EX-99.2 3 filing_149-2.htm PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS Filing
PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
EX-99.2

CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.
(Formerly Mobile Reach International, Inc.)
INDEX TO PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
AS OF APRIL 30, 2006, AND THE THREE AND NINE MONTHS
ENDED APRIL 30, 2006
 
 
Page
 
 
INDEX
1
 
 
INTRODUCTION TO PRO-FORMA CONSOLIDATED STATEMENTS
2
 
 
PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS:
 
 
 
Pro-forma Consolidated Balance Sheet
3
 
 
Pro-forma Consolidated Statement of Income for the Three Months from February 1, 2006 through April 30, 2006
4
 
 
Pro-forma Consolidated Statement of Income for the Nine Months from August 1, 2005 through April 30, 2006
5
 
 
Notes to Pro-forma Consolidated Financial Statements
6



INTRODUCTION TO PRO-FORMA CONSOLIDATED STATEMENTS
The following unaudited pro-forma consolidated balance sheet, pro-forma income statements and the explanatory notes give effect to the acquisition of Mobile Reach International, Inc. (MRI) by Crystal Hospitality Holdings, Inc (“Crystal”) transaction resulted in the former shareholders of Crystal owning the majority shares of MRI, the transaction, which is referred to as a “reverse acquisition”, has been treated for accounting purposes as an acquisition by Crystal of the net assets and liabilities of MRI.

The pro-forma consolidated balance sheet, pro-forma consolidated income statements and explanatory notes are based on the estimates and assumptions set forth in the explanatory notes.
This pro-forma consolidated balance sheet and pro-forma consolidated income statements have been prepared utilizing the historical financial statements of Mobile Reach International, Inc. and Crystal Hospitality Holdings, Inc. and should be read in conjunction with the historical financial statements and notes thereto included elsewhere in this filing.

The pro-forma consolidated income statements have been prepared as if acquisitions had been consummated on August 1, 2005 under the purchase method of accounting and carried through to April 30, 2006.
The pro-forma consolidated balance sheet has been prepared as if the acquisition was consummated on April 30, 2006.

This pro-forma consolidated financial data is provided for comparative purposes only, and does not purport to be indicative of the actual financial position or results of operations had the acquisition occurred at the beginning of the periods presented, nor are they necessarily indicative of the results of future operations.





CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.
(Formerly Mobile Reach International, Inc.)
BALANCE SHEET
APRIL 30, 2006
 
 

 
Mobile Reach
International,
Inc.
Crystal
Hospitality
Holdings,
Inc.
Pro-Forma
Adjustments
 
Pro-Forma
ASSETS
 
 
 
 
 
CURRENT ASSETS
 
 
 
 
 
Cash
$
292
$
3,703
$
-
 
$
3,995
Accounts receivable – related party
-
23,111
(23,111)
1
-
Prepaid expenses and other current assets
        
-
    
50,000
       
-
 
    
50,000
 
 
 
 
 
 
Total current assets
   
  
  
 
292
   
 
76,81
   
(23,111)
 
    
53,995
 
 
 
 
 
 
INTANGIBLE ASSETS - net of amortization
        
-
 
 
4,896,666
    
   
-
 
 
 
4,896,666
 
 
 
 
 
 
 
$
292
$
4,973,480
$
(23,111)
 
$
4,950,661
 
 
 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
 
 
 
 
 
Accounts payable
$
403,403
$
122,285
$
- 
 
$
525,688
Notes payable – related parties
23,111
264,456
(23,111)
1
264,456
Current portion long-term debt
54,211
- 
- 
 
54,211
Accrued expenses
    
712,297
   
478,739
 
    
  
- 
 
1,191,036
 
 
 
 
 
 
Total current liabilities
  
1,193,022
 
 
865,480
 
 
(23,111)
 
2,035,391
 
 
 
 
 
 
LONG TERM DEBT
 
1,373,347
5,021,307
 
    
  
-
 
6,394,654
 
 
 
 
 
 
COMMITMENTS AND CONTINGENCIES
  
     
 -
  
    
 - 
  
    
 - 
 
  
    
 -
 
 
 
 
 
 
STOCKHOLDERS' EQUITY
 
 
 
 
 
Common stock
6,717,627
23,012
(6,717,627)
2
23,012
Accumulated deficit
(9,283,704)
  
(936,319)
6,717,627
2
(3,502,396)
 
 
 
 
 
 
 
(2,566,077)
 
(913,307)
 
 
   
 
-
 
 
(3,479,384)
 
 
 
 
 
 
 
$
292
$
4,973,480
$
(23,111)
 
$
4,950,661
 
 
 
 
 
 



CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.
(Formerly Mobile Reach International, Inc.)
STATEMENT OF INCOME
FOR THE THREE MONTHS FROM February 1, 2006 TO APRIL 30, 2006

 
Mobile Reach
International,
     Inc.    
Crystal
Hospitality
Holdings,
     Inc.    
Pro-Forma
 Adjustments 
 
Pro-Forma
 
 
 
 
 
 
REVENUES:
 
 
 
 
 
Gross receipts
$
41,938
$
-
$
-
 
$
41,938
 
41,938
-
-
 
41,938
 
 
 
 
 
 
COST AND EXPENSES:
 
 
 
 
 
Cost of sales
11,895
152,620
-
 
164,515
General and administrative expenses
151,737
212,415
-
 
364,152
 
 
 
 
 
 
 
163,632
365,035
-
 
528,667
 
 
 
 
 
 
OPERATING LOSS
(121,694)
(365,035)
-
 
(486,729)
 
 
 
 
 
 
OTHER INCOME (EXPENSES):
 
 
 
 
 
Other income
1,233
-
-
 
1,233
Depreciation & amortization
-
(125,000)
 
 
(125,000)
Interest expense
(18,015)
(47,530)
-
 
(65,545)
Loss on disposal of assets
(7,669)
-
-
 
(7,669)
Liabilities in excess of assets
-
-
-
 
-
 
 
 
 
 
 
 
(24,451)
(172,530)
-
 
(196,981)
 
 
 
 
 
 
NET LOSS
$
(146,145)
$
(537,565)
$
-
 
$
(683,710)
 
 
 
 
 
 
NUMBER OF SHARES
 
 
 
 
11,454,229
 
 
 
 
 
 
LOSS PER SHARE
 
 
 
 
$
(0.06)
 
 
 
 
 
 




CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.
(Formerly Mobile Reach International, Inc.)
STATEMENT OF INCOME
FOR THE NINE MONTHS FROM AUGUST 1, 2006 TO APRIL 30, 2006
 
 

 
Mobile Reach
International,
     Inc.    
Crystal
Hospitality
Holdings,
     Inc.    
Pro-Forma
 Adjustments 
 
Pro-Forma
 
 
 
 
 
 
REVENUES:
 
 
 
 
 
Gross receipts
$
374,426
$
       
-
$
-
 
$
374,426
 
 
 
 
374,426
  
     
-
-
 
   
374,426
 
 
 
 
 
 
COST AND EXPENSES:
 
 
 
 
 
Cost of sales
57,917
152,620
-
 
210,537
General and administrative expenses
 
  
 
734,362
   
611,792
-
 
1,346,154
 
 
 
 
 
 
 
 
  
792,279
 
 
764,412
-
 
 
 
1,556,691
 
 
 
 
 
 
OPERATING LOSS
   
(417,853)
  
(764,412)
-
 
 
(1,182,265)
 
 
 
 
 
 
OTHER INCOME (EXPENSES):
 
 
 
 
 
Other income
1,233
-
-
 
1,233
Depreciation & amortization
(10,858)
(125,000)
 
 
(135,858)
Interest expense
(84,749)
(47,530)
- 
 
(132,279)
Loss on disposal of assets
(10,769)
- 
- 
 
(10,769)
Liabilities in excess of assets
 
 
   
 
 -
      
- 
 (2,042,458)
2
 
(2,042,458)
 
 
 
 
 
 
 
 
 
(105,143)
 
 
(172,530)
 
(2,042,458)
 
 
(2,320,131)
 
 
 
 
 
 
NET LOSS
$
(522,996)
$
(936,942)
$
(2,042,458)
 
$
(3,502,396)
 
 
 
 
 
 
NUMBER OF SHARES
 
 
 
 
 
11,502,491
 
 
 
 
 

LOSS PER SHARE
 
 
 
 
$
(0.30)
 
 
 
 
 
 


CRYSTAL INTERNATIONAL TRAVEL GROUP, INC.
(Formerly Mobile Reach Rnternational, Inc.)
NOTES TO PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS FROM February 1, 2006 and for
the NINE MONTHS from AUGUST 1, 2005 TO APRIL 30, 2006
ORGANIZATION AND BASIS OF PRESENTATION:
The unaudited pro-forma consolidated balance sheet and consolidated income statements have been based on historical financial information, using generally accounting principles in the United States, of MRI for the three months from February 1, 2006 through April 30, 2006 and the nine months from August 1, 2005 through April 30, 2006, considering the effects of the reverse acquisition of MRI by Crystal was completed effective August 1, 2005 in the case of the pro-forma consolidated income
statements, and effective April 30, 2006 in the case of the pro-forma consolidated balance sheet.
ASSUMPTION:
The number of shares used in the calculation of the pro-forma net loss per share data is based on the weighted average number of shares outstanding during the period adjusted to give effect to shares assumed to be issued, had the transactions referred to above been consummated August 1, 2005.
PRO-FORMA ADJUSMENTS:
1.
      
Adjust for expenses paid by
Crystal
on behalf of MRI.
2.
      
Record the reverse acquisition of MRI by
Crystal
and expense excess liabilities over assets on purchase.