EXHIBIT 99.2
S3I HOLDINGS, INC.
PROFORMA
CONSOLIDATED
FINANCIAL STATEMENTS
DECEMBER 31, 2002
S3I HOLDINGS, INC.
Proforma Consolidated Balance Sheet
S3I Holding, Inc.
SecureSoft (formerly Axtion Proforma
Systems, Inc. Foods, Inc.) Proforma Consolidated
Balance Balance Adjustments Balance
12/31/02 12/31/02 DR CR 12/31/02
----------- --------- ----------- ---------- ----------
(unaudited) (unaudited) (unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents $ 23,594 $ 916 $ 24,510
Prepaid Expenses -- 10,960 10,960
Accounts Receivable, Net 17,300 -- 17,300
Advances - Related Party 35,000 -- 35,000
Inventory 5,244 -- 5,244
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Total Current Assets 81,138 11,876 93,014
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Equipment, Net 19,226 16,214 35,440
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Other Assets
Software Development Costs, Net 170,298 --
Deposits 8,345 -- 8,345
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Total Other Assets 178,643 -- 8,345
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Total Assets $ 279,007 $ 28,090 $ 136,799
=========== ========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable & Accrued Expenses $ 641,164 $ 21,316 $ 662,480
Current Portion of Long-Term Debt 195,032 -- 195,032
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Total Current Liabilities 836,196 21,316 857,512
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Long-Term Liabilities
Convertible Debentures 120,000 -- 120,000
Notes Payable 72,500 -- 72,500
Notes Payable- Related Party 2,532 2,532
Less: Current Portion of Long-Term Debt (195,032) -- (195,032)
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Total Long-Term Liabilities -- -- --
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Stockholders' Equity
Preferred Stock, Authorized 10,000,000
Shares, No Par Value, None Issued and
Outstanding -- -- --
Common Stock, Authorized 100,000,000
Shares, No Par Value, 22,684,197 Shares
Issued and Outstanding 14,622 157,539 14,622 1,716,781 1,874,320
Additional Paid in Capital 2,023,222 -- 2,023,222 --
Retained Earnings (Deficit) (2,595,033) (150,765) 150,765 (2,595,033)
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Total Stockholders Equity (557,189) 6,774 (720,713)
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Total Liabilities and Stockholders Equity $ 279,007 $ 28,090 $ 136,799
=========== ========= ==========
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S3I HOLDINGS, INC.
Proforma Statement of Operations
S3I Holding, Inc.
SecureSoft (formerly Axtion
Systems, Inc. Foods, Inc.) Proforma
For January 1, 2002 For January 1, 2002 Proforma Consolidated
through through Adjustments Balance
December 31, 2002 December 31, 2002 DR CR December 31, 2002
----------------- ----------------- -- -- -----------------
(unaudited) (unaudited) (unaudited)
Revenues $ 2,499,843 $ 13,362 $2,513,205
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Cost of Goods Sold 231,646 4,449 236,095
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Gross Profit (Loss) 2,268,197 8,913 2,277,110
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Selling, General & Administrative 2,167,337 91,386 2,258,723
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Total Operating Expenses (2,167,337) (91,386) 2,258,723
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Income (Loss) from Operations 100,860 (82,473) 18,387
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Other Income (Expense) (44,291) (16,414) (60,705)
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Net Income (Loss) $ 56,569 $ (98,887) $ (42,318)
=========== ========= ==========
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S3I HOLDINGS, INC.
Notes to Pro Forma Consolidated Financial Statements
December 31, 2002
NOTE 1 - Summary of Transaction
On April 16, 2003, the Company completed an Agreement and Plan of Share
Exchange between S3I Holding, Inc. (formerly Axtion Foods, Inc.) a public
California corporation (S3I) (the Company) and SecureSoft Systems, Inc. a
private Delaware corporation (SecureSoft). Pursuant to the plan, the Company
canceled 20,000,000 shares of common stock and issued 15,702,197 shares of
common stock for all of the outstanding common stock of SecureSoft and changed
its name to S3I Holdings, Inc. The reorganization was recorded as a reverse
acquisition using the purchase method of accounting.
NOTE 2 - Management Assumptions
The pro forma consolidated balance sheet and statements of operations
assumes that the entities were together as of December 31, 2002.
The pro forma consolidated balance sheet assumes the cancellation of
20,000,000 shares of common stock and issuance of 15,702,197 shares of common
stock and the elimination of the retained deficit of S3I.
There are no proforma adjustments for the statement of operations.
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