EX-10.2 3 p0804_ex10-2.txt PRO FORMA FINANCIAL INFORMATION EXHIBIT 10.2 RIM HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS AS OF SEPTEMBER 30, 2003 RIM HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2003 (UNAUDITED)
Historical Rim Starway Holdings, Management Pro Forma Inc. Limited Adjustments Pro Forma ------------ ------------ ------------ ------------ CURRENT ASSETS Cash $ -- $ 181,283 $ 181,283 Accounts receivable, net 41,824 4,679,977 4,721,801 Current maturities of notes receivable, net -- 2,131,334 2,131,334 Inventories -- 726,983 726,983 Prepaid expenses and other current assets 963 -- 963 ------------ ------------ ------------ Total Current Assets 42,787 7,719,577 7,762,364 ------------ ------------ ------------ PROPERTY AND EQUIPMENT - NET 17,459 761,951 779,410 OTHER ASSETS Long-term notes receivable, net -- 8,311,883 8,311,883 Other receivables -- 28,317 28,317 Intangible assets, net 9,333 288,680 298,013 Other assets 2,719 -- 2,719 ------------ ------------ ------------ Total Other Assets 12,052 8,628,880 8,640,932 ------------ ------------ ------------ TOTAL ASSETS $ 72,298 $ 17,110,408 $ 17,182,706 ============ ============ ============ CURRENT LIABILITIES Accounts payable and accrued expenses $ 376,353 $ 3,106,338 $ 3,482,691 Current portion note payable 3,990 237,821 241,811 Current portion capital lease obligations 2,386 -- 2,386 Bank line of credit 72,399 -- 72,399 Cash overdraft 4,560 -- 4,560 Loans payable - related parties 2,473 -- 2,473 Deferred revenues 27,016 -- 27,016 Deposits -- 143,303 143,303 Taxes payable -- 3,611,761 3,611,761 ------------ ------------ ------------ Total Current Liabilities 489,177 7,099,223 7,588,400 ------------ ------------ ------------ LONG-TERM LIABILITIES Note payable -- 27,640 27,640 ------------ ------------ ------------ Total Long-Term Liabilities -- 27,640 27,640 ------------ ------------ ------------ TOTAL LIABILITIES 489,177 7,126,863 7,616,040 ------------ ------------ ------------ MINORITY INTEREST (1) 4,990,772 4,990,772 STOCKHOLDERS' EQUITY (DEFICIENCY) Preferred stock, $.001 par value, 10,000,000 shares authorized, no shares issued and outstanding -- -- -- Common stock, $.001 par value, 20,000,000 shares authorized, 231,894,253 shares issued and outstanding 8,821 11 (1) 223,062 231,894 Additional paid-in capital 531,901 1,333,333 (1) (2,811,648) (1) (946,414) Retained earnings Unappropriated (957,601) 7,993,507 (1) (2,402,186) 4,633,720 Appropriated -- 658,977 658,977 Other comprehensive loss -- (2,283) (2,283) ------------ ------------ ------------ Total Stockholders' Equity (Deficiency) (416,879) 9,983,545 4,575,894 ------------ ------------ ------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) $ 72,298 $ 17,110,408 $ 17,182,706 ============ ============ ============
See accompanying notes to pro forma consolidated financial statements. 1 RIM HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS SEPTEMBER 30, 2003 (UNAUDITED)
Historical Rim Starway Holdings, Management Pro Forma Inc. Limited Adjustments Pro Forma ------------ ------------ ------------ ------------ REVENUE $ 695,167 $ 24,457,483 $ 25,152,650 COST OF GOODS SOLD 406,318 15,404,894 15,811,212 ------------ ------------ ------------ GROSS PROFIT 288,849 9,052,589 9,341,438 ------------ ------------ ------------ OPERATING EXPENSES Selling expense -- 809,163 809,163 Operating expense -- 240,336 240,336 General and administrative expenses 323,266 917,250 1,240,516 ------------ ------------ ------------ Total Operating Expenses 323,266 1,966,749 2,290,015 ------------ ------------ ------------ INCOME (LOSS) FROM OPERATIONS (34,417) 7,085,840 7,051,423 OTHER INCOME (EXPENSE) Interest income 1,599 1,076,857 1,078,456 Interest expense (31,761) (787) (32,548) Other expense -- (933) (933) Other income 32,207 4,668 36,875 ------------ ------------ ------------ Total Other Income (Expense) 2,045 1,079,805 1,081,850 ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE PROVISION FOR INCOME TAXES (32,372) 8,165,645 8,133,273 PROVISION FOR INCOME TAXES -- 1,446,070 1,446,070 ------------ ------------ ------------ INCOME (LOSS) BEFORE MINORITY INTEREST (32,372) 6,719,575 6,687,203 Less: loss in subsidiary attributed to minority interest -- -- (2) (3,359,787) (3,359,787) ------------ ------------ ------------ NET INCOME (LOSS) $ (32,372) $ 6,719,575 $ 3,327,416 ============ ============ ============ Net income per share - basic and diluted $ 0.01 ============ Weighted average number of shares outstanding - basic and diluted 231,894,253 ============
See accompanying notes to pro forma consolidated financial statements. 2 RIM HOLDINGS, INC. AND SUBSIDIARIES NOTES TO PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 2003 (UNAUDITED) NOTE: (1) To record the acquisition of 50% of Starway Management Limited and subsidiaries by Rim Holdings, Inc. The transaction assumes the conversion of the note payable at the historical cost of Starway Management Limited and subsidiaries. The transaction was treated as an acquisition by Starway Management Limited and as a recapitalization by Rim Holdings, Inc. Upon conversion of the note payable, the stockholders of Starway Management Limited will hold approximately 90.40% of the outstanding shares of Rim Holdings, Inc. NOTE: (2) To record the minority interest of 50% of the net income of Starway Management Limited not acquired by Rim Holdings, Inc. 3