EX-99.3 6 file004.htm PRO-FORMA CONSOLIDATED BALANCE SHEET

GENERAL DEVICES, INC.
PRO-FORMA CONSOLIDATED BALANCE SHEET (RESTATED AND UNAUDITED)
DECEMBER 31, 2004


Assets General
Devices, Inc.
Aduromed
Corporation
Consolidating
Entries
Pro-forma
Consolidated
Current assets                        
Cash $ 652   $ 11,958         $ 12,610  
Accounts receivable   —     196,431           196,431  
Loans receivable   —     27,815           27,815  
Costs in excess of billings   —     59,184           59,184  
Prepaid expenses   556                 556  
Inventories   —     62,345           62,345  
Other current assets   500     —     —     500  
Total current assets   1,708     357,733     —     359,441  
Property, plant and equipment   —     11,991           11,991  
Other assets                        
Security deposits   —     4,114           4,114  
Total other assets   —     4,114     —     4,114  
Total assets $ 1,708   $ 373,838   $ —   $ 375,546  
Liabilities and stockholders' equity (deficit)                        
Current liabilities                        
Accounts payable and accrued liabilities $ 14,998   $ 479,262         $ 494,260  
Billings in excess of costs   —     84,053           84,053  
Customer advances   —     30,362     —     30,362  
Total current liabilities   14,998     593,677     —     608,675  
Other liabilities                        
Notes payable   —     88,971           88,971  
Notes payable to related parties   —     236,470     —     236,470  
Total current liabilities   —     325,441     —     325,441  
Total liabilities   14,998     919,118     —     934,116  
Stockholders' equity (deficit)                        
Common stock   23,479     91,510     (91,510 )    23,479  
Additional paid in capital   2,359,352     348,590     (2,304,611 )    403,331  
Accumulated deficit   (2,396,121 )    (985,380 )    2,396,121     (985,380 ) 
Total stockholders' equity (deficit)   (13,290 )    (545,280 )    —     (558,570 ) 
Total liabilities and stockholders' equity (deficit) $ 1,708   $ 373,838   $ —   $ 375,546  

See notes to unaudited pro-forma consolidated financial statements




GENERAL DEVICES, INC.
PRO-FORMA CONSOLIDATED BALANCE SHEET (RESTATED AND UNAUDITED)
SEPTEMBER 30, 2005


Assets General
Devices, Inc.
Aduromed
Corporation
Consolidating
Entries
Pro-forma
Consolidated
Current assets                        
Cash $ 53,570   $ 35,427         $ 88,997  
Accounts receivable   —     533,248           533,248  
Loans receivable   —     58,947           58,947  
Costs in excess of billings   —     36,824           36,824  
Prepaid expenses   902     60,537           61,439  
Inventories   —     65,599     —     65,599  
Total current assets   54,472     790,582     —     845,054  
Property, plant and equipment   —     17,535           17,535  
Other assets                        
Security deposits   —     4,114           4,114  
Total other assets   —     4,114     —     4,114  
Total assets $ 54,472   $ 812,231   $ —   $ 866,703  
Liabilities and stockholders' equity (deficit)                        
Current liabilities                        
Accounts payable and accrued liabilities $ 10,899   $ 486,960         $ 497,859  
Lines of credit payable         450,000           450,000  
Billings in excess of costs   —     49,118           49,118  
Customer advances   —     341,915     —     341,915  
Total current liabilities   10,899     1,327,993     —     1,338,892  
Other liabilities                        
Notes payable   —     129,300           129,300  
Notes payable to related parties   —     435,245     —     435,245  
Total current liabilities   —     564,545     —     564,545  
Total liabilities   10,899     1,892,538     —     1,903,437  
Stockholders' equity (deficit)                        
Common stock   35,979     105,856     (105,856 )    35,979  
Additional paid in capital   2,471,852     639,098     (2,358,402 )    752,548  
Accumulated deficit   (2,464,258 )    (1,825,261 )    2,464,258     (1,825,261 ) 
Total stockholders' equity (deficit)   43,573     (1,080,307 )    —     (1,036,734 ) 
Total liabilities and stockholders' equity (deficit) $ 54,472   $ 812,231   $ —   $ 866,703  

See notes to unaudited pro-forma consolidated financial statements




GENERAL DEVICES, INC.
PRO-FORMA STATEMENT OF OPERATIONS (RESTATED AND UNAUDITED)
FOR THE YEAR ENDED DECEMBER 31, 2004


  General
Devices, Inc.
Aduromed
Corporation
Consolidating
Entries
Pro-forma
Consolidated
Sales revenues $ —   $ 2,285,198   $ —   $ 2,285,198  
Cost of goods sold   —     1,504,392     —     1,504,392  
Gross profit   —     780,806     —     780,806  
Operating expenses                        
Operating expenses   —     701,671     —     701,671  
General and administrative   80,623     323,834     —     404,457  
Total operating expenses   80,623     1,025,505     —     1,106,128  
Net operating loss   (80,623 )    (244,699 )    —     (325,322 ) 
Other income (expense)                        
Interest income   82     2     —     84  
Interest expense   —     (34,843 )    —     (34,843 ) 
Other   —     20     —     20  
Total other income (expense)   82     (34,821 )    —     (34,739 ) 
Net loss before taxes   (80,541 )    (279,520 )    —     (360,061 ) 
Provision for income tax benefit   —     —     —     —  
Net loss $ (80,541 )  $ (279,520 )  $ —   $ (360,061 ) 

See notes to unaudited pro-forma consolidated financial statements




GENERAL DEVICES, INC.
PRO-FORMA STATEMENT OF OPERATIONS (RESTATED AND UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2005


  General
Devices, Inc.
Aduromed
Corporation
Consolidating
Entries
Pro-forma
Consolidated
Sales revenues $ —   $ 1,403,202   $ —   $ 1,403,202  
Cost of goods sold   —     959,209     —     959,209  
Gross profit   —     443,993     —     443,993  
Operating expenses                        
Operating expenses   —     786,326     —     786,326  
General and administrative   68,137     400,421     —     468,558  
Total operating expenses   68,137     1,186,747     —     1,254,884  
Net operating loss   (68,137 )    (742,754 )    —     (810,891 ) 
Other income (expense)                        
Interest income   —     4     —     4  
Interest expense   —     (56,556 )    —     (56,556 ) 
Other   —     3     —     3  
Total other income (expense)   —     (56,549 )    —     (56,549 ) 
Net loss before taxes   (68,137 )    (799,303 )    —     (867,440 ) 
Provision for Income tax benefit   —     —     —     —  
Net loss $ (68,137 )  $ (799,303 )  $ —   $ (867,440 ) 

See notes to unaudited pro-forma consolidated financial statements




GENERAL DEVICES, INC.

NOTES TO UNAUDITED PRO-FORMA CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2004

1.    BASIS OF PRESENTATION

The unaudited pro-forma consolidated financial statements include the accounts of General Devices, Inc. (General), GD MergerSub, Inc., and Aduromed Corporation (Aduromed). General acquired Aduromed in a stock exchange on January 23, 2006. The acquisition transaction is treated as a reverse merger, in which Aduromed is treated as the accounting acquirer. Thus, the financial statements will be primarily those of Aduromed with the adopted capital structure of General.

General is the registrant, a Delaware company incorporated on June 6, 2000. General has a fiscal year end of December 31, and currently has no operations other than the acquisition of Aduromed on January 23, 2006. The audited balance sheet of General as of December 31, 2004, as filed with Form 10-KSB is presented in the pro-forma consolidated balance sheet as of December 31, 2004. The unaudited balance sheet of General as of September 30, 2005, as filed with Form 10-QSB is presented in the pro-forma consolidated balance sheet as of September 30, 2005. The audited statement of operations of General for the year ended December 31, 2004, as filed with Form 10-KSB is presented in the pro-forma consolidated statement of operations for the year then ended. The unaudited statement of operations of General for the nine months ended September 30, 2005, as filed with Form 10-QSB is presented in the pro-forma consolidated statement of operations for the nine months then ended. During the nine months ended September 30, 2005. General had no operations other than general and administrative expenses.

Aduromed was incorporated in Delaware on August 1, 2002. The audited balance sheet of Aduromed as of December 31, 2004 is included in the pro-forma consolidated balance sheet as of December 31, 2004, and the unaudited balance sheet of Aduromed as of September 30, 2005 is presented in the pro-forma consolidated balance sheet as of September 30, 2005. The audited statement of operations of Aduromed for the year ended December 31, 2004 is presented in the pro-forma consolidated statement of operations for the year then ended, and the unaudited statement of operations of Aduromed for the nine months ended September 30, 2005 is presented in the pro-forma consolidated statement of operations for the nine months then ended.

2.    CONSOLIDATING ENTRIES

The consolidating entries on the pro-forma consolidated balance sheet are to agree retained earnings to those of Aduromed, and to adjust common stock and additional paid in capital accounts to the capital structure of the registrant.

There are no consolidating entries on the pro-forma consolidated statements of operations.

3.    RESTATEMENT OF FINANCIAL STATEMENTS

Subsequent to the publication of the financial statements management revised its estimates of certain asset valuations which had a material impact on the results of operations of the Company. Consequently, these financial statements have been restated to reflect those revised estimates. The valuation placed on the deferred tax asset was previously $255,044 and $177,502 at December 31, 2004 and 2003, but has been restated as $0 because the future profitability of the Company cannot be assured. This revaluation also applies to the income tax benefits previously reported on the statements of operations, causing an increase in net loss of $77,542 and $177,502 for the years ended December 31, 2004 and 2003. The Company also reevaluated its accounting for goodwill since the business combination referenced in Note 2. Goodwill previously stated as $351,571 and $283,015 as of December 31, 2004 and 2003 has been restated as $0 due to a re-evaluation of the facts and circumstances that existed at the time of the business combination. The transaction was previously accounted for under purchase accounting rather than as a transfer under common control. The restatement has the effect of reclassifying 2002 goodwill as a dividend to the sellers of $256,748 and

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increasing the net losses for the years ended December 31, 2004 and 2003 by $68,556 and $26,267. The aggregate effect of the restatements is the increase in accumulated deficit at January 1, 2003 of $256,748 and the increase in net loss for the years ended December 31, 2004 and 2003 of $146,098 and $206,769.

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