UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
September 30, 2003
---------------------------------------------------------
Historical
-------------------------
First Mogel
Deltavision, Management Pro Forma Pro Forma
Inc. Group, Inc. Adjustments Combined
--------------------------------------- ---------
ASSETS
Current assets
Cash and cash equivalents $ -- $ -- $ -- $ --
-------------------------------------- ---------
Total current assets -- -- -- --
Due from affilate -- -- -- --
Deposit -- -- -- --
Goodwill -- -- 46,040(a) 46,040
Net assets of Mogel Management Group, Inc. -- -- 13,960(a) 13,960
-------------------------------------- ---------
Total assets $ -- $ -- $ 60,000 $ 60,000
====================================== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 1,200 $ -- $ -- $ 1,200
Accounts payable - related party 67,087 -- -- 67,087
Due to officers 42,386 -- -- 42,386
---------
Notes payable to shareholders -- -- 60,900(a) 60,900
-------------------------------------- ---------
Total current liabilities 110,673 -- 60,900 171,573
Commitments and contingencies -- -- -- --
Stockholders' equity:
Common stock, $0.001 par value; 50,000,000 shares
authorized; 1,342,000 shares issued and
outstanding 1,342 -- -- 1,342
Additional paid in capital 101,269 -- -- 101,269
Deficit accumulated during the development stage (213,284) -- (900)(b) (214,184)
-------------------------------------- ---------
Total stockholders' equity (110,673) -- (900) (111,573)
-------------------------------------- ---------
Total liabilities and stockholders' equity $ -- $ -- $ 60,000 $ 60,000
====================================== =========
September 30, 2003
---------------------------------------------------------
Historical
-------------------------
First Mogel
Deltavision, Management Pro Forma Pro Forma
Inc. Group, Inc. Adjustments Combined
--------------------------------------- ---------
ASSETS
Current assets
Cash and cash equivalents $ -- $ -- $ -- $ --
-------------------------------------- ---------
Total current assets -- -- -- --
Due from affilate -- -- -- --
Deposit -- -- -- --
Goodwill -- -- 46,040(a) 46,040
Net assets of Mogel Management Group, Inc. -- -- 13,960(a) 13,960
-------------------------------------- ---------
Total assets $ -- $ -- $ 60,000 $ 60,000
====================================== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 500 $ -- $ -- $ 500
Accounts payable - related party 65,467 -- -- 65,467
Due to officers 40,868 -- -- 40,868
Notes payable to shareholders -- -- 63,600(a) 63,600
-------------------------------------- ---------
Total current liabilities 106,835 -- 63,600 170,435
Commitments and contingencies -- -- -- --
Stockholders' equity:
Common stock, $0.001 par value; 50,000,000 shares
authorized; 1,342,000 shares issued and
outstanding 1,342 -- -- 1,342
Additional paid in capital 101,269 -- -- 101,269
Deficit accumulated during the development stage (209,446) -- (3,600)(b) (213,046)
-------------------------------------- ---------
Total stockholders' equity (106,835) -- (3,600) (110,435)
Total liabilities and stockholders' equity $ -- $ -- $ 60,000 $ 60,000
====================================== =========
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
Three Months Ended September 30, 2003
----------------------------------------------------------------
First Mogel
Deltavision, Management Pro Forma Pro Forma
Inc. Group, Inc. Adjustments Combined
-------------------------------------------- -----------
Revenue $ -- $ -- $ -- $ --
General and administrative expenses 3,838 -- -- 3,838
-------------------------------------------- -----------
Loss from operations (3,838) -- -- (3,838)
Interest expense -- -- 900(b) 900
-------------------------------------------- -----------
Loss from operations before income taxes (3,838) -- (900) (4,738)
Provision for income taxes -- -- -- --
-------------------------------------------- -----------
Net loss $ (3,838) $ -- $ (900) $ (4,738)
============================================ ===========
Basic and diluted net loss per share $ (0.00) $ -- $ -- $ (0.00)
Weighted average shares outstanding 1,342,000 -- -- 1,342,000
UNAUDITED PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS
Year Ended September 30, 2003
----------------------------------------------------------------
First Mogel
Deltavision, Management Pro Forma Pro Forma
Inc. Group, Inc. Adjustments Combined
-------------------------------------------- -----------
Revenue $ -- $ -- $ -- $ --
General and administrative expenses 35,162 -- -- 35,162
-------------------------------------------- -----------
Loss from operations (35,162) -- -- (35,162)
Interest expense -- -- 3,600(b) 3,600
-------------------------------------------- -----------
Loss from operations before income taxes (35,162) -- (3,600) (38,762)
Provision for income taxes -- -- -- --
-------------------------------------------- -----------
Net loss $ (35,162) $ -- $ (3,600) $ (38,762)
============================================ ===========
Basic and diluted net loss per share $ (0.03) $ -- $ -- $ (0.03)
Weighted average shares outstanding 1,342,000 -- -- 1,342,000
NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
1. BASIS OF PRESENTATION
The following unaudited pro forma condensed combined financial statements give
effect to the acquisition by First Deltavision, Inc. ("the Company") of Mogel
Management Group, Inc. ("MMG, Inc.") This acquisition was completed on January
1, 2004.
The accompanying Unaudited Pro Forma Condensed Combined Statements of
Operations (the "Pro Forma Statements of Operations") for the year ended June
30, 2003 and the three months ended September 30, 2003 give effect to the
acquisition of MMG, Inc., accounted for as a purchase business combination, as
if it had occurred on July 1, 2002. The Pro Forma Statements of Operations are
based on historical results of operations of the Company and MMG, Inc. for the
year ended June 30, 2003 and the three months ended September 30, 2003. The
Unaudited Pro Forma Condensed Combined Balance Sheet (the "Pro Forma Balance
Sheet") gives effect to the acquisition as if it had occurred on July 1, 2002.
MMG, Inc. was incorporated on October 2, 2003 and does not have historical
results of operations for the year ended June 30, 2003 and the three months
ended September 30, 2003. The Pro Forma Statements of Operations and Pro Forma
Balance Sheet and accompanying notes (the "Pro Forma Financial Information")
should be read in conjunction with, and are qualified by reference to, the
historical financial statements of the Company and MMG, Inc. and the related
notes thereto.
The Pro Forma Financial Information is intended for informational purposes only
and is not necessarily indicative of the future financial position or future
results of operations of the Company after the acquisition of MMG, Inc., or of
the financial position or results of operations of the Company that would have
actually occurred had the acquisition of MMG, Inc. been effected on July 1,
2002.
2. PRO FORMA ASSUMPTIONS
The acquisition has been accounted for under the purchase method of accounting.
The following represents the preliminary allocation of the purchase price over
the historical net book values of the acquired assets and assumed liabilities of
MMG, Inc. at December 31, 2003, and is included for illustrative pro forma
purposes only. Assuming the transaction had occurred on December 31, 2003, the
allocation would have been as follows:
Value of promissory notes issued by the Company $60,000
-------
Preliminary allocation of purchase price to:
Cash $8,534
Deposit 7,794
Due from affiliate 7,632
Accounts payable (10,000)
Goodwill 46,040
-------
$60,000
-------
The purchase price of MMG, Inc. of $60,000 consists of three promissory issued
to the shareholders of MMG, Inc. The promissory notes bear interest at 6% per
annum and are due on December 31, 2004. MMG, Inc. previously had agreed to issue
a warrant to purchase up to
shares of MMG, Inc.'s common stock pursuant to a certain consulting agreement.
MMG, Inc. has cancelled this certain consulting agreement and has cancelled the
issuance of this warrant. The unaudited condensed pro foma financial information
assume that this warrant was cancelled and not issued.
3. PRO FORMA ADJUSTMENTS
The pro forma financial information reflects the following adjustments:
(a) To record the preliminary allocation of the purchase price to goodwill
and the net assets of MMG, Inc. as of December 31, 2003.
(b) To record interest expense on the promissory notes issued by the Company.
4. EARNINGS PER SHARE
Basic and diluted loss per share for each period are calculated by dividing pro
forma net loss by the weighted average outstanding shares used to calculate loss
per share in the historical period.