Pro Forma Financial Information for the period ended September 20, 2000.
Digital Bridge, Inc.
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEET
September 20, 2000
================================================================================================================
24 x 7
Digital Bridge, Inc. Development.com, Inc. n2plus, Inc.
<S> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ 114,577 $ 7,325 $ 22,345
Receivables 184,911 13,888
Prepaid expenses 4,547 10,570 -
----------------------------------------------------------------------------------------------------------------
Total current assets 304,035 17,895 36,233
FURNITURE AND EQUIPMENT, net 39,757 127,359 29,750
OTHER ASSETS 19,744 12,621 263
----------------------------------------------------------------------------------------------------------------
$ 363,536 $ 157,875 $ 66,246
================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank overdraft $ - $ - $ -
Trade payables 51,413 8,270 73,304
Accrued expenses 33,938 25,179 -
Other liabilities 37,000
Capital lease obligation 56,062 -
Notes payable 700,000 83,063
----------------------------------------------------------------------------------------------------------------
Total current liabilities 822,351 89,511 156,367
LONG-TERM LIABILITIES:
Capital lease obligation
Notes payable 105,604
----------------------------------------------------------------------------------------------------------------
Total liabilities 822,351 195,115 156,367
----------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 22,332 25,000
Receivable from stockholders (20,000)
Additional paid-in capital 517,260 84,612
Accumulated deficit (998,407) (42,240) (174,733)
----------------------------------------------------------------------------------------------------------------
Total stockholders' (deficit) equity (458,815) (37,240) (90,121)
----------------------------------------------------------------------------------------------------------------
$ 363,536 $ 157,875 $ 66,246
================================================================================================================
================================================================================================================
Online Television Total
Network Services, Inc. before Elimination Elimination Total
<S> <C> <C> <C> <C>
CURRENT ASSETS:
Cash and cash equivalents $ - $ 144,247 $ - $ 144,247
Receivables 53,445 252,244 (53,000) 199,244
Prepaid expenses 2,329 17,446 17,446
----------------------------------------------------------------------------------------------------------------
Total current assets 55,774 413,937 (53,000) 360,937
FURNITURE AND EQUIPMENT, net 79,869 276,735 276,735
OTHER ASSETS 7,593 40,221 40,221
----------------------------------------------------------------------------------------------------------------
$ 143,236 $ 730,893 $ (53,000) $ 677,893
================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Bank overdraft $ 8,250 $ 8,250 $ $ 8,250
Trade payables 50,920 183,907 183,907
Accrued expenses 12,036 71,153 71,153
Other liabilities 37,000 37,000
Capital lease obligation 8,660 64,722 64,722
Notes payable 270,000 1,053,063 (30,000) 1,023,063
----------------------------------------------------------------------------------------------------------------
Total current liabilities 349,866 1,418,095 (30,000) 1,388,095
LONG-TERM LIABILITIES:
Capital lease obligation 2,715 2,715 2,715
Notes payable - 105,604 (23,000) 82,604
----------------------------------------------------------------------------------------------------------------
Total liabilities 352,581 1,526,414 (53,000) 1,473,414
----------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 1,000,000 1,047,332 (1,005,370) 41,962
Receivable from stockholders (20,000) 20,000 -
Additional paid-in capital 1,486,240 2,088,112 985,370 3,073,482
Accumulated deficit (2,695,585) (3,910,965) (3,910,965)
----------------------------------------------------------------------------------------------------------------
Total stockholders' (deficit) equity (209,345) (795,521) - (795,521)
----------------------------------------------------------------------------------------------------------------
$ 143,236 $ 730,893 $ (53,000) $ 677,893
================================================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
From July 1 to September 20, 2000
=============================================================================================================
Online Television
24 x 7 Network Services, Inc.
Digital Bridge, Inc. Development.com, Inc. n2plus, Inc. (June 1 to Sept 20, 2000)
<S> <C> <C> <C> <C>
REVENUE $ 75,564 $ 455,000 $ 54,958 $ 66,629
COST OF SALES 55,000 250,202 133 199,937
-------------------------------------------------------------------------------------------------------------
GROSS PROFIT 20,564 204,798 54,825 (133,308)
-------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 124,857 88,532 94,861 30,651
Professional fees 3,623 30,507 23,613 3,194
Office expenses 128,830 117,194 57,990 122,035
Travel 2,704
Other - - - 5,400
Depreciation 1,834 17,205 - -
State taxes 800 - - -
-------------------------------------------------------------------------------------------------------------
259,944 253,438 179,168 161,280
-------------------------------------------------------------------------------------------------------------
NET LOSS $ (239,380) $ (48,640) $ (124,343) $ (294,588)
=============================================================================================================
=====================================================================
Total
before
Elimination Elimination Total
<S> <C> <C> <C>
REVENUE $ 652,151 $ (55,000) $ 597,151
-
COST OF SALES 505,272 (55,000) 450,272
---------------------------------------------------------------------
GROSS PROFIT 146,879 - 146,879
---------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 338,901 338,901
Professional fees 60,937 60,937
Office expenses 426,049 426,049
Travel 2,704 2,704
Other 5,400 5,400
Depreciation 19,039 19,039
State taxes 800 800
---------------------------------------------------------------------
853,830 - 853,830
---------------------------------------------------------------------
NET LOSS $ (706,951) $ - $ 706,951)
=====================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEET
June 30, 2000
==================================================================================================================================
Online Television
24 x 7 Network Services, Inc.
Digital Bridge, Inc. Development.com, Inc. n2plus, Inc. (May 31, 2000
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 120,542 $ (6,053) $ 4,878 $ 3,086
Receivables 57,856 11,133 82,179
Prepaid expenses 30,661 26,224 - 2,069
----------------------------------------------------------------------------------------------------------------------------------
Total current assets 209,059 20,171 16,011 87,334
FURNITURE AND EQUIPMENT, net 41,591 131,909 57,512 74,955
OTHER ASSETS 19,744 12,551 3,719 3,963
----------------------------------------------------------------------------------------------------------------------------------
$ 270,394 $ 164,631 $ 77,242 $ 166,252
----------------------------------------------------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 91,223 $ 5,009 $ 90,821 $ 64,450
Accrued expenses 10,606 - 36,889
Lease payable 65,118 8,323
Notes payable 700,000 83,104 64,072
----------------------------------------------------------------------------------------------------------------------------------
Total current liabilities 801,829 153,231 154,893 109,662
LONG-TERM LIABILITIES:
Leases payable 5,442
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 801,829 153,231 154,893 115,104
----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 22,280 25,000 180 1,000,000
Stock subscription receivable (20,000)
Additional paid-in capital 205,312 (27,441) 1,452,145
Accumulated deficit (759,027) 6,400 (50,390) (2,400,997)
----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' (deficit) equity (531,435) 11,400 (77,651) 51,148
----------------------------------------------------------------------------------------------------------------------------------
$ 270,394 $ 164,631 $ 77,242 $ 166,252
==================================================================================================================================
========================================================================================
Total
before Elimination Elimination Total
<S> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 122,453 $ - $ 122,453
Receivables 151,168 151,168
Prepaid expenses 58,954 58,954
----------------------------------------------------------------------------------------
Total current assets 332,575 - 332,575
FURNITURE AND EQUIPMENT, net 305,967 305,967
OTHER ASSETS 39,977 39,977
----------------------------------------------------------------------------------------
$ 678,519 $ - $ 678,519
----------------------------------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Trade payables $ 251,503 $ $ 251,503
Accrued expenses 47,495 47,495
Lease payable 73,441 73,441
Notes payable 847,176 847,176
----------------------------------------------------------------------------------------
Total current liabilities 1,219,615 - 1,219,615
----------------------------------------------------------------------------------------
LONG-TERM LIABILITIES:
Leases payable 5,442 5,442
----------------------------------------------------------------------------------------
Total liabilities 5,442 - 1,225,057
----------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 1,047,460 (1,011,120) 36,340
Stock subscription receivable (20,000) 20,000 -
Additional paid-in capital 1,630,016 991,120 2,621,136
Accumulated deficit (3,204,014) (3,204,014)
----------------------------------------------------------------------------------------
Total stockholders' (deficit) equity (546,538) - (546,538)
----------------------------------------------------------------------------------------
$ (541,096) $ - $ 678,519
========================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
For the Year Ended June 30, 2000
============================================================================================================
Online Television
24 x 7 Network Services, Inc.
Digital Bridge, Inc. Development.com, Inc. n2plus, Inc. (May 31, 2000)
<S> <C> <C> <C> <C>
REVENUE $ 523,502 $ 143,916 $ 304,303 $ 417,787
COST OF SALES 280,095 - 21,783 -
------------------------------------------------------------------------------------------------------------
GROSS PROFIT 243,407 143,916 282,520 417,787
------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 501,176 130,401 308,066 1,107,677
Professional fees 92,621 742 107,350 14,394
Office expenses 380,573 2,949 102,346 757,691
Other 4,706 2,411 75,958 80,757
Depreciation 4,189 1,013 (1,997) 133,026
State taxes 800 2,676 800
------------------------------------------------------------------------------------------------------------
984,065 137,516 594,399 2,094,345
------------------------------------------------------------------------------------------------------------
NET LOSS $ (740,658) $ 6,400 $ (311,879) $ (1,676,558)
============================================================================================================
==========================================================================
Total
before Elimination Elimination Total
<S> <C> <C> <C>
REVENUE $ 1,389,508 $ $ 1,389,508
-
COST OF SALES 301,878 301,878
--------------------------------------------------------------------------
GROSS PROFIT 1,087,630 - 1,087,630
--------------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 2,047,320 2,047,320
Professional fees 215,107 215,107
Office expenses 1,243,559 1,243,559
Other 163,832 163,832
Depreciation 136,231 136,231
State taxes 4,276 4,276
--------------------------------------------------------------------------
3,810,325 - 3,810,325
--------------------------------------------------------------------------
NET LOSS $ (2,722,695) $ - $ (2,722,695)
==========================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA CONSOLIDATED BALANCE SHEET
June 30, 1999
==================================================================================================================================
Online Television
24 x 7 Network Services, Inc.
Digital Bridge, Inc. Development.com, Inc. n2plus, Inc. (May 31, 2000
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 6,800 $ - $ 70,821 $ 11,824
Receivables - 96,332 76,497
Prepaid expenses 5,000 - 623
----------------------------------------------------------------------------------------------------------------------------------
Total current assets 11,800 - 167,153 88,944
----------------------------------------------------------------------------------------------------------------------------------
FURNITURE AND EQUIPMENT, net 6,917 17,740 451,201
OTHER ASSETS 9,500 3,836 -
$ 28,217 $ - $ 188,729 $ 540,145
==================================================================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Trade payables $ - $ - $ 17,276 $ 45,121
Accrued expenses 9,586 10,771 764
Line of credit 635,818
Notes payable to stockholders - - 552,881
----------------------------------------------------------------------------------------------------------------------------------
Total liabilities 9,586 - 28,047 1,234,584
----------------------------------------------------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 13,250 25,000
Additional paid-in capital 23,750 (100,807) 5,000
Accumulated earnings (deficit) (18,369) 261,489 (724,439)
----------------------------------------------------------------------------------------------------------------------------------
Total stockholders' (deficit) equity 18,631 - 160,682 (694,439)
----------------------------------------------------------------------------------------------------------------------------------
$ 28,217 $ - $ 188,729 $ 540,145
==================================================================================================================================
===========================================================================================
before Elimination Elimination Total
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
ASSETS
------
CURRENT ASSETS:
Cash and cash equivalents $ 89,445 $ - $ 89,445
Receivables 172,829 172,829
Prepaid expenses 5,623 5,623
-------------------------------------------------------------------------------------------
Total current assets 267,897 - 267,897
-------------------------------------------------------------------------------------------
FURNITURE AND EQUIPMENT, net 475,858 475,858
OTHER ASSETS 13,336 13,336
$ 757,091 $ - $ 757,091
===========================================================================================
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES:
Trade payables $ 62,397 $ $ 62,397
Accrued expenses 21,121 21,121
Line of credit 635,818 635,818
Notes payable to stockholders 552,881 552,881
-------------------------------------------------------------------------------------------
Total liabilities 1,272,217 - 1,272,217
-------------------------------------------------------------------------------------------
STOCKHOLDERS' (DEFICIT) EQUITY:
Common stock 38,250 (10,940) 27,310
Additional paid-in capital (72,057) 10,940 (61,117)
Accumulated earnings (deficit) (481,319) (481,319)
-------------------------------------------------------------------------------------------
Total stockholders' (deficit) equity (515,126) - (515,126)
-------------------------------------------------------------------------------------------
$ 757,091 $ - $ 757,091
===========================================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
DIGITAL BRIDGE, INC. AND SUBSIDIARIES
PRO FORMA STATEMENT OF OPERATIONS
For the Year Ended June 30, 1999
==================================================================================================================================
Online Television
24x7 Network Services, Inc.
Digital Bridge, Inc. Development.com, Inc. NOW!, LLC (May 31, 1999)
----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE $ 46,000 $ - $ 413,285 $ 524,694
-
COST OF SALES 13,952 - 20,408 -
----------------------------------------------------------------------------------------------------------------------------------
GROSS PROFIT 32,048 - 392,877 524,694
----------------------------------------------------------------------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 41,202 - 49,084 560,659
Professional fees - 25,953 7,478
Office expenses 9,215 - 62,649 465,506
Other - 22,121 1,069
Depreciation and amortization 3,006 104,595
State taxes - - 800
----------------------------------------------------------------------------------------------------------------------------------
50,417 - 162,813 1,140,107
----------------------------------------------------------------------------------------------------------------------------------
NET LOSS $ (18,369) $ - $ 230,064 $ (615,413)
----------------------------------------------------------------------------------------------------------------------------------
=========================================================================
before Total
Elimination Elimination Total
-------------------------------------------------------------------------
<S> <C> <C> <C>
REVENUE $ 983,979 $ - $ $983,979
COST OF SALES 34,360 34,360
-------------------------------------------------------------------------
GROSS PROFIT 949,619 - 949,619
-------------------------------------------------------------------------
OPERATING EXPENSES:
Salaries and benefits 650,945 650,945
Professional fees 33,431 33,431
Office expenses 537,370 537,370
Other 23,190 23,190
Depreciation and amortization 107,601 107,601
State taxes 800 800
-------------------------------------------------------------------------
1,353,337 - 1,353,337
-------------------------------------------------------------------------
NET LOSS $ (403,718) $ - $ (403,718)
-------------------------------------------------------------------------
</TABLE>
<PAGE>
NOTES TO PRO FORMA FINANCIAL INFORMATION
NOTE 1 - BUSINESS COMBINATION:
Effective September 20, 2000, Digital Bridge, Inc. (the Company)
entered into a Reorganization and Stock Purchase Agreement,
whereby it agreed to exchange 14,059,500 shares of its $.001 par
value common stock for 100% of 24 x 7 Development.com, Inc.,
Online Television Network Services, Inc., and n2plus, Inc.'s (the
Subsidiaries) common stock. The transaction is expected to be
recorded as a pooling of interest.
24 x 7 Development.com, Inc., Online Television Network Services,
Inc., and n2plus, Inc. are providers of website development and
management services.
NOTE 2 - BASIS OF PRESENTATION:
The Company's unaudited pro forma consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for pro forma financial
information and pursuant to the instructions to Form 8-K and
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In the
opinion of management, all adjustments, consisting of normal
recurring accrual adjustments, considered necessary for a fair
presentation have been included. Pro forma operating results for
the period ended September 20, 2000 are not necessarily
indicative of the results that may be expected for the year ended
June 30, 2001.
These financial statements and notes should be read in
conjunction with the Company's audited financial statements and
notes thereto included in the Company's Annual Report on Form
10-KSB for the year ended June 30, 2000.
<PAGE>
