Exhibit 10.2

Pro-Forma Financial Statements

Unaudited Pro-Forma Balance Sheet at July 31, 2013

 

 

Actual

July 31, 2013

 

Adjustments

 

Pro-Forma

July 31, 2013

 

Assets

 

 

 

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

 

 

 

Cash

 

$

1,340,888

 

$

(15,000

) 

$

1,325,888

 

Accounts receivable, net

 

 

780,960

 

 

(691,242

)

 

89,718

 

Prepaid expenses and other current assets

 

 

87,513

 

 

(30,852

) 

 

56,661

 

Total current assets

 

 

2,209,361

 

 

(737,094

) 

 

1,472,267

 

 

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

46,838

 

 

—

 

 

46,838

 

Goodwill

 

 

1,581,850

 

 

(1,581,850

)

 

—

 

Patent

 

 

4,024,385

 

 

(4,024,385

) 

 

—

 

Other assets

 

 

28,032

 

 

—

 

 

28,032

 

TOTAL ASSETS

 

$

7,890,466

 

$

(6,343,329

) 

$

1,547,137

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Deficit

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,291,450

 

$

(194,123

) 

$

1,097,327

 

Accrued expenses

 

 

879,087

 

 

(494,249

) 

 

384,838

 

Notes payable, current portion, net

 

 

3,427,007

 

 

(3,410,691

) 

 

16,316

 

Notes payable related parties, current portion, net

 

 

1,072,953

 

 

(945,493

) 

 

127,460

 

Lease payable, current portion

 

 

10,704

 

 

—

 

 

10,704

 

Deferred revenue

 

 

239,247

 

 

(179,586

) 

 

59,661

 

Warrants

 

 

906,621

 

 

(906,621

) 

 

—

 

Total current liabilities

 

 

7,827,069

 

 

(6,130,763

) 

 

1,696,306

 

Long-term liabilities:

 

 

 

 

 

 

 

 

 

 

Notes payable, net of current portion, net

 

 

1,281,921

 

 

(1,281,921

) 

 

—

 

Notes payable related parties

 

 

1,301,913

 

 

(1,092,422

) 

 

209,491

 

Lease payable, net of current portion

 

 

6,623

 

 

—

 

 

6,623

 

Total liabilities

 

 

10,417,526

 

 

(8,505,106

) 

 

1,912,420

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and Contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized; no shares
issued and outstanding

 

 

—

 

 

—

 

 

—

 

Common stock, $0.001 par value

 

 

157,313

 

 

—

 

 

157,313

 

Additional paid-in capital

 

 

11,791,080

 

 

(11,141,027

) 

 

650,053

 

Accumulated deficit

 

 

(14,475,453

)

 

13,302,804

 

 

(1,172,649

)

Total stockholders’ deficit

 

 

(2,527,060

 

 

(2,161,777

)

 

(365,283

)

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

7,890,466

 

$

(6,343,329

) 

$

1,547,137

 

- 1 -

--------------------------------------------------------------------------------

Unaudited Pro-Forma Statement of Operations at July 31, 2013

 

 

For the Three Months Ended

 

 

 

Actual

July 31, 2013

 

Adjustments

 

 

Pro-Forma

July 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

Sales, net

 

$

1,532,236

 

$

(1,232,803

)

 

$

299,433

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs of goods sold

 

 

261,933

 

 

(140,250

)

 

 

121,683

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

1,270,303

 

 

(1,092,553

)

 

 

177,750

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

632,241

 

 

(97,244

)

 

 

534,997

 

Depreciation and amortization

 

 

407,025

 

 

(392,134

)

 

 

14,891

 

Total Operating expenses

 

 

1,039,266

 

 

(489,378

)

 

 

549,888

 

Operating income

 

 

231,037

 

 

(603,175

)

 

 

(372,138

)

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense), net:

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(346,480

)

 

336,643

 

 

 

(9,837

)

Other income (expense), net

 

 

(2

)

 

2

 

 

 

—

 

Total other income (expense), net

 

 

(346,482

)

 

(336,645

)

 

 

(9,837

)

Income (loss) before income taxes

 

 

(115,445

)

 

(266,530

)

 

 

(381,975

)

Income taxes

 

 

—

 

 

—

 

 

 

—

 

Net loss

 

$

(115,445

)

$

(266,530

)

 

$

(381,975

)

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share

 

$

(0.00

)

$

(0.00

)

 

$

(0.00

)

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average number shares outstanding

 

 

157,313,704

 

 

157,313,704

 

 

 

157,313,704

 

- 2 -

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