<PAGE>
EXHIBIT 99.2
STAN LEE MEDIA, INC. AND SUBSIDIARY
(a development stage company)
Unaudited Pro Forma Consolidated Balance Sheet
<TABLE>
<CAPTION>
June 30, 2000
-------------------------------------------------------------------------------------------------------------------
Stan Lee Conan Pro Forma Pro Forma
Media Properties Adjustments Consolidated
-------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 149,109 $ 22,767 (22,767) (a) $ 149,109
Accounts receivable, net of $32,922 allowance 260,986 -- 260,986
Inventory 11,883 -- 11,883
Prepaid expenses and other current assets 116,140 -- 116,140
---------------------------------------------------------------------------------------------------------------------
Total current assets 538,118 22,767 (22,767) 538,118
Property and equipment, net (Note 3) 1,735,168 -- 1,735,168
Other assets
Production costs 1,086,186 -- 1,086,186
Debt offering costs -- -- --
Licensing rights (net of $25,650
and $5,989 of accumulated amortization) 155,718 2,000 3,786,151 (a) 3,943,869
Trademarks 189,921 -- 189,921
Deposits 132,131 -- 132,131
---------------------------------------------------------------------------------------------------------------------
Total other assets 1,563,956 2,000 3,786,151 5,352,107
---------------------------------------------------------------------------------------------------------------------
$ 3,837,242 $ 24,767 3,763,384 $ 7,625,393
---------------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued liabilities $ 976,128 $ -- $ 976,128
Obligations under capital leases,
current portion (Note 5) 103,585 -- 103,585
Notes payable (Note 4) 2,555,000 -- 2,555,000
Due to Arthur M. Lieberman -- 20,000 (20,000) (a) --
Loans from shareholders -- 83,280 (83,280) (a) --
---------------------------------------------------------------------------------------------------------------------
Total current liabilities 3,634,713 103,280 (103,280) 3,634,713
---------------------------------------------------------------------------------------------------------------------
Convertible Promissory Note (Note 4) 2,500,000 -- 2,500,000
Obligations under capital leases,
long-term portion (Note 5) 317,698 -- 317,698
Commitments (Note 5)
Shareholders' equity (Note 1 and 6)
Series A Convertible Preferred stock,
par value $0.001, authorized 1,500,000
issued and outstanding 714,286 and none;
liquidation preference of $7 per share 5,000,002 -- 5,000,002
Common stock, par value $0.001, authorized
100,000,000 issued and outstanding 11,972 2,000 409 (a)
11,971,694 and 8,500,000 (2,000) (a) 12,381
Additional paid-in capital 13,205,479 -- 3,787,742 (a) 16,993,221
Deficit accumulated during
the development stage (20,832,622) -- (20,832,622)
Deficit in net assets acquired -- (80,513) 80,513 (a) --
---------------------------------------------------------------------------------------------------------------------
Total shareholders' equity (2,615,169) (78,513) 3,866,764 1,172,982
---------------------------------------------------------------------------------------------------------------------
$ 3,837,242 24,767 3,703,384 7,625,393
---------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STAN LEE MEDIA, INC. AND SUBSIDIARY
(a development stage company)
Unaudited Pro Forma Consolidated Statement of Operations
For the year ended December 31, 1999
<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------
Pro Forma
Stan Lee Conan Adjustments
Media Properties ----------- Pro Forma
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues $ 30,605 $ -- 30,605
Royalties -- 35,239 35,239
Interest -- 161 161
------------------------------------------------------------------------------------------
Total Revenues 30,605 35,400 66,005
------------------------------------------------------------------------------------------
Operating Expenses:
Cost of Revenue 1,275 -- 1,275
Developmental costs 1,142,378 -- 1,142,378
General and Administrative 6,900,577 47,071 378,615 (b) 7,326,263
------------------------------------------------------------------------------------------
Total operating expenses 8,044,230 47,071 378,615 8,469,916
------------------------------------------------------------------------------------------
Operating Loss (8,013,265) (11,671) (378,615) (8,403,911)
------------------------------------------------------------------------------------------
Net Interest Expense (81,640) -- (81,640)
------------------------------------------------------------------------------------------
Net Loss (8,095,265) (11,671) (378,615) (8,485,551)
------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
STAN LEE MEDIA, INC. AND SUBSIDIARY
(a development stage company)
Unaudited Pro Forma Consolidated Statement of Operations
For the six months ended June 30, 2000
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------------------------------
Pro Forma
Adjustments
Stan Lee Conan
Media Properties Pro Forma
-------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Revenues
Comic book sales $ 256,121 $ -- 256,121
Webisode licenses 463,360 -- 463,360
Other sales 26,878 -- 26,878
Royalties -- 43,712 43,712
Interest -- 356 356
-------------------------------------------------------------------------------------------------------------------------------
Total Revenues 746,359 44,068 790,427
-------------------------------------------------------------------------------------------------------------------------------
Operating Expenses:
Cost of comic books 58,904 -- 58,904
Cost of webisodes 814,856 -- 814,856
Cost of other sales 59,790 -- 59,790
Development costs 2,735,804 -- 2,735,804
General and Administrative 9,405,729 129,550 189,308 (b) 9,724,587
-------------------------------------------------------------------------------------------------------------------------------
Total operating expenses 13,075,083 129,550 189,308 13,393,941
-------------------------------------------------------------------------------------------------------------------------------
Operating Loss $ (12,328,724) $ (85,482) (189,308) (12,603,514)
Net interest expense (201,493) -- (201,493)
-------------------------------------------------------------------------------------------------------------------------------
Net Loss $ (12,530,217) $ (85,482) (189,308) (12,805,007)
-------------------------------------------------------------------------------------------------------------------------------
Basic and diluted net loss per share (1.06) (1.05)
Weighted average number of shares
Used in computing basic and diluted
Net loss per share 11,801,147 409,037 12,210,184
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See accompanying notes to financial statements.
<PAGE>
Notes to Pro Forma Consolidated Financial Statements
On September 11, 2000, Stan Lee Media Inc. (the "Company") acquired all of
the rights to the intellectual property known as Conan the Barbarian through its
acquisition of all of the outstanding stock of Conan Properties, Inc. in
exchange for 409,037 shares of the Company's common stock, no par value,
calculated by dividing an aggregate purchase price of $4.3 million by $10.5125,
the average of the Company's closing stock price on the Nasdaq Stock Market for
the 30-day period preceding August 30, 2000. The Company also issued five-year
warrants to purchase an additional 20,000 shares of common stock at $10.5125 per
share. For financial statement presentation the stock was valued at $9.00 per
share, the closing price as listed on NASDAQ on the date of acquisition.
The Company will account for the acquisition using the purchase method of
accounting with the assets acquired and liabilities assumed recorded at fair
value, and the results of Conan Properties, Inc. included in the Company's
consolidated financial statements from the date of acquisition. Pursuant to the
terms of the agreement, the sellers are entitled to certain price protection and
volume protection provisions during the first 21 months following the
acquisition. In addition, the sellers have certain registration rights relating
to the shares of the Company's common stock acquired hereunder.
The accompanying unaudited pro forma condensed consolidated financial
statements illustrate the effects of the acquisition on the Company's financial
position and results of operations. The unaudited pro forma condensed
consolidated balance sheet as of June 30, 2000 is based on the historical
balance sheets of the Company and Conan Properties, Inc. as of that date and
assumes the acquisition took place on the date. The unaudited pro forma
condensed consolidated statements of operations for the year ended December 31,
1999 and the six month period ended June 30, 2000 are based on the historical
statements of operations of the Company and Conan Properties, Inc. for these
periods. The unaudited pro forma condensed consolidated statements of operations
assume the acquisition took place on January 1, 1999.
The unaudited pro forma condensed consolidated financial statements may not
be indicative of the actual results of the acquisition. In particular, the pro
forma condensed consolidated financial statements are based on management's
current estimate of the allocation of the purchase price, the actual allocation
of which may differ.
Additionally the unaudited pro forma consolidated financial statements are
not necessarily indicative of the results which would have been obtained had the
acquisition occurred as of an earlier date or of future results.
The accompanying condensed consolidated pro forma financial statements
should be read in connection with the historical financial statements of the
Company and Conan Properties, Inc.
NOTE A - The pro forma adjustments to the condensed consolidated balance sheet
are as follows:
(a) To record allocation of purchase price to license rights and to eliminate
amounts not acquired or assumed.
<TABLE>
<S> <C>
Loan from shareholder $ 83,280
Due to Arthur Lieberman 20,000
Common Stock 2,000
License Rights 3,786,151
Common Stock (409)
Additional Paid in Capital (3,787,742)
Cash (22,767)
Deficit (80,513)
------------
$ --
============
</TABLE>
Value of consideration given:
<TABLE>
<CAPTION>
Shares Value
------ -----
<S> <C> <C>
Common Stock 409,037 $ 3,681,333
Warrants to purchase common stock 20,000 106,818
-----------
Total consideration 3,788,151
Net tangible assets acquired -0-
-----------
Value assigned to license right $ 3,788,151
===========
</TABLE>
NOTE B - The pro forma adjustments to the condensed consolidated statements of
operations are as follows:
(b) To record amortization of license rights acquired assuming a ten year
amortization period:
