EX-1 3 file002.txt EXHIBIT 1 Exhibit 1 Synergy Brands, Inc. & Subsidiaries Proforma Unaudited Consolidated Balance Sheet September 30, 2002
Actual Adjustments Proforma ---------- ----------- -------- ASSETS Current Assets Cash and cash equivalents $708,357 $ - $708,357 Marketable securities 125,751 125,751 Accounts receivable, less allowance for doubtful accounts of $108,220 984,494 984,494 Inventory 1,492,003 1,492,003 Prepaid assets 385,187 385,187 ---------- ----------- -------- Total Current Assets 3,695,792 - 3,695,792 Property and Equipment, net 499,485 499,485 Other Assets 149,667 149,667 Web Site Development Costs, net 392,656 392,656 Trade Names and Customer List, net 1,388,386 1,388,386 ---------- ----------- -------- Total Assets $6,125,986 $ - $6,125,986 =========== =========== ======== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Line of credit $ 952,080 $ - $ 952,080 Accounts payable and accrued expenses 2,285,700 2,285,700 ---------- ----------- -------- Total Current Liabilities 3,237,780 - 3,237,780 Notes Payable 60,000 60,000 Other Liabilities 887,939 (592,689)(A) 295,250 Commitments and Contingencies Stockholders' Equity Class A preferred stock - $.001 par value; 100,000 shares authorized and outstanding; liquidation preference of $10.50 per share 100 100 Class B preferred stock - $.001 par value; 10,000,000 shares authorized, and no shares outstanding - - Common Stock - $.001 par value; 49,900,000 shares authorized; 5,322,484 shares outstanding 5,322 5,322 Additional paid-in-capital 35,082,482 35,082,482 Deficit (33,133,083) 592,689(A) (32,540,394) Accumulated other comprehensive income (4,554) (4,554) Stockholders' notes receivable (5,000) (5,000) Less treasury stock, at cost, 4,000 shares (5,000) (5,000) ---------- ----------- -------- Total Stockholders' Equity 1,940,267 592,689 2,532,956 ---------- ----------- -------- Total Liabilities and Stockholders' Equity $6,125,986 $ - $6,125,986 ========== =========== ========
The accompanying note is an integral part of this statement. Synergy Brands, Inc. & Subsidiaries Note to Proforma Unaudited Consolidated Financial Statements September 30, 2002 (A) Reflects a Settlement and Release Agreement (the "Agreement") entered into on December 16, 2002 between Synergy Brands, Inc. (the "Company") and About.com, a vendor. The Agreement serves to terminate all terms, conditions and obligations of the Company with respect to an August 1999 advertising agreement between the Company and About.com. As a result of the Agreement, the Company has been relieved of liabilities to About.com, which aggregate $592,689.