LIBERATOR, INC.
UNAUDITED CONDENSED COMBINED PRO FORMA BALANCE SHEET
WES | Adjusted | |||||||||||||||||||||||
Liberator, Inc. | Consulting, Inc. | Combined | Pro Forma | ProForma | ||||||||||||||||||||
June 30, 2009 | June 30, 2009 | Totals | Adjustments | AE | Totals | |||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Current Assets: | ||||||||||||||||||||||||
Cash | $ | 1,815,633 | $ | 4,213 | $ | 1,819,846 | $ | - | $ | 1,819,846 | ||||||||||||||
Accounts receivable | 346,430 | 346,430 | 346,430 | |||||||||||||||||||||
Inventories | 700,403 | 700,403 | 700,403 | |||||||||||||||||||||
Prepaid Expenses | 95,891 | - | 95,891 | - | 95,891 | |||||||||||||||||||
Total Current Assets | 2,958,357 | 4,213 | 2,962,570 | - | 2,962,570 | |||||||||||||||||||
Property and Equipment, net | 1,135,517 | 475 | 1,135,992 | - | 1,135,992 | |||||||||||||||||||
TOTAL ASSETS | $ | 4,093,874 | $ | 4,688 | $ | 4,098,562 | $ | - | $ | 4,098,562 | ||||||||||||||
LIABILITIES AND STOCKHOLDERS' | ||||||||||||||||||||||||
EQUITY (DEFICIT) | ||||||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||||||
Accounts payable | $ | 2,247,845 | $ | - | $ | 2,247,845 | $ | - | $ | 2,247,845 | ||||||||||||||
Accrued compensation | 154,994 | - | 154,994 | - | 154,994 | |||||||||||||||||||
Accrued expenses | 145,793 | - | 145,793 | - | 145,793 | |||||||||||||||||||
Revolving line of credit | 171,433 | - | 171,433 | - | 171,433 | |||||||||||||||||||
Current long-term debt | 145,481 | 31,382 | 176,863 | (31,382 | ) | 1 | 145,481 | |||||||||||||||||
Credit card advance | 198,935 | - | 198,935 | - | 198,935 | |||||||||||||||||||
Total Current Liabilities | 3,064,481 | 31,382 | 3,095,863 | (31,382 | ) | 3,064,481 | ||||||||||||||||||
Long-term liabilities: | ||||||||||||||||||||||||
Note payable -equipment | 72,812 | - | 72,812 | - | 72,812 | |||||||||||||||||||
Lease payable | 225,032 | - | 225,032 | - | 225,032 | |||||||||||||||||||
Note payable -related | 125,948 | - | 125,948 | - | 125,948 | |||||||||||||||||||
Convertible note payable | 285,750 | - | 285,750 | - | 285,750 | |||||||||||||||||||
Unsecured lines of credit | 124,989 | - | 124,989 | - | 124,989 | |||||||||||||||||||
Deferred rent payable | 356,308 | - | 356,308 | - | 356,308 | |||||||||||||||||||
Less: current portion | (145,481 | ) | - | (145,481 | ) | - | (145,481 | ) | ||||||||||||||||
Total long-term liabilities | 1,045,358 | - | 1,045,358 | - | 1,045,358 | |||||||||||||||||||
Total Liabilities | 4,109,839 | 31,382 | 4,141,221 | (31,382 | ) | 4,109,839 | ||||||||||||||||||
Stockholders' Equity: | ||||||||||||||||||||||||
Preferred Stock | 430 | - | 430 | - | 430 | |||||||||||||||||||
Common Stock | 6,093 | 12,050 | 18,143 | 609,330 | 2 | 611,660 | ||||||||||||||||||
(19,440 | ) | 3 | ||||||||||||||||||||||
3,627 | 4 | |||||||||||||||||||||||
Additional Paid-in Capital | 5,286,970 | 1,487 | 5,288,457 | 31,382 | 1 | 4,726,322 | ||||||||||||||||||
(609,330 | ) | 2 | ||||||||||||||||||||||
19,440 | 3 | |||||||||||||||||||||||
(3,627 | ) | 4 | ||||||||||||||||||||||
Accumulated Deficit | (5,309,458 | ) | (40,231 | ) | (5,349,689 | ) | - | (5,349,689 | ) | |||||||||||||||
Total Stockholders' Deficit | (15,965 | ) | (26,694 | ) | (42,659 | ) | 31,382 | (11,277 | ) | |||||||||||||||
TOTAL LIABILITIES | ||||||||||||||||||||||||
AND STOCKHOLDERS' | ||||||||||||||||||||||||
EQUITY (DEFICIT) | $ | 4,093,874 | $ | 4,688 | $ | 4,098,562 | $ | - | $ | 4,098,562 |
1 | To record gain on forgiveness of debt which occurred on August 11, 2009. |
2 | To record issuance of 60,932,981 shares of common stock to acquire 100% of the common shares of Liberator, Inc. at $0.01 per share. |
3 | To cancel 972,000 shares of common stock owned by Liberator, Inc. |
4 | To reflect increase in par value from $.0001 per share to $.01 per share. |
LIBERATOR, INC.
UNAUDITED CONDENSED COMBINED PRO FORMA STATEMENT OF OPERATIONS
WES Consulting | |||||||||||||||||||||
Liberator, Inc. | Inc. | Pro-Forma | |||||||||||||||||||
For the Year | For the Year | Adjusted | |||||||||||||||||||
Ended | Ended | Combined | Pro Forma | Combined | |||||||||||||||||
June 30, 2009 | June 30, 2009 | Totals | Adjustments | AJE | Totals | ||||||||||||||||
(Unaudited) | |||||||||||||||||||||
REVENUES | $ | 10,260,552 | $ | 69,300 | $ | 10,329,852 | $ | - | $ | 10,329,852 | |||||||||||
COST OF SALES | 7,144,108 | - | 7,144,108 | - | 7,144,108 | ||||||||||||||||
GROSS PROFIT | 3,116,444 | 69,300 | 3,185,744 | - | 3,185,744 | ||||||||||||||||
OPERATING EXPENSES | |||||||||||||||||||||
Advertising and Promotion | 864,690 | - | 864,690 | - | 864,690 | ||||||||||||||||
Other Selling and Marketing | 1,201,054 | - | 1,201,054 | - | 1,201,054 | ||||||||||||||||
General and Administrative | 1,781,352 | 92,732 | 1,874,084 | - | 1,874,084 | ||||||||||||||||
Depreciation | 270,217 | 569 | 270,786 | - | 270,786 | ||||||||||||||||
Total Costs and Expenses | 4,117,313 | 93,301 | 4,210,614 | - | 4,210,614 | ||||||||||||||||
OPERATING LOSS | (1,000,869 | ) | (24,001 | ) | (1,024,870 | ) | - | (1,024,870 | ) | ||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||||
Interest Income | 1,980 | - | 1,980 | - | 1,980 | ||||||||||||||||
Interest Expense | (482,598 | ) | (482,598 | ) | (482,598 | ) | |||||||||||||||
Expenses related to reverse acquisition of Remark | (2,273,495 | ) | - | (2,273,495 | ) | - | (2,273,495 | ) | |||||||||||||
Total Other Income (Expense) | (2,754,113 | ) | - | (2,754,113 | ) | - | (2,754,113 | ) | |||||||||||||
Loss Before Taxes | (3,754,982 | ) | (24,001 | ) | (3,778,983 | ) | - | (3,778,983 | ) | ||||||||||||
INCOME TAX PROVISION (BENEFIT) | - | - | - | - | - | ||||||||||||||||
NET LOSS | $ | (3,754,982 | ) | $ | (24,001 | ) | $ | (3,778,983 | ) | $ | - | $ | (3,778,983 | ) |
WES Consulting, Inc.
Notes to Pro Forma Consolidated Financial Statements
June 30, 2009
NOTE 1 - Summary of Transaction
On October 19, 2009, WES Consulting, Inc. (the “Company”) completed a stock exchange with Liberator Inc., a Nevada corporation (“Liberator”). The Company exchanged all of the issued and outstanding shares of Liberator for shares of the Company. Liberator is now a wholly-owned subsidiary of the Company.
NOTE 2 - Management Assumptions
The pro forma balance sheet and statements of operations assumes that the entities were together at the beginning of the year ended June 30, 2009.
The pro forma balance sheets assume that through the issuance of 60,932,981 shares of common stock, the Company acquires all of outstanding shares of Liberator.
The proforma statements of operations assume that the Company’s revenues and expenses have been combined with Liberator’s at the beginning of the year ended June 30, 2009.
NOTE 3 – Pro forma Adjusting Entries
1. | To record gain on forgiveness of debt which occurred on August 11, 2009. |
2. | To record issuance of 60,932,981 shares of common stock to acquire 100% of the common shares of Liberator, Inc. at $0.01 per share. |
3. | To cancel 972,000 shares of common stock owned by Liberator, Inc. |
4. | To reflect increase in par value from $.0001 per share to $.01 per share. |