EX-99.2 2 v109307_ex99-2.htm
Exhibit 99.2

WYOMING FINANCIAL LENDERS, INC.
UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS


The following unaudited Pro Forma Combined Balance Sheet is derived from the Balance Sheets of Uron Inc. (the Registrant or Uron) and Wyoming Financial Lenders, Inc. (Wyoming) as of September 30, 2007. The unaudited Pro Forma Balance Combined Balance Sheet reflects the Registrant's merger with Wyoming and assumes that such acquisition was consummated as of September 30, 2007. The following unaudited Pro Forma Combined Statements of Operations are derived from the Statements of Operations of the Registrant and Wyoming for the year ended September 30, 2007, both of which are included elsewhere or incorporated by reference into this Current Report, and from the historical financial statements of the Registrant. The unaudited Pro Forma Combined Statements of Operations for the year ended September 30, 2007 gives effect to the merger as if it had occurred at September 30, 2006. The unaudited Pro Forma Combined Financial Statements account for the merger as a capital transaction in substance (and not a business combination of two operating entities) that would be equivalent to Wyoming issuing securities to the Registrant in exchange for the net monetary liabilities of the Registrant, accompanied by a recapitalization and, as a result, no goodwill relating to the merger will be recorded in the unaudited Pro Forma Combined Financial Statements.
 
The unaudited Pro Forma Combined Balance Sheet and Statements of Operations should be read in conjunction with the financial statements of Wyoming and the Registrant and the respective Notes thereto included elsewhere in this Current Report, as well as in other documents filed with by the Registrant with the Securities and Exchange Commission. The unaudited Pro Forma Combined Statements of Operations do not purport to represent what the results of operations would actually have been if the merger had occurred on the date indicated or to project the results of operations for any future period or date. The pro forma adjustments, as described in the accompanying data, are based on available information and the assumptions set forth in the Notes thereto, which management believes are reasonable.




WYOMING FINANCIAL LENDERS, INC.
UNAUDITED PROFORMA COMBINED BALANCE SHEETS
 
   
Wyoming
 
Uron
 
 
 
Pro Forma
 
 
 
Pro Forma
 
September 30,
 
2007
 
2007
 
 
 
Adjustments
 
 
 
Combined
 
   
 
 
 
 
 
 
 
 
 
 
 
 
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
Current Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 
$
1,231,134
 
$
2,785
     
$
4,495,215
   
(a,d,f)
 
$
5,729,134
 
Loans receivable (less allowance for
                         
losses of $927,000)
   
3,876,167
   
-
       
-
     
 
3,876,167
 
Related Party Receivable
   
-
   
11,550
       
(11,550
)
 
(d)
 
 
-
 
Prepaid expenses and other
   
121,799
   
11,317
       
(11,317
)
 
(d)
 
 
121,799
 
Deferred income taxes
   
387,000
   
-
       
175,000
   
(b,c)
 
 
562,000
 
Total Current Assets
   
5,616,100
   
25,652
       
4,647,348
       
10,289,100
 
                           
Property and equipment
   
646,064
   
-
       
-
     
 
646,064
 
                           
Goodwill
   
9,883,670
   
-
       
-
     
 
9,883,670
 
                           
Intangible Assets
   
125,021
   
-
       
-
     
 
125,021
 
                           
Total Assets
 
$
16,270,855
 
$
25,652
     
$
4,647,348
     
$
20,943,855
 
                           
                           
                           
Liabilities and Stockholders' Equity
                         
                           
Current Liabilities
                         
Accounts payable and accrued liabilities
 
$
462,797
 
$
16,758
     
$
1,772,242
   
(d,e)
 
$
2,251,797
 
Short-term debt
   
-
   
16,373
       
(16,373
)
 
(d)
 
 
-
 
Deferred revenue
   
226,761
   
1,681
       
(1,681
)
 
(d)
 
 
226,761
 
Total Current Liabilities
   
689,558
   
34,812
       
1,754,188
       
2,478,558
 
                           
Deferred income taxes
   
441,000
   
-
       
-
     
 
441,000
 
                           
Total Liabilities
   
1,130,558
   
34,812
   
(d)
 
 
1,754,188
     
 
2,919,558
 
                           
Stockholder's equity
                         
Common stock no par value, 20,000,000 shares
                         
authorized. 6,299,753 shares issued and outstanding
   
-
   
-
       
-
   
(g)
 
 
-
 
Series A Convertible Preferred Stock $ 0.01 par value and $2.10 stated value
                         
10,000,000 shares from Common Stock issued and outstanding
   
-
   
-
       
-
   
(g)
 
 
-
 
Additional Paid in Capital
   
13,458,158
   
369,919
       
4,190,081
   
(a,d,f)
 
 
18,018,158
 
Retained earnings
   
1,682,139
   
(379,079
)
     
(1,296,921
)
 
(b,c,d)
 
 
6,139
 
Total Stockholders' Equity
   
15,140,297
   
(9,160
)
     
2,893,160
       
18,024,297
 
                           
Total Liabilities and Stockholders' Equity
 
$
16,270,855
 
$
25,652
     
$
4,647,348
     
$
20,943,855
 

The accompanying notes are an integral part of these unaudited proforma combined financial statements.
 


 
WYOMING FINANCIAL LENDERS, INC
                     
UNAUDITED, PROFORMA COMBINED STATEMENT OF INCOME
                 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Wyoming
 
Uron
 
Proforma
 
 
 
Proforma
 
Year Ended September 30,
 
2007
 
2007
 
Adjustments
 
 
 
Combined
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenues
 
 
 
 
 
 
 
 
 
 
 
Loan fees
 
$
9,065,488
 
$
-
 
$
-
     
$
9,065,488
 
Check cashing fees
   
1,290,352
   
-
   
-
     
 
1,290,352
 
Guaranteed phone/Cricket fees
   
778,609
   
-
   
-
     
 
778,609
 
Other fees
   
149,860
   
57,109
   
-
     
 
206,969
 
Total revenues
   
11,284,309
   
57,109
   
-
       
11,341,418
 
 
                     
 
                     
Operating Expenses
                     
Salaries and benefits
   
3,660,590
   
-
   
-
     
 
3,660,590
 
Provisions for loan losses
   
1,387,115
   
-
   
-
     
 
1,387,115
 
Guaranteed phone/Cricket
   
486,177
   
-
   
-
     
 
486,177
 
Occupancy
   
736,798
   
-
   
-
     
 
736,798
 
Advertising
   
457,821
   
-
   
-
     
 
457,821
 
Depreciation
   
146,720
   
-
   
-
     
 
146,720
 
Amortization of intangible assets
   
136,405
             
 
136,405
 
Other
   
1,392,803
   
-
   
-
     
 
1,392,803
 
Costs of products and services
   
-
   
3,154
   
-
     
 
3,154
 
Selling, general and administrative
   
-
   
273,408
   
1,391,000
   
(d
)
 
1,664,408
 
Stock Compensation expense
    -     -    
460,000
   
(b,c
)
 
460,000
 
Total operating expenses
   
8,404,429
   
276,562
   
1,851,000
       
10,531,991
 
 
                     
Income (loss) from operations
   
2,879,880
   
(219,453
)
 
(1,851,000
)
   
 
809,427
 
 
                   
Loss on disposal of property and equipment
   
23,676
    -     -      
 
23,676
 
 
                     
Interest expense
   
-
   
8,185
   
-
     
 
8,185
 
 
                   
Income (loss) before income taxes
   
2,856,204
   
(227,638
)
 
(1,851,000
)
   
 
777,566
 
 
                     
Income tax expense (benefit)
   
1,078,000
   
-
   
(175,000
)
 
(b,c,d
)
 
903,000
 
 
                   
Net income (loss)
   
1,778,204
   
(227,638
)
 
(1,676,000
)
   
 
(125,434
)
 
                     
Preferred stock dividends
   
-
   
-
   
2,100,000
   
(g
)
 
2,100,000
 
 
                     
Net income (loss) available to
 
$
1,778,204
 
$
(227,638
)
$
(3,776,000
)
   
$
(2,225,434
)
common shareholders
                     
 
                     
Basic and diluted net income per share
                     
applicable to common shareholders
     
$
(0.30
)
       
$
(1.95
)
 
                     
Number of shares used in computing basic and diluted
                     
net income per share
       
771,026
           
1,139,177
 
 
                     
 
                     
 
                     
                                 
 
The accompanying notes are an integral part of these unaudited proforma combined financial statements.
       





WYOMING FINANCIAL LENDERS, INC.
NOTES TO UNAUDITED PRO FORMA COMBINED
FINANCIAL STATEMENTS
 
The Unaudited Pro Forma Combined Financial Statements give effect to the following adjustments:

(a) In contemplation of the merger, URON entered into a Subscription Agreement with Mr. Christopher Larson, who was appointed as the Company’s new Chief Executive Officer on November 29, 2007. Under the Subscription Agreement, Mr. Larson has the right to purchase 1,071,875 shares of the Company’s common stock for an aggregate purchase price of $500,000 (equating to a per-share purchase price of $0.466). The Subscription Agreement contains customary terms, conditions and representations and warranties, in addition to a provision whereby the shares purchased pursuant to the Subscription Agreement will not be affected by any stock combination effected by the Company in connection with a strategic transaction with Wyoming Financial Lenders, Inc.(the Merger).

(b) In contemplation of the merger, URON entered into various stock option agreements with executive and non-executive management personnel and other parties. In total, the Company entered into stock option and warrant agreements with eleven persons, obligating the Company to issue up to a maximum aggregate of 1,600,000 shares of common stock at the per-share price of $0.01. Among the optionees and warrant holders, the Company entered into stock option agreements with Messrs. Steven Staehr and John Quandahl, whom the Company’s board of directors respectively appointed as Chief Financial Officer and Chief Operating Officer on November 29, 2007. Under their respective stock option agreements, Mr. Staehr has the right to purchase 550,000 shares and Mr. Quandahl has the right to purchase 400,000 shares. The options and warrants granted pursuant to the agreements vest only in the event that, and are exercisable only at the time that, the Company engages in a change in control (as defined in such agreements). Like the above-described Subscription Agreement, the agreements contain customary terms, conditions and representations and warranties, in addition to a provision whereby the shares purchased pursuant to the stock option agreements will not be affected by any stock combination effected by the Company in connection with a strategic transaction with Wyoming Financial Lenders, Inc. (the Merger).

(c) Also on November 29, 2007 the Company issued a warrant to Lantern Advisers, LLC, a Minnesota limited liability company, for the purchase of up to 400,000 shares of common stock at the per-share price of $0.01. Like the stock option agreements, the warrant issued to Lantern Advisers will vest and be excercisable only at the time of a change in control (as defined in such warrant). In addition, the warrant contains customary terms, conditions and representations and warranties, as well as a provision whereby the shares purchased pursuant to the warrant will not be affected by any stock combination effected by the Company in connection with a strategic transaction with Wyoming Financial Lenders, Inc. (the Merger).
 
(d) Under the terms of merger agreement between Wyoming and Uron the combined company shall only be liable for net liabilities of Uron Inc. up to a maximum of $50,000 upon closing date of the transaction.

(e) Upon closing, the combined Company will be responsible for certain fees owed to various brokers, advisors and others for expenses estimated to be $1,391,000 related to the acquisition of Wyoming. Additionally, another $348,000 of costs were incurred in conjunction with the issuance of shares discussed in (f) below.

(f) The Company issued an additional 3,331,669 common shares for approximately $4 million effective upon the closing of the merger transaction.




(g) At the effective time of the merger, the former sole shareholder of Wyoming common stock received an aggregate of 1,125,000 shares of Uron’s common stock. In addition, such former holder received 10,000,000 shares of preferred stock designated as “Series A Convertible Preferred Stock”. The Series A Stock entitles its holders to (i) a cumulative 10% dividend, compounded and payable on a quarterly basis; (ii) in the event of a liquidation or dissolution of the Company, a preference in the amount of all accrued but unpaid dividends plus the stated amount of such shares, before any payment shall be made or any assets distributed to the holders of any junior securities; (iii) convert their shares of Series A Stock into common shares of the Company on a one-for-one basis (subject to adjustment); and (iv) vote their shares of Series A Stock on an as-if-converted basis. The Company has the right to redeem some or all shares of Series A Stock, at any time upon 60 days’ advance notice, at a price dependent upon the date of redemption. In the case of any redemption closing on or prior to the 15-month anniversary of the first issuance of Series A Stock, the redemption price will be $3.00 per share plus accrued but unpaid dividends; thereafter, the redemption price will $3.50 per share plus accrued but unpaid dividends. Holders of Series A Stock have no preemptive or cumulative-voting rights.
 
(h) On December 27, 2007, Uron affected a 1-for-10 reverse stock split. The accompanying unaudited pro forma combined financial statements give effect to this reverse stock split.