Unaudited Proforma Financial Data
The following unaudited proforma financial data of Trudy Corporation and Studio
Mouse, LLC represent the unaudited proforma consolidating balance sheet as of
March 31, 2002, and the unaudited proforma consolidating statement of operations
for the three months ended June 30, 2002.
The unaudited proforma consolidating balance sheet as of March 31, 2002 gives
effect to the change in ownership of Studio Mouse, LLC as if it occurred on June
1, 2001 and has been adjusted to give effect to the following transactions:
1. To record goodwill and the long-term loan payable to The Chart
Studio (Pty) Ltd. arising from Studio Mouse, LLC's purchase of
The Chart Studio (Pty) Ltd.'s and related party's ownership
interest
2. To eliminate intercompany receivables and payables balances
3. To eliminate Trudy Corporation's initial investment in Studio
Mouse, LLC and subsequent increases in such investment as a
result of the inclusion of Trudy Corp.'s pro rata share of the
earnings of Studio Mouse, LLC
4. To record a minority interest in the ownership of Studio Mouse,
LLC
5. To record imputed interest on the long-term loan payable to The
Chart Studio (Pty) Ltd.
The unaudited proforma consolidating statement of operations for the three
months ended June 30, 2002 gives effect to the change in ownership of Studio
Mouse, LLC as if it occurred on June 1, 2001 and has been adjusted to give
effect to the following transactions:
6. To eliminate intercompany sales and associated cost of sales
7. To eliminate intercompany operating expenses and other income
8. To eliminate the gain in Trudy Corporation's equity investment in
Studio Mouse, LLC
9. To record imputed interest on the long-term loan payable to The
Chart Studio (Pty) Ltd.
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Trudy Corporation and Subsidiary
Unaudited Proforma Consolidating Balance Sheet
March 31, 2002
Trudy Studio Proforma Adjustments Total
Corp. Mouse Subtotal Debit Credit Proforma
---------- ---------- ---------- ---------------------------------- ----------
Assets
Current assets:
Cash and cash equivalents 2,774 637 3,411 3,411
Accounts receivable, net 875,066 596,690 1,471,756 (2) 44,353 1,427,403
Inventories 1,169,653 498 1,170,151 1,170,151
Due from joint venture 31,445 31,445 (2) 31,445 --
Prepaid expenses and other current assets 201,870 36,886 238,756 (2) 13,761 224,995
---------- ---------- ---------- ----------
Total current assets 2,280,808 634,711 2,915,519 2,825,960
Goodwill (1) 263,897 263,897
Equipment, net 134,610 14,714 149,324 149,324
Royalty advances, net 36,041 36,041 36,041
Investment in joint venture 66,315 66,315 (3) 66,315 --
Organization costs, net -- 4,608 4,608 4,608
Pre-publication costs and other assets, net 172,738 44,898 217,636 217,636
---------- ---------- ---------- ----------
Total assets 2,690,512 698,931 3,389,443 3,497,466
========== ========== ========== ==========
Liabilities and shareholders' equity
Current liabilities:
Note payable - bank 300,000 300,000 300,000
Notes payable - shareholder/officer and
related party 152,197 152,197 152,197
Accounts payable and accrued expenses 597,467 395,514 992,981 (2) 19,121 973,860
Royalties and commissions payable 231,319 49,875 281,194 (2) 38,993 242,201
Due to Trudy Corporation -- 31,445 31,445 (2) 31,445 --
Due to The Chart Studio (Pty) Ltd. -- 80,287 80,287 80,287
---------- ---------- ---------- ----------
Total current liabilities 1,280,983 557,121 1,838,104 1,748,545
Long-term liabilities:
Loan to The Chart Studio (Pty) Ltd. (1) 288,897 307,469
(5) 18,572
Notes payable to related parties 1,301,088 1,301,088 1,301,088
Royalties payable 63,737 63,737 63,737
---------- ---------- ---------- ----------
Total long-term liabilities 1,364,825 -- 1,364,825 1,672,294
---------- ---------- ---------- ----------
Total liabilities 2,645,808 557,121 3,202,929 3,420,839
Minority interest (4) 4,591 4,591
Shareholders' equity:
Common stock: $.0001 par value 44,246 44,246 44,246
Common stock: No par value -- 50,000 50,000 (1) 25,000 --
(3) 25,000
Additional paid-in capital 4,945,264 4,945,264 4,945,264
Accumulated deficit (4,944,806) 91,810 (4,852,996) (3) 41,315 (4,917,474)
(4) 4,591
(5) 18,572
---------- ---------- ---------- ----------
Total shareholders' equity 44,704 141,810 186,514 72,036
---------- ---------- ---------- ---------- ---------- ----------
Total liabilities and shareholders'
equity 2,690,512 698,931 3,389,443 467,934 467,934 3,497,466
========== ========== ========== ========== ========== ==========
See accompanying notes to Unaudited Proforma Consolidating Balance Sheet.
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Trudy Corporation and Subsidiary
Unaudited Proforma Consolidating Statement of Operations
For the three months ended June 30, 2002
Trudy Studio Proforma Adjustments Total
Corp. Mouse Subtotal Debit Credit Proforma
---------- ---------- ---------- ---------------------------------- ----------
Net Sales 595,204 223,678 818,881 (6) 128,208 688,707
(6) 1,966
Cost of Sales 347,280 141,738 489,018 (6) 41,207 (6) 128,208 400,051
(6) 1,966
---------- ---------- ---------- ----------
Gross Profit 247,924 81,940 329,863 288,656
Operating expenses:
Selling, general and administrative 401,449 74,523 475,972 (7) 4,233 (7) 11,038 464,934
(7) 4,233
Depreciation and amortization 14,167 1,816 15,983 15,983
---------- ---------- ---------- ----------
(Loss) Income from operations (167,692) 5,601 (162,091) (192,260)
Other income (expense)
Interest, net (11,659) (11,659) (9) 5,801 (17,460)
Royalties, net (7,921) (7,921) (7) 11,038 (18,959)
Other income (expense) 271 271 271
Gain/(loss) in equity investment 2,521 2,521 (8) 2,521 --
---------- ---------- ---------- ---------- ---------- ----------
Net (loss) income (184,480) 5,601 (178,879) 194,974 145,445 (228,408)
========== ========== ========== ========== ========== ===========
Basic and diluted net loss per share: $ (0.00)
===========
Basic and diluted weighted
average shares outstanding: 442,460,249
===========
See accompanying notes to Unaudited Consolidating Statement of Operations.
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