Exhibit 99.2
DOMAR EXOTIC FURNISHINGS, INC.
(UNAUDITED CONSOLIDATED PROFORMA)
BALANCE SHEET
AS OF OCTOBER 31, 2007 AND OCTOBER 31, 2006
ASSETS
10/31/2007 10/31/2006
------------ ------------
CURRENT ASSETS
Cash $ 213,886 $ 2,762
Inventory 1,381 --
------------ ------------
Total Current Assets 215,267 2,762
------------ ------------
OTHER CURRENT ASSETS
Deferred Tax Asset 189,534 --
Investment in Subsidiary 650,000 --
Preferred Stock in Investment 3,910,250 --
Due From Related Party 37,140 --
Inventory - Media 10,000,000 --
Prepaid Packages 84,693 --
------------ ------------
Total Other Current Assets 14,871,617 --
------------ ------------
FIXED ASSETS
Furniture & Equipment 10,766 --
Accum deprec - Furn & Equip (750) --
------------ ------------
Total Fixed Assets 10,016 --
------------ ------------
OTHER ASSETS
Goodwill 487,700 --
Total Other Assets 487,700 --
------------ ------------
TOTAL ASSETS $ 15,584,600 $ 2,762
============ ============
The accompanying notes are an integral part of these financial statements.
F-1
DOMAR EXOTIC FURNISHINGS, INC.
(UNAUDITED CONSOLIDATED PROFORMA)
BALANCE SHEET
AS OF OCTOBER 31, 2007 AND OCTOBER 31, 2006
LIABILITIES AND STOCKHOLDERS' EQUITY
10/31/2007 10/31/2006
------------ ------------
CURRENT LIABILITIES
Accounts payable $ 139,903 $ 574
Payroll Liabilities 1,857 --
Compensation payable 80,472 600
Due to affiliate -- 355,430
Notes payable 4,053,750 --
------------ ------------
Total Current Liabilities 4,275,982 356,604
------------ ------------
LONG-TERM LIABILITIES
Note Payable 3,300,000 --
Bond Payable 662,860 --
------------ ------------
Total Long-Term Liabilities 3,962,860 --
------------ ------------
TOTAL LIABILITIES 8,238,842 356,604
STOCKHOLDERS' EQUITY
Common Stock, $0.001 par value
Authorized: 75,000,000
Issued: 8,500,000 and 7,500,000, respectively 8,500 1,000
Additional paid in capital 8,413,046 4,000
Accumulated deficit (1,075,788) (358,842)
------------ ------------
Total Stockholders' Equity 7,345,758 (353,842)
------------ ------------
TOTAL LIABILITIES AND EQUITY $ 15,584,600 $ 2,762
============ ============
The accompanying notes are an integral part of these financial statements.
F-2
DOMAR EXOTIC FURNISHINGS, INC.
(UNAUDITED CONSOLIDATED PROFORMA)
STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDING OCTOBER 31, 2007 AND 2006
TWELVE TWELVE
MONTHS MONTHS
10/31/2007 10/31/2006
---------- ----------
REVENUE $ 28,183 $ 68,802
COST OF SERVICES -- --
----------- -----------
GROSS PROFIT OR (LOSS) 28,183 68,802
GENERAL AND ADMINISTRATIVE EXPENSES 453,455 11,469
OPERATING LOSS (425,272) 57,333
----------- -----------
INTEREST EXPENSE 496,193 --
GAIN ON SALE OF SUBSIDIARY (14,985) --
DIVIDEND INCOME -- --
----------- -----------
INCOME/(LOSS) BEFORE INCOME TAXES (906,480) 57,333
PROVISION FOR INCOME TAXES
Federal (189,534) 7,500
State -- 2,484
----------- -----------
NET INCOME/(LOSS) $ (716,946) $ 47,349
=========== ===========
EARNINGS (LOSS) PER SHARE, BASIC $ (0.35) $ 0.08
WEIGHTED AVERAGE NUMBER OF COMMON SHARES 2,037,931 593,103
The accompanying notes are an integral part of these financial statements.
F-3
DOMAR EXOTIC FURNISHINGS, INC.
(UNAUDITED CONSOLIDATED PROFORMA)
STATEMENT OF STOCKHOLDERS' EQUITY
AS OF DECEMBER 31, 2006
ADDITIONAL
COMMON PAR PAID IN ACCUM TOTAL
STOCK VALUE CAPITAL DEFICIT EQUITY
----- ----- ------- ------- ------
Balance, October 31, 2005 -- $ -- $ -- $ (406,191) $ (406,191)
---------- ------- ----------- ----------- -----------
Common stock issued for cash on
March 30, 2006 at $0.005 per share 1,000,000 1,000 4,000 5,000
Net income (loss) 47,349 47,349
---------- ------- ----------- ----------- -----------
Balance, October 31, 2006 1,000,000 $ 1,000 $ 4,000 $ (358,842) $ (353,842)
---------- ------- ----------- ----------- -----------
Common stock issued for cash on
March 9, 2007 at $0.05 per share 1,000,000 1,000 49,000 50,000
Proforma stock issuance on May 20, 2008 6,500,000 6,500 8,360,046 8,366,546
Net income (loss) (716,946) (716,946)
---------- ------- ----------- ----------- -----------
Balance, October 31, 2007 8,500,000 $ 8,500 $ 8,413,046 $(1,075,788) $ 7,345,758
========== ======= =========== =========== ===========
The accompanying notes are an integral part of these financial statements.
F-4
DOMAR EXOTIC FURNISHINGS, INC.
(UNAUDITED CONSOLIDATED PROFORMA)
STATEMENTS OF CASH FLOWS
FOR THE TWELVE MONTHS ENDING OCTOBER 31, 2006 AND 2005, AND
TWELVE TWELVE
MONTHS MONTHS
10/31/2007 10/31/2006
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $(716,946) $ 47,349
--------- ---------
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Adjustments for charges not requiring outlay of cash:
Inventory (1,381) --
In-kind Contribution 1,013 --
Non-cash interest on beneficial bond conversion 333,333 --
Non-cash office exp from stock acquisition 2,000 --
Non-cash bond issuance exp 5,000 --
Provision for income taxes (189,534) 7,500
Write-off of Deposit -- 650
Depreciation 785 --
Gain on Sale of Subsidiary (15,000) --
(Increase)/Decrease in prepaid expenses (84,693) --
Increase/(Decrease) in amount due to affiliate (15,430) (59,307)
Increase (Decrease) in accounts payable 104,239 --
Increase (Decrease) in accrued expenses 36,947 574
Increase (Decrease) in accrued interest 162,860 --
Increase (Decrease) in compensation payable 79,872 600
--------- ---------
Total adjustments to net income 420,011 (49,983)
--------- ---------
Net cash provided by (used in) operating activities (296,935) (2,634)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Furniture & Equipment (301) --
--------- ---------
Net cash flows provided by (used in) investing activities (301) --
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Cash Proceeds from stock issuance 50,000 5,000
Cash Received from Affiliate -- 300
Cash (Paid) to Affiliate (37,140) --
Contribution of Capital 500 --
Cash Received on notes payable -- --
Cash (Paid) on notes payable -- --
Cash Received on bond payable 495,000 --
Cash (Paid) on bond payable -- --
--------- ---------
Net cash provided by (used in) financing activities 508,360 5,300
--------- ---------
CASH RECONCILIATION
Net increase (decrease) in cash and cash equivalents 211,124 2,666
Cash and cash equivalents - beginning balance 2,762 96
--------- ---------
CASH AND CASH EQUIVALENTS BALANCE END OF PERIOD $ 213,886 $ 2,762
========= =========
The accompanying notes are an integral part of these financial statements.
F-5