EX-99 3 ex_99-2.txt UNAUDITED PRO FORMA FINANCIAL INFORMATION EXHIBIT 99.2 UNAUDITED PRO FORMA FINANCIAL INFORMATION Dynamic Leisure Corporation, and Subsidiaries Unaudited Pro Forma Combined Condensed Balance Sheet December 31, 2005
Pro Forma Combined Historical Statements Historical Dynamic Historical Historical Acquisition for Dyneco Leisure Changes IRT-ITR Adjustments Ref Acquisitions ----------- ----------- ---------- ---------- ----------- --- ------------ Cash ............................. $ (232) $ 19,563 $546,725 $201,174 $ (700,000) (e) $ 67,230 Short term investments, restricted ..................... - - 69,548 83,133 - 152,681 Accounts receivable, net ......... - - - 247,271 - 247,271 Prepaid travel ................... - - 142,110 - - 142,110 Other current assets ............. - 19,136 18,467 75,356 - 112,959 ----------- ----------- -------- -------- ----------- ----------- Total Current Assets ........... (232) 38,699 776,850 606,934 (200,000) 722,251 Property and equipment, net ...... 33,418 646,713 54,455 32,558 - 767,144 Other Assets Debt issue costs, net .......... 521 - - - - 521 Deposits ....................... 28,434 1,760 - 51,135 - 81,329 Goodwill ....................... - - - - 6,873,980 (e) 6,873,980 ----------- ----------- -------- -------- ----------- ----------- Total Other Assets ............. 28,955 1,760 - 51,135 6,873,980 6,873,980 ----------- ----------- -------- -------- ----------- ----------- Total Assets ................... $ 62,141 $ 687,172 $831,305 $690,627 $ 6,173,980 $ 8,445,225 =========== =========== ======== ======== =========== =========== Current Liabilities Accounts payable and other accrued expenses ............. 366,575 148,126 57,613 424,119 - 996,433 Deferred revenue ............... - - 594,698 78,290 - 672,988 Customer deposits .............. - - 111,886 238,454 - 350,340 Convertible promissory notes, net of discount .............. 115,380 847,500 - - 2,050,000 (e) 3,012,880 Line of credit ................. - - - 200,000 - 200,000 Warrant liability .............. 240,592 - - - - 240,592 Accrued Interest ............... 59,930 29,360 - - - 89,290 Loans payable .................. 213,640 - - - - 213,640 Other current liabilities ...... - - - 50,455 - 50,455 Notes payable - current ........ 37,216 140,000 - - 1,440,000 (e) 1,617,216 ----------- ----------- -------- -------- ----------- ----------- Total Current Liabilities ...... 1,033,333 1,164,986 764,197 991,318 3,490,000 7,443,834 Loans and Notes payable .......... 134,719 - - - - 134,719 ----------- ----------- -------- -------- ----------- ----------- Total Liabilities .............. 1,168,052 1,164,986 764,197 991,318 3,490,000 7,443,553 Stockholder's Equity Common Stock ................... 11,580 65,666 - - 10,400 (e) 87,646 Paid in Capital ................ 7,543,532 (57,629) 7,500 150,711 2,673,580 (e) 10,317,694 Stock subscription receivable .. - (537) - - - (537) Retained Earnings/ (Accumulated Deficit) ......... (8,661,023) (485,314) 59,608 (451,402) (67,108) (e) (9,538,131) ----------- ----------- -------- -------- ----------- ----------- Total Stockholders' Equity ..... (1,105,911) (477,814) 67,108 (300,691) 2,683,980 866,672 ----------- ----------- -------- -------- ----------- ----------- Total Liabiliites and Stockholders' Equity .......... $ 62,141 $ 687,172 $831,305 $690,627 $ 6,173,980 $ 8,445,225 =========== =========== ======== ======== =========== =========== See accompanying notes to unaudited pro forma combined condensed financial statements. 1
Dynamic Leisure Corporation Unaudited Pro Forma Combined Condensed Statement of Income For the 12 months ended December 31, 2005
Historical Historical Dynamic Historical Historical Acquisitions DynEco (a) Leisure (a) Changes (a) IRT-ITR Adjustments (a) Ref Total ----------- ----------- ---------- ----------- --------------- --- ----------- Revenue ................................ $ - $ - $5,737,408 $ 2,579,641 $ - $ 8,317,049 Cost of revenue ........................ - - 4,701,541 1,518,548 - 6,220,089 ----------- ----------- ---------- ----------- --------- ----------- Gross Profit ........................... - - 1,035,867 1,061,093 - 2,096,960 General and admistrative expenses ...... 497,968 455,954 835,801 1,892,660 - 3,682,383 ----------- ----------- ---------- ----------- --------- ----------- Income (loss) from operations .......... (497,968) (455,954) 200,066 (506,923) - (1,585,423) Other Income/(Expense) Interest income ...................... 1,257 - 15,194 2,235 - 18,686 Interest expense ..................... (199,041) (29,360) - (7,658) (184,500) (c) (329,659) Other Income ......................... 169,287 - - - - 169,287 ----------- ----------- ---------- ----------- --------- ----------- Total Other Income/(Expense) ....... (28,497) (29,360) 15,194 (5,423) (184,500) (141,686) ----------- ----------- ---------- ----------- --------- ----------- Income before taxes ................ (526,465) (485,314) 215,260 (512,346) (184,500) (1,727,109) Provision for income taxes ......... - - - 1,385 - (d) - ----------- ----------- ---------- ----------- --------- ----------- Net income ......................... $ (526,465) $ (485,314) $ 215,260 $ (510,961) $(184,500) $(1,727,109) =========== =========== ========== =========== ========= =========== Net Loss per share - Basic and Diluted . $ (0.47) $ (0.07) $ 0.63 $ (0.73) $ - $ (0.20) =========== =========== ========== =========== ========= =========== Weighted average number of shares outstanding during the period - basic and diliuted ................. 1,125,327 6,566,667 340,000 700,000 - 8,731,994 =========== =========== ========== =========== ========= =========== See accompanying notes to unaudited pro forma combined condensed financial statements. 2
Dynamic Leisure Group, Inc. Notes to Unaudited Pro Forma Combined Condensed Financial Statements (a) The unaudited pro forma combined condensed statement of income reflects the combined historical financial statements of Dynamic Leisure Group, Inc. for the period from May 16, 2005 (inception) to December 31, 2005. The historical financial statements for DynEco Corporation, Changes in L'attitudes ("CLA"), Island Resort Tours, Inc. ("IRT") and International Travel and Resorts, Inc. ("ITR") are for the 12 months ending December 31, 2005. The historical results are presented in the unaudited pro forma income statement as if the acquistions had occurred at the beginning of the period or for Dynamic, at its inception. The financial statements of both DynEco and Dynamic have been adjusted for the subsequent affect of a 1:30 reverse stock split. The pro forma adjustments do not reflect benefits of additional revenue or reduced expenses from the combinations nor acquisition or integration costs subsequent to the acquisitions, which will cause actual earnings results that will vary from the pro forma earnings shown. A final determination of possible required purchase accounting adjustments has not yet been made, which could also affect the pro form earnings presented. (b) The unaudited pro forma combined condensed balance sheet reflects the combined historical financial position of DynEco Corporation, Dynamic Leisure Group, Inc., Changes in L'attitudes, Inc. and Island Resort Tours, Inc and International Travel and Resorts, Inc., as if the acquisitions had occurred on December 31, 2005. Certain reclassifications were made from historical financial reports for comparability and consistency. Dynamic Leisure Group, Inc, was acquired through a share exchange agreement, in which no cash or new additional liabilities were assumed other then those already recorded by Dynamic or DynEco. CLA was acquired for a total purchase price of $2,090,680 consisting of $200,000 in cash, an acquisition payable of 440,000, a convertible note payable of $600,000 and 340,000 shares of common stock, valued at $850,680,000. IRT and ITR were acquired for a total purchase price of $4,783,300 consisting of $500,000 in cash, an acquisition payable of $1,000,000, a convertible note payable of $1,450,000 and 700,000 shares of common stock valued at $1,833,300. (c) Adjustment represents interest income to finance the acquisition of CLA and IRT-ITR, as if amounts due for both convertible notes payable in the amount of $2,05000,000 were outstanding for the entire 12 month period, accruing interest at the 9% annual stated rate. (d) There is no provision or benefit for income taxes recorded, based on the historical operating losses previously reported by DynEco and Dynamic. (e) Under the purchase method of accounting, assets and liabilities are reported at their estimated fair value, which may result in an increase or decrease from previously reported amounts. There are no adjustments presented to the value of existing assets or liabilities of CLA or IRT-ITR, based on an initial valuation that they are already reported at their estimated fair value. However, the analysis of purchase accounting valuations is still continuing and may or may not result in future adjustments. The amount of the CLA and IRT-ITR purchase price that exceeded net assets is presented as goodwill, and prior CLA and IRT-ITR equity that represents the book value of net assets acquired was eliminated. 3