Exhibit 99.4
PRO FORMA FINANCIAL DATA
(Unaudited)
The following unaudited pro forma financial statements have been derived from
the financial statements of Surf Group, Inc. for the years ended October 31,
2001 and 2002, and the combined financial statements of tds (Telemedicine) Inc.
and tds (Telemedicine) Limited for the year ended December 31, 2001 and the
eleven months ended November 30, 2002. This pro forma financial data gives
effect to the reverse merger of the above companies on December 18, 2002, as if
the merger had occurred on January 1, 2001. These pro forma financial statements
are presented for informational purposes only and do not purport to be
indicative of the financial position and results of operations that actually
would have occurred if the merger had been consummated on January 1, 2001, nor
which may result from future operations.
F-22
PRO FORMA
CONSOLIDATED BALANCE SHEET
Actual
Surf Actual
Group, Inc. Telemedicine
October 31, December 31, Adjust- Pro
2001 2001 ments Forma
-------- ------------ ----------- ---------
ASSETS
CURRENT ASSETS
Cash $ 45,511 $ 290 ($ 35,511)(1) $ 10,290
Trade receivables 21,582 246,996 ( 21,582)(1) 246,996
Receivable from officers/directors -- 50,863 -- 50,863
Inventory 301,437 -- ( 301,437)(1) --
Prepaid expenses 3,120 8,960 ( 3,120)(1) 8,960
-------- --------- ---------
Total current assets 371,650 307,109 317,109
PROPERTY AND EQUIPMENT, net 30,165 9,426 ( 30,165)(1) 9,426
OTHER ASSETS 1,351 -- ( 1,351)(1) --
-------- --------- ---------
TOTAL ASSETS $403,166 $ 316,535 $ 326,535
======== ========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Notes payable $ -- $ 112,858 $ -- $ 112,858
Due to officer/directors 69,922 - ( 69,922)(1) --
Accounts payable - 105,409 -- 105,409
Other 1,041 63,976 ( 1,041)(1) 63,976
Taxes payable 12,039 133,162 ( 12,039)(1) 133,162
-------- --------- ---------
Total current liabilities 83,002 415,405 415,405
STOCKHOLDERS' EQUITY
Common stock 4,960 158 60,404 65,522
Additional paid-in capital (discount on shares) 311,415 23,695 (366,779) ( 31,669)
Retained earnings 3,789 (121,027) ( 3,789)(1) ( 121,027)
Accumulated other
comprehensive income -- ( 1,696) -- ( 1,696)
-------- --------- ---------
Total stockholders' equity 320,164 ( 98,870) ( 88,870)
-------- --------- ---------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY $403,166 $ 316,535 $326,535
======== ========= =========
F-23
PRO FORMA
CONSOLIDATED STATEMENT OF INCOME
Actual
Surf Actual
Group, Inc. Telemedicine
October 31, December 31, Adjust- Pro
2001 2001 ments Forma
------ ------- ----- -------
Operating revenue $452,170 $1,085,290 ($452,170)(1) $1,085,290
Cost of goods sold 339,608 592320 (339,608)(1) 592,320
-------- ---------- ----------
Gross profit 112,562 492,970 492,970
General and administrative expense 105,301 502,947 (105,301)(1) 502,947
-------- ---------- ----------
Income (loss) from operations 7,261 (9,977) (7,261) (9,977)
Other income (expense) (1,842) (18,385) 1,842 (18,385)
-------- ---------- ----------
Income (loss) before income taxes 5,419 (28,362) (5,419) (28,362)
Income taxes 1,630 -- (1,630)(1) --
-------- ---------- ----------
Net income (loss) $3,789 ($28,362) (3,789) ($28,362)
======== ========== ==========
Net income (loss) per common share $0.00
==========
Weighted average
common shares outstanding (2) 65,521,296(2)
==========
F-24
NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS
1. Adjustments to eliminate all retail and wholesale operations of Surf
Group, Inc. In anticipation and pursuant to the merger agreement, the
Company spun off its retail operations on December 17, 2002, and sold its
wholesale operations to Jeffrey Esposito for $10,000 on December 18, 2002.
2. Includes the number of common shares of Surf Group, Inc. on December 18,
2002, as a result of the merger, adjusted for an 18-to-1 stock split
effected on January 7, 2003.
F-25