OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
(Unaudited)
(In United States Dollars)
OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
SEPTEMBER 30, 2004
(Unaudited)
(In United States Dollars)
TABLE OF CONTENTS
Pro Forma Consolidated Balance Sheets as at September 30, 2004 1
Pro Forma Consolidated Statement of Operations and Deficit 2
Notes to Pro Forma Consolidated Financial Statements 3 - 4
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Balance Sheet
As at September 30, 2004
(Unaudited)
(Amounts expressed in United States Dollars) Page 1
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
------------ ------------ ------------ ------------
Assets
Current
Cash $ 460 $ -- $ -- $ 460
Accounts receivable -- 6,260 -- 6,260
Inventory -- 25,134 -- 25,134
------------ ------------ ------------ ------------
$ 460 $ 31,394 $ -- $ 31,854
============ ============ ============ ============
Liabilities
Current
Accounts payable $ 2,500 $ 30,846 $ -- $ 33,346
Loans payable 8,200 29,998 -- 38,198
------------ ------------ ------------ ------------
10,700 60,844 -- 71,544
------------ ------------ ------------ ------------
Shareholders' equity
Capital stock (note 3) 3,416 79 26,931 30,426
Additional paid up capital (discount) 66,554 -- (107,141) (40,587)
Accumulated other comprehensive
income (loss) -- 1,691 -- 1,691
Deficit (80,210) (31,220) 80,210 (31,220)
------------ ------------ ------------ ------------
Total stockholders' deficit (10,240) (29,450) -- (39,690)
------------ ------------ ------------ ------------
Total liabilities and stockholders' deficit $ 460 $ 31,394 $ -- $ 31,854
============ ============ ============ ============
Approved on behalf of the board:
Director
- --------------------------------------------
Director
- --------------------------------------------
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Statement of Operations and Deficit
For the Year Ended September 30, 2004
(Unaudited)
(Amounts expressed in United States Dollars) Page 2
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
-------------- -------------- -------------- --------------
Sales $ -- $ 3,447 $ -- $ 3,447
-------------- -------------- -------------- --------------
Cost of sales
Inventory, beginning of period -- -- -- --
Purchases -- 29,155 -- 29,155
-------------- -------------- -------------- --------------
-- 29,155 -- 29,155
Inventory, end of period -- 25,134 -- 25,134
-------------- -------------- -------------- --------------
-- 4,021 -- 4,021
-------------- -------------- -------------- --------------
Gross profit -- (574) -- (574)
-------------- -------------- -------------- --------------
Expenses
Professional and consulting fees 10,417 25,575 -- 35,992
Telecommunication and network
costs -- 3,079 -- 3,079
Office and general 125 1,992 -- 2,117
-------------- -------------- -------------- --------------
10,542 30,646 -- 41,188
-------------- -------------- -------------- --------------
Net loss $ (10,542) $ (31,220) $ -- $ (41,762)
============== ============== ============== ==============
Net earnings (loss) per share $ -- $ -- $ -- $ (0.02)
============== ============== ============== ==============
Weighted average number of shares outstanding -- -- -- 2,500,767
============== ============== ============== ==============
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Consolidated Balance Sheet
September 30, 2004
(Unaudited)
(Amounts Expressed in United States Dollars) Page 3
- --------------------------------------------------------------------------------
1. Securities exchange agreement and reverse acquisition
On ____________, OSK Capital II Corp. ("OSK"), a publicly traded company,
entered into a Securities Exchange Agreement with Teliphone Inc., a
Canadian corporation ("Teliphone"). In exchange for the acquisition of the
100% interest in Teliphone, the shareholders of Teliphone were issued a
total of 27,010,000 Common shares of OSK. Following the share exchange,
the former shareholders of Teliphone hold 88.8% of the 30,426,000 shares
of common stock of OSK. Consequently, even though OSK is the legal
acquirer, this transaction will be treated as an acquisition of OSK by
Teliphone and as a recapitalization by Teliphone for accounting purposes.
2. Pro-forma financial statements
The unaudited pro-forma consolidated financial statements are provided for
information purposes only and do not purport to represent what the
consolidated financial statements and results of operations would have
been had the acquisition and recapitalization in fact occurred on the
dates indicated. The unaudited pro-forma consolidated balance sheets
represent the financial position of Teliphone and OSK as of September 30,
2004. The unaudited pro-forma consolidated statements of operations give
effect to the proposed recapitalization of Teliphone and OSK for the
period ended September 30, 2004 assuming the merger occurred in the
earliest period. The unaudited pro-forma consolidated financial statements
are presented for illustrative purposes only. The pro-forma adjustments
are based upon available information and assumptions that management
believes are reasonable.
There are no intercompany transactions between Teliphone and OSK during
the period presented.
3. Assumptions and pro forma adjustments
a) During the period the company entered into a share purchase
agreement to acquire all of the outstanding shares of Teliphone Inc.
through the issuance of 27,010,000 common shares of its share
capital with a stated par value of $0.001.
b) The projected cost to finalize the proposed transaction is estimated
at $10,000 and have been applied against cash and capital stock.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Balance Sheet
September 30, 2004
(Unaudited)
(Amounts Expressed in United States Dollars) Page 4
- --------------------------------------------------------------------------------
4. Capital stock
Authorized
125,000,000 Common stock, $0.001 par value
The transactions included in the company's capital stock form the
transactions described previously.
Number of
shares Amount
---------- ----------
Balance, prior to pro forma
adjustments 100 $ 79
Recapitalization pursuant
to the reverse acquisition 30,425,900 30,347
---------- ----------
Balance, subsequent to pro forma
adjustments 30,426,000 $ 30,426
========== ==========
OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004
(Unaudited)
(In United States Dollars)
OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2004
(Unaudited)
(In United States Dollars)
TABLE OF CONTENTS
Pro Forma Consolidated Balance Sheets as at December 31, 2004 1 - 2
Pro Forma consolidated Statement of Operations and Deficit 3
Notes to Pro Forma Consolidated Financial Statements 4 - 5
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Balance Sheet
As at December 31, 2004
(Unaudited)
(Amounts expressed in United States Dollars) Page 1
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
------------ ------------ ------------ ------------
Assets
Current
Cash $ 1,041 $ -- $ -- $ 1,041
Accounts receivable -- 24,869 -- 24,869
Sales tax receivable -- 17,731 -- 17,731
Inventory -- 83,731 -- 83,731
Loan receivable 1,000 -- -- 1,000
------------ ------------ ------------ ------------
2,041 126,331 -- 128,372
------------ ------------ ------------ ------------
Property, plant and equipment -- 105,048 -- 105,048
------------ ------------ ------------ ------------
$ 2,041 $ 231,379 $ -- $ 233,420
============ ============ ============ ============
Approved on behalf of the board:
Director
- --------------------------------------------
Director
- --------------------------------------------
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Balance Sheet
As at December 31, 2004
(Unaudited)
(Amounts expressed in United States Dollars) Page 2
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
------------ ------------ ------------ ------------
Liabilities
Current
Bank indebtedness $ -- $ 45 $ -- $ 45
Accounts payable 2,500 15,349 -- 17,849
Loans payable -- 23,332 -- 23,332
Loan payable - parent company -- 435,760 -- 435,760
Advance from shareholders 11,200 -- -- 11,200
------------ ------------ ------------ ------------
13,700 474,486 -- 488,186
------------ ------------ ------------ ------------
Shareholders' equity
Capital stock (note 3) 3,416 79 26,931 30,426
Additional paid up capital (discount) 66,554 -- (108,560) (42,006)
Accumulated other comprehensive
income (loss) -- (1,937) -- (1,937)
Deficit (81,629) (241,249) 81,629 (241,249)
------------ ------------ ------------ ------------
Total stockholders' deficit (11,659) (243,107) -- (254,766)
------------ ------------ ------------ ------------
Total liabilities and stockholders' deficit $ 2,041 $ 231,379 $ -- $ 233,420
============ ============ ============ ============
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Statement of Operations and Deficit
For the Three Months Period Ended December 31, 2004
(Unaudited)
(Amounts expressed in United States Dollars) Page 3
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
-------------- -------------- -------------- --------------
Sales $ -- $ 36,086 $ -- $ 26,086
-------------- -------------- -------------- --------------
Cost of sales
Inventory, beginning of period -- 30,814 -- 30,814
Purchases -- 77,384 -- 77,384
-------------- -------------- -------------- --------------
-- 108,198 -- 108,198
Inventory, end of period -- 83,731 -- 83,731
-------------- -------------- -------------- --------------
-- 24,467 -- 24,467
-------------- -------------- -------------- --------------
Gross profit -- 11,619 -- 11,619
-------------- -------------- -------------- --------------
Expenses
Selling and promotion -- 76,497 -- 76,497
Professional and consulting fees 1,045 70,003 -- 71,048
Telecommunication network costs -- 29,655 -- 29,655
Salaries and wage levies -- 14,995 -- 14,995
Telephone -- 1,660 -- 1,660
Delivery and transport -- 8,305 -- 8,305
Interest and service charges 374 1,556 -- 1,930
Office and general -- 10,429 -- 10,429
Amortization -- 8,548 -- 8,548
-------------- -------------- -------------- --------------
1,419 221,648 -- 223,067
-------------- -------------- -------------- --------------
Net loss $ (1,419) $ (210,029) $ -- $ (211,448)
============== ============== ============== ==============
Net earnings (loss) per share $ -- $ -- $ -- $ (0.08)
============== ============== ============== ==============
Weighted average number of shares outstanding -- -- -- 2,500,767
============== ============== ============== ==============
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Consolidated Balance Sheet
December 31, 2004
(Unaudited)
(Amounts Expressed in United States Dollars) Page 4
- --------------------------------------------------------------------------------
1. Securities exchange agreement and reverse acquisition
On April 25, 2005 OSK Capital II Corp. ("OSK"), a publicly traded company,
entered into a Securities Exchange Agreement with Teliphone Inc., a
Canadian corporation ("Teliphone"). In exchange for the acquisition of the
100% interest in Teliphone, the shareholders of Teliphone were issued a
total of 27,010,000 Common shares of OSK. Following the share exchange,
the former shareholders of Teliphone hold 88.8% of the 30,426,000 shares
of common stock of OSK. Consequently, even though OSK is the legal
acquirer, this transaction will be treated as an acquisition of OSK by
Teliphone and as a recapitalization by Teliphone for accounting purposes.
2. Pro-forma financial statements
The unaudited pro-forma consolidated financial statements are provided for
information purposes only and do not purport to represent what the
consolidated financial statements and results of operations would have
been had the acquisition and recapitalization in fact occurred on the
dates indicated. The unaudited pro-forma consolidated balance sheets
represent the financial position of Teliphone and OSK as of December 31,
2004. The unaudited pro-forma consolidated statements of operations give
effect to the proposed recapitalization of Teliphone and OSK for the
period ended December 31, 2004 assuming the merger occurred in the
earliest period. The unaudited pro-forma consolidated financial statements
are presented for illustrative purposes only. The pro-forma adjustments
are based upon available information and assumptions that management
believes are reasonable.
There are no intercompany transactions between Teliphone and OSK during
the period presented.
3. Assumptions and pro forma adjustments
a) During the period the company entered into a share purchase
agreement to acquire all of the outstanding shares of Teliphone Inc.
through the issuance of 27,010,000 common shares of its share
capital with a stated par value of $0.001.
b) The projected cost to finalize the proposed transaction is estimated
at $10,000 and have been applied against cash and capital stock.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Consolidated Balance Sheet
December 31, 2004
(Unaudited)
(Amounts Expressed in United States Dollars) Page 5
- --------------------------------------------------------------------------------
4. Capital stock
Authorized
125,000,000 Common stock, $0.001 par value
The transactions included in the company's capital stock form the
transactions described previously.
Number of
shares Amount
---------- ----------
Balance, prior to pro forma
adjustments 100 $ 79
Recapitalization pursuant
to the reverse acquisition 30,425,900 30,347
---------- ----------
Balance, subsequent to pro forma
adjustments 30,426,000 $ 30,426
========== ==========
OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2005
(Unaudited)
(In United States Dollars)
OSK CAPITAL II CORPORATION
(A Development Stage Company)
PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 2005
(Unaudited)
(In United States Dollars)
TABLE OF CONTENTS
Pro Forma Consolidated Balance Sheets as at March 31, 2005 1 - 2
Pro Forma Consolidated Statement of Operations and Deficit 3
Notes to Pro Forma Consolidated Financial Statements 4 - 5
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Balance Sheet
As at March 31, 2005
(Unaudited)
(Amounts expressed in United States Dollars) Page 1
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
------------ ------------ ------------ ------------
Assets
Current
Cash $ 1,041 $ 2,853 $ -- $ 3,894
Accounts receivable -- 35,265 -- 35,265
Sales tax receivable -- 6,873 -- 6,873
Inventory -- 121,236 -- 121,236
Loan receivable 1,000 -- -- 1,000
------------ ------------ ------------ ------------
2,041 166,227 -- 168,268
------------ ------------ ------------ ------------
Capital assets -- 108,366 -- 108,366
------------ ------------ ------------ ------------
$ 2,041 $ 274,593 $ -- $ 276,634
============ ============ ============ ============
Approved on behalf of the board:
Director
- --------------------------------------------
Director
- --------------------------------------------
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Balance Sheet
As at March 31, 2005
(Unaudited)
(Amounts expressed in United States Dollars) Page 2
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
------------ ------------ ------------ ------------
Liabilities
Current
Accounts payable $ 3,300 $ 39,058 $ -- $ 42,358
Loans payable 29,469 -- 29,469
Loan payable - parent company 436,617 -- 436,617
Debentures payable 147,318 -- 147,318
Advance from shareholders 11,200 -- -- 11,200
------------ ------------ ------------ ------------
14,500 652,462 -- 666,962
------------ ------------ ------------ ------------
Shareholders' equity
Capital stock (note 3) 3,416 79 26,930 $ 30,426
Additional paid up capital 66,554 -- (109,360) (42,806)
Comprehensive income (loss) -- (5,965) -- (5,965)
Deficit (82,429) (371,983) 82,429 (371,983)
------------ ------------ ------------ ------------
Total stockholders' deficit (12,459) (377,869) -- (390,328)
------------ ------------ ------------ ------------
Total liabilities and stockholders' deficit $ 2,041 $ 274,593 $ -- $ 276,634
============ ============ ============ ============
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Pro Forma Consolidated Statement of Operations and Deficit
For the Six Months Period Ended March 31, 2005
(Unaudited)
(Amounts expressed in United States Dollars) Page 3
- --------------------------------------------------------------------------------
OSK Capital II Teliphone Pro forma
Corporation Inc. adjustments Pro forma
-------------- -------------- -------------- --------------
Sales $ -- $ 78,793 $ -- $ 78,793
-------------- -------------- -------------- --------------
Cost of sales
Inventory, beginning of period -- 30,814 -- 30,814
Purchases -- 138,820 -- 138,820
-------------- -------------- -------------- --------------
169,634 -- 169,634
Inventory, end of period -- 121,236 -- 121,236
-------------- -------------- -------------- --------------
-- 48,398 -- 48,398
-------------- -------------- -------------- --------------
Gross profit -- 30,395 -- 30,395
-------------- -------------- -------------- --------------
Expenses
Selling and promotion -- 124,857 -- 124,857
Professional and consulting fees 1,845 106,673 -- 108,518
Telecommunication network costs -- 66,764 -- 66,764
Salaries and wage levies -- 26,147 -- 26,147
Interest on long-term debt -- 2,186 -- 2,186
Delivery and transport -- 10,283 -- 10,283
Telephone -- 2,713 -- 2,713
Interest and service charges -- 2,164 -- 2,164
Office and general 374 10,470 -- 10,844
Amortization -- 18,901 -- 18,901
-------------- -------------- -------------- --------------
2,219 371,158 -- 373,377
-------------- -------------- -------------- --------------
Net loss $ (2,219) $ (340,763) $ -- $ (342,982)
============== ============== ============== ==============
Net earnings (loss) per share $ -- $ -- $ -- $ (0.14)
============== ============== ============== ==============
Weighted average number of shares outstanding -- -- -- 2,500,767
============== ============== ============== ==============
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Consolidated Balance Sheet
March 31, 2005
(Unaudited)
(Amounts Expressed in United States Dollars) Page 4
- --------------------------------------------------------------------------------
1. Securities exchange agreement and reverse acquisition
On April 25, 2005 OSK Capital II Corp. ("OSK"), a publicly traded company,
entered into a Securities Exchange Agreement with Teliphone Inc., a
Canadian corporation ("Teliphone"). In exchange for the acquisition of the
100% interest in Teliphone, the shareholders of Teliphone were issued a
total of 27,010,000 Common shares of OSK. Following the share exchange,
the former shareholders of Teliphone hold 88.8% of the 30,426,000 shares
of common stock of OSK. Consequently, even though OSK is the legal
acquirer, this transaction will be treated as an acquisition of OSK by
Teliphone and as a recapitalization by Teliphone for accounting purposes.
2. Pro-forma financial statements
The unaudited pro-forma consolidated financial statements are provided for
information purposes only and do not purport to represent what the
consolidated financial statements and results of operations would have
been had the acquisition and recapitalization in fact occurred on the
dates indicated. The unaudited pro-forma consolidated balance sheets
represent the financial position of Teliphone and OSK as of March 31,
2005. The unaudited pro-forma consolidated statements of operations give
effect to the proposed recapitalization of Teliphone and OSK for the
period ended March 31, 2005 assuming the merger occurred in the earliest
period. The unaudited pro-forma consolidated financial statements are
presented for illustrative purposes only. The pro-forma adjustments are
based upon available information and assumptions that management believes
are reasonable.
There are no intercompany transactions between Teliphone and OSK during
the period presented.
3. Assumptions and pro forma adjustments
a) During the period the company entered into a share purchase
agreement to acquire all of the outstanding shares of Teliphone Inc.
through the issuance of 27,010,000 common shares of its share
capital with a stated par value of $0.001.
b) The projected cost to finalize the proposed transaction is estimated
at $10,000 and have been applied against cash and capital stock.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Pro Forma Balance Sheet
March 31, 2005
(Unaudited)
(Amounts Expressed in United States Dollars) Page 5
- --------------------------------------------------------------------------------
4. Capital stock
Authorized
125,000,000 Common stock, $0.001 par value
The transactions included in the company's capital stock form the
transactions described previously.
Number of
shares Amount
------------ ------------
Balance, prior to pro forma
adjustments 100 $ 79
Recapitalization pursuant
to the reverse acquisition 30,425,900 30,347
------------ ------------
Balance, subsequent to pro forma
adjustments 30,426,000 $ 30,426
============ ============