EXHIBIT 99.1
EZCOMM ENTERPRISES, INC.
PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
SIX MONTHS ENDED JUNE 30, 2005
UNAUDITED
CONTENTS
Pro-forma Consolidated Balance Sheet .................................. 1
Pro-forma Consolidated Statement of Deficit ........................... 2
Pro-forma Consolidated Statement of Operations ........................ 3
Notes to Pro-forma Consolidated Financial Statements .................. 4 - 5
EZCOMM ENTERPRISES, INC.
Pro-Forma Consolidated Balance Sheet
June 30, 2005
Unaudited
EZCOMM ENTER- EUGENE EZCOMM ENTER- EZCOMM ENTER-
PRISES, INC. SCIENCE, INC. PRISES, INC. PRISES, INC.
(US) (KOREA) (US) (US)
MAY 31, JUNE 30, PRO-FORMA PRO-FORMA DEC. 31,
2005 2005 ADJUSTMENTS JUNE 30, 2005 2004
------------ ------------ ------------ ------------ ------------
ASSETS
CURRENT
Cash and cash equivalents ..... $ -- $ 58,018 $ -- $ 58,018 $ 36,681
Accounts receivable ........... -- 2,405,187 -- 2,405,187 2,721,287
Inventory ..................... -- 39,168 -- 39,168 15,094
Advance to a related company .. -- 1,169,500 -- 1,169,500 925,251
Prepaid and sundry assets ..... -- 194,088 -- 194,088 170,682
------------ ------------ ------------ ------------ ------------
-- 3,865,961 -- 3,865,961 3,868,995
PROPERTIES AND EQUIPMENT .......... -- 9,384,232 -- 9,384,232 9,780,104
INVESTMENTS ....................... -- 531,470 -- 531,470 588,584
INTANGIBLE ASSETS ................. -- 176,323 -- 176,323 186,398
------------ ------------ ------------ ------------ ------------
$ -- $ 13,957,986 $ -- $ 13,957,986 $ 14,424,081
============ ============ ============ ============ ============
LIABILITIES
CURRENT
Accounts payable .............. $ 1,412 $ 6,594,454 $ -- $ 6,595,866 $ 5,696,758
Rental deposits ............... -- 154,880 -- 154,880 156,016
Loans payable - current portion -- 10,249,831 -- 10,249,831 10,512,246
Advances from shareholder
and officer ............ 70,470 -- -- 70,470 6,169
Due to related parties ........ -- -- -- -- --
------------ ------------ ------------ ------------ ------------
71,882 16,999,165 -- 17,071,047 16,371,189
ACCRUED SEVERANCE ................. -- 475,907 -- 475,907 426,367
DEPOSITS .......................... -- 1,561,868 -- 1,561,868 1,768,344
LOANS PAYABLE ..................... -- 313,879 -- 313,879 336,774
------------ ------------ ------------ ------------ ------------
71,882 19,350,819 -- 19,422,701 18,902,674
------------ ------------ ------------ ------------ ------------
STOCKHOLDERS' EQUITY
CAPITAL STOCK ................. 3,537 2,786,822 (2,786,822) 3,537 2,538,572
PAID IN CAPITAL ............... 1,827,815 13,433,273 883,588 16,144,676 12,688,523
ACCUMULATED OTHER
COMPREHENSIVE LOSS ....... -- (1,676,818) -- (1,676,818) (1,676,719)
ACCUMULATED DEFICIT ........... (1,903,234) (19,936,110) 1,903,234 (19,936,110) (18,028,969)
------------ ------------ ------------ ------------ ------------
(71,882) (5,392,833) -- (5,464,715) (4,478,593)
------------ ------------ ------------ ------------ ------------
$ -- $ 13,957,986 $ -- $ 13,957,986 $ 14,424,081
============ ============ ============ ============ ============
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EZCOMM ENTERPRISES, INC.
Pro-Forma Consolidated Statement of Deficit
Six Months Ended June 30, 2005
Unaudited
EZCOMM ENTER- EUGENE EZCOMM ENTER- EZCOMM ENTER-
PRISES, INC. SCIENCE, INC. PRISES, INC. PRISES, INC.
(US) (KOREA) (US) (US)
MAY 31, JUNE 30, PRO-FORMA PRO-FORMA DEC. 31,
2005 2005 ADJUSTMENTS JUNE 30, 2005 2004
------------ ------------ ------------ ------------ ------------
ACCUMULATED DEFICIT -
BEGINNING OF PERIOD $ (1,895,811) $(18,028,969) $ 1,895,811 $(18,028,969) $(14,293,380)
Net Income (Loss) . (7,423) (1,907,141) 7,423 (1,907,141) (3,735,589)
------------ ------------ ------------ ------------ ------------
ACCUMULATED DEFICIT
- END OF PERIOD ... $ (1,903,234) $(19,936,110) $ 1,903,234 $(19,936,110) $(18,028,969)
============ ============ ============ ============ ============
- 2 -
EZCOMM ENTERPRISES, INC.
Pro-Forma Consolidated Statement of Operations
Six Months Ended June 30, 2005
Unaudited
EZCOMM ENTER- EUGENE EZCOMM ENTER- EZCOMM ENTER-
PRISES, INC. SCIENCE, INC. PRISES, INC. PRISES, INC.
(US) (KOREA) (US) (US)
MAY 31, JUNE 30, PRO-FORMA PRO-FORMA DEC. 31,
2005 2005 ADJUSTMENTS JUNE 30, 2005 2004
----------- ----------- ----------- ----------- -----------
REVENUE
Manufacturing .................. $ -- $ 294,791 $ -- $ 294,791 $ 2,328,320
Merchandise .................... -- 221,523 -- 221,523 528,604
----------- ----------- ----------- ----------- -----------
-- 516,314 -- 516,314 2,856,924
----------- ----------- ----------- ----------- -----------
COST OF SALES
Manufacturing .................. -- 238,229 -- 238,229 2,225,390
Merchandise .................... -- 175,541 -- 175,541 806,040
----------- ----------- ----------- ----------- -----------
-- 413,770 -- 413,770 3,031,430
----------- ----------- ----------- ----------- -----------
GROSS PROFIT (LOSS) ................ -- 102,544 -- 102,544 (174,506)
----------- ----------- ----------- ----------- -----------
EXPENSES
Salaries, employee
benefits, and
retirement allowance ........ -- 473,195 -- 473,195 859,044
Research and development ....... -- 215,022 -- 215,022 401,599
Professional fees .............. -- 121,222 -- 121,222 159,664
Travel ......................... -- 86,215 -- 86,215 65,690
Repairs and maintenance ........ -- 42,466 -- 42,466 60,037
Office and general ............. 7,423 28,827 (7,423) 28,827 81,007
Utilities ...................... -- 25,566 -- 25,566 56,656
Advertising,
promotion, and
entertainment ............... -- 16,409 -- 16,409 151,024
Bad debts ...................... -- 8,147 -- 8,147 62,476
Insurance ...................... -- 4,043 -- 4,043 16,588
Rent ........................... -- 2,956 -- 2,956 5,280
Foreign exchange ............... -- -- -- -- 61
Depreciation ................... -- 195,858 -- 195,858 342,912
----------- ----------- ----------- ----------- -----------
7,423 1,219,926 (7,423) 1,219,926 2,262,038
----------- ----------- ----------- ----------- -----------
OPERATING LOSS ..................... (7,423) (1,117,382) 7,423 (1,117,382) (2,436,544)
----------- ----------- ----------- ----------- -----------
OTHER INCOME (EXPENSES)
Net rental income .............. -- 72,505 -- 72,505 142,178
Miscellaneous income ........... -- 16,268 -- 16,268 7,488
Financing fees ................. -- (32,422) -- (32,422) (57,731)
Interest expense - net ......... -- (835,351) -- (835,351) (1,229,901)
Interest - other ............... -- -- -- -- (151,141)
Loss on write down of equipment -- -- -- -- (9,938)
Loss on disposition of equipment -- (10,759) -- (10,759) --
----------- ----------- ----------- ----------- -----------
-- (789,759) -- (789,759) (1,299,045)
----------- ----------- ----------- ----------- -----------
NET LOSS .......................... $ (7,423) $(1,907,141) $ 7,423 $(1,907,141) $(3,735,589)
=========== =========== =========== =========== ===========
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EZCOMM ENTERPRISES, INC.
Notes to Pro-Forma Consolidated Financial Statements
June 30, 2005
1. BASIS OF PRESENTATION:
These unaudited pro-forma consolidated financial statements have been
prepared to give effect to the following:
The reverse takeover at September 1, 2005 whereby Ezcomm Enterprises,
Inc. ("EZCE"), (the legal parent), issued 272,790,948 common shares in
return for 89.5% of all outstanding common shares of Eugene Science,
Inc. ("ESI") a Korean company (the acquirer for accounting purposes).
As a result of this transaction, the former shareholders of ESI
received approximately 88.5% ownership of EZCE. After the transaction,
EZCE has 308,159,748 common shares issued and outstanding.
The pro-forma consolidated financial statements are based on the
balance sheets of the following:
a) EZCE as at May 31, 2005 (audited).
b) ESI as at June 30, 2005 (unaudited) and December 31, 2004
(audited).
The pro-forma consolidated financial statements include the statement
of earnings for the following:
a) EZCE for the six months ended May 31, 2005 (unaudited).
b) ESI for the six months ended June 30, 2005 (unaudited) and for
the year ended December 31, 2004 (audited).
The pro-forma consolidated balance sheet as at June 30, 2005 and
December 31, 2004 gives effect to the transactions as at September 1,
2005 and the pro-forma statement of earnings for the six months ended
June 30, 2005 and year ended December 31, 2004 gives effect to the
transactions as if they had taken place at the beginning of each
period.
- 4 -
EZCOMM ENTERPRISES, INC.
Notes to Pro-Forma Consolidated Financial Statements
June 30, 2005
1. BASIS OF PRESENTATION (CONT'D)
The pro-forma consolidated financial statements are not necessarily
indicative of the actual results that would have occurred had the
proposed transactions occurred on the dates indicated and not
necessarily indicative of future earnings or financial position.
2. PRO-FORMA ADJUSTMENTS:
To record the consolidation of EZCE with ESI including:
a) The merger of EZCE and ESI was accounted for as the
recapitalization of EZCE, with the net assets of ESI brought
forward at their historical basis.
b) To eliminate the pre-acquisition shareholders' equity of EZCE
at June 30, 2005.
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