Exhibit 99.3
CSI BUSINESS FINANCE, INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
JUNE 30, 2005
CSI Business Health Express
Finance, Inc. USA, Inc. Adjustments Pro Forma
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ASSETS
CURRENT ASSETS
Cash $ 19,413 $ 22,351 $ -- $ 41,764
Prepaid expense 2,188 4,992 -- 7,180
Minimum lease payments receivable 152,854 -- -- 152,854
Assets of discontinued operations -- 126 (126) A --
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Total current assets 174,455 27,469 (126) A 201,798
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NONCURRENT ASSETS
Minimum lease payments receivable 215,783 -- -- 215,783
Fixed assets, net 833 2,251 (1,551) 1,533
Debt issue costs -- 5,000 -- 5,000
Deposits -- 4,433 -- 4,433
Intangible assets, net 27,647 -- -- 27,647
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Total noncurrent assets 244,263 11,684 (1,551) 254,396
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TOTAL ASSETS $ 418,718 $ 39,153 $ (1,677) $ 456,194
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LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES
Accounts payable $ 3,934 $ 26,211 $ -- $ 30,145
Accrued liabilities 1,383 -- -- 1,383
Unearned income 65,783 -- -- 65,783
Accrued interest payable -- 73,244 (5,188) B 68,056
Accrued interest payable--related party -- 25,627 (25,627) B --
Accrued compensation and related taxes--related parties -- 199,978 (199,978) A --
Notes payable--related party -- 171,660 (171,660) B --
Notes payable--net of debt discount -- 533,333 -- 533,333
Convertible debenture -- 14,200 -- 14,200
Liabilities of discounted operations -- 223,906 (23,906) A 200,000
Advances from parent 101,612 -- -- 101,612
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Total current liabilities 172,712 1,268,159 (426,359) 1,014,512
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NONCURRENT LIABILITIES
Unearned income 41,005 -- -- 41,005
Convertible debenture -- 60,000 (60,000) B --
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Total noncurrent liabilities 41,005 60,000 (60,000) 41,005
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COMMITMENTS AND CONTINGENCIES -- -- -- --
SHAREHOLDERS' DEFICIT
Preferred stock 2 -- -- 2
Convertible Preferred Stock Series A -- -- 1,000 C 1,000
Common stock 10 30,020 110,197 B,C 140,227
Common stock issuable -- 19,000 -- 19,000
Additional paid-in-capital 200,988 10,075,493 (10,235,710) A,B,C,D 40,771
Retained earnings (deficit) 4,001 (11,413,519) 10,609,195 D (800,323)
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Total shareholders' deficit 205,001 (1,289,006) 484,682 (599,323)
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TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIT $ 418,718 $ 39,153 $ (1,677) $ 456,194
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A To eliminate assets and liabilities not assumed in the merger.
B To adjust liabilities to amounts assumed in the merger.
C To record 100,000 shares of preferred stock issued in accordance with the
Share Exchange Agreement.
D To record merger expense for the net liabilites acquired as part of the
Share Exchange Agreement.
CSI BUSINESS FINANCE, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2005
CSI Business Health Express
Finance, Inc. USA, Inc. Adjustments Pro Forma
============================================= ============
REVENUE
Lease income $ 41,311 $ -- $ -- $ 41,311
Fee income 47,113 -- -- 47,113
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88,424 -- -- 88,424
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OPERATING EXPENSES
Salaries and benefits 32,106 -- -- 32,106
Commissions 3,828 -- -- 3,828
General and administrative -- 141,864 (141,864) A --
Business development, travel and entertainment 634 -- -- 634
Depreciation and amortization 5,887 -- -- 5,887
Rent 5,114 -- -- 5,114
Professional fees 10,797 -- -- 10,797
Debt issue cost -- 10,111 -- 10,111
Depreciation -- 487 (487) A --
Other 8,151 -- -- 8,151
Merger expense -- -- 804,324 C 804,324
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Total expenses 66,517 152,462 661,973 880,952
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OTHER INCOME (EXPENSE)
Interest expense, net -- (55,696) 1,650 A (54,046)
Other income -- 5,349 (5,349) A --
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Total other income (expense) -- (50,347) (3,699) (54,046)
LOSS FROM DISCONTINUED OPERATIONS -- (621) 621 A --
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Income (loss) before provision for income taxes 21,907 (203,430) (665,051) (846,574)
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INCOME TAX PROVISION 4,010 -- (4,010) D --
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NET INCOME (LOSS) 17,897 (203,430) (661,041) (846,574)
Preferred dividends paid 12,000 -- (12,000) B --
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INCOME APPLICABLE TO COMMON SHARES $ 5,897 $ (203,430) $ (649,041) $ (846,574)
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Net Income (Loss) Per Share-basic and diluted $ 5.90 $ (0.01) $ (0.01)
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Weighted average number of shares outstanding
during the year--basic and diluted 1,000 33,273,130 159,226,866
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A To eliminate revenue and expenses that do not relate to on-going
operations.
B To reflect redemption of the Preferred Stock in July, 2005.
C To record merger expense for the net liabilities acquired as a part of the
Share Exchange Agreement.
D To record income tax effect.
CSI BUSINESS FINANCE, INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2004
CSI Business Health Express
Finance, Inc. USA, Inc. Adjustments Pro Forma
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REVENUE
Lease income $ 6,653 $ -- $ -- $ 6,653
Franchise fee revenue -- 70,000 (70,000) A --
Royalty revenue -- 17,779 (17,779) A --
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6,653 87,779 (87,779) 6,653
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OPERATING EXPENSES
Salaries and benefits -- 431,457 (431,457) A --
Commissions -- -- -- --
General and administrative -- 323,961 (323,961) A --
Business development, advertising and promotion -- 27,258 (27,258) A --
Depreciation and amortization 953 1,010 (1,010) A 953
Rent -- -- -- --
Professional fees 2,825 -- -- 2,825
Debt issue cost -- 80,894 -- 80,894
Bad debt expense -- 17,970 (17,970) A --
Merger expense -- -- 804,324 C 804,324
Other -- -- -- --
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Total expenses 3,778 882,550 2,668 888,996
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OTHER INCOME (EXPENSE)
Interest expense, net -- (73,694) 3,000 (70,694)
Other income -- (780) 780 A --
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Total other income (expense) -- (74,474) 3,780 (70,694)
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LOSS FROM CONTINUING OPERATIONS 2,875 (869,245) (86,667) (953,037)
LOSS FROM DISCONTINUED OPERATIONS -- (419,820) 419,820 A --
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Income before provision for income taxes 2,875 (1,289,065) 333,153 (953,037)
INCOME TAX PROVISION 771 -- (771) D --
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NET INCOME (LOSS) 2,104 (1,289,065) 333,924 (953,037)
Preferred dividends paid 4,000 -- (4,000) B --
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INCOME APPLICABLE TO COMMON SHARES $ (1,896) $ (1,289,065) $ 337,924 $ (953,037)
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Net Loss Per Share-Basic and Diluted:
Loss from continuing operations $ (1.90) $ (0.05) $ (0.01)
Loss from discontinued operations -- (0.03) --
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Net (Loss) Per Share-basic and diluted $ (1.90) $ (0.08) $ (0.01)
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Weighted average number of shares outstanding
during the year--basic and diluted 1,000 16,812,569 159,226,866
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A To eliminate revenue and expenses that do not relate to on-going
operations.
B To reflect redemption of the Preferred Stock in July, 2005.
C To record merger expense for the net liabilities acquired as a part of the
Share Exchange Agreement.
D To record the income tax effect.