Xtant Medical (XTNT) 8-K Entry into a Material Definitive Agreement

Exhibit 99.3

BACTERIN INTERNATIONAL, INC.

Balance Sheet

March 31, 2010

	Bacterin International, Inc.			K-Kitz, Inc.			Pro Forma Adjustments			Footnotes	Pro Forma Combined
Assets
Current Assets
Cash and cash equivalents	$	280,103		$	62,434		$	5,697,403		a,b	$	6,039,940
Accounts receivable (net)		1,558,944			5,571			(5,571	)	a		1,558,944
Notes receivable		426,565			-			-				426,565
Notes receivable from stockholder		22,178			-			-				22,178
Inventories, net		5,556,378			29,316			(29,316	)	a		5,556,378
Prepaid and other current assets		40,000			5,194			(5,194	)	a		40,000
Total Current Assets		7,884,168			102,515			5,657,322				13,644,005
Property and Equipment, Net		3,136,498			-			-				3,136,498
Other Assets
Intangible assets, net		557,627			-			-				557,627
Other assets		13,675			-			-				13,675
	$	11,591,968		$	102,515		$	5,657,322			$	17,351,805
Liabilities and Members' Equity
Current Liabilities
Accounts payable	$	1,252,695		$	13,033		$	(13,033	)	a	$	1,252,695
Warrant derivative liability		515,227			-			-				515,227
Accrued liabilities		571,750			-			(82,329	)	a,b		489,421
Current deferred tax liability		-			1,834			(1,834	)	a		-
Notes payable		740,615			-			-				740,615
Notes payable to stockholders		183,461			-			-				183,461
Current portion of capital lease obligations		69,584			-			-				69,584
Current portion of convertible notes payable		3,516,163			-			(1,666,163	)	a,b		1,850,000
Current portion of long-term debt		1,193,591			-			-				1,193,591
Total Current Liabilities		8,043,086			14,867			(1,763,359	)			6,294,594
												-
Long-term Liabilities
Capital lease obligations, less current portion		17,474										17,474
Long-term debt, less current portion		333,548										333,548
Total Liabilities		8,394,108			14,867			(1,763,359	)			6,645,616
Stockholders' Equity
Common stock, $.00001 par value; 100,000,000 shares authorized; issued and outstanding XXX shares in 2009		565			6			69		a,b		640
Additional paid in capital		22,394,210			96,795			7,411,459		a,b		29,902,464
Treasury stock, 117,794 shares		(76,566	)		-			-				(76,566	)
Retained earnings		(19,120,349	)		(9,153	)		9,153		a		(19,120,349	)
Total Stockholders' Equity		3,197,860			87,648			7,420,681				10,706,189
	$	11,591,968		$	102,515		$	5,657,322			$	17,351,805

a  Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

b  Proforma adjustments for the completion of the $7,508,329 round of equity finanicing as part of the proposed stock offering and partial conversion of convertible notes payable.

The accompanying notes are an integral part of the financial statements.

BACTERIN INTERNATIONAL, INC.

Statement of Income

For the three months ended March 31, 2010

	Bacterin International, Inc.			K-Kitz, Inc.			Pro Forma Adjustments			Footnotes	Pro Forma Combined
Revenues
Revenue	$	2,707,124		$	16,812		$	(16,812	)	a	$	2,707,124
Royalties and other		29,309			-			-				29,309
Total Revenue		2,736,433			16,812			(16,812	)			2,736,433
Cost of revenue		604,622			9,657			(9,657	)	a		604,622
Gross Profit		2,131,811			7,155			(7,155	)			2,131,811
Operating Expenses
Selling, general, and administrative		1,671,081			16,383			(16,383	)	a		1,671,081
Compensation expense		1,483,871			-			-				1,483,871
Total Operating Expenses		3,154,952			16,383			(16,383	)			3,154,952
Income from Operations		(1,023,141	)		(9,228	)		9,228				(1,023,141	)
Other Income (Expense)
Interest expense		(625,797	)		-			-				(625,797	)
Other		5,924			-			-				5,924
Total Other Income (Expense)		(619,873	)		-			-				(619,873	)
Net Income Before Benefit (Provision)
for Income Taxes		(1,643,014	)		(9,228	)		9,228				(1,643,014	)
Benefit (Provision) for Income Taxes
Current		-			-			-				-
Deferred		-			-			-				-
Net Income	$	(1,643,014	)	$	(9,228	)	$	9,228			$	(1,643,014	)
EPS Basic for Net Income	$	(0.03	)								XX
Weighted Average Shares Outstanding		56,461,755									XX

a Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

The accompanying notes are an integral part of the financial statements.

BACTERIN INTERNATIONAL, INC.

Balance Sheet

December 31, 2009

	Bacterin International, Inc.			K-Kitz, Inc.		Pro Forma Adjustments			Footnotes	Pro Forma Combined
Assets
Current Assets
Cash and cash equivalents	$	54,155		$	46,012	$	8,409,201		a,b	$	8,509,368
Accounts receivable (net)		1,314,418			52,202		(52,202	)	a		1,314,418
Related party accounts receivable		-			16,687		(16,687	)	a		-
Notes receivable		270,565			-		-				270,565
Notes receivable from stockholder		-			-		-				-
Inventories, net		5,000,713			18,978		(18,978	)	a		5,000,713
Prepaid and other current assets		30,000			3,894		(3,894	)	a		30,000
Total Current Assets		6,669,851			137,773		8,317,440				15,125,064
Property and Equipment, Net		3,248,096			-		-				3,248,096
Other Assets
Intangible assets, net		554,268			-		-				554,268
Other assets		13,675			-		-				13,675
	$	10,485,890		$	137,773	$	8,317,440			$	18,941,103
Liabilities and Members' Equity
Current Liabilities
Accounts payable	$	1,403,950		$	23,460	$	(23,460	)	a	$	1,403,950
Warrant derivative liability	$	75,231		$	-	$	-				75,231
Related party accounts payable		-			15,603		(15,603	)	a		-
Accrued liabilities		463,633			-		(82,329	)	a,b		381,304
Current deferred tax liability		-			1,834		(1,834	)	a		-
Notes payable		1,126,690			-		-				1,126,690
Notes payable to stockholders		183,461			-		-				183,461
Current portion of capital lease obligations		85,071			-		-				85,071
Current portion of convertible notes payable		820,787			-		1,029,213		a,b		1,850,000
Current portion of long-term debt		1,202,574			-		-				1,202,574
Total Current Liabilities		5,361,397			40,897		905,987				6,308,281
Long-term Liabilities
Capital lease obligations, less current portion		27,074			-		-				27,074
Long-term debt, less current portion		412,545			-		-				412,545
Total Liabilities		5,801,016			40,897		905,987				6,747,900
											-
Stockholders' Equity
Common stock, $.00001 par value; 100,000,000 shares authorized; issued and outstanding XXX shares in 2009		565			6		69		a,b		640
Additional paid in capital		22,238,210			96,795		7,411,459		a,b		29,746,464
Treasury stock		(76,566	)		-		-				(76,566	)
Retained earnings		(17,477,335	)		75		(75	)	a		(17,477,335	)
Total Stockholders' Equity		4,684,874			96,876		7,411,453				12,193,203
	$	10,485,890		$	137,773	$	8,317,440			$	18,941,103

a  Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

b  Proforma adjustments for the completion of the $7,508,329 round of equity finanicing as part of the proposed stock offering and partial conversion of convertible notes payable.

The accompanying notes are an integral part of the financial statements.

BACTERIN INTERNATIONAL, INC.

Statement of Income

For the Year Ended December 31, 2009

	Bacterin International, Inc.			K-Kitz, Inc.			Pro Forma Adjustments			Footnotes	Pro Forma Combined
Revenues
Revenue	$	7,101,357		$	295,520		$	(295,520	)	a	$	7,101,357
Royalties and other		292,136			-			-				292,136
Total Revenue		7,393,493			295,520			(295,520	)			7,393,493
Cost of sales		2,318,142			213,254			(213,254	)	a		2,318,142
Gross Profit		5,075,351			82,266			(82,266	)			5,075,351
Operating Expenses
Selling, general, and administrative		4,161,941			72,301			(72,301	)	a		4,161,941
Compensation expense		4,535,964			-			-				4,535,964
Total Operating Expenses		8,697,905			72,301			(72,301	)			8,697,905
Income from Operations		(3,622,554	)		9,965			(9,965	)			(3,622,554	)
Other Income (Expense)
Interest expense		(513,934	)		-			-				(513,934	)
Other		10,746			-			-				10,746
Total Other Income (Expense)		(503,188	)		-			-				(503,188	)
Net Income Before Benefit (Provision)
for Income Taxes		(4,125,742	)		9,965			(9,965	)			(4,125,742	)
Benefit (Provision) for Income Taxes
Current		-										-
Deferred		-			(1,834	)		1,834		a		-
Net Income	$	(4,125,742	)	$	8,131		$	(8,131	)		$	(4,125,742	)
EPS Basic for Net Income		(.08	)								XX
Weighted Average Shares Outstanding		52,911,010									XX

a  Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

The accompanying notes are an integral part of the financial statements.