1
EXHIBIT 2
VALUE HOLDINGS, INC. AND SUBSIDIARIES
PRO-FORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
ASSETS
PRO-FORMA PRO-FORMA
MAY 31, ADJUSTMENTS MAY 31,
1996 CONVERSION 1996
BALANCE REFLECTING OF FOREST HILL REFLECTING
AUDIT ADJUSTMENTS NOTE RECEIVABLE CONVERSION
----------------- --------------- ----------
Current Assets
Cash $ 13,022 $ 13,022
Accounts receivable 11,025
Notes receivable
Virilite Neutracutical Corp., net of deferred gain of
$86,251 at May 31, and $172,502 at February 29 13,749 13,749
Other 121,314 121,314
Prepaid expenses and other assets 73,057 (45,824) ** 27,233
---------------- ------------
232,167 186,343
Receivables from Stockholders 52,542 52,542
Investment in Affiliated Companies 283,987 1,656,250 1,940,237
Property and Equipment-Net of
accumulated depreciation 543,083 543,083
Cost in Excess of Net Assets
of Business Acquired 860,625 860,625
Intangible Assets 1,640,859 1,640,859
Note Receivable - Affiliate 770,426 (770,426) 0
Other Assets 40,448 40,448
---------------- -------------
$ 4,424,137 $ 5,265,137
================ =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Note payable other $ 43,500 $ 43,500
Notes payable, stockholders and directors 345,502 345,502
Accounts payable 583,061 583,061
Payroll and sales taxes payable 1,163,046 1,163,046
Accrued liabilities, other 209,403 209,403
---------------- -------------
2,344,512 2,344,512
---------------- -------------
Long Term Liability, Stockholder 287,875 287,875
Stockholders' Equity
Series A preferred stock par value $.0001,
20,000,000 shares authorized, 750,000 issued
and outstanding at May 31, 1996 and February 29,
1996 at liquidation value 750,000 750,000
Stock conversion rights 1,180,000 1,180,000
Common stock, par value $.0001, 180,000,000
shares authorized; issued and outstanding
51,206,068 and 44,206,068 at May 31, 1996 and
February 29, 1995 respectively 5,120 5,120
Note receivable affiliate (840,000) 840,000 0
Capital in excess of par 13,024,910 13,024,910
Deficit (12,324,888) (12,324,888)
Currency exchange (3,392) (3,392)
---------------- -------------
1,791,750 2,631,750
---------------- -------------
$ 4,424,137 $ 5,264,137
================ =============
** Accrued interest on note receivable at 5/31/96.
Note: We would need to pick up 44.76% of Forest Hill's net income or loss
prospectively after conversion.