PRO FORMA CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
The following pro forma financial statements have been derived from the
financial statements of PharmaFrontiers Corporation ("Pharma") at December 31,
2003 and adjusts such information to give effect to its reverse acquisition by
Sportan United Industries, Inc. ("Sportan"), as of the acquisition had occurred
at their respective year-ends as shown and to give effect to the acquisition of
Opexa Pharmaceuticals, Inc. ("Opexa") as if the acquisition had occurred at
December 31, 2003. The pro forma financial statements are presented for
informational purposes only and do not purport to be indicative of the financial
condition that would have resulted if the acquisition had been consummated at
either year-end. The pro forma financial statements should be read in
conjunction with the notes thereto and each Company's consolidated financial
statements and related notes thereto contained herein and in Pharma's 8-K filed
with the SEC on June 4, 2004.
Pro forma Consolidated Condensed Balance Sheet:
12/31/03 9/30/03 12/31/03
Pharma Sportan Opexa Adjustments Pro-Forma
--------- --------- --------- ----------- ------------
Current Assets
Cash $ 68 $ 1,235 $ 311,923 $ 313,226
Cash - Money Market - - 1,788,598 1,788,598
Prepaid expenses - - 41,548 41,548
Deposits - - 25,287 25,287
--------- --------- --------- ----------
68 1,235 2,167,356 2,168,659
Fixed assets, net - - 764,216 764,216
Intellectual Property - - - (2) 29,461,861 29,461,861
--------- --------- ---------- ---------- ----------
Total Assets $ 68 $ 1,235 $2,931,572 $29,461,861 $32,394,736
========= ========= ========== =========== ==========
Current Liabilities
Accounts payable $ 137 $ 232,068 $ 113,804 $346,009
Accrued expenses 7,505 21,371 118,223 147,099
Accrued Salary
to stockholder - 281,152 - 281,152
Notes payable 61,394 - - 61,394
Note payable -
related party - 657,175 - 657,175
--------- --------- --------- -----------
Total Current
Liabilities 69,036 1,191,766 232,027 1,492,829
--------- --------- --------- -----------
Long Term Liabilities
Deferred rent - - 58,955 58,955
Redeemable Series A
Convertible
Preferred Stock - - 8,352,451 8,352,451
------- ------- ------- ---------
Total Long Term
Liabilities - - 8,411,406 8,411,406
--------- --------- --------- -----------
Total Liabilities 69,036 1,191,766 8,643,433 9,904,235
Stockholder's Equity
Preferred stock, $.01
Par, 50,000 shares
authorized, none
issued and
outstanding - - - -
Common stock, $.00001 par
50,000,000 shares
authorized, 3,543,750
shares issued and
outstanding 35 - - (1) 35 -
Common stock, $.05 par
50,000,000 shares
authorized, 666,789
outstanding and
9,553,228 outstanding - 33,339 (1) (319,322) 477,661
(2) (125,000)
Common stock, $.001 par
20,000,000 shares
authorized, 2,575,625
shares issued and
outstanding - - 2,576 (2) 2,576 -
Deferred stock compensation - - (827) (2) (827) -
Paid in capital 57,000 732,252 47,338 (1) 2,275,409 22,138,843
(2) (23,577,662)
Accumulated Deficit (126,003) (1,956,122) (5,760,948) (1) (1,956,122) (126,003)
(2) (5,760,948)
--------- ----------- ----------- ----------- -----------
Total Stockholder's
Deficit (68,968) (1,190,531) (5,711,861) 29,461,861 22,490,501
--------- ----------- ----------- ----------- -----------
Total Liabilities and
Stockholder's Deficit $ 68 $ 1,235 $ 2,931,572 $29,461,861 $32,394,736
========== =========== =========== =========== ===========
Pro forma Consolidated Condensed Income Statement:
12/31/03 9/30/03 12/31/03
Pharma Sportan Opexa Adjustments Pro-Forma
--------- --------- --------- ----------- ------------
Revenues $ - $ 3,915 $ - (1) 3,915 $ -
Operating Expenses
Research & development - - 1,408,904 1,408,904
General and
administrative 80,801 121,837 1,402,009 (1) (121,837) 1,482,810
--------- --------- ---------- -----------
80,801 121,837 2,810,913 2,891,714
--------- --------- ---------- -----------
Operating loss (80,801) (117,922) (2,810,913) (2,891,714)
Other Income (Expense)
Debt forgiveness - 85,392 - (1) 85,392 -
Interest expense (45,202) (55,058) - (1) (55,058) (45,202)
Interest income - - 21,406) 21,406
Gain on sale - - 602` 602
--------- --------- --------- -----------
Net Loss $ (126,003) $(87,588) $(2,788,905) $(2,914,908)
========= ========= ========== ===========
Pro forma (Unaudited) Consolidated Condensed Balance Sheet:
6/30/04 6/30/04
Pharma Opexa Adjustments Pro-Forma
--------- ---------- ------------- ----------
Current Assets
Cash $ 6,164 $ 228,060 $ 234,224
Cash - Money Market - 391,726 391,726
Prepaid expenses 7,500 6,648 14,148
Advances 2,000 - 2,000
Deposits - 25,287 25,287
License and license option 182,817 - 182,817
--------- ---------- ----------
198,481 651,721 850,202
Fixed Assets, net 3,986 678,000 681,986
Intellectual Property - - (2) 31,182,013 31,182,013
--------- ---------- ---------- ----------
Total Assets $ 202,467 $1,329,721 31,182,013 $32,714,201
========= ========== ========== ==========
Current Liabilities
Accounts payable $ 161,791 190,218 352,009
Accrued Expenses 44,107 138,000 182,107
Notes payable - related party 138,913 - 138,913
--------- ---------- ----------
Total Current Liabilities 344,811 328,218 673,029
--------- ---------- ----------
Long Term Liabilities
Deferred rent - 81,065 81,065
Redeemable Series A
Convertible
Preferred Stock - 8,352,451 8,352,451
--------- ---------- ----------
Total Long Term
Liabilities - 8,433,516 8,433,516
--------- ---------- ----------
Total Liabilities 344,811 8,761,734 9,106,545
Stockholder's Equity
Convertible Preferred stock,
no par value , 10,000,000 shares
authorized, none issued
and outstanding - - -
Common stock, $.05 par,
50,000,000 shares authorized,
7,383,838 outstanding,
9,883,838 outstanding 369,192 - (2) (125,000) 494,192
Common stock, $.001 par
20,000,000 shares
authorized, 2,575,625
shares issued and
outstanding - 2,576 (2) 2,576 -
Deferred stock compensation - (623) (2) (623) -
Paid in capital 837,540 47,338 (2) (23,577,662) 24,462,540
Accumulated Deficit (1,349,076) (7,481,304) (2) (7,481,304) (1,349,076)
--------- ---------- ----------- -----------
Total Stockholders' deficit (142,344) (7,432,013) 31,182,013 23,607,656
--------- ---------- ----------- -----------
Total Liabilities and
Stockholder's Deficit $ 202,467 $1,329,721 $31,182,013 $32,714,201
========== ========== =========== ===========
Pro forma (Unaudited) Consolidated Condensed Income Statement:
6/30/04 6/30/04
Pharma Opexa Adjustments Pro-Forma
---------- ----------- ----------
Operating Expenses
Research & development - $ 864,869 $ 864,869
General & administrative $1,073,569 858,614 1,932,183
---------- ----------- ----------
1,073,569 1,723,483 (2,797,052)
---------- ----------- ----------
Operating Loss (1,073,569) (1,723,483) (2,797,052)
Other income (expense)
Interest expense (149,504) - (149,504)
Interest income - 3,127 3,127
--------- ----------- ---------
Net Loss $(1,223,073) $(1,720,356) $(2,943,429)
=========== =========== ===========