VISTA EXPLORATION CORPORATION
UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro forma condensed balance sheet and statements of
operations give effect to the merger of ICOP Digital, Inc. ("ICOP") and a
subsidiary of Vista Exploration Corporation ("Vista"), (formerly Bail
Corporation). ICOP Digital will be the surviving entity.
The unaudited pro forma consolidated financial statements have been prepared
utilizing the historical financial statements of ICOP, included herewith, and
Vista, incorporated by reference to its Form 10-KSB as of March 31, 2003 and its
Form 10-QSB as of September 30, 2003. The unaudited pro forma consolidated
financial statements should be read in conjunction with the notes to unaudited
pro forma condensed financial information and the separate audited financial
statements and notes thereto of Vista and ICOP.
The unaudited pro forma consolidated statements of operations for the year ended
March 31, 2003 and for the nine months ended September 30, 2003 give effect to
the acquisition by Vista as if the acquisition had occurred on the first day of
each period. The unaudited pro forma consolidated balance sheet as of September
30, 2003 gives effect to the acquisition as if it had occurred on September 30,
2003.
The unaudited pro forma consolidated financial statements are presented for
information purposes and do not purport to be indicative of the results that
actually would have occurred if the acquisition had been effective on the dates
indicated or which may be obtained in the future.
F-1
Vista Exploration Corporation
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
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ASSETS
------
Unaudited
Historical September 30, 2003 Pro Forma
------------------------------- Pro Forma September 30,
Vista ICOP Adjustments 2003
------------- -------------- --------------- ---------------
CURRENT ASSETS
Cash $ 43 $ 101,010 $ - $ 101,053
Bond - - -
Accounts receivable - 558,372 - 558,372
Inventories, at cost 567,455 - 567,455
Prepaid expenses - 48,136 48,136
------------- -------------- --------------- ---------------
TOTAL CURRENT ASSETS 43 1,274,973 - 1,275,016
PROPERTY AND EQUIPMENT, NET - 103,603 - 103,603
OTHER ASSETS:
Goodwill - 672,283 672,283
Deposits - 3,000 - 3,000
------------- -------------- --------------- ---------------
TOTAL ASSETS $ 43 $ 2,053,859 $ - $ 2,053,902
============= ============== =============== ===============
LIABILITIES
-----------
CURRENT LIABILITIES
Accounts payable and accrued
expenses $ 172,661 $ 1,807,098 (c) $ (172,661) $ 1,807,098
Unearned revenue - 416,845 - 416,845
Notes payable - related party 31,700 41,033 (c) (31,700) 41,033
Notes Payable 158,697 646,912 (c) (158,697) 646,912
Accrued interest payable 1,258 6,100 (c) (1,258) 6,100
------------- -------------- --------------- ---------------
TOTAL CURRENT LIABILITIES 364,316 2,917,988 (364,316) 2,917,988
------------- -------------- --------------- ---------------
STOCKHOLDERS' EQUITY (DEFICIT)
------------------------------
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred stock - - - -
Common stock 65,119 140,395 (a) (47,219) 158,295
Additional paid-in-capital - 2,485,305 (b) (17,857) 2,467,448
Stock options outstanding 80,000 - (b) (80,000) -
Accumulated Earnings (509,392) (3,489,829) (b) 509,392 (3,489,829)
------------- -------------- --------------- ---------------
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (364,273) (864,129) 364,316 (864,086)
------------- -------------- --------------- ---------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY (DEFICIT) $ 43 $ 2,053,859 $ - $ 2,053,902
============= ============== =============== ===============
See notes to unaudited pro forma consolidated financial statements.
F-2
Vista Exploration Corporation
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------------------------
For the Year Ended March 31, 2003
--------------------------------------------------------------
Pro Forma Unaudited
Vista* ICOP** Adjustments Pro Forma
------------- -------------- -------------- -------------
REVENUE $ - $ - $ - $ -
EXPENSES
Cost of Sales - - - -
Selling, general and administrative 241,016 358,429 (b) (241,016) 358,429
Research and development - 178,003 - 178,003
Interest, net 379 1,183 (b) (379) 1,183
------------- -------------- -------------- -------------
TOTAL EXPENSES 241,395 537,615 (241,395) 537,615
------------- -------------- -------------- -------------
OPERATING INCOME (LOSS) (241,395) (537,615) 241,395 (537,615)
Provision for income taxes - - - -
------------- -------------- -------------- -------------
Net Income (Loss) $ (241,395) $ (537,615) $ 241,395 $ (537,615)
============= -------------- -------------- -------------
Net Income per common share $ (0.03)
=============
Weighted Average Shares Outstanding 17,754,705
=============
=============
* Includes results of operations for the year from April 1, 2002 through
March 31, 2003
** Includes results of operations from inception on May 24, 2002 through year
end December 31, 2002.
See notes to unaudited pro forma consolidated financial statements.
F-3
Vista Exploration Corporation
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
- ---------------------------------------------------------------------------------------------------------
For the Periods Ended September 30, 2003
------------------------------------------------------------------
Unaudited
Six Months Nine Months Pro Forma Nine Months
Vista ICOP Adjustments Pro Forma
------------- -------------- -------------- ---------------
REVENUE $ - $ 3,163,562 (b) $ - $ 3,163,562
EXPENSES
Cost of Sales - 2,574,124 - 2,574,124
Selling, general and administrative 14,163 1,373,775 (b) (14,163) 1,373,775
Research and development - 2,130,529 - 2,130,529
Interest, net 944 39,902 (b) (944) 39,902
------------- -------------- -------------- ---------------
TOTAL EXPENSES 15,107 6,118,330 (15,107) 6,118,330
------------- -------------- -------------- ---------------
OPERATING INCOME (LOSS) (15,107) (2,954,768) 15,107 (2,954,768)
Provision for income taxes - 2,553 - 2,553
------------- -------------- -------------- ---------------
Net Income (Loss) $ (15,107) $ (2,952,215) $ 15,107 $ (2,952,215)
============= -------------- -------------- ---------------
Net Income per common share $ (0.19)
===============
Weighted Average Shares Outstanding 15,729,500
===============
See notes to unaudited pro forma consolidated financial statements.
F-4
VISTA EXPLORATION CORPORATION
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
Merger
- ------
On December 31, 2003, ICOP agreed to a merger with a subsidiary of Vista in
which 100% of its outstanding shares of common stock were automatically
converted into approximately 14,500,000 common shares of Vista. In addition,
ICOP agreed to cancel and Vista agreed to reissue options to purchase an
additional 2,500,000 shares of common stock at $1.00 per share. Because the
number of shares issued represents approximately 89% of the total shares
outstanding after the transaction, the transaction will be recorded as a reverse
acquisition, whereby ICOP is the surviving entity.
This transaction occurred on January 13, 2004. Vista had operated in the oil and
gas industry. It had incurred significant operating losses and had discontinued
operations earlier in 2003. In conjunction with this transaction, Vista received
$300,000 from the sale of 600,000 shares of common stock, which was used to pay
or settle all liabilities of Vista. In addition, to facilitate the transaction,
certain shareholders of Vista cancelled 500,000 shares of common stock and
forfeited all previously issued outstanding options for the purchase of common
stock of Vista.
Accounting and Tax Year-end Change
Vista intends to change its year-end from March 31 to December 31. The Vista
Statement of Operations for the current interim period has been adjusted to the
nine months ended September 30, 2003 and has been included in the pro forma as
such.
Assumptions:
a. Adjustments to record the common stock issued in conjunction with
the acquisition of ICOP.
b. Adjustments to include the operating results of Vista for the
quarter ended March 31, 2003 and to eliminate all the
pre-acquisition operating results of Vista.
c. Adjustments to record sale of common stock and repayment or
settlement of all existing liabilities of Vista.
F-5
