EX-99.2 5 file003.htm PRO FORMA FINANCIAL STATEMENTS LISTED IN ITEM 7(B)

Exhibit 99.2

PRO FORMA FINANCIAL INFORMATION

UNAUDITED PRO FORMA CONSOLIDATED
FINANCIAL STATEMENTS

The following unaudited consolidated pro forma financial statements give effect to the acquisition by ConnectivCorp ("Connectiv") of Majesco Sales Inc. ("Majesco"). This transaction which was effective December 5, 2003 has been accounted for as a reverse acquisition with Majesco as the accounting acquirer. The unaudited pro forma consolidated balance sheet of Connectiv and Majesco as of October 31, 2003 assumes the merger had occurred on that date. Such proforma information is based upon the historical balance sheet of Connectiv as of December 5, 2003 (unaudited) and Majesco as of October 31, 2003. The unaudited pro forma consolidated statement of operations gives effect to this transaction between Connectiv and Majesco by combining the results of operations of Connectiv for the period from January 1, 2003 to December 5, 2003 (unaudited) with the results of operations for the year ended October 31, 2003 for Majesco as if the merger had occurred on November 1, 2002. The results of operations for Connectiv from December 6, 2002 to December 31, 2002 are not material and are not presented herein.

The unaudited pro forma consolidated financial statements are based on estimates and assumptions set forth in the notes to these financial statements, which have been made solely for purposes of developing this pro forma information. The unaudited pro forma consolidated financial statements are not necessarily an indication of the results that would have been achieved had such transactions been consummated as of the dates indicated or that may be achieved in the future. Furthermore, these pro forma condensed consolidated financial statements do not reflect changes which may occur as a result of post-merger activities and other matters.

These unaudited pro forma consolidated financial statements should be read in conjunction with the historical financial statements and related notes of Majesco, which is included herein.

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CONNECTIVCORP AND SUBSIDIARIES

PRO FORMA CONSOLIDATED BALANCE SHEET
October 31, 2003 (Majesco) and December 5, 2003 (Connectiv)
(dollars in thousands)


  Historical Pro forma
Adjustments
Pro forma
Combined
  Majesco Connectiv
ASSETS
Current Assets
Cash and cash equivalents $ 314   $ 1         $ 315  
Due from factor   596                 596  
Inventory   10,995                 10,995  
Capitalized software development costs and prepaid license fees   3,794                 3,794  
Prepaid expenses   981                 981  
Total current assets   16,680     1           16,681  
Property and Equipment – net   855                 855  
Other Assets   76                 76  
Total assets $ 17,611   $ 1   $     17,612  
Liabilities and Shareholders' Deficiency
Current Liabilities
Accounts payable and accrued expenses $ 8,122     750   $ (750)   (a)  $ 8,122  
Due to financing company   3,066                 3,066  
Advances from customers   11,624                 11,624  
Current portion of settlement obligation   4,000                 4,000  
Current portion of capital lease obligations   33                 33  
Loan payable – shareholders   562                 562  
Advance from officer   200                 200  
Total current liabilities   27,607     750     (750   27,607  
Settlement Obligation – net of current portion   2,710                 2,710  
Capital Lease Obligations, net of current     obligations   24                 24  
Loans Payable – shareholders   3,000                 3,000  
    5,734                 5,734  
Commitments and Contingencies
Shareholders' deficiency:
Common stock   300     23     (285)   (b)    38  
Preferred stock               1   (b)    1  
Accumulated deficit   (16,012   (21,562   16,012   (c)    (21,562
Additional paid in capital         20,790     750   (a)    5,812  
                284   (b) 
                (16,012)   (c) 
Accumulated other comprehensive loss   (18               (18
Total shareholders' deficiency   (15,730   (749   750     (15,729
Total liabilities and shareholders' deficiency $ 17,611   $ 1         $ 17,612  

See notes to pro forma consolidated financial statements

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Notes to Unaudited Pro Forma Consolidated Balance Sheet

a.  To eliminate Connectiv's obligations to certain creditors pursuant to settlement agreements entered into in contemplation of the merger. Such liabilities are contingently payable when Connectiv raises additional financing, as defined.
b.  Adjustment to combine the shareholders' deficiency of Majesco, the accounting acquirer with the shareholders' deficiency of Connectiv and give effect to the issuance of 15,325,000 shares of Connectiv's $.001 par value common stock and 925,000 shares of Connectiv's $.001 par value Series A preferred stock. The preferred stock is convertible into 65,675,000 shares of common stock.
c.  Elimination of Majesco's accumulated deficit as a result of termination of the S Corporation election.

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CONNECTIVCORP AND SUBSIDIARIES

PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
Year ended October 31, 2003 (Majesco) and
Period from January 1, 2003 to December 5, 2003 (Connectiv)
(dollars in thousands, except for share and per share amounts)


  Historical Pro Forma
Combined
  Majesco Connectiv
Net revenues $ 46,608         $ 46,608  
Cost of sales:
Product costs   25,172           25,172  
Software development costs and license fees   5,631           5,631  
    30,803           30,803  
Gross margin   15,805           15,805  
Operating expenses:
Product research and development   2,554           2,554  
Selling and marketing   10,234           10,234  
General and administrative   2,861     1,618     4,479  
Litigation and settlement expenses   4,908           4,908  
Loss on impairment of software development costs   3,656           3,656  
Interest and financing costs   2,077           2,077  
Depreciation and amortization   356           356  
    26,646     1,618     28,264  
Net income (loss) $ (10,841 $ (1,618 $ (12,459
Net loss per share – basic and diluted $ (10,841 $ (0.13 $ (0.12
Weighted average number of common shares Outstanding   1,000     12,511,419     103,853,392  

Pro forma net loss per share is computed by dividing the pro forma net loss by Connectiv's historical weighted average number of shares outstanding and adding the 15,325,000 shares of common stock and the additional 65,675,000 shares of common stock issuable upon the conversion of the 925,000 shares of Series A Preferred stock all issued to the Majesco shareholders.

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