EX-99.3 2 ex99-3.htm EXHIBIT 99.3 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 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       -       -         14,864  
 
Accounts Receivable
     -       484,872       -         484,872  
 
Inventory
     -       432,721       -         432,721  
 
Prepaid Expenses
     -       27,277       -         27,277  
        14,864       944,870       -         959,734  
                                     
Property and Equipment - net
     -       326,934       -         326,934  
Equipment Under Capital Leases - net
     -       26,022       -         26,022  
Deposits
       -       17,617       -         17,617  
Intangibles - net
     -       106,993       -         106,993  
                                     
        14,864       1,422,436       -         1,437,300  
Liabilities and Stockholders' Deficit
                                  
                                     
Current Liabilities
                                  
 
Bank Overdraft
     -       81                 81  
 
Accounts Payable
     4,120       1,709,798       -         1,713,918  
 
Accrued Expenses
     21,012       231,165       -         252,177  
 
Deferred Revenues
     -       62,889       -         62,889  
 
Sales Tax Payable
     -       52,275       -         52,275  
 
Current Portion of Long-Term Debt
     -       78,997       -         78,997  
        25,132       2,135,205       -         2,160,337  
                                     
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
     -       5,634       -         5,634  
                                     
Stockholders Deficit
                                  
 
Common Stock
     2,035       33,084       22,781  
(1)
     12,338  
 
Additional Paid-In Capital
     111,965       3,856,350       (22,781 )
(1)
     3,991,096  
 
Treasury Stock
     -       (150,000 )     -         (150,000 )
 
Accumulated Deficit
     (124,268 )     (4,754,611 )     -         (4,878,879 )
        (10,268 )     (1,015,177 )     -         (1,025,445 )
                                     
        14,864       1,422,436       -         1,437,300  
 
 
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
     -       968,719       968,719  
                         
Cost of revenues
     -       495,951       495,951  
                         
Gross margin
     -       472,768       472,768  
                         
Operating expenses
     40,094       1,528,614       1,568,708  
                         
Loss from operations
     (40,094 )     (1,055,846 )     (1,095,940 )
                         
                         
Other (income) expenses
                        
   Debt conversion expense
     -       -       -  
   Interest income
     -       (5 )     (5 )
   Interest expense
     -       4,481       4,481  
   Miscellaneous (income) expense
     -       -       -  
      -       4,476       4,476  
                         
Net loss
   $ (40,094 )     (1,060,322 )     (1,100,416 )
 
 
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 – 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 )
 



Notes to Pro Forma Financial Statements
 
1.
To record the issuance of shares of common stock in connection with the acquisition of all of the outstanding capital stock of Visual Management Systems Holding, Inc. (“VMS”) and adjusting for differences in par value between common stock of VMS and Visual Management Systems, Inc. (formerly Wildon Productions, Inc.) with an offset to additional paid in capital.