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 December 31, 1999 and
adjusts such information to give effect to the business combination as had it
occurred at December 31, 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 December 31, 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.
December 31, 1999
-------------------------------------------------------
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 - - - -
---------- ---------- ---------- ----------
Total current assets - 1,012 - 1,012
GOODWILL - - 100,000 (c) 100,000
---------- ---------- ---------- ----------
$ - $ 1,012 $ 100,000 $ 101,012
========== ========== ========== ==========
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 10 12,059 (10) (c) 12,059
Additional paid-in capital 1,589 2,097,679 (1,589) (c) 2,097,679
Retained earnings (1,599) (2,476,836) 1,599 (c) (2,476,836)
---------- ---------- ---------- ----------
Total stockholder's equity - (367,098) - (367,098)
---------- ---------- ---------- ----------
$ - $ 1,012 $ 100,000 $ 101,012
========== ========== ========== ==========
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 three months ended
December 31, 1999 and adjusts such information to give effect to the business
combination as had it occurred at October 1, 1999. The financial information for
Net-Tronics was derived from its three months ended March 31, 2000 which
management believes is representation of its operations for the three months
ended December 31, 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, 1999. 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.
Three months ended December 31, 1999
------------------------------------------------------------------
Actual
Actual Universal Pro Forma
Net-Tronics Media Adjustments Pro Forma
------------ ------------ ------------ ------------
REVENUES EARNED $ -- $ -- $ -- $ --
COST OF REVENUES EARNED -- -- -- --
------------ ------------ ------------ ------------
GROSS PROFIT (LOSS) -- -- -- --
GENERAL AND
ADMINISTRATIVE EXPENSES 245 90,000 (1,667) (a) 88,578
------------ ------------ ------------ ------------
OPERATING LOSS (245) (90,000) 1,667 (88,578)
OTHER EXPENSES -- -- -- --
------------ ------------ ------------ ------------
LOSS BEFORE PROVISION
FOR INCOME TAXES (245) (90,000) 1,667 (88,578)
INCOME TAX EXPENSE -- -- -- --
------------ ------------ ------------ ------------
NET LOSS $ (245) $ (90,000) $ 1,667 $ (88,578)
============ ============ ============ ============
EARNINGS PER SHARE
Basic and fully diluted nil nil nil (0.01)
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic and fully diluted 1,000,000 12,059,356 250,000 13,309,356
============ ============ ============ ============
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
(UNAUDITED)
(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.