EX-99.5 12 ex99_5.htm EXHIBIT 99.5 Exhibit 99.5

Aces Wired, Inc.

Unaudited Pro Forma Financial Information

July 30, 2006


Aces Wired, Inc.

Unaudited Pro forma Financial Information

July 30, 2006
 
Introduction to Pro Forma Financial Information

On October 4, 2006, OEF Corporate Solutions, Inc. (“OEF”), a public shell company, acquired all of the partnership interests of Goodtime Action Amusement Partners, L.P. (“GAAP LP”) in exchange for 7,663,580 shares of common stock of the Company with GAAP LP being the surviving entity (the “Merger”). Following the completion of the Merger, GAAP LP merged into OEF with GAAP LP being the accounting acquirer and surviving corporation. OEF immediately changed its name to Aces Wired, Inc.

As a condition to the Merger, Aces Wired, Inc. conducted a private placement offering of its Series A Convertible Preferred Stock and an option to purchase up to 20% additional Preferred shares (“Preferred stock purchase option”) to institutional investors and other high net worth individuals. The offering was a condition to the Merger, and the Merger was contingent on the offering. On October 9, 2006, Aces Wired, Inc. completed a sale of shares of its Series A Convertible Preferred Stock and Preferred stock purchase options in a private placement transaction (the “Offering”). Aces Wired, Inc. sold 1,612,000 shares of Series A Convertible Preferred Stock plus the Preferred stock purchase option at a price of $5.00 per share. The Preferred stock purchase option is exercisable at $5.00 per share.

The accompanying unaudited pro forma consolidated balance sheet of OEF and GAAP LP gives effect to the Merger as if it had been completed as of July 30, 2006. The unaudited pro forma consolidated statements of operations give effect to the Merger as if it had been completed as of November 1, 2004. The pro forma statement of operations for the year ended October 30, 2005 reflects the financial information of K&B Sales, Inc. (“K&B Sales”) (the “Predecessor Business”) since it represents a significant majority of GAAP LP’s predecessor business. The pro forma adjustments are described in the accompanying notes. These unaudited pro forma consolidated financial statements are presented for illustrative purposes only. Such information is not necessarily indicative of the operating results or financial position had the Merger taken place on July 30, 2006, or November 1, 2004, nor is it indicative of the results that may be expected for future periods. The pro forma consolidated financial statements should be read in conjunction with OEF’s financial statements and related notes in its Annual Report on Form 10-KSB for the year ended December 31, 2005, OEF’s Quarterly Report in its Form 10-QSB for the nine-month period ended September 30, 2005 and the six-month period ended June 30, 2006 and in conjunction with the financial statements and related notes of OEF included in this current report on Form 8-K.

Basis of Presentation

The OEF historical balances as of July 30, 2006 represent the unaudited balance sheet as of June 30, 2006 and corresponding unaudited statement of operations for the nine months ended June 30, 2006. The unaudited statement of operations was derived by adding the unaudited quarter ended December 31, 2005, which represents the audited year to date activity for December 31, 2005 less the unaudited nine months activity for September 30, 2005, to the unaudited six-month period ended June 30, 2006. The OEF amounts used within the pro forma statement of operations for the year ended October 30, 2005 are the historical amounts as of December 31, 2005 from audited financial statements contained within our Annual Report on Form 10-KSB for the year ended December 31, 2005.

The unaudited balance sheet and unaudited statement of operations of GAAP LP for the nine-month period ended July 30, 2006 were compiled from their historical financial statements. The historical statement of operations of K&B Sales for the year ended October 30, 2005 was derived from audited financial statements contained elsewhere in this document.
 
 
Aces Wired, Inc.
 
Pro Forma Consolidated Balance Sheet

July 30, 2006
(Unaudited)


   
OEF
  
GAAP LP
  
Total
  
Pro forma
Adjustments
 
Pro forma Total
  
Assets
                      
                       
Current Assets
                      
Cash
  
$
115
  
$
753,562
  
$
753,677
  
$
7,381,625
  (a)
$
8,135,187
  
 
                       (115)   (b)      
Accounts receivable
    
-
    
868,699
    
868,699
    
-
    
868,699
  
Accounts receivable-related party
    
-
    
-
    
-
    
-
    
-
  
Inventory
    
-
    
1,103,980
    
1,103,980
    
-
    
1,103,980
  
Prepaid expenses and other current assets
    
-
    
453,961
    
453,961
    
-
    
453,961
  
Deferred income taxes
    
-
    
59,810
    
59,810
    
-
    
59,810
  
                                 
Total current assets
    
115
    
3,240,012
    
3,240,127
    
7,381,510
    
10,621,637
  
                                 
Property and equipment, net
    
3,464
    
4,049,251
    
4,052,715
    
(3,464
) (b)
  
4,049,251
  
Other assets
    
-
    
1,250,763
    
1,250,763
    
(15,110
) (a)
  
1,235,653
  
                                 
Total assets
  
$
3,579
  
$
8,540,026
  
$
8,543,605
  
$
7,362,936
  
$
15,906,541
  
                                 
Liabilities and Shareholders’ Equity (Deficit)
                                
                                 
Current Liabilities
                                
                         
 
      
Current maturities of capital lease and  notes payable
  
$
-
  
$
654,788
  
$
654,788
  
$
-
  
$
654,788
  
Line of credit
    
-
    
300,000
    
300,000
    
-
   
300,000
  
Accounts payable and accrued liabilities
    
-
    
1,205,746
    
1,205,746
    
-
   
1,205,746
  
Income taxes payable
    
-
    
512,183
    
512,183
    
-
    
512,183
  
Notes payable and accrued interest related parties
    
34,497
    
33,789
    
68,286
    
(34,497
)  (b)
  
33,789
  
                                 
Total current liabilities
    
34,497
    
2,706,506
    
2,741,003
    
(34,497
)
  
2,706,506
  
                                 
Capital lease and notes payable, net
   
-
    
719,654
    
719,654
    
-
    
719,654
  
Notes payable - related parties
    
-
    
1,200,000
    
1,200,000
    
-
    
1,200,000
  
Deferred income taxes, net and  other liabilities
    
-
    
100,329
    
100,329
    
-
    
100,329
  
                                 
Commitments and contingencies
    
-
    
-
    
-
    
-
    
-
  
                                 
Shareholders’ equity (deficit)
                                
Preferred stock
    
-
    
-
    
-
    
1,612
  (a)
  
1,612
 
Discount on preferred stock - unamortized
    
-
    
-
    
-
    
(349,373
) (a)
  
(349,373
)
Common stock
    
3,855
    
-
    
3,855
    
4,145
  (b)
  
8,000
  
Additional paid-in capital
    
86,945
   
-
    
86,945
    
7,714,276
  (a)
  
11,066,814
  
 
                       3,265,593   (b)      
Partners’ capital
    
-
    
3,813,537
    
3,813,537
    
(3,813,537
) (b)
  
-
  
Retained earnings
    
-
    
-
    
-
    
452,999
  (b)
  
452,999
  
                                 
Accumulated deficit during the development stage
    
(121,718
)
  
-
   
(121,718
)
  
121,718
  (b)
  
-
  
                                 
Total shareholders’ equity (deficit)
    
(30,918
)
  
3,813,537
    
3,782,619
    
7,397,433
    
11,180,052
  
Total liabilities and shareholders’ equity (deficit)
  
$
3,579
  
$
8,540,026
  
$
8,543,605
  
$
7,362,936
  
$
15,906,541
  
 
See accompanying notes to the unaudited pro forma consolidated financial statements.
 
 
Aces Wired, Inc.
 
Pro Forma Consolidated Statement of Operations

For the Nine Months Ended July 30, 2006
(Unaudited)


   
OEF
  
GAAP LP
  
Total
  
Pro forma
Adjustments
  
Pro forma
Total
  
                       
                       
Revenues
                      
Bingo supply and services
  
$
-
  
$
11,877,879
  
$
11,877,879
  
$
-
  
$
11,877,879
  
Amusement centers
    
-
    
1,581,557
    
1,581,557
    
-
    
1,581,557
  
Gross revenues
    
-
    
13,459,436
    
13,459,436
    
-
    
13,459,436
  
Less promotional allowances
    
-
    
41,360
    
41,360
    
-
    
41,360
  
Net revenues
    
-
    
13,418,076
    
13,418,076
    
-
    
13,418,076
  
Expenses
                                
Cost of sales - bingo supply and services
    
-
    
6,470,362
    
6,470,362
    
-
    
6,470,362
  
Operating expenses - bingo supply and services
    
-
    
2,876,828
    
2,876,828
    
-
    
2,876,828
  
Operating expenses - amusement centers
    
-
    
1,534,083
   
1,534,083
    
-
 
  
1,534,083
  
Corporate overhead
    
9,788
    
2,244,703
    
2,254,491
    
-
    
2,254,491
  
Depreciation and amortization
    
869
    
595,532
    
596,401
    
-
    
596,401
  
                                 
Total expenses
    
10,657
    
13,721,508
    
13,732,165
    
-
    
13,732,165
  
                                 
Operating income (loss)
    
(10,657
)
  
(303,432
)
  
(314,089
)
  
-
    
(314,089
)
                                 
Other income (expense)
                                
Interest income
    
-
    
9,794
    
9,794
    
-
    
9,794
  
Other income (expense)
    
-
    
25,082
    
25,082
    
-
    
25,082
  
Interest expense
    
(1,914
)
  
(46,690
)
  
(48,604
)
  
-
    
(48,604
)
Income (loss) before provision for income taxes
    
(12,571
)
  
(315,246
)
  
(327,817
)
  
-
    
(327,817
)
Provision for income taxes
    
-
    
(496,190
)
  
(496,190
)
  
-
    
(496,190
)
                                 
Net loss
  
$
(12,571
)
$
(811,436
)
$
(824,007
)
$
-
  
$
(824,007
)
                                 
Basic and diluted loss per common share
  
$
0.00
                    
$
( 0.10
)
                                 
Basic and diluted weighted average number of common shares outstanding
   
3,855,200
                
4,144,800
  (b)
  
8,000,000
  
 
See accompanying notes to the unaudited pro forma consolidated financial statements.
 
Aces Wired, Inc.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended October 30, 2005
(Unaudited)


   
OEF
  
K&B Sales, Inc.
(Predecessor Business)
  
Total
  
 
Pro Forma
Adjustments
  
Pro Forma
Total
  
                       
                       
Revenues
                      
Bingo supply and services
  
$
303
  
$
14,946,656
  
$
14,946,959
  
$
-
 
$
14,946,959
  
Expenses
                                
Cost of sales - bingo supply and services
    
-
    
8,452,421
    
8,452,421
    
-
    
8,452,421
  
Operating expenses - bingo supply and services
    
-
    
3,658,926
    
3,658,926
    
-
    
3,658,926
  
Corporate overhead
    
17,351
    
2,474,695
    
2,492,046
    
-
    
2,492,046
  
Depreciation and amortization
    
1,169
    
330,774
    
331,943
    
-
    
331,943
  
                                 
Total expenses
    
18,520
    
14,916,816
    
14,935,336
    
-
 
  
14,935,336
  
                                 
Operating income (loss)
    
(18,217
)
  
29,840
    
11,623
    
-
    
11,623
  
                                 
Other income (expenses)
                                
Interest income
    
-
    
9,763
    
9,763
    
-
    
9,763
  
Other income
    
-
    
31,831
    
31,831
    
-
    
31,831
  
Interest expense
    
(1,745
)
  
-
    
(1,745
)
  
-
    
(1,745
)
                                 
Income (loss) before provision for income taxes
    
(19,962
)
  
71,434
    
51,472
    
-
    
51,472
  
Provision for income taxes
    
-
    
(26,143
)
  
(26,143
)
  
-
    
(26,143
)
                                 
Net income (loss)
  
$
(19,962
)
$
45,291
  
$
25,329
  
$
-
  
$
25,329
  
                                 
Basic and diluted loss per common share
  
$
(0.01
)
                  
$
0.00
  
                                 
Basic weighted average number of common shares outstanding
   
3,855,200
                
4,144,800
  (b)
  
8,000,000
  
                                 
Diluted weighted average number of common shares outstanding
   
3,855,200
                
1,612,000
  (a)
  
9,612,000
  
                        4,144,800   (b)      
 
See accompanying notes to the unaudited pro forma consolidated financial statements.

 
Aces Wired, Inc.

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS


NOTE 1 - BASIS OF PRESENTATION

The accompanying unaudited pro forma consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and certain footnote disclosures normally included in financial statements prepared in accordance with U. S. generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations; however, management believes that the disclosures are adequate to make the information presented not misleading.

NOTE 2 - THE MERGER
 
On October 4, 2006, OEF entered into an Agreement and Plan of Merger with GAAP LP by which OEF acquired all of the partnership interests of GAAP LP in exchange for 7,663,580 shares of common stock of the Company with GAAP LP being the surviving entity. Prior to this acquisition, OEF had no operations and nominal assets and liabilities. Prior to the merger, OEF completed a 11.46 for 1 reverse stock split that reduced the number of its outstanding shares from 3,855,200 to 336,420. In addition, prior to the merger, OEF paid off all of its outstanding liabilities. Following the completion of the merger, GAAP LP merged into OEF with GAAP LP being the accounting acquirer and surviving corporation. OEF immediately changed its name to Aces Wired, Inc.

NOTE 3 - THE OFFERING
 
As a condition to the Merger, Aces Wired, Inc. conducted a private placement offering of its Series A Convertible Preferred Stock and an option to purchase up to 20% additional Preferred shares (“Preferred stock purchase option”) to institutional investors and other high net worth individuals. The offering was a condition to the Merger, and the Merger was contingent on the offering. On October 9, 2006, Aces Wired, Inc. completed a sale of shares of its Series A Convertible Preferred Stock and Preferred stock purchase options in a private placement transaction (the “Offering”). Aces Wired, Inc. sold 1,612,000 shares of Series A Convertible Preferred Stock plus the Preferred stock purchase option at a price of $5.00 per share. The Preferred stock purchase option is exercisable at $5.00 per share.

The value of the Preferred stock purchase option of $349,373 was determined using the Black-Scholes option pricing model. Since the accounting conversion price of the Series A Convertible Preferred Stock on the effective date of issuance, after taking into account the fair value of the Preferred stock purchase option, was less than the $5.00 value of the Company’s common stock, a beneficial conversion feature of $349,373 existed, which was recorded as a discount to the carrying value of the Series A Convertible Preferred Stock and a credit to additional paid-in capital.
 
 
 
 
 
Aces Wired, Inc.
 
NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS - Continued


NOTE 4 - PRO FORMA ADJUSTMENTS
 
Consolidated balance sheet - July 30, 2006

 
(a)
To record the receipt of offering proceeds, net of offering costs.

 
(b)
To record the acquisition of OEF after adjustments for the reverse stock split and change in par value, to pay off all outstanding liabilities and to eliminate the historical OEF equity accounts to reflect the reverse merger.