EXHIBIT 99.4
Cytation Corporation
Consolidated Pro Forma Balance Sheet
As of December 31, 2005
Cytation DeerValley DeerValley Pro Forma Pro Forma
Corp. Homebuilders, Inc. Acquisitions Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 220 $ 2,931,263 $ 36 $ 697,728 (10) $ 3,629,247
Certificate of Deposit - 151,418 - - 151,418
Accounts Receivable - 2,140,404 - - 2,140,404
Other Receivable 7,500 7,500
Inventories 1,115,558 1,115,558
Prepaid expenses and other
current assets - 52,419 - - 52,419
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Total Current Assets 220 6,398,562 36 697,728 7,096,546
PROPERTY AND EQUIPMENT, Net - 1,611,531 - - 1,611,531
OTHER ASSETS:
Goodwill - - - 3,236,994 (6) 3,236,994
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Total Other Assets - - - 3,236,994 3,236,994
TOTAL ASSETS $ 220 $ 8,010,093 $ 36 $3,934,722 $11,945,071
============== ================== =============== =========== ===========
LIABILITIES AND STOCKHOLDERS'EQUITY(DEFICIT)
CURRENT LIABILITIES:
Current Maturities of
Long-Term Debt $ - $ 55,716 $ - $ - $ 55,716
Accounts payable 48,416 1,166,020 6,446 611,759 (7) 1,832,641
Accounts Payable under Dealer
Incentive Programs 340,432 - 340,432
Estimated Warranties 750,000 - 750,000
Compensation and Related
Accruals 413,939 - 413,939
Accrued Stockholder
Distributions 925,000 - 925,000
Income Tax Payable 1,137,249 (8) 1,137,249
Loan from Stockholder 195 195
Other Accrued Expenses 90,500 228,832 - - 319,332
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Total Current
Liabilities 138,916 3,879,939 6,641 1,749,008 5,774,504
LONG TERM LIABILITIES:
Long-Term Debt, Net of
Current Maturities - 1,367,148 - - (1) 1,367,148
STOCKHOLDERS' EQUITY(DEFICIT):
Series A Preferred stock, $0.01 par value, 750,000
shares authorized, 745,626 shares issued and outstanding 7,456 (2) 7,456
Series B Preferred stock, $0.01 par value, 49,451
shares authorized, 49,451 shares issued and outstanding 495 (4) 495
Series C Preferred stock, $0.01 par value, 26,750
shares authorized, 26,750 shares issued and outstanding 268 (5) 268
Common stock, no par value, 30,000,000
shares authorized, 7,620,100 - - -
Common stock, $0.001 par value, 2,000,000
shares authorized, 982,622 shares issued and
outstanding 982 940 - (940)(9) 982
Additional paid-in capital (APIC) 32,723,371 1,033,060 44,010 3,315,685 (9) 37,116,126
Retained Earnings and Accumulated deficit (32,863,049) 1,729,006 (50,615) (1,137,249)(8) (32,321,907)
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TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (138,696) 2,763,006 (6,605) 2,185,714 4,803,419
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 220 $ 8,010,093 $ 36 $3,934,722 $11,945,071
============== ================== =============== =========== ===========
<FN>
(1) Debt issued in connection with Acquisition $1,500,000 Face -
Subsequent to the 8-K/A previously filed, this has been converted into
Series A preferred stock.
(2) Series A Preferred Stock issued in connection with acquisition - Face
amount $7,456,215 (745,626 shares at $10.00 per share) Par Value $7,456,
APIC $7,448,759 prior to transaction costs.
(3) Reduction in Series A Preferred stock's APIC due to transaction costs
- Comittment fee $60,000
- Merger related expenses 280,000
- Legal fees in connection with transaction 203,000
- Investment banking fees 827,245
----------
Total Transaction related costs $1,370,245
==========
(4) Series B preferred stock issued in connection with DeerValley
Acquisitions Corp.: In connection with the acquisition the common
shareholders of DeerValley Acquistions Corp. exchanged 4,945,100 no par
common for 49,451 shares of Series B Preferred with a par of $.01
(5) Series C preferred Stock issued in connection with DeerValley
Acquisitions Corp.: In connection with the acquisition the common
shareholders of DeerValley Acquistions Corp. exchanged 2,675,000 no par
common for 26,750 shares of Series C Preferred with a par of $.01
(6) Goodwill booked in connection with Acquisition
- Purchase price of acquisition $6,000,000
- Net book value of acquisition 2,763,006
----------
- Purchase price in excess of book value (Goodwill)3,236,994
==========
(7) Payables still owed in connection with transaction
- Investment banking fees $ 553,759
- Legal fees in connection with transaction 58,000
----------
Total Payables $ 611,759
==========
(8) Pro forma income tax payable
Net Income(Loss) Cytation Corp. $ (173,605)
Net Income(Loss) Deer Valley Homebuilders, Inc. 3,366,659
Net Income(Loss) Deer Valley Acquisitions Corp. (50,615)
----------
Net Income(Loss) Consolidated Group before taxes 3,142,439
Pro forma effective Income Tax Rate 36.19%
----------
Pro forma income tax payable 1,137,249
==========
(9) Reconciliation of APIC
APIC in connection with Series A Preferred Stock $7,448,759 (See (2) above)
Total transaction related costs 1,370,245 (See (3) above)
----------
APIC recorded net of transaction costs 6,078,514
Purchase price 6,000,000
----------
APIC after purchase and costs 78,514
Goodwill related to acquisition 3,236,994
Series B Preferred Stock (495)
Series C Preferred Stock (268)
Purchase of Deer Valley Homebuilder's Stock 940
----------
Adjustment related to APIC 3,315,685
==========
(10)Cash
Total Raise Series A Preferred Stock $7,456,215
Transaction purchase price 6,000,000
----------
Available funds prior to transactions fees 1,456,215
Transaction fees paid 758,487
----------
Cash remaining 697,728
==========
Cytation Corporation
Pro Forma Consolidated Statements of Operations
For The Year Ended December 31, 2005
(Unaudited)
Cytation DeerValley DeerValley Pro Forma Pro Forma
Corp. Homebuilders, Inc. Acquisitions Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
-----------------------------------------------------------------------------------
NET REVENUE $ 59,114 $35,717,073 $ - $ - $ 35,776,187
COST OF REVENUE 1,738 29,292,051 - - 29,293,789
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GROSS PROFIT 57,376 6,425,022 - - 6,482,398
OPERATING EXPENSES:
Depreciation 1,037 118,941 - - 119,978
Selling, general and
administrative 246,533 2,877,082 50,615 - 3,174,230
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TOTAL OPERATING EXPENSES 247,570 2,996,023 50,615 - 3,294,208
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OPERATING INCOME/(LOSS) (190,194) 3,428,999 (50,615) - 3,188,190
OTHER INCOME (EXPENSES)
Gain on sale and distribution
of investment 31,902 - - - 31,902
Loss on sale of property
and equipment (4,270) - - - (4,270)
Loss on termination of
ARE agreement (5,000) - - - (5,000)
Interest income (expenses), net (6,043) (62,340) - - (68,383)
Other Income - - - - -
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TOTAL OTHER INCOME 16,589 (62,340) - - (45,751)
INCOME/(LOSS) BEFORE
INCOME TAXES (173,605) 3,366,659 (50,615) - 3,142,439
INCOME TAX EXPENSE - - - 1,137,249 (1) 1,137,249
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NET INCOME(LOSS) $(173,605) $ 3,366,659 $ (50,615) $(1,137,249) $ 2,005,190
===================================================================================
Net (Loss) Income Per Share (Basic) $ (0.18) $ 3,574 $ (0.01) $ 0.23
Net (Loss) Income Per Share
(Fully Diluted) $ (0.18) $ 3,574 $ (0.01) $ 0.11
============ =========== ========== ============ =============
Weighted Average Common
Shares Outstanding 944,306 942 7,620,100 8,564,672 (2)
Weighted Average Common
and Common Equivalent Shares
Outstanding 944,306 942 7,620,100 18,506,292 (3)
============ =========== ========== ============ =============
(1) Pro forma income tax expense
Net Income(Loss) Cytation Corp. $(173,605)
Net Income(Loss) Deer Valley Homebuilders, Inc. 3,366,659
Net Income(Loss) Deer Valley Acquisitions Corp. (50,615)
-----------
Net Income(Loss) Consolidated Group before taxes 3,142,439
Pro forma effective Income Tax Rate 36.19%
-----------
Pro forma income tax expense 1,137,249
===========
(2) Weighted Average Common Shares Outstanding:
Number of Common Shares Fraction of Period Outstanding Weighted Average Shares
Common stock:
Cytation Corp 31-Dec-04 872,330 1.00 872,330
Deer Valley Acquisitions Corp.
(Share Conversion to Cytation) 31-Dec-04 7,620,100 1.00 7,620,100
Cytation Corp 14-Feb-05 30,000 0.88 26,400
Cytation Corp 14-Feb-05 3,332 0.88 2,932
Cytation Corp 4-Mar-05 47,000 0.83 39,010
Cytation Corp 14-Nov-05 20,000 0.13 2,600
Cytation Corp 14-Nov-05 10,000 0.13 1,300
(3)Weighted Average Common and Common Equivalent Shares Outstanding:
Number of Common and
Common Stock Equivalent Fraction of Period Outstanding Weighted Average Shares
Common stock:
Cytation Corp 31-Dec-04 872,330 1.00 872,330
Deer Valley Acquisitions Corp.
(Share Conversion to Cytation) 31-Dec-04 7,620,100 1.00 7,620,100
Pro forma Consolidated Series
A Preferred Shares 31-Dec-04 9,941,620 1.00 9,941,620
Cytation Corp 14-Feb-05 30,000 0.88 26,400
Cytation Corp 14-Feb-05 3,332 0.88 2,932
Cytation Corp 4-Mar-05 47,000 0.83 39,010
Cytation Corp 14-Nov-05 20,000 0.13 2,600
Cytation Corp 14-Nov-05 10,000 0.13 1,300
31-Dec-05 18,506,292
Series A Preferred Stock issued in connection with acquisition - Face amount
7,456,215 (745,626 shares at $10.00 per share) convertible at $.75 = 9,941,620
shares.
Cytation Corporation
Pro Forma Consolidated Statements of Operations
For The Twelve Months Ended December 31, 2004
(Unaudited)
Cytation DeerValley DeerValley Pro Forma Pro Forma
Corp. Homebuilders, Inc. Acquistions Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
NET REVENUE $ 240,368 $ 15,394,215 $ - $ - $ 15,634,583
COST OF REVENUE 746,896 12,769,267 - - 13,516,163
GROSS PROFIT (506,528) 2,624,948 - - 2,118,420
OPERATING EXPENSES:
Depreciation 3,857 84,211 - - 88,068
Selling, general and
administrative 367,007 1,475,122 - - 1,842,129
TOTAL OPERATING EXPENSES 370,864 1,559,333 - - 1,930,197
OPERATING INCOME/(LOSS) (877,392) 1,065,615 - - 188,223
OTHER INCOME (EXPENSES)
Gain on sales of Marketable
Securities 187,976 - - - 187,976
Interest income (expenses),
net (5,298) (55,109) - - (60,407)
TOTAL OTHER INCOME 182,678 (55,109) - - 127,569
INCOME/(LOSS) BEFORE
INCOME TAXES (694,714) 1,010,506 - - 315,792
INCOME TAX EXPENSE 1,975 - - 98,539 (1) 100,514
NET LOSS $ (696,689) $ 1,010,506 $ - $ (98,539) $ 215,278
=========== ============== ============= ============ =============
Net (Loss) Income Per
Share (Basic) $ (1.74) $ 1,011 $ - $ 0.54
Net (Loss) Income Per
Share (Fully Diluted) $ (1.74) $ 1,011 $ - $ 0.54
=========== ============== ============= ============ =============
Weighted Average Common
Shares Outstanding 399,915 1,000 - 399,915 (2)
Weighted Average Common and
Common Equivalent Shares
Outstanding 399,915 1,000 - 399,915 (2)
=========== ============== ============= ============ =============
(1) Pro forma income tax expense
Net Income(Loss) Cytation Corp. $(696,689)
Net Income(Loss) Deer Valley Homebuilders, Inc. 1,010,506
Net Income(Loss) Deer Valley Acquisitions Corp. -
-----------
Net Income(Loss) Consolidated Group before taxes 313,817
Pro forma effective Income Tax Rate 31.40%
-----------
Pro forma income tax expense 98,539
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(2) Weighted Average Shares
On a pro forma basis Cytation Corp would be the only shares outstanding on
December 31, 2004.