NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
The following unaudited pro forma consolidated balance sheet has been derived
from the balance sheets of the combining entities at March 31, 2000 and adjusts
such information to give effect to the business combination as had it occurred
at March 31, 2000. The pro forma balance sheet is presented for informational
purposes only and does not purport to be indicative of the financial condition
that actually would have resulted if the business combination had been
consummated at March 31, 2000. The pro forma balance sheet should be read in
conjunction with the notes thereto and the entities financial statements and
related notes thereto contained elsewhere in this form 8-K.
<TABLE>
March 31, 2000
--------------------------------------------------------------
Actual
Actual Universal Pro Forma
Net-Tronics Media Adjustments Pro Forma
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ -- $ 3,346 $ 100,000 (a) $ 3,346
(100,000)(b)
Investment in subsidiary 100,000 (b)
25 (b)
(100,025)(c)
Other current assets -- 492,367 -- 492,367
----------- ----------- ----------- -----------
Total current assets -- 495,713 -- 495,713
PROPERTY AND
EQUIPMENT, net -- 3,200 -- 3,200
GOODWILL -- -- 100,000 (c) 100,000
----------- ----------- ----------- -----------
$ -- $ 498,913 $ 100,000 $ 598,913
=========== =========== =========== ===========
LIABILITIES AND
STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES
Notes payable - stockholders $ -- $ -- $ 100,000 $ 100,000
Accounts payable and
accrued expenses -- 866,011 -- 866,011
----------- ----------- ----------- -----------
Total current liabilities -- 866,011 100,000 966,011
----------- ----------- ----------- -----------
STOCKHOLDERS' EQUITY
Preferred stock -- -- -- --
Common stock 10 12,059 (10)(b) 12,059
Additional paid-in capital 1,589 2,097,679 (1,589)(c) 2,097,679
Retained earnings (1,599) (2,476,836) 1,599 (c) (2,476,836)
----------- ----------- ----------- -----------
Total stockholders'
equity -- (367,098) -- (367,098)
----------- ----------- ----------- -----------
$ -- $ 498,913 $ 100,000 $ 598,913
=========== =========== =========== ===========
</TABLE>
<PAGE>
NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
(UNAUDITED)
(a) Advance by stockholders to Universal Media Holdings, Inc.
(b) Purchase of 100 percent of the outstanding stock of Net-Tronics by
Universal Media Holdings, Inc. for following consideration:
Cash $ 100,000
250,000 shares of stock of
Universal Media Holdings, Inc. 25
---------
$ 100,025
=========
(c) To eliminate investment of Universal Media Holdings, Inc., its wholly
owned subsidiary, stockholders' equity of Net-Tronics Communication
Corporation and recognize goodwill of $99,802.
<PAGE>
PRO FORMA STATEMENT OF OPERATIONS
(UNAUDITED)
The following unaudited pro forma statement of operations have been derived from
the statement of operations of the combining entities for the year ended
September 31, 1999 and adjusts such information to give effect to the business
combination as had it occurred at October 1, 1998. The financial information for
Net-Tronics and E-Trans Logistics, Inc. were derived from their years ended
December 31, 1999 which management believes is representation of its operations
for the year ended September 31, 1999. The pro forma statement of operation is
presented for informational purposes only and does not purport to be indicative
of the results of operation that actually would have resulted if the business
combination had been consummated at October 1, 1998. The pro forma statement of
operations should be read in conjunction with the entities financial statements
and related notes thereto contained elsewhere in the Form 8-K.
<TABLE>
Year ended September 30, 1999
-------------------------------------------------------------------------
Actual Actual
Actual Universal E-Trans Pro Forma
Net-Tronics Media Logistics, Inc. Adjustments Pro Forma
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
REVENUES EARNED $ -- $ 241,207 $ 1,449,623 $ -- $ 241,207
COST OF REVENUES EARNED -- 337,680 -- -- 337,680
------------ ------------ ------------ ------------ ------------
GROSS PROFIT (LOSS) -- (96,473) 1,449,623 -- (96,473)
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 245 211,103 1,788,068 (6,667)(a) 217,806
------------ ------------ ------------ ------------ ------------
OPERATING LOSS (245) (307,576) (338,445) 6,667 (314,279)
OTHER EXPENSES -- (16,398) 201 -- 16,398
------------ ------------ ------------ ------------ ------------
LOSS BEFORE PROVISION
FOR INCOME TAXES (245) (323,974) (338,244) 6,667 (297,881)
INCOME TAX EXPENSE -- -- -- -- --
------------ ------------ ------------ ------------ ------------
NET LOSS $ (245) $ (323,974) $ (338,244) $ 6,667 $ (297,881)
============ ============ ============ ============ ============
EARNINGS PER SHARE
Basic and fully diluted nil nil nil nil nil
============ ============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic and fully diluted 1,000,000 11,159,356 1,500 250,000 12,410,856
============ ============ ============ ============ ============
</TABLE>
NOTES TO PRO FORMA STATEMENT OF OPERATIONS
(a) To record amortization of goodwill on the straight-line method over its
estimated useful life of 15 years.
<PAGE>
PRO FORMA STATEMENT OF OPERATIONS
(UNAUDITED)
The following unaudited pro forma statement of operations have been derived from
the statement of operations of the combining entities for the six months ended
March 31, 2000 and adjusts such information to give effect to the business
combination as had it occurred at October 1, 1999. The financial information for
Net-Tronics was derived from its six months ended March 31, 2000 which
management believes is representation of its operations for the six months ended
March 31, 2000. The pro forma statement of operation is presented for
informational purposes only and does not purport to be indicative of the results
of operation that actually would have resulted if the business combination had
been consummated at October 1, 1999. The pro forma statement of operations
should be read in conjunction with the entities financial statements and related
notes thereto contained elsewhere in the Form 8-K.
<TABLE>
Six months ended March 31, 2000
------------------------------------------------------------
Actual
Actual Universal Pro Forma
Net-Tronics Media Adjustments Pro Forma
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
REVENUES EARNED $ -- $ 145,512 $ -- $ 145,512
COST OF REVENUES EARNED -- -- -- --
------------ ------------ ------------ ------------
GROSS PROFIT (LOSS) -- 145,512 -- 145,512
GENERAL AND
ADMINISTRATIVE EXPENSES 245 235,597 (3,334)(a) 232,508
------------ ------------ ------------ ------------
OPERATING LOSS (245) (90,085) 3,334 (86,996)
OTHER INCOME -- 85 -- 85
------------ ------------ ------------ ------------
LOSS BEFORE PROVISION
FOR INCOME TAXES (245) (90,000) 3,334 (86,911)
INCOME TAX EXPENSE -- -- -- --
------------ ------------ ------------ ------------
NET LOSS $ (245) $ (90,000) $ 3,334 $ (86,911)
============ ============ ============ ============
EARNINGS PER SHARE
Basic and fully diluted nil nil nil nil
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES
OUTSTANDING
Basic and fully diluted 1,000,000 12,059,356 250,000 13,309,356
============ ============ ============ ============
</TABLE>
NOTES TO PRO FORMA STATEMENT OF OPERATIONS
(a) To record amortization of goodwill on the straight-line method over its
estimated useful life of 15 years.
