Exhibit 99.3
RED ROCK PICTURES HOLDINGS, INC AND STUDIO STORE DIRECT, INC.
PRO FORMA COMBINED CONDENSED BALANCE SHEETS
6 JUNE 2008
(Unaudited)
The unaudited pro forma combined condensed balance sheet as of 6 June 2008 is
based on the individual balance sheet of Red Rock Pictures Holdings, Inc and
Subsidiaries and the acquired company Studio Store Direct, Inc. and is prepared
as if the acquisition of the company had occurred on 6 June 2008.
The unaudited pro forma adjustments are based upon available information and
assumptions that Red Rock Pictures Holdings, Inc believes are reasonable. The
unaudited pro forma combined condensed financial statements and related notes
thereto should be read in conjunction with Red Rock Pictures Holdings, Inc's
historical financial statements as previously filed on the Company's Annual
Audit Report on Form 10-K for the period ended 31 August 2008, filed with the
Securities and Exchange Commission and the transactions occurred for the period
5 June, 2008 to 31 August, 2008.
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These unaudited pro forma combined condensed financial statements are prepared
for informational purposes only and are not necessarily indicative of future
results.
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Red Rock Studio Adjustments Proforma
Pictures Store
Holdings, Inc. Direct
Consolidated Inc.
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ASSETS
Current Assets
Cash $ 650 $ 47,788 48,438
Accounts receivable 105,825 4,500 110,325
Loans and notes receivable 185,000 76,798 261,798
Advances to related party
Capitalized production costs 86,546 86.546
Prepaid expenses and deposits 2,137 2,842 4,979
Production loans and accrued interest 3,986,023 3,986,023
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Total Current Assets 4,279,635 218,474 4,498,109
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Long Term Assets
Production loans and accrued interest
Property and equipment 28,113 28,113
Intangibles 446.611 446,611
Goodwill 450,338 450,338
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Total Long Term Assets 28,113 896,949 925,062
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Total Assets $ 4,279,635 $ 246,587 896,949 $ 5,423,171
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued liabilities $ 43,480 $ 88,615 $ 132,095
Convertible notes payable 402,225 402,225
Advances from shareholders 5,000 58,921 63,921
Deferred production revenue 296,000 296,000
Advances from related parties 1,923,862 40,000 1,963,862
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Total Liabilities 2,374,567 483,536 2,858,103
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Going concern, Commitments and Contingency
Stockholders' Equity
Common stock 84,351 3,270 7,730 95,351
Additional paid-in capital 8,012,594 536,830 112,170 8,661,594
Deficit accumulated during the development stage (6,191,877) (777,049) 777,049 (6,191,877)
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Total Stockholders' Equity 1,905,068 (236,949) 896,949 2,565,068
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Total Liabilities and Stockholders' Equity $ 4,279,635 $ 246,587 896,949 $ 5,423,171
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RED ROCK PICTURES HOLDINGS, INC CONSOLIDATED AND STUDIO STORE DIRECT, INC.
NOTES TO PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
1. Basis of Pro Forma Presentation
On 6 June 2008, the Company entered into a stock for stock exchange agreement
(the "Agreement") with Studio Store Direct, Inc. ("SSD") and all of its current
shareholders. Pursuant to the Agreement, the Company issued 11,000,000
restricted common shares in exchange for all the issued and outstanding shares
of SSD. These common shares were issued in reliance on the exemption available
under Section 4(2) of the Securities Act of 1933, as amended and qualify for
exemption since the issuance of shares did not involve a public offering. The
acquisition was accounted for using the purchase method of accounting whereby
the total purchase price, including transaction expenses, was allocated to
tangible and intangible assets acquired based on estimated fair market values.
2. Pro Forma Adjustments
Adjustments have been made to the unaudited pro forma combined condensed
financial information to reflect the following:
(a) Based on the provisions of the Agreement between the two companies and
valuations of the fair market value of the assets and liabilities of SSD, the
allocation of the purchase price was as follows for the undernoted
consideration:
At 6 June
2008
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Consideration exchanged:
Issuance of 11,000,000 common shares at $0.06 per share
(valued at the average price two days
before and after the measurement date) $ 660,000
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Net Assets Acquired $
Cash and cash equivalents 47,788
Accounts receivable, no allowances 4,500
Loan form related party 76,798
Property and Equipment 28,113
Capitalized production costs 86,546
Other assets 2,842
Book value of net liabilities acquired (483,536)
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(236,949)
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Goodwill 450,338
Estimated fair value of identifiable intangible assets
acquired-- completed technology 446,611
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Total Assets Acquired $ 660,000
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