867

)

 

 

  

 

 

  

 

 

  

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

14,864

 

 

1,707,358

 

 

—

 

 

 

1,722,222

 

 

 

  

 

 

  

 

 

  

 

 

    

 

Pro Forma Adjustments and Assumptions

 

 

 

 

1.

The following table summarizes the fair value of the assets acquired and liabilities assumed of Wildon Technologies, Inc.

 

 

 

 

 

 

 

 

Current assets

 

$

50,076

 

 

 

 

Less: liabilities assumed

 

 

20,700

 

 

 

 

 

 

    

 

 

 

 

Net assets acquired

 

$

29,376

 

 

 

 

 

 

    

 

 

 

 


 

 

 

 

2.

The consolidated adjustment is as follows:

 

 

 

 

 

 

 

 

 

 

 

Dr.

 

 

Cr.

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

$

29,376

 

 

 

 

Common stock

 

 

14,250

 

 

 

 

Common stock

 

 

 

 

$

14,000

 

Additional paid-in capital

 

 

 

 

 

736,000

 

Intangibles

 

 

706,374