EX-99.2 4 exhibit992.htm EXHIBIT 99.2 Exhibit 99.2

 

 

SPEAKING ROSES, LLC

UNAUDITED PROFORMA COMBINED CONDENSED BALANCE SHEET

DECEMBER 31, 2003

The following unaudited proforma combined balance sheet gives effect of the acquisition
of Millennium Electronics, Inc., by Speaking Roses, LLC in a transaction accounted for
as a recapitalization in a reverse merger. The proforma information is presented for
illustrative purposes only and is not necessarily indicative of the operating results or
financial position that would have occurred if the acquisition had been consummated nor
is it necessarily indicative of future operating results or financial position. The unaudited
proforma balance sheet gives effect to the acquisition as if it had occurred on December
31, 2003. This proforma balance sheet should be read in conjunction with the
accompanying notes and related historical financial statements and notes thereto of
Speaking Roses, LLC and Millennium Electronics, Inc.

Speaking

Proforma

Roses

Millennium

Adjustments

Pro Forma





CURRENT ASSETS
Cash $

41,584

$

139

$

-

$

41,723

Accounts receivable

175,856

-

-

175,856

Inventories

9,741

-

-

9,741

Prepaid expenses

10,000

502

-

10,502





TOTAL CURRENT ASSETS

237,181

641

-

237,822





PROPERTY AND EQUIPMENT, net of
accumulated depreciation

152,168

-

-

152,168





OTHER ASSETS
Deposits

4,785

-

-

4,785

Patents -net of accumulated amortization

87,938

-

-

87,938





TOTAL OTHER ASSETS

92,723

-

-

92,723





TOTAL ASSETS $

482,072

$

641

$

-

$

482,713





CURRENT LIABILITIES
Line of credit $

150,000

-

$

-

$

150,000

Accounts payable

296,565

$

62,276

-

358,841

Accrued expenses

64,056

-

-

64,056

Deferred revenue

223,282

-

-

223,282

Accounts payable - related party

-

6,000

-

6,000

Loans from officer

-

3,000

-

3,000

Current portion of long term debt

987,222

-

-

987,222





TOTAL CURRENT LIABILITIES

1,721,125

71,276

-

1,792,401





LONG TERM DEBT, less current portion above

22,784

-

-

22,784





STOCKHOLDERS' DEFICIT
Members deficit

(1,261,837)

-

A

1,261,837

-

Common stock

-

1,117

A

20,551

21,668

Additional paid in capital

-

7,220,080

A

(7,312,383)

(92,303)

Treasury stock

-

(50,000)

A

50,000

-

Accumulated deficit

-

(7,241,832)

A

5,979,995

(1,261,837)





TOTAL STOCKHOLDERS' DEFICIT

(1,261,837)

(70,635)

-

(1,332,472)





TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $

482,072

$

641

$

-

$

482,713





 


 

SPEAKING ROSES, LLC

UNAUDITED PROFORMA COMBINED CONDENSED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2003

The following unaudited proforma combined statement of operations gives effect of the
acquisition of Millennium Electronics, Inc., by Speaking Roses, LLC in a transaction
accounted for as a recapitalization in a reverse merger. The proforma information is
presented for illustrative purposes only and is not necessarily indicative of the operating
results or financial position that would have occurred if the acquisition had been
consummated nor is it necessarily indicative of future operating results or financial
position. The unaudited proforma statement of operations gives effect to the acquisition
as if it had occurred on January 1, 2003. This proforma statement of operations should be
read in conjunction with the accompanying notes and related historical financial
statements and notes thereto of Speaking Roses, LLC and Millennium Electronics, Inc.
Net sales $

502,511

$

-

$

-

$

502,511

Cost of goods sold

353,802

-

-

353,802





Gross Profit

148,709

-

-

148,709





Selling, General and Administrative expenses

1,421,989

71,903

-

1,493,892





Operating Loss

(1,273,280)

(71,903)

-

(1,345,183)





Other Income (Expense)

(42,758)

(434)

-

(43,192)





NET LOSS $

(1,316,038)

$

(72,337)

$

-

$

(1,388,375)





Per Share Data:
Net loss

(0.06)

Weighted average number of common shares outstanding

21,668,231

 


 

SPEAKING ROSES, LLC

UNAUDITED PROFORMA COMBINED CONDENSED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 2002

Speaking

Proforma

Roses

Millennium

Adjustments

Pro Forma





Sales $

19,102

$

-

$

-

$

19,102

Cost of goods sold

18,353

-

-

18,353





Gross Profit

749

-

-

749





Selling, General and Administrative expenses

410,472

72,911

-

483,383

Operating Loss

(409,723)

(72,911)

-

(482,634)





Other Income (Expense)

(17,253)

14

-

(17,239)





NET LOSS $

(426,976)

$

(72,897)

$

-

$

(499,873)





Per Share Data:
Net loss

(0.02)

Weighted average number of common shares outstanding

21,668,231


SPEAKING ROSES, LLC

NOTES TO UNAUDITED PROFORMA COMBINED CONDENSED

FINANCIAL STATEMENTS

1. Basis of Presentation

On February 6, 2004, the Company received 20,551,204 shares of Millennium Electronics, Inc., common stock in exchange for the operating assets and liabilities of the Company. The operating assets consisted of cash and accounts receivable, property and equipment as well as patents and trademarks pertaining to the floral embossing technology. The liabilities consist principally of accounts payable and other accrued liabilities as well as debt to be repaid to the Members and other creditors. The new shares issued as a result of this transaction represent approximately 80% of the outstanding shares of Millennium Electronics, Inc., as of the date of the transaction. The acquisition is accounted for as a recapitalization in a reverse merger.

In addition to the new shares issued, Millennium Electronics, Inc., changed its domicile to the State of Utah and all company officers and directors were replaced by members of management of the Company.

2. Proforma Net Income (Loss) Per Share of Common Stock

The proforma net income (loss) per share of common stock is based on the weighted average number of common shares outstanding after giving effect to the shares issued for the reverse acquisition.

3. Proforma Adjustments

Adjustments to present the proforma combined condensed financial statements are as follows:

A. To give effect of the acquisition of Millennium Electronics, Inc., by Speaking Roses, which is accounted for as a recapitalization in a reverse acquisition as a result of the issuance of 20,551,204 shares of Millennium Electronics, Inc., common stock in exchange for the operating assets and liabilities of Speaking Roses, LLC.