Exhibit 99.2
IN STORE MEDIA SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
March 31, 2001
ISMS E. Schulze
March 31, 2001 May 10, 2001 Pro forma
historical historical Adjustments combined
---------- ---------- --------------- ----------
Current assets:
Cash and cash equivalents $ 124,245 $ 6,091 A $ 1,719,000
B (1,719,000) $ 130,336
Inventory 5,525 - - 5,525
Other current assets 31,654 25,958 - 57,612
---------- ---------- --------------- ----------
Total current assets 161,424 32,049 - 193,473
Property and equipment, at cost:
Manufacturing equipment 79,076 - - 79,076
Office furniture and equipment 183,430 - - 183,430
Leasehold improvements 55,228 - - 55,228
---------- ---------- --------------- ----------
317,734 - - 317,734
Less accumulated depreciation and amortization (159,853) - - (159,853)
---------- ---------- --------------- ----------
Net property and equipment 157,881 - - 157,881
Other assets:
Advances and note receivable - related parties 47,433 - - 47,433
Debt issuance costs, net of accumulated
amortization 10,000 - - 10,000
Patent costs, net of accumulated amortization
of $25,656 85,211 - - 85,211
---------- ---------- --------------- ----------
Net other assets 142,644 - - 142,644
---------- ---------- --------------- ----------
$ 461,949 $ 32,049 $ - $ 493,998
========== ========== =============== ===========
See accompanying notes to unaudited pro forma combined balance sheet.
IN STORE MEDIA SYSTEMS, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
March 31, 2001
ISMS E. Schulze
March 31, 2001 May 10, 2001 Pro forma
historical historical Adjustments combined
-------------- ------------ --------------- -----------
Current liabilities:
Accounts payable $ 751,646 $ 32,049 $ - $ 783,695
Interest payable 404,347 - - 404,347
Accrued wages 32,000 - - 32,000
Notes payable 987,500 - - 987,500
Notes payable-shareholder - - - -
Short-term notes payable 20,169 - - 20,169
-------------- ------------ --------------- ----------
Total current liabilities 2,195,662 32,049 - 2,227,711
Stockholders' equity (deficit):
Preferred stock, no par value; 50,000,000
shares authorized, 3 shares issued and
outstanding, liquidation preference $750,000 750,000 - - 750,000
Common stock, $.01 par value; 150,000,000
shares authorized, 73,450,326 (historical)
and (pro forma) 73,450 - A 2,292
B (2,292) 73,450
Additional paid-in capital 17,602,868 - A 1,716,708
B (1,716,708) 17,602,868
Treasury stock, at cost; 9,374,742 shares (563,750) - - (563,750)
Deficit accumulated during the development
stage (19,596,281) - - (19,596,281)
-------------- ------------ --------------- -----------
Total stockholders' equity (deficit) (1,733,713) - - (1,733,713)
-------------- ------------ --------------- -----------
$ 461,949 $ 32,049 $ - $ 493,998
============== ============ =============== ===========
See accompanying notes to unaudited pro forma combined balance sheet.
NOTES TO UNAUDITED PRO FORMA COMBINED BALANCE SHEET
---------------------------------------------------
The pro forma adjustments assume the purchase business combination of
E. Schulze by ISMS occurred at the beginning of the periods presented. The
purchase price of E. Schulze consisted of $1,719,000 of cash, 17,852,196 shares
of ISMS $.001 par value common stock. The assets acquired consisted of
20,144,196 shares of ISMS $.001 par value common stock and a patent.
The following is a summary of the adjustments required based upon the above
assumptions.
A. Record sale of common stock to investors
B. Record acquisition of E. Schulze