Exhibit 99.4
CYTATION CORP
Cytation Corporation
Consolidated Pro Forma Balance Sheet
As of December 31, 2005
Cytation DeerValley DeerValley Purchase Price Pro Forma Pro Forma
Corp. Homebuilders, Inc. Acquisitions Corp. Adjustments Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 220 $ 2,931,263 $ 36 $ (6,375,000) (6) $ 7,132,729 (10) $ 3,689,248
Certificate of Deposit - 151,418 - - - 151,418
Accounts Receivable - 2,140,404 - - - 2,140,404
Other Receivable 7,500 7,500
1,115,558 1,115,558
Prepaid expenses and
other current assets - 52,419 - - 134,473 (8) 186,892
------------ ------------------ ------------------- --------------- ---------------- -----------
Total Current Assets 220 6,398,562 36 (6,375,000) 7,267,202 7,291,020
PROPERTY AND EQUIPMENT, Net - 1,611,531 - - - 1,611,531
OTHER ASSETS: - - - - - -
Goodwill - - - 3,611,994 (6) - (6) 3,611,994
------------ ------------------ ------------------- --------------- --------------- -----------
Total Other Assets - - - 3,611,994 - 3,611,994
TOTAL ASSETS $ 220 $ 8,010,093 $ 36 $ (2,763,006) $ 7,267,202 $12,514,545
============ ================== ================== ================= ============== ===========
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 Relate
Accruals 413,939 - - 413,939
Accrued Stockholder
Distributions 925,000 - - 925,000
Income Tax Payable - - - - 1,267,008 (8) 1,267,008
Loan from Stockholder 195 195
Other Accrued Expenses 90,500 228,832 - - - 319,332
------------- ------------------ ------------------- --------------- ---------------- -----------
Total Current
Liabilities 138,916 3,879,939 6,641 - 1,878,767 5,904,263
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 267 (5) - 267
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) (6) - 982
Additional paid-in
capital (APIC) 32,723,371 2,762,066 44,010 (2,762,828) (6) 6,513,514 (9) 39,280,133
Retained Earnings
and Accumulated
deficit (32,863,049) 0 (50,615) 0 (6) (1,132,535) (8) (34,046,199)
------------- ------------------ ------------------- -------------- --------------- -----------
TOTAL
STOCKHOLDERS'
EQUITY (DEFICIT) (138,696) 2,763,006 (6,605) (2,763,006) 5,388,435 5,243,134
TOTAL LIABILITIES
AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 220 $ 8,010,093 $ 36 $ (2,763,006) $ 7,267,202 $12,514,545
============= ================= =================== ============== =============== ===========
(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
- Legal fees in connection with Equity Raise 48,000
- Investment banking fees 827,245
--------------
Total Transaction costs related to Equity Financing $ 935,245
==============
(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
- Merger related expenses 280,000
- Legal fees in connection with merger 95,000
--------------
- Total Acquisition Price and related costs 6,375,000
- Net book value of acquisition 2,763,006
--------------
- Purchase price in excess of
book value (Goodwill) 3,611,994
==============
(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 36.04%
---------------
Pro forma income tax payable 1,132,535
===============
The components of the provision for income taxes are as follows:
Current taxes 1,267,008
Deferred taxes (134,473)
--------------
Provision for income taxes 1,132,535
==============
The items accounting for the difference between income taxes computed at the
federal statutory rate and the provision for income taxes are as follows:
Impact on
Amount Rate
---------- ------
Income tax at federal rate 1,068,429 34.00%
State tax, net of Federal effect 134,811 4.29%
Permanent Differences:
Meals & Entertainment 23,677 0.75%
Officers Life Insurance 9,180 0.29%
---------- ------
Total Permanent Differences 32,857 1.04%
---------- ------
Total Tax Credits (83,131) -2.65%
Rounding (20,431) -0.64%
---------- ------
Total Provision 1,132,535 36.04%
========== ======
Deferred income taxes reflect the net tax effects of temporary differences
between the carrying amount of assets and liabilities for financial reporting
purposes and the amounts used for income tax purposes. Significant components of
the Company's net deferred income taxes are as follows:
Current Deferred Tax Assets: 134,473
Valuation allowance -
------------
Total Deferred Tax Assets 134,473
============
Current Deferred Tax Liabilities:
Deferred tax effect of tax credits -
Non-Current Deferred Tax Liabilities:
Accelerated depreciation -
(9) Reconciliation of APIC
APIC in connection with
Series A Preferred Stock $ 7,448,759 (See (2) above)
Total transaction related costs 935,245 (See (3) above)
------------
Adjustment related to APIC 6,513,514
============
(10)Cash
Total Raise Series A Preferred
Stock $ 7,456,215
Transaction fees paid 323,486 (3)-(7)
-------------
Cash remaining 7,132,729
=============
CYTATION CORP
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
------------------- ------------------- ---------------- ----------------- ---------------
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
------------------- ------------------- ---------------- ----------------- ---------------
TOTAL OPERATING EXPENSES 247,570 2,996,023 50,615 - 3,294,208
------------------- ------------------- ---------------- ----------------- ---------------
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 - - - - -
------------------- ------------------- ---------------- ----------------- ---------------
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 - - - 1,132,535 (1) 1,132,535
------------------- ------------------- ---------------- ----------------- ---------------
NET INCOME(LOSS) $ (173,605) $ 3,366,659 $ (50,615) $ (1,132,535) $ 2,009,904
Dividend to Preferred
Stockholders - - - 521,935 (4) 521,935
------------------- ------------------- ---------------- ----------------- ---------------
NET INCOME(LOSS)
Available to Common
Shareholders $ (173,605) $ 3,366,659 $ (50,615) $ (1,654,470) $ 1,487,969
r Share
(Basic) $ (0.18) $ 3,574 $ (0.01) $ 1.58
Net (Loss) Income Per Share
(Fully Diluted) $ (0.18) $ 3,574 $ (0.01) $ 0.04
=================== =================== ================ ================= ===============
Weighted Average Common
Shares Outstanding 944,306 942 7,620,100 944,306 (2)
Weighted Average Common and
Common Equivalent Shares
Outstanding 944,306 942 7,620,100 39,716,660 (3)
=================== =================== ================ ================= ===============
(1) Pro forma income tax expense (Please see balance sheet for more details)
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 36.04%
------------
Pro forma income tax expense 1,132,535
============
(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
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-05 944,306
Net Income Available to
Common Shareholders $ 1,487,969
Weighted Average Common
Shares Outstanding 944,306
---------------
Net Income Per Share
(Basic) $ 1.58
(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. 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
Pro forma Consolidated Warrants 31-Dec-04 21,210,368 1.00 21,210,368
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 39,716,660
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
Warrants issued in connection with acquisition 21,210,368
Net Income Available to Common Shareholders $ 1,487,969
Weighted Average Common and Common Equivalent
Shares Outstanding
39,716,660
----------------
Net Income Per Share (Fully Diluted) $ 0.04
(4)Preferred Stock Dividends
Face Value of preferred outstanding 7,456,215
Dividend rate per annum 7%
-----------------
Dividend to Preferred Stockholders 521,935
=================