PRO FORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
The following unaudited pro forma consolidated balance sheet has been derived
from the balance sheets of the combining entities at September 30, 1999 and
adjusts such information to give effect to the business combination as had it
occurred at September 30, 1999. The pro forma balance sheet is presented for
informational purposes only and does not purport to be indicative of the
financial condition that actually would have resulted if the business
combination had been consummated at September 30, 1999. The pro forma balance
sheet should be read in conjunction with the notes thereto and the entities
financial statements and related notes thereto contained elsewhere in this form
8-K.
September 30, 1999
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Actual
Actual Universal Pro Forma
Net-Tronics Media Adjustments Pro Forma
--------------- --------------- --------------- --------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ -- $ 1,012 $ 100,000 (a) $ 1,012
(100,000) (b)
Investment in subsidiary 100,000 (b)
25 (b)
(100,025) (c)
Other current assets 223 -- -- 223
--------------- --------------- --------------- --------------
Total current assets 223 1,012 -- 1,235
GOODWILL -- -- 99,802 99,802
--------------- --------------- --------------- --------------
$ 223 $ 1,012 $ 99,802 $ 101,037
=============== =============== =============== ==============
LIABILITIES AND
STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Notes payable - stockholders $ -- $ -- $ 100,000 $ 100,000
Accounts payable and
accrued expenses -- 348,645 -- 348,645
Accrued payroll taxes -- 19,465 -- 19,465
--------------- --------------- --------------- --------------
Total current liabilities -- 368,110 100,000 468,110
STOCKHOLDERS' EQUITY
Preferred stock -- -- -- --
Common stock 1 12,059 25 (b) 12,084
(1) (c)
Additional paid-in capital 999 2,007,679 (999) (c) 2,007,679
Retained earnings (777) (2,386,836) 777 (c) (2,386,836)
--------------- --------------- --------------- --------------
Total stockholder's equity 223 (367,098) (198) (367,073)
--------------- --------------- --------------- --------------
$ 223 $ 1,012 $ 99,802 $ 101,037
=============== =============== =============== ==============
NOTES TO PRO FORMA STATEMENT OF OPERATIONS
(UNAUDITED)
The following unaudited pro forma statement of operations have been derived from
the statement of operations of the combining entities for the fiscal year ended
September 30, 1999 and adjusts such information to give effect to the business
combination as had it occurred at October 1, 1998. The financial information for
Net-Tronics was derived from its year ended December 31, 1998 (audited) which
management believes is representation of its operations for the year ended
September 30, 1999. The pro forma statements of operation are presented for
informational purposes only and does not purport to be indicative of the results
of operation that actually would have resulted if the business combination had
been consummated at October 1, 1998. The pro forma balance sheet should be read
in conjunction with the entities financial statements and related notes thereto
contained elsewhere in the Form 8-K.
Year ended September 30, 1999
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Actual
Actual Universal Pro Forma
Net-Tronics Media Adjustments Pro Forma
------------ ------------ ------------ ------------
REVENUES EARNED $ -- $ 241,207 $ -- $ 241,207
COST OF REVENUES EARNED -- 337,680 -- 337,680
------------ ------------ ------------ ------------
GROSS PROFIT (LOSS) -- (96,473) -- (96,473)
GENERAL AND
ADMINISTRATIVE EXPENSES 245 211,103 (6,667) (a) 217,806
------------ ------------ ------------ ------------
OPERATING LOSS (245) (307,576) 6,667 (314,279)
OTHER EXPENSES -- 16,398 -- 16,398
------------ ------------ ------------ ------------
LOSS BEFORE PROVISION
FOR INCOME TAXES (245) (323,974) 6,667 (330,677)
INCOME TAX EXPENSE -- -- -- --
------------ ------------ ------------ ------------
NET LOSS $ (245) $ (323,974) $ 6,667 $ (330,677)
============ ============ ============ ============
EARNINGS PER SHARE
Basic and fully diluted nil (0.03) nil (0.03)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic and fully diluted 1,000,000 11,159,356 250,000 12,409,356
============ ============ ============ ============
NOTES TO PRO FORMA STATEMENT OF OPERATIONS
(a) To record amortization of goodwill on the straight-line method over its
estimated useful life of 15 years.
NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
(a) Advance by stockholders to Universal Media Holdings, Inc.
(b) Purchase of 100 percent of the outstanding stock of Net-Tronics by
Universal Media Holdings, Inc. for following consideration:
Cash $ 100,000
250,000 shares of stock of
Universal Media Holdings, Inc. 25
---------
$ 100,025
=========
(c) To eliminate investment of Universal Media Holdings, Inc., its wholly owned
subsidiary, stockholders' equity of Net-Tronics Communication Corporation
and recognize goodwill of $99,802.