E-SYNERGIES, INC. | |||||||||||||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEET | |||||||||||||||||||||||
AS OF MAY 31, 2001 | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Pro forma Consolidating Entries | Pro forma e-Synergies, Inc. | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||
Cash | $ | 172,218 | $ | - | $ | - | $ | 172,218 | |||||||||||||||
Accounts receivable (net) | 299,512 | 3,500,000 | - | 3,799,512 | |||||||||||||||||||
Due from affiliate | 13,100 | - | - | 13,100 | |||||||||||||||||||
Prepaid expenses | 1,350 | 73,801 | - | 75,151 | |||||||||||||||||||
Other current assets | 36,640 | - | - | 36,640 | |||||||||||||||||||
Total current assets | 522,820 | 3,573,801 | - | 4,096,621 | |||||||||||||||||||
Property and Equipment (net) | 410,145 | 1,098,295 | - | 1,508,440 | |||||||||||||||||||
Other Assets | |||||||||||||||||||||||
Investment in HealthStar Corp. | 1,662,500 | - | - | 1,662,500 | |||||||||||||||||||
Intangible assets (net) | 210,855 | 1,489,700 | (1) | (279,319 | ) | 1,421,236 | |||||||||||||||||
Refundable deposits | 3,113 | 666,524 | - | 669,637 | |||||||||||||||||||
Total Other Assets | 1,876,468 | 2,156,224 | (279,319 | ) | 3,753,373 | ||||||||||||||||||
Total Assets | $ | 2,809,433 | $ | 6,828,320 | $ | (279,319 | ) | $ | 9,358,434 | ||||||||||||||
LIABILITES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||
Bank overdraft | $ | 62,034 | $ | - | $ | - | $ | 62,034 | |||||||||||||||
Accounts payable and accrued expenses | 1,023,286 | 97,052 | - | 1,120,338 | |||||||||||||||||||
Accrued payroll and related expenses | - | 421,648 | - | 421,648 | |||||||||||||||||||
Current portion of long-term debt | 18,127 | - | - | 18,127 | |||||||||||||||||||
Due to Affiliate | 741,809 | - | - | 741,809 | |||||||||||||||||||
Notes payable, bank | - | 3,000,000 | - | 3,000,000 | |||||||||||||||||||
Loans payable | 46,429 | - | - | 46,429 | |||||||||||||||||||
Taxes withheld from wages | 91,663 | - | - | 91,663 | |||||||||||||||||||
Other current liabilities | 63,563 | - | - | 63,563 | |||||||||||||||||||
Total current liabilities | 2,046,911 | 3,518,700 | - | 5,565,611 | |||||||||||||||||||
Long-Term Debt, net of current maturities | 26,123 | - | - | 26,123 | |||||||||||||||||||
Minority Interest in Subsidiary | (135,600 | ) | - | - | (135,600 | ) | |||||||||||||||||
Total Liabilities | 1,937,434 | 3,518,700 | - | 5,456,134 | |||||||||||||||||||
Stockholders' Equity | |||||||||||||||||||||||
Common stock | 155 | - | - | 155 | |||||||||||||||||||
Additional paid-in-capital | 4,466,166 | - | - | 4,466,166 | |||||||||||||||||||
Retained earnings | (3,667,509 | ) | 3,309,620 | (279,319 | ) | (637,208 | ) | ||||||||||||||||
Accumulated other comprehensive income | 73,187 | - | - | 73,187 | |||||||||||||||||||
Total Stockholders' equity | 871,999 | 3,309,620 | (279,319 | ) | 3,902,300 | ||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,809,433 | $ | 6,828,320 | $ | (279,319 | ) | $ | 9,358,434 | ||||||||||||||
(1) | To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period. | ||||||||||||||||||||||
E-SYNERGIES. INC. | |||||||||||||||||||||
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED MAY 31, 2001 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Pro forma Consolidating Entries | Pro forma e-Synergies, Inc. Consolidated | ||||||||||||||||||
Revenues | $ | 1,470,139 | $ | 18,215,378 | $ | - | $ | 19,685,517 | |||||||||||||
Operating Expenses: | |||||||||||||||||||||
Cost of products sold | 899,336 | - | - | 899,336 | |||||||||||||||||
Direct expenses | 1,011,028 | 10,611,963 | - | 11,622,991 | |||||||||||||||||
Selling, general and administrative | 1,946,277 | 8,155,449 | - | 10,101,726 | |||||||||||||||||
Depreciation and amortization | 131,799 | 6,711,928 | (1) | 279,319 | 7,123,046 | ||||||||||||||||
3,988,440 | 25,479,340 | 279,319 | 29,747,099 | ||||||||||||||||||
Operating Loss | (2,518,301 | ) | (7,263,962 | ) | (279,319 | ) | (10,061,582 | ) | |||||||||||||
Other Income (Expense): | |||||||||||||||||||||
Interest and dividend income | - | 68,112 | - | 68,112 | |||||||||||||||||
Interest expense | (28,773 | ) | (5,383 | ) | - | (34,156 | ) | ||||||||||||||
Loss from write-off of worthless investment in securities | (251,000 | ) | - | - | (251,000 | ) | |||||||||||||||
Miscellaneous income | 9,134 | 107,614 | - | 116,748 | |||||||||||||||||
(270,639) | 170,343 | - | (100,296 | ) | |||||||||||||||||
Loss from continuing operations | (2,788,940 | ) | (7,093,619 | ) | (279,319 | ) | (10,161,878 | ) | |||||||||||||
Discontinued Operations | |||||||||||||||||||||
Loss from operations of disposed subsidiary | (219,822 | ) | - | - | (219,822 | ) | |||||||||||||||
Loss Before Minority Interest and Extraordinary Item | (3,008,762 | ) | (7,093,619 | ) | (279,319 | ) | (10,381,700 | ) | |||||||||||||
Minority Interest In Loss of Subsidiary | 105,261 | - | - | 105,261 | |||||||||||||||||
Income Before Extrodinary Item | (2,903,501 | ) | (7,093,619 | ) | (279,319 | ) | (10,276,439 | ) | |||||||||||||
Extraordinary Item | |||||||||||||||||||||
Gain on sale of subsidiary, net of tax | 1,085,850 | - | - | 1,085,850 | |||||||||||||||||
Net Income (Loss) | $ | (1,817,651 | ) | $ | (7,093,619 | ) | $ | (279,319 | ) | $ | (9,190,589 | ) | |||||||||
Basic and Diluted Net Loss Per Common Share: | |||||||||||||||||||||
Income (loss) before extraordinary item | $ | (2.16 | ) | $ | (7.39 | ) | |||||||||||||||
Extraordinary item | 0.78 | 0.78 | |||||||||||||||||||
$ | (1.38 | ) | $ | (6.61 | ) | ||||||||||||||||
Weighted Average Number of Common Shares Outstanding | 1,390,762 | 1,390,762 | |||||||||||||||||||
E-SYNERGIES, INC. | ||||||||||||||||||||||||
PRO FORMA CONSOLIDATED BALANCE SHEET | ||||||||||||||||||||||||
AS OF AUGUST 31, 2000 | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Pro forma Consolidating Entries | Pro forma e-Synergies, Inc. Consolidated | |||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||
Cash | $ | 339,478 | $ | - | $ | - | $ | 339,478 | ||||||||||||||||
Accounts receivable (net) | 545,007 | 3,500,000 | - | 4,045,007 | ||||||||||||||||||||
Unbilled services | 168,819 | - | - | 168,819 | ||||||||||||||||||||
Prepaid expenses | 17,170 | 73,801 | - | 90,971 | ||||||||||||||||||||
Miscellaneous receivables | 57,995 | - | - | 57,995 | ||||||||||||||||||||
Other current assets | 12,271 | - | - | 12,271 | ||||||||||||||||||||
Total current assets | 1,140,740 | 3,573,801 | - | 4,714,541 | ||||||||||||||||||||
Property And Equipment (net) | 433,777 | 1,098,295 | - | 1,532,072 | ||||||||||||||||||||
Other Assets | ||||||||||||||||||||||||
Intangible assets (net) | 242,165 | 1,489,700 | (372,425 | ) | 1,359,440 | |||||||||||||||||||
Investments | 250,314 | - | - | 250,314 | ||||||||||||||||||||
Due from affiliates | 142,503 | - | - | 142,503 | ||||||||||||||||||||
Other assets | 26,291 | 666,524 | - | 692,815 | ||||||||||||||||||||
Total Other Assets | 661,273 | 2,156,224 | (372,425 | ) | 2,445,072 | |||||||||||||||||||
Total Assets | $ | 2,235,790 | $ | 6,828,320 | $ | (372,425 | ) | $ | 8,691,685 | |||||||||||||||
LIABILITES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||||||
Accounts payable and accrued expenses | $ | 1,337,028 | $ | 518,700 | $ | - | $ | 1,855,728 | ||||||||||||||||
Short-term bank borrowings | 94,186 | - | - | 94,186 | ||||||||||||||||||||
Current portion of long-term debt | 24,597 | - | - | 24,597 | ||||||||||||||||||||
Notes payable - bank | - | 3,000,000 | - | 3,000,000 | ||||||||||||||||||||
Due to affiliates | 110,490 | - | - | 110,490 | ||||||||||||||||||||
Loans payable | 7,097 | - | - | 7,097 | ||||||||||||||||||||
Taxes withheld from wages | 109,935 | - | - | 109,935 | ||||||||||||||||||||
Deferred revenues | 93,010 | - | - | 93,010 | ||||||||||||||||||||
Other current liabilities | 22,080 | - | - | 22,080 | ||||||||||||||||||||
Total current liabilities | 1,798,423 | 3,518,700 | - | 5,317,123 | ||||||||||||||||||||
Long-Term Debt, net of current maturities | 143,053 | - | - | 143,053 | ||||||||||||||||||||
Minority Interest in Subsidiaries | (16,992 | ) | - | - | (16,992 | ) | ||||||||||||||||||
Total Liabilities | 1,924,484 | 3,518,700 | - | 5,443,184 | ||||||||||||||||||||
Stockholders' Equity | ||||||||||||||||||||||||
Common stock | 8,570 | - | - | 8,570 | ||||||||||||||||||||
Additional paid-in-capital | 3,238,431 | - | - | 3,238,431 | ||||||||||||||||||||
Retained earnings | (2,917,526 | ) | 3,309,620 | (372,425 | ) | 19,669 | ||||||||||||||||||
Accumulated other comprehensive income | (18,169 | ) | - | - | (18,169 | ) | ||||||||||||||||||
Total stockholders' equity | 311,306 | 3,309,620 | (372,425 | ) | 3,248,501 | |||||||||||||||||||
Total Liabilities and Stockholders' Equity | $ | 2,235,790 | $ | 6,828,320 | $ | (372,425 | ) | $ | 8,691,685 | |||||||||||||||
(1) | To record the amortization of the intangible asset recorded as a result of the Xceed acquisition ($1,489,700) over a four year period. | |||||||||||||||||||||||
E-SYNERGIES, INC. | |||||||||||||||||||||
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||||||
FOR THE YEAR ENDED AUGUST 31, 2000 | |||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||
e-Synergies, Inc. Consolidated | Xceed Acquisition | Proforma Consolidating Entries | Pro forma e-Synergies, Inc. Consolidated | ||||||||||||||||||
Revenues | $ | 4,338,415 | $ | 81,940,417 | $ | - | $ | 86,278,832 | |||||||||||||
Operating Expenses: | |||||||||||||||||||||
Cost of products sold | 992,493 | - | - | 992,493 | |||||||||||||||||
Cost of revenues | 2,725,344 | 48,055,742 | - | 50,781,086 | |||||||||||||||||
Selling, general and administrative | 2,228,518 | 28,747,660 | - | 30,976,178 | |||||||||||||||||
Depreciation and amortization | 114,915 | 1,166,993 | (1) | 372,425 | 1,654,333 | ||||||||||||||||
6,061,270 | 77,970,395 | 372,425 | 84,404,090 | ||||||||||||||||||
Operating Income (Loss) | (1,722,855 | ) | 3,970,022 | (372,425 | ) | 1,874,742 | |||||||||||||||
Other Income (Expense): | |||||||||||||||||||||
Equity earnings on investment | (686 | ) | - | - | (686 | ) | |||||||||||||||
Miscellaneous income | 7,531 | (2,645,406 | ) | - | (2,637,875 | ) | |||||||||||||||
Interest expense | (61,626 | ) | (82,002 | ) | - | (143,628 | ) | ||||||||||||||
(54,781) | (2,727,408 | ) | - | (2,782,189 | ) | ||||||||||||||||
Income (Loss) Before Income Taxes and Minority Interest | (1,777,636 | ) | 1,242,614 | (372,425 | ) | (907,447 | ) | ||||||||||||||
Minority Interest In Income of Subsidiaries | (12,150 | ) | - | - | (12,150 | ) | |||||||||||||||
Income (Loss) Before Income Taxes | (1,789,786 | ) | 1,242,614 | (372,425 | ) | (919,597 | ) | ||||||||||||||
Provision for Income Taxes | - | 53,096 | 53,096 | ||||||||||||||||||
Net Income (Loss) | $ | (1,789,786 | ) | $ | 1,189,518 | $ | (372,425 | ) | $ | (972,693 | ) | ||||||||||