Exhibit 99.2
Conversion Services International, Inc. | |||||||||||||
Pro Forma Balance Sheet | |||||||||||||
As of September 30, 2007 | |||||||||||||
Pro Forma | |||||||||||||
As Reported | Adjustments | Pro Forma | |||||||||||
(Unaudited) | |||||||||||||
ASSETS | |||||||||||||
CURRENT ASSETS | |||||||||||||
Cash | $ | 29,479 | $ | 2,200,000 | (a) | $ | 2,229,479 | ||||||
Accounts receivable, net | 3,220,713 | 3,220,713 | |||||||||||
Accounts receivable from related parties, net | 326,741 | 326,741 | |||||||||||
Prepaid expenses | 115,495 | 115,495 | |||||||||||
TOTAL CURRENT ASSETS | 3,692,428 | 2,200,000 | 5,892,428 | ||||||||||
PROPERTY AND EQUIPMENT | 188,148 | 188,148 | |||||||||||
OTHER ASSETS | |||||||||||||
Goodwill | 6,269,650 | 6,269,650 | |||||||||||
Intangible assets, net | 875,177 | 875,177 | |||||||||||
Deferred financing costs, net | 14,348 | 14,348 | |||||||||||
Discount on debt issued, net | 526,310 | 526,310 | |||||||||||
Equity investments | 84,952 | 84,952 | |||||||||||
Other assets | 304,844 | 304,844 | |||||||||||
8,075,281 | - | 8,075,281 | |||||||||||
Total Assets | $ | 11,955,857 | $ | 2,200,000 | $ | 14,155,857 | |||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||
CURRENT LIABILITIES | |||||||||||||
Line of credit | $ | 1,915,045 | $ | 1,915,045 | |||||||||
Current portion of long-term debt | 15,258 | 15,258 | |||||||||||
Accounts payable and accrued expenses | 2,436,935 | (536,301 | ) | (b) | 1,900,634 | ||||||||
Short term notes payable | 2,935,191 | (2,280,637 | ) | (c) | 654,554 | ||||||||
Deferred revenue | 34,430 | 34,430 | |||||||||||
Related party note payable | 98,999 | 98,999 | |||||||||||
TOTAL CURRENT LIABILITIES | 7,435,858 | (2,816,938 | ) | 4,618,920 | |||||||||
LONG TERM DEBT, net of current portion | 1,834,111 | (325,209 | ) | (d) | 1,508,902 | ||||||||
DEFERRED TAXES | 363,400 | 363,400 | |||||||||||
Total Liabilities | 9,633,369 | (3,142,147 | ) | 6,491,222 | |||||||||
SERIES A CONVERTIBLE PREFERRED STOCK | 633,333 | 633,333 | |||||||||||
COMMITMENTS AND CONTINGENCIES | - | - | |||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||
Common stock | 77,923 | 33,367 | (e) | 111,290 | |||||||||
Series B Convertible Preferred Stock | 1,352,883 | 1,352,883 | |||||||||||
Additional paid in capital | 59,076,236 | 5,308,780 | (f) | 64,385,016 | |||||||||
Treasury stock | (423,869 | ) | (423,869 | ) | |||||||||
Accumulated deficit | (58,394,018 | ) | (58,394,018 | ) | |||||||||
Total Stockholders' Equity | 1,689,155 | 5,342,147 | 7,031,302 | ||||||||||
Total Liabilities and Stockholders' Equity | $ | 11,955,857 | $ | 2,200,000 | $ | 14,155,857 |
Notes to Pro Forma Balance Sheet as of September 30, 2007:
(a) | Represents cash received from common stock purchase. |
(b) | Represents liabilities settled by issuing common stock, primarily dividends and interest on notes payable. |
(c) | Represents the settlement of short term liabilities via issuance of Company common stock. |
(d) | Represents the exchange of long term note payable for Company common stock. |
(e) | Represents the number of shares issued at the $0.001 per share par value. |
(f) | Represents the value of cash received and liabilities settled for common stock in excess of the par value of the shares. |