EXHIBIT 99.2
MT ULTIMATE HEALTHCARE CORP.
Proforma Consolidated Financial Statements September 30, 2005 (unaudited)
and December 31, 2004 (unaudited)
The unaudited pro-forma consolidated financial statements give effect to the
acquisition by MT Ultimate Healthcare Corp. of iTechexpress, Inc. ("iTech"),
pursuant to a reverse takeover effective November 4, 2005, and the subsequent
acquisition of Drug Consultants, Inc. ("DCI") by iTech effective November 7,
2005. The unaudited pro forma consolidated financial statements have been
prepared by management using the accounting principles disclosed in the
consolidated financial statements of MT Ultimate Healthcare Corp. as of and
for the period ended September 30, 2005 as if the acquisition had occurred on
January 1, 2005.
The unaudited pro forma consolidated statement of operations for the year
ended December 31, 2004 is based on the unaudited financial statements as if
the acquisition had occurred on January 1, 2004. The unaudited pro forma
combined financial statements are not necessarily indicative of the results of
operations that would have been realized for the period presented, nor do they
purport to project the results of operations for any future periods. The
unaudited pro forma financial statements should be read in conjunction with
the consolidated financial statements of MT Ultimate Healthcare Corp., iTech
and DCI as of and for the periods ended December 31, 2004 and September 30,
2005.
1
MT ULTIMATE HEALTHCARE CORP. AND SUBSIDIARIES
Unaudited Combined Pro Forma Balance Sheet
September 30, 2005
MT Ultimate
Healthcare
Corp. iTechexpress, Pro Forma
(Parent) Inc. DCI Adjustments
September 30, September 30, September 30, Increase Pro Forma
2005 2005 2005 (Decrease) Combined
------------- -------------- -------------- ------------- -------------
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ASSETS
- ------
CURRENT ASSETS
Cash and cash equivalents $ - $ 120 $ - $ - $ 120
Accounts receivable, net 217,953 48,017 1,145,912 - 1,411,882
Other current assets 24,958 - - - 24,958
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Total Current Assets 242,911 48,137 1,145,912 - 1,436,960
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PROPERTY AND EQUIPMENT, Net 114,158 1,474 - - 115,632
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OTHER ASSETS
Deferred income taxes - - 6,032 - 6,032
Customer-related intangible - - - 2,256,170 (2) 2,256,170
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Total Other Assets - - 6,032 2,256,170 2,262,202
------------- -------------- -------------- ------------- -------------
TOTAL ASSETS $ 357,069 $ 49,611 $ 1,151,944 $ 2,256,170 $ 3,814,794
============= ============== ============== ============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
- ----------------------------------------------
CURRENT LIABILITIES
Bank overdraft $ 11,152 $ - $ - $ - $ 11,152
Accounts payable and
accrued expenses 473,078 349,399 455,644 (65,000)(2) 1,213,121
Notes payable, related
parties 116,335 - - - 116,335
Leases payable, current 4,000 - - - 4,000
Loans payable to shareholder - 23,300 - - 23,300
Notes payable, current 268,334 - 210,002 - 478,336
------------- -------------- -------------- ------------- -------------
Total Current Liabilities 872,899 372,699 665,646 (65,000) 1,846,244
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LONG-TERM LIABILITIES
Notes payable 876,401 - - 1,905,000 (2) 2,781,401
Beneficial conversion feature (229,166) - - - (229,166)
Deferred tax liability - - - 902,468 (2) 902,468
Leases payable 912 - - - 912
------------- -------------- -------------- ------------- -------------
Total Long-Term
Liabilities 648,147 - - 2,807,468 3,455,615
------------- -------------- -------------- ------------- -------------
Total Liabilities 1,521,046 372,699 665,646 2,742,468 5,301,859
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STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, par value
$0.001 per share;
898,333,333 shares issued
and outstanding 70,000 1,000 200,000 627,333 (1,2) 898,333
Additional paid-in capital 2,635,242 - 182,944 (4,879,496)(1,2) (2,061,310)
Accumulated equity (deficit) (3,869,219) (324,088) 103,354 3,765,865 (1,2) (324,088)
------------- -------------- -------------- ------------- -------------
Total Stockholders'
Equity (Deficit) (1,163,977) (323,088) 486,298 (486,298) (1,487,065)
------------- -------------- -------------- ------------- -------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
(DEFICIT) $ 357,069 $ 49,611 $ 1,151,944 $ 2,256,170 $ 3,814,794
============= ============== ============== ============= =============
See accompanying notes to unaudited proforma financial statements.
2
MT ULTIMATE HEALTHCARE CORP. AND SUBSIDIARIES
Unaudited Combined Pro Forma Statements of Operations
MT Ultimate
Healthcare
Corp. iTechexpress,
(Parent) Inc. DCI
For the For the For the Pro Forma
Period Ended Period Ended Period Ended Adjustments
September 30, September 30, September 30, Increase Pro Forma
2005 2005 2005 (Decrease) Combined
------------- -------------- -------------- ------------- -------------
REVENUES
Service revenues $ 1,395,955 $ 302,114 $ 5,303,853 $ - $ 7,001,922
Management fee - affiliates - 47,422 - - 47,422
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Total revenues 1,395,955 349,506 5,303,853 - 7,049,314
COST OF REVENUES 1,108,733 200,026 3,865,238 - 5,173,997
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GROSS MARGIN 287,222 149,480 1,438,615 - 1,875,317
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OPERATING EXPENSES
General and administrative 709,581 100,849 112,575 - 923,005
Bad debt expense - 19,271 - - 19,271
Compensation and fringe
benefits - 302,456 805,140 - 1,107,596
Professional fees - - 45,099 - 45,099
Management fee - related
party - - 94,500 - 94,500
Sales and marketing - - 900 - 900
Intangible amortization - - - 338,426 (6) 338,426
------------- -------------- -------------- ------------- -------------
Total operating expenses 709,581 422,576 1,058,214 338,426 2,528,797
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INCOME (LOSS) FROM OPERATIONS (422,359) (273,096) 380,401 (338,426) (653,480)
------------- -------------- -------------- ------------- -------------
OTHER EXPENSE
Interest expense 282,356 - 103,713 19,050 (8) 405,119
Loss on disposal of assets 14,581 - - - 14,581
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Total other expense 296,937 - 103,713 19,050 419,700
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NET INCOME (LOSS) BEFORE
INCOME TAXES (719,296) (273,096) 276,688 (357,476) (1,073,180)
------------- -------------- -------------- ------------- -------------
PROVISION FOR INCOME TAXES - - 116,209 (116,209)(4) -
------------- -------------- -------------- ------------- -------------
NET INCOME (LOSS) $ (719,296) $ (273,096) $ 160,479 $ (241,267) $ (1,073,180)
============= ============== ============== ============= =============
BASIC LOSS PER COMMON SHARE $ (0.011) N/A N/A $ (0.001)
============= ============== ============== =============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 63,376,671 N/A N/A 891,710,004
============= ============== ============== =============
See accompanying notes to unaudited proforma financial statements.
3
MT ULTIMATE HEALTHCARE CORP. AND SUBSIDIARIES
Unaudited Combined Pro Forma Statements of Operations
MT Ultimate
Healthcare
Corp. iTechexpress,
(Parent) Inc. DCI
For the For the For the Pro Forma
Year Ended Year Ended Year Ended Adjustments
December 31, December 31, December 31, Increase Pro Forma
2004 2004 2004 (Decrease) Combined
------------- -------------- -------------- ------------- -------------
REVENUES
Service revenues $ 2,072,236 $ 391,412 $ 4,069,580 $ - $ 6,533,228
Management fee - affiliates - 113,825 - - 113,825
------------- -------------- -------------- ------------- -------------
Total Revenues 2,072,236 505,237 4,069,580 - 6,647,053
COST OF REVENUES 1,521,353 220,383 3,545,591 - 5,287,327
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GROSS MARGIN 550,883 284,854 523,989 - 1,359,726
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OPERATING EXPENSES
General and administrative 449,210 87,711 144,328 - 681,249
Bad debt expense 119,519 44,183 - - 163,702
Compensation and fringe
benefits 420,429 96,745 - - 517,174
Depreciation and amortization 32,147 4,572 - - 36,719
Professional fees and
consulting 1,894,393 6,807 - - 1,901,200
Management fee - related
party - - 99,000 - 99,000
Intangible amortization - - - 451,234 (5) 451,234
------------- -------------- -------------- ------------- -------------
Total Operating Expenses 2,915,698 240,018 243,328 451,234 3,850,278
------------- -------------- -------------- ------------- -------------
INCOME (LOSS) FROM OPERATIONS (2,364,815) 44,836 280,661 (451,234) (2,490,552)
------------- -------------- -------------- ------------- -------------
OTHER INCOME (EXPENSE)
Interest expense (117,368) - (92,991) (19,050)(7) (229,409)
Impairment loss (563,427) - - - (563,427)
Other income (expense) - (3,943) 2,321 - (1,622)
------------- -------------- -------------- ------------- -------------
Total other income
(expense), net (680,795) (3,943) (90,670) (19,050) (794,458)
------------- -------------- -------------- ------------- -------------
NET INCOME (LOSS) BEFORE
INCOME TAXES (3,045,610) 40,893 189,991 (470,284) (3,285,010)
------------- -------------- -------------- ------------- -------------
PROVISION FOR INCOME TAXES - 11,513 79,944 (91,457) (3) -
------------- -------------- -------------- ------------- -------------
NET INCOME (LOSS) $ (3,045,610) $ 29,380 $ 110,047 $ (378,827) $ (3,285,010)
============= ============== ============== ============= =============
BASIC LOSS PER COMMON SHARE $ (0.057) N/A N/A $ (0.004)
============= ============== ============== =============
WEIGHTED AVERAGE NUMBER OF
COMMON SHARES OUTSTANDING 53,153,166 N/A N/A 881,486,499
============= ============== ============== =============
See accompanying notes to unaudited proforma financial statements.
4
MT Ultimate Healthcare Corp. and Subsidiaries
Notes to Unaudited Combined Proforma Financial Statements
ASSUMPTIONS AND ADJUSTMENTS
Reverse Takeover - On November 4, 2005, MT Ultimate Healthcare Corp. and
iTechexpress, Inc. and the former iTech shareholders entered into a Share
Exchange and Reorganization Agreement whereby iTech became a wholly-owned
subsidiary of the Company. As part of the transaction, The Company acquired
100% of the issued and outstanding shares of iTech in exchange for 305,000,000
newly issued shares of the Company Common Stock and the promise to issue an
additional 523,333,333 shares at such time as the Company has available
authorized shares, which is expected to occur in the first quarter of 2006.
As the number of shares issued represented approximately 92% of the
outstanding Common Stock of the Company after issuance, the transaction has
been accounted for as a reverse takeover of the Company by the shareholders of
iTech.
Purchase Transaction - On November 7, 2005, iTech entered into a Stock
Purchase Agreement with Drug Consultants, Inc., whereby DCI became a wholly
owned subsidiary of iTech. As part of the transaction, iTech purchased all of
the outstanding shares of DCI from the former shareholder of DCI for a
purchase price of $1,800,000, of which $1,600,000 was paid at the closing and
$200,000 shall be paid pursuant to a Secured Promissory Note. The Secured
Promissory Note is due in one payment of principal together with accrued but
unpaid interest (accruing at the rate of seven percent (7%) per annum) on or
before January 6, 2006. The Secured Promissory Note is secured by a stock
pledge agreement, whereby iTech pledged to the former DCI shareholder 51% of
the stock of DCI held by iTech to secure the full and prompt payment and
performance by iTech of the Secured Promissory Note. Additionally, any unpaid
amount of the Secured Promissory Note if not paid when due, will bear interest
at 12% per annum.
PRO FORMA ADJUSTMENTS
The unaudited pro forma financial statements incorporate the following
adjustments:
Adjustment 1
------------
Additional Paid-in Capital 4,696,552
Common Stock 1,000
Common Stock 828,333
Accumulated Deficit 3,869,219
To record the issuance of 828,333,333 shares of MT Ultimate Healthcare
Corp. issued to acquire 100% of the outstanding common stock of
iTechexpress, Inc., effective November 4, 2005, to eliminate the common
stock of iTechexpress, Inc. and the accumulated deficit of MT Ultimate
Healthcare Corp.
Adjustment 2
-------------
Accounts Payable 65,000
Common Stock 200,000
Additional Paid-in Capital 182,944
Accumulated Deficit 103,354
Customer-related intangible 2,256,170
Deferred tax liability 902,468
Note Payable 200,000
Note Payable 1,705,000
5
To record the purchase of Drug Consultants, Inc. for $1,800,000,
effective November 7, 2005.
Adjustment 3
------------
Income tax receivable 91,457
Provision for Income Taxes 91,457
To eliminate the provision for income taxes due to consolidated losses
for the year ended December 31, 2004.
Adjustment 4
------------
Income tax receivable 116,209
Provision for Income Taxes 116,209
To eliminate the provision for income taxes due to consolidated losses
for the nine months ended September 30, 2005.
Adjustment 5
------------
Intangible amortization 451,234
Customer-related intangible 451,234
To record amortization for the year ended December 31, 2004.
Adjustment 6
------------
Intangible amortization 338,426
Customer-related intangible 338,426
To record amortization for the nine months ended September 30, 2005.
Adjustment 7
------------
Interest 19,050
Accrued interest 19,060
To record interest expense on purchase notes payable at 6% interest rate
for two months outstanding for the year ended December 31, 2004.
Adjustment 8
------------
Interest 19,050
Accrued interest 19,060
To record interest expense on purchase notes payable at 6% interest rate
for two months outstanding for the nine months ended September 30, 2005.
6