EX-99 9 ex993.htm EXHIBIT 99.3 - MY EDGAR, INC. AND SUBSIDIARIES UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE PERIOD ENDED SEPTEMBER 30, 2007 ex993

Main 8-K

Exhibit 99.3


DOCUCON INCORPORATED AND MY EDGAR INC & SUBSIDIARIES

UNAUDITED PRO FORMA CONDENSED

CONSOLIDATED FINANCIAL STATEMENTS


The following unaudited pro forma condensed Consolidated financial statements are based on the unaudited historical financial statements of Docucon Incorporated (“Docucon”) and My EDGAR, Inc. (“My EDGAR”) along with its sole subsidiary Bassett Press, Inc., (“Bassett Press”) have been prepared to illustrate the effects of the Docucon acquisition of My EDGAR and its subsidiaries under the terms of the Merger Agreement dated December 13, 2007. The following unaudited pro forma condensed consolidated balance sheet as of September 30, 2007, and unaudited pro forma condensed consolidated statements of operations as of and for the nine months ended September 30, 2007 are presented as if the merger of Docucon and My EDGAR (the “merger”) was effective as of January 1, 2007.


On December 13, 2007, Docucon consummated an Agreement and Plan of Merger (“Merger”) with My EDGAR, Inc., a Florida corporation, whereby Docucon acquired all the outstanding capital of My EDGAR in exchange of 16,439,938 shares of Docucon’s common stock.  Immediately following the Merger, Docucon Acquisitions Corp (“DAC”) changed its name to My EDGAR, Inc.  For accounting purposes, My EDGAR is treated as the acquirer in the merger, which is accounted for as a recapitalization in which the assets and liabilities of My EDGAR and Docucon have been recorded at their historical values and the outstanding capital stock and additional paid in capital have been restated to give effect to the shares of common stock issued in connection with the transaction.


The pro forma adjustments represent, in the opinion of management, all adjustments necessary to present the Company’s pro forma results of operations and financial position in accordance with Article 11 of SEC Regulation S-X based upon available information and certain assumptions considered reasonable under the circumstances.


The unaudited pro forma financial statements presented herein do not purport to present what the Company's financial position or results of operations would actually have been had the events leading to the pro forma adjustments in fact occurred on the date or at the beginning of the periods operations for any future date or period.


The pro forma data presented herein is for informational purposes only and is not intended to represent or be indicative of the results of operations or financial condition of the consolidated entities that would have been reported had the proposed transaction been completed as of the dates presented, and should not be taken as representative of future results of operations or financial condition of the consolidated group.


Pro Forma Adjustments


Pro forma adjustments as of September 30, 2007 include the following:


(1)

$9,500 credit adjustment of common stock increasing the par value balance as a result of the Merger;


(2)

$10,642,099 debit adjustment of additional paid in capital giving effect for eliminating Docucon’s additional paid in capital balance and liabilities acquired in the Merger transaction;


(3)

$10,071,822 credit adjustment of accumulated deficit related to Docucon’s balance.



P-1




 

 

 

Unaudited Historical

 

Unadjusted

 

 

 

 

Adjusted

 

 

 

September 30, 2007

 

September 30, 2007

 

Condensed Consolidated

 

Pro-Forma

 

Condensed Consolidated

 

 

 

 Docucon

 

 My EDGAR

 

 Pro-Forma

 

 Adjustments

 

 Pro-Forma

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

-- 

 

68,177 

 

68,177 

 

 

 

68,177 

 

Accounts receivable

 

-- 

 

 

132,014 

 

 

132,014 

 

 

 

 

 

132,014 

 

Security deposits

 

-- 

 

 

7,617 

 

 

7,617 

 

 

 

 

 

7,617 

 

Other current assets

 

-- 

 

 

948 

 

 

948 

 

 

 

 

 

948 

 

 

Total current assets

 

-- 

 

 

208,756 

 

 

208,756 

 

 

 

 

 

208,756 

Property & equipment, net

 

-- 

 

 

18,364 

 

 

18,364 

 

 

 

 

 

18,364 

Intangible assets

 

-- 

 

 

311,821 

 

 

311,821 

 

 

 

 

 

311,821 

Total Assets

-- 

 

538,941 

 

538,941 

 

 

 

 

538,941 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders' Deficit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

95,655 

 

22,826 

 

118,481 

 

 

 

 

118,481 

 

Other current liabilities

 

37,834 

 

 

22,058 

 

 

59,892 

 

 

 

 

 

59,892 

 

Line of Credit

 

-- 

 

 

-- 

 

 

-- 

 

 

 

 

 

-- 

 

Due to related party

 

-- 

 

 

-- 

 

 

-- 

 

 

 

 

 

-- 

 

Notes payable

 

127,334 

 

 

109,733 

 

 

237,067 

 

 

 

 

 

237,067 

 

 

Total current liabilities

 

260,823 

 

 

154,617 

 

 

415,440 

 

 

 

 

 

415,440 

 

 

Total liabilities

 

260,823 

 

 

154,617 

 

 

415,440 

 

 

 

 

 

415,440 

Stockholders' deficit:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, $1.00 par value, 10,000,000 shares authorized -

 

 

 

-- 

 

 

 

 

 

 

 

 

 

Series A, 60 shares designated, 7 shares issued and outstanding,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liquidation preference of $175,000.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

authorized, 17,124,842 shares issued and outstanding

 

2,439 

 

 

5,186 

 

 

7,625 

 

 

(9,500)

(1)

 

17,125 

 

Additional paid-in capital

 

10,373,566 

 

 

693,510 

 

 

11,067,076 

 

 

10,642,099

(2)

 

424,977 

 

Treasury stock

 

(4,236)

 

 

 

 

 

(4,236)

 

 

 

 

 

(4,236)

 

Accumulated deficit

 

(10,071,822)

 

 

(314,372)

 

 

(10,386,194)

 

 

(10,071,822)

(3)

 

(314,372)

 

Accumulated deficit - during development stage

 

(560,777)

 

 

-- 

 

 

(560,777)

 

 

(560,777)

(3)

 

-- 

 

 

Total stockholders' deficit

 

(260,823)

 

 

384,324 

 

 

123,501 

 

 

 

 

 

123,501 

Total Liabilities and Stockholders' Deficit

-- 

 

538,941 

 

538,941 

 

-- 

 

538,941 



P-2




 

 

September 30, 2007

 

September 30, 2007

 

Pro-Forma

 

Condensed Combined

 

 

Docucon

 

 My EDGAR

 

Adjustments

 

Pro-Forma

Revenues

 

$

 

 

$

767,011 

 

$

 

 

$

767,011 

Cost of services

 

 

 

 

 

352,665 

 

 

 

 

 

352,665 

Gross profit

 

 

 

 

 

414,346 

 

 

 

 

 

414,346 

Operating costs and expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

 

 

 

185,709 

 

 

 

 

 

185,709 

 

Payroll Expenses

 

 

 

 

 

270,335 

 

 

 

 

 

270,335 

 

Depreciation

 

 

 

 

 

7,767 

 

 

 

 

 

7,767 

Total operating costs and expenses

 

 

 

 

 

463,811 

 

 

 

 

 

463,811 

Net operating income (loss)

 

 

 

 

 

(49,465)

 

 

 

 

 

(49,465)

Other (expense):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

 

 

(8,570)

 

 

 

 

 

(8,570)

 

total other income/ expense

 

 

 

 

 

806 

 

 

 

 

 

806 

Total other (expense)

 

 

 

 

 

(7,763)

 

 

 

 

 

(7,763)

Net loss

 

 $

 

 

$

(57,228)

 

$

 

 

$

(57,228)




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