Exhibit 99.2
DOMARK INTERNATIONAL, INC.
(unaudited consolidated proforma)
BALANCE SHEET
As of February 29, 2008
AS OF 02/29/08
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ASSETS
CURRENT ASSETS
Cash $ 126,568
Accounts Receivable 1,759,364
Inventory 775,167
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TOTAL CURRENT ASSETS 2,661,099
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OTHER CURRENT ASSETS
Due from Employees 233
Prepaid Expenses 220
Deffered Tax Asset 222,544
Investment in Subsidiary 670,811
Preffered Stock in Subsidiary 3,903,750
Due from Related Party 191,077
Inventory - Media 10,000,000
Prepaid Packages 125,043
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TOTAL OTHER CURRENT ASSETS 15,113,677
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FIXED ASSETS
Furniture & Fixtures 12,019
Computer Equipment & Software 22,276
Equipment 3,745
Vehicles 36,848
Less: Accum.Depreciaton (38,077)
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TOTAL FIXED ASSETS 36,811
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OTHER ASSETS
Security Deposits 4,333
Goodwill 487,700
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TOTAL OTHER ASSETS 492,033
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TOTAL ASSETS $ 18,303,620
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and accrued expenses $ 1,530,765
Payroll Liabilities 22,813
Compensation Payable 220,000
Notes Payable 4,312,537
------------
TOTAL CURRENT LIABILITIES 6,086,114
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LONG-TERM LIABILITIES
Convertible Note Payable 250,000
Note Payable 3,510,964
Bond Payable 736,826
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TOTAL LONG-TERM LIABILITIES 4,497,790
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STOCKHOLDERS' EQUITY
Preferred Stock - Par value $0.001
Authorized: 2,000,000
Issued and Outstanding: None --
Common Stock - Par value $0.001;
Authorized: 200,000,000
Issued and Outstanding: 18,750,000 18,750
Additional Paid-In Capital 7,585,846
Accumulated Deficit during development stage 115,119
------------
Total Stockholders' Equity 7,719,715
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TOTAL LIABILITIES AND EQUITY $ 18,303,620
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The accompanying notes are an integral part of these financial statements.
1
DOMARK INTERNATIONAL, INC.
(unaudited consolidated proforma)
STATEMENT OF OPERATIONS
For the Nine Months Ending February 29, 2008
For 9 months
ending on
February 29, 2008
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REVENUE $ 3,327,356
COST OF SALES 2,825,263
GROSS PROFIT 502,094
OPERATING EXPENSES
Professional Fees 13,633
General and administrative 774,663
-----------
TOTAL OPERATING EXPENSES 788,296
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GAIN/(LOSS) FROM OPERATIONS (286,202)
OTHER INCOME 326
INTEREST EXPENSE 92,576
PROVISION FOR INCOME TAXES 33,010
-----------
NET GAIN/(LOSS) $ (345,442)
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The accompanying notes are an integral part of these financial statements.
2
DOMARK INTERNATIONAL, INC.
(unaudited consolidated proforma)
STATEMENT OF STOCKHOLDERS' EQUITY
As of February 29, 2008
Accumulated
Additional Deficit During
Common Stock Paid In Development Total
Shares Par Capital Stage Equity
------ --- ------- ----- ------
BALANCE, MAY 31, 2006 2,000,000 $ 2,000 $ 3,000 $ 472,521 $ 477,521
========== ======= ========== ========= ==========
Stock Issued for cash on
March 9, 2007 at $0.05
per share 2,000,000 2,000 48,000 50,000
Net Loss (12,460) (12,460)
---------- ------- ---------- --------- ----------
BALANCE, MAY 31, 2007 4,000,000 4,000 51,000 460,061 515,061
========== ======= ========== ========= ==========
Capital Contribution on August 16, 2007 500,000 500,000
In-Kind Contribution 1,013 1,013
Capital Contribution on August 16, 2007 6,700,000 6,700,000
Capital Contribution on September 13, 2007 500 500
Capital Contribution on September 21, 2007 333,333 333,333
Common Stock issued for assets
at $0.001 per share 13,000,000 13,000 13,000
Retroactively applied share issuance
treated as a 2-to-1 stock split at par
value, $0.001 per share
Common Stock issued for assets at $0.001
per share 500,000 500 500
Common stock issued as compensation 500,000 500 500
to director at $0.001 per share
Common stock issued for assets at $0.001 750,000 750 750
per share
Net Loss (344,942) (344,942)
---------- ------- ---------- --------- ----------
BALANCE, FEBRUARY 28, 2008 18,750,000 $18,750 $7,585,846 $ 115,119 $7,719,715
========== ======= ========== ========= ==========
The accompanying notes are an integral part of these financial statements.
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DOMARK INTERNATIONAL, INC.
(unaudited consolidated proforma)
STATEMENTS OF CASH FLOWS
For the Nine Months Ending February 29, 2008
For 9 months
ending
2/29/08
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(345,442)
Adjustments to reconcile net loss to net cash
used in operations
Stock as compensation 595
Inventory (214,756)
Non-Cash interest on beneficial bond conversion 73,966
Provision for income taxes (33,010)
Depreciation 140
(Increase)/Decrease in prepaid expenses 4,417
Increase/(Decrease) in accounts payable 308,130
Increase/(Decrease) in accrued expenses 277,545
Increase/(Decrease) in compensation payable 141,328
Increase/(Decrease) in payroll liabilities 12,607
Increase/(Decrease) in prepaid packages (40,350)
Increase/(Decrease) in accounts receivable (233,960)
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NET CASH USED IN OPERATING ACTIVITIES (48,790)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for Property, Plant, & Equipment (1,159)
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NET CASH USED IN INVESTING ACTIVITIES (1,159)
CASH FLOWS FROM FINANCING ACTIVITIES:
Cash Paid to Related Party (167,345)
Repayment of Note Payable (132,418)
Cash Received on Notes Payable 250,000
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NET CASH PROVIDED BY FINANCING ACTIVITIES (49,763)
---------
NET INCREASE IN CASH (99,712)
Cash at Beginning of Period 226,280
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CASH AT END OF PERIOD $ 126,568
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The accompanying notes are an integral part of these financial statements.
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