EXHIBIT 99.2
UNAUDITED PRO FORMA FINANCIAL INFORMATION
Dynamic Leisure Corporation, and Subsidiaries
Unaudited Pro Forma Combined Condensed Balance Sheet
December 31, 2005
Pro Forma
Combined
Historical Statements
Historical Dynamic Historical Historical Acquisition for
Dyneco Leisure Changes IRT-ITR Adjustments Ref Acquisitions
----------- ----------- ---------- ---------- ----------- --- ------------
Cash ............................. $ (232) $ 19,563 $546,725 $201,174 $ (700,000) (e) $ 67,230
Short term investments,
restricted ..................... - - 69,548 83,133 - 152,681
Accounts receivable, net ......... - - - 247,271 - 247,271
Prepaid travel ................... - - 142,110 - - 142,110
Other current assets ............. - 19,136 18,467 75,356 - 112,959
----------- ----------- -------- -------- ----------- -----------
Total Current Assets ........... (232) 38,699 776,850 606,934 (200,000) 722,251
Property and equipment, net ...... 33,418 646,713 54,455 32,558 - 767,144
Other Assets
Debt issue costs, net .......... 521 - - - - 521
Deposits ....................... 28,434 1,760 - 51,135 - 81,329
Goodwill ....................... - - - - 6,873,980 (e) 6,873,980
----------- ----------- -------- -------- ----------- -----------
Total Other Assets ............. 28,955 1,760 - 51,135 6,873,980 6,873,980
----------- ----------- -------- -------- ----------- -----------
Total Assets ................... $ 62,141 $ 687,172 $831,305 $690,627 $ 6,173,980 $ 8,445,225
=========== =========== ======== ======== =========== ===========
Current Liabilities
Accounts payable and other
accrued expenses ............. 366,575 148,126 57,613 424,119 - 996,433
Deferred revenue ............... - - 594,698 78,290 - 672,988
Customer deposits .............. - - 111,886 238,454 - 350,340
Convertible promissory notes,
net of discount .............. 115,380 847,500 - - 2,050,000 (e) 3,012,880
Line of credit ................. - - - 200,000 - 200,000
Warrant liability .............. 240,592 - - - - 240,592
Accrued Interest ............... 59,930 29,360 - - - 89,290
Loans payable .................. 213,640 - - - - 213,640
Other current liabilities ...... - - - 50,455 - 50,455
Notes payable - current ........ 37,216 140,000 - - 1,440,000 (e) 1,617,216
----------- ----------- -------- -------- ----------- -----------
Total Current Liabilities ...... 1,033,333 1,164,986 764,197 991,318 3,490,000 7,443,834
Loans and Notes payable .......... 134,719 - - - - 134,719
----------- ----------- -------- -------- ----------- -----------
Total Liabilities .............. 1,168,052 1,164,986 764,197 991,318 3,490,000 7,443,553
Stockholder's Equity
Common Stock ................... 11,580 65,666 - - 10,400 (e) 87,646
Paid in Capital ................ 7,543,532 (57,629) 7,500 150,711 2,673,580 (e) 10,317,694
Stock subscription receivable .. - (537) - - - (537)
Retained Earnings/
(Accumulated Deficit) ......... (8,661,023) (485,314) 59,608 (451,402) (67,108) (e) (9,538,131)
----------- ----------- -------- -------- ----------- -----------
Total Stockholders' Equity ..... (1,105,911) (477,814) 67,108 (300,691) 2,683,980 866,672
----------- ----------- -------- -------- ----------- -----------
Total Liabiliites and
Stockholders' Equity .......... $ 62,141 $ 687,172 $831,305 $690,627 $ 6,173,980 $ 8,445,225
=========== =========== ======== ======== =========== ===========
See accompanying notes to unaudited pro forma combined condensed financial statements.
1
Dynamic Leisure Corporation
Unaudited Pro Forma Combined Condensed Statement of Income
For the 12 months ended December 31, 2005
Historical
Historical Dynamic Historical Historical Acquisitions
DynEco (a) Leisure (a) Changes (a) IRT-ITR Adjustments (a) Ref Total
----------- ----------- ---------- ----------- --------------- --- -----------
Revenue ................................ $ - $ - $5,737,408 $ 2,579,641 $ - $ 8,317,049
Cost of revenue ........................ - - 4,701,541 1,518,548 - 6,220,089
----------- ----------- ---------- ----------- --------- -----------
Gross Profit ........................... - - 1,035,867 1,061,093 - 2,096,960
General and admistrative expenses ...... 497,968 455,954 835,801 1,892,660 - 3,682,383
----------- ----------- ---------- ----------- --------- -----------
Income (loss) from operations .......... (497,968) (455,954) 200,066 (506,923) - (1,585,423)
Other Income/(Expense)
Interest income ...................... 1,257 - 15,194 2,235 - 18,686
Interest expense ..................... (199,041) (29,360) - (7,658) (184,500) (c) (329,659)
Other Income ......................... 169,287 - - - - 169,287
----------- ----------- ---------- ----------- --------- -----------
Total Other Income/(Expense) ....... (28,497) (29,360) 15,194 (5,423) (184,500) (141,686)
----------- ----------- ---------- ----------- --------- -----------
Income before taxes ................ (526,465) (485,314) 215,260 (512,346) (184,500) (1,727,109)
Provision for income taxes ......... - - - 1,385 - (d) -
----------- ----------- ---------- ----------- --------- -----------
Net income ......................... $ (526,465) $ (485,314) $ 215,260 $ (510,961) $(184,500) $(1,727,109)
=========== =========== ========== =========== ========= ===========
Net Loss per share - Basic and Diluted . $ (0.47) $ (0.07) $ 0.63 $ (0.73) $ - $ (0.20)
=========== =========== ========== =========== ========= ===========
Weighted average number of shares
outstanding during the period
- basic and diliuted ................. 1,125,327 6,566,667 340,000 700,000 - 8,731,994
=========== =========== ========== =========== ========= ===========
See accompanying notes to unaudited pro forma combined condensed financial statements.
2
Dynamic Leisure Group, Inc.
Notes to Unaudited Pro Forma Combined
Condensed Financial Statements
(a) The unaudited pro forma combined condensed statement of income reflects the
combined historical financial statements of Dynamic Leisure Group, Inc. for the
period from May 16, 2005 (inception) to December 31, 2005. The historical
financial statements for DynEco Corporation, Changes in L'attitudes ("CLA"),
Island Resort Tours, Inc. ("IRT") and International Travel and Resorts, Inc.
("ITR") are for the 12 months ending December 31, 2005. The historical results
are presented in the unaudited pro forma income statement as if the acquistions
had occurred at the beginning of the period or for Dynamic, at its inception.
The financial statements of both DynEco and Dynamic have been adjusted for the
subsequent affect of a 1:30 reverse stock split.
The pro forma adjustments do not reflect benefits of additional revenue or
reduced expenses from the combinations nor acquisition or integration costs
subsequent to the acquisitions, which will cause actual earnings results that
will vary from the pro forma earnings shown. A final determination of possible
required purchase accounting adjustments has not yet been made, which could also
affect the pro form earnings presented.
(b) The unaudited pro forma combined condensed balance sheet reflects the
combined historical financial position of DynEco Corporation, Dynamic Leisure
Group, Inc., Changes in L'attitudes, Inc. and Island Resort Tours, Inc and
International Travel and Resorts, Inc., as if the acquisitions had occurred on
December 31, 2005. Certain reclassifications were made from historical financial
reports for comparability and consistency. Dynamic Leisure Group, Inc, was
acquired through a share exchange agreement, in which no cash or new additional
liabilities were assumed other then those already recorded by Dynamic or DynEco.
CLA was acquired for a total purchase price of $2,090,680 consisting of $200,000
in cash, an acquisition payable of 440,000, a convertible note payable of
$600,000 and 340,000 shares of common stock, valued at $850,680,000. IRT and ITR
were acquired for a total purchase price of $4,783,300 consisting of $500,000 in
cash, an acquisition payable of $1,000,000, a convertible note payable of
$1,450,000 and 700,000 shares of common stock valued at $1,833,300.
(c) Adjustment represents interest income to finance the acquisition of CLA and
IRT-ITR, as if amounts due for both convertible notes payable in the amount of
$2,05000,000 were outstanding for the entire 12 month period, accruing interest
at the 9% annual stated rate.
(d) There is no provision or benefit for income taxes recorded, based on the
historical operating losses previously reported by DynEco and Dynamic.
(e) Under the purchase method of accounting, assets and liabilities are reported
at their estimated fair value, which may result in an increase or decrease from
previously reported amounts. There are no adjustments presented to the value of
existing assets or liabilities of CLA or IRT-ITR, based on an initial valuation
that they are already reported at their estimated fair value. However, the
analysis of purchase accounting valuations is still continuing and may or may
not result in future adjustments. The amount of the CLA and IRT-ITR purchase
price that exceeded net assets is presented as goodwill, and prior CLA and
IRT-ITR equity that represents the book value of net assets acquired was
eliminated.
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