Shearson Financial Network (SHSN) 8-K/A Completion of Acquisition or Disposition of Assets

Exhibit No. 99.4

SHEARSON FINANCIAL NETWORK AND SUBSIDIARY

PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND

THE YEAR ENDED DECEMBER 31, 2005

Introduction to Pro Forma Consolidated Financial Statements	F-2
Pro Forma Consolidating Balance Sheet as of June 30, 2006 (Unaudited)	F-3
Pro Forma Consolidating Statements of Operations for the Six Months ended June 30, 2006 (Unaudited)	F-4
Pro Forma Consolidating Balance Sheet as of December 31, 2005 (Unaudited)	F-5
Pro Forma Consolidating Statements of Operations for the Year Ended December 31, 2005 (Unaudited)	F-6
Notes to Pro Forma Consolidated Financial Statements	F-7

Shearson Financial Network, Inc.

Introduction of Pro Forma Consolidated Financial Statements

(UNAUDITED)

The accompanying unaudited pro forma consolidated financial statements as of June 30, 2006 and December 31, 2005, gives effect to the purchase of certain assets and liabilities, (“Purchase”) as if the Purchase occurred on January 1, 2006 and January 1, 2005. The accompanying unaudited pro forma consolidated financial statements for the six month's ended June, 30 2006 and the year ended December 31, 2005, gives effect to the Purchase as if it occurred on the first day of each respective period presented.

The unaudited pro forma consolidated financial information is provided for illustrative purposes only and is not necessarily indicative of the results that would have occurred if the Purchase had occurred on the first day of the periods presented. The unaudited pro forma financial statements should not be construed as being representative of future operating results or financial position of the Company and should be read in conjunction with the accompanying notes to the unaudited pro forma consolidated financial statements.

F-2

SHEARSON FINANCIAL NETWORK AND SUBSIDIARY

PRO FORMA CONSOLIDATING BALANCE SHEET

FOR THE SIX MONTHS ENDED JUNE 30, 2006

	Shearson Financial Network			Ehome			Debit		Credit				Pro Forma Amount
ASSETS:
Current assets:
Cash	$	110,625		$	576,777					(576,777	)	(1)	$	110,625
Loans available for sale		4,994,271			4,994,271					(4,994,271	)	(1)		4,994,271
Loan receivable		-			39,750					(39,750	)	(1)		-
Accounts receivable		297,152			812,764					(812,764	)	(1)		297,152
Other current assets		268,595			239,497					(239,497	)	(1)		268,595
Total current assets		5,670,643			6,663,058									5,670,643
Fixed assets:
Property and equipment, net		1,565,487			267,178					(267,178	)	(1)		1,565,487
Total fixed assets		1,565,487			267,178									1,565,487
Other assets:
Goodwill		3,887,040			-			610,809				(2)		4,497,849
Other assets		25,701			-									25,701
Total other assets		3,912,740			-									4,523,549
TOTAL ASSETS	$	11,148,870		$	6,930,236								$	11,759,679
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Current liabilities:
Accounts payable and accrued expenses	$	1,109,601		$	1,350,654					(1,350,654	)	(1)	$	1,109,601
Bridge notes payable		869,682												869,682
Accrued interest payable		72,010												72,010
Notes payable		410,183			181,000					(181,000	)	(1)		410,183
Notes payable - related party		808,396												808,396
Line of credit		7,591,469			4,923,253					(4,923,253	)	(1)		7,591,469
Total current liabilities		10,861,341			6,454,907									10,861,341
Long term debt		500,000			-									500,000
TOTAL LIABILITIES		11,361,341			6,454,907									11,361,341
Stockholders' equity:
Common stock		99,598			600,200					(600,200	)	(1)		99,598
Preferred Stock		3,000,000												3,000,000
Capital account		-			1,868,564					(1,868,564	)	(1)		-
Additional paid-in capital		23,350,403			7,398,091					(7,398,091	)	(1)		23,350,403
Treasury stock, cost method		-			(521,380	)		521,380				(1)		-
Accumulated (deficit)		(26,662,472	)		(8,870,145	)		9,480,955				(3)		(26,051,662	)
Total stockholders' equity		(212,471	)		475,329									398,339
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	11,148,870		$	6,930,236								$	11,759,679

F-3

SHEARSON FINANCIAL NETWORK AND SUBSIDIARY

PRO FORMA CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2006

	Shearson Financial						Pro Forma Adjustments						Pro Forma
	Network			Ehome			Debit		Credit				Amount
Revenues:
Loan origination	$	1,718,800		$	5,996,353								$	7,715,153
Other income		-			41,884					(41,884	)	(1)		-
Total revenues		1,718,800			6,038,236									7,715,153
-
Cost of Sales		526,545			2,745,820					(13,714	)	(1)		3,258,651
Gross Profit		1,192,255			3,292,417									4,456,502
Expenses:
Salary & wages & payroll taxes		1,567,189			1,535,946					(509,851	)	(1)		2,593,283
Selling, general and administrative		479,730			2,131,067					(750,166	)	(1)		1,860,631
Professional fees		1,729,850			879,861					(879,861	)	(1)		1,729,850
Depreciation expense		307,352			-									307,352
Total expenses		4,084,121			4,546,873									6,491,116
(Loss) income from operations		(2,891,866	)		(1,254,457	)								(2,034,614	)
Other (expense) income
Other income		-			46,757					(401	)	(1)		46,356
Interest expense		(88,933	)		(28,586	)		16,527				(1)		(100,991	)
Forgiveness of debt		5,150,000			-									5,150,000
Total other (expense) income		5,061,067			18,171									5,095,365
Loss related to minority shareholder interest
Net income (loss)	$	2,169,200		$	(1,236,285	)							$	3,060,750
Net income per share basic and diluted
Weighted average number of common shares outstanding, basic and diluted	$	0.04											$	0.05
		62,012,424												62,012,424

F-4

SHEARSON FINANCIAL NETWORK AND SUBSIDIARY

PRO FORMA CONSOLIDATING BALANCE SHEET

FOR THE YEAR ENDED DECEMBER 31, 2005

	Shearson Financial Network			Ehome			Debit		Credit				Pro Forma Amount
ASSETS:
Current assets:
Cash	$	21,401		$	796,261									817,662
Loans available for sale		831,200			9,364,210									10,195,410
Accounts receivable		107,321			1,468,433					(1,395,000	)	(1)		180,754
Other current assets		433,280			412,832									846,112
Total current assets		1,393,203			12,041,736									12,039,938
Fixed assets:
Property and equipment, net		1,664,571			202,289									1,866,860
Total fixed assets		1,664,571			202,289									1,866,860
Other assets:
Goodwill		1,372,916			-									1,372,916
Other assets		-			53,920					(53,920	)	(1)		-
Total other assets		1,372,916			53,920									1,372,916
TOTAL ASSETS	$	4,430,690		$	12,297,945								$	15,279,714
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES:
Current liabilities:
Accounts payable and accrued expenses	$	1,690,101		$	1,857,247					(1,161,219	)	(1)		2,386,129
Bridge notes payable		5,869,682			-									5,869,682
Accrued interest payable		140,794			69,158									209,952
Notes payable		333,173			211,000					(211,000	)	(1)		333,173
Notes payable - related party		767,846			-									767,846
Line of credit		3,497,073			9,364,350									12,861,423
Total current liabilities		12,298,669			11,501,755									22,428,205
TOTAL LIABILITIES		12,298,669			11,501,755									22,428,205
Stockholders' equity:
Common stock		37,544			600,200					(600,200	)	(1)		37,544
Preferred Stock		-						3,000,000				(2)		3,000,000
Capital account		-			8,351,230					(8,351,230	)	(1)		-
Additional paid-in capital		20,926,149												20,926,149
Treasury stock, cost method		-			(521,380	)		521,380				(1)		-
Accumulated (deficit)		(28,831,673	)		(7,633,860	)		5,353,349				(1)		(31,112,184	)
Total stockholders' equity		(7,867,979	)		796,190									(7,148,491	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	4,430,690		$	12,297,945								$	15,279,714

F-5

SHEARSON FINANCIAL NETWORK AND SUBSIDIARY

PRO FORMA CONSOLIDATING STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2005

	Shearson Financial						Pro Forma Adjustments					Pro Forma
	Network			Ehome			Debit	Credit				Amount
Revenues:
Loan origination	$	6,826,190		$	10,506,674							$	17,332,864
Other income		-			878,886				(878,886	)	(1)		-
Total revenues		6,826,190			11,385,560								17,332,864
-
Cost of Sales		2,786,367			1,119,890								3,906,257
Gross Profit		4,039,822			10,265,670								13,426,607
Expenses:
Salary & wages & payroll taxes		3,143,080			4,672,087				(1,387,860	)	(1)		6,427,308
Selling, general and administrative		3,926,577			11,190,543				(2,906,968	)	(1)		12,210,152
Professional fees		3,041,777			911,621				(911,621	)	(1)		3,041,777
Depreciation expense		684,820			99,492								784,312
Total expenses		10,796,254			16,873,743								22,463,548
(Loss) income from operations		(6,756,432	)		(6,608,073	)							(9,036,941	)
Other (expense) income
Interest income		-			3,292				(3,292	)	(1)		-
Interest expense		(184,290	)		(46,751	)			46,751		(1)		(184,290	)
Debt discount expense		(2,904,110	)		-								(2,904,110	)
Impairment of goodwill		(732,105	)		-								(732,105	)
Loss on disposal of assets		(352,829	)		(239,164	)			239,164		(1)		(352,829	)
Other income		-			2,050,000				(2,050,000	)	(1)		-
Total other (expense) income		(4,173,333	)		1,767,377								(4,173,334	)
Dividens on preferred shares		(69,481	)										(69,481	)
Net income (loss)	$	(10,999,245	)	$	(4,840,696	)						$	(13,279,756	)
Net income per share basic and diluted
Weighted average number of common shares outstanding, basic and diluted	$	(0.50	)									$	(0.61	)
		21,942,476											21,942,476

(1) The adjustments reflect the activity not related to the purchase by assuming the transaction had closed on January 1, 2006 for the period ended June 30, 2006 and assuming the transaction had closed on January 1, 2005 for the year ended December 31, 2005.

(2) The adjustment acknowledges the consideration and any associated goodwill.

(3) This adjustment reflects the accumulated deficit for the year ended December 31, 2005 of the EHC not related to the purchase.

F-6

SHEARSON FINANCIAL NETWORK, INC. AND SUBSIDIARY

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

(1) Pro Forma Adjustments:

On June 9, 2006, Shearson Financial Network, Inc.(“the Company”) purchased certain assets and defined liabilities of eHome Credit Corp. (“EHC”), for consideration of  7,500 shares of our Series A-1 Preferred Stock valued at approximately $3,000,000.

Shearson Financial Network’s unaudited pro forma consolidated financial statements for the six month period ended June 30, 2006 is derived from Shearson Financial Network’s unaudited consolidated financial statements for the period as filed on Form 10QSBA on May 29, 2007 and eHome Credit Corp. unaudited statement of income for the six months ended June 30, 2006 as provided by eHome Credit Corp.

Shearson Financial Network’s unaudited pro forma consolidated financial statements for the year ended December 31, 2005 is derived from Shearson Financial Network’s consolidated financial statements as filed on Form 10KSBA on May 22, 2006 and eHome Credit Corp. audited financial statements for the year ended December 31, 2005, as provided by eHome Credit Corp.

On November 20, 2006, the Company amended its Asset Purchase Agreement with eHome Credit Corp., adjusting the asset and liabilities purchased, as well as the consideration. The consideration was amended as follows; for consideration of $3,000,000 in Company’s Preferred Stock; the Company shall purchase from EHC, a total of $3,568,761 in assets and assume $3,082,885 in liabilities, or net assets and liabilities of $485,876. The related financial information regarding the change in consideration and the reduction of assets and liabilities purchased is reflected in the Company’s Form 10QSBA for the period ended June 30, 2006, as filed on May 29, 2007.

Pro forma adjustments were made to the unaudited consolidated Financial statements for the six months ended June 30, 2006 assuming the transaction had occurred on January 1, 2006 to include EHC’s earnings for the six months ended June 30, 2006 as attributable to the assets less liabilities purchased.

Pro forma adjustments were made to the consolidated financial statements for the year ended December 31, 2005 assuming the transaction had occurred on January 1, 2005 to include EHC’s financial operations for the year ended December 31, 2005, as attributable to the assets less liabilities purchased.

F-7