Attached files
EXHIBIT 99.3
AMHN, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2009
| Historical | Adjustments | Consolidated | |||||||||||||||
| AMHN | SPECTRUM | ||||||||||||||||
| ASSETS |
|||||||||||||||||
| Current Assets |
|||||||||||||||||
| Cash |
$ | 42,066 | $ | 200 | $ | — | $ | 42,266 | |||||||||
| Accounts receivable00 |
10,568 | 5,160 | — | 15,728 | |||||||||||||
| Prepaid expenses |
17,238 | — | — | 17,238 | |||||||||||||
| Total current assets |
69,872 | 5,360 | — | 75,232 | |||||||||||||
| Fixed Assets |
|||||||||||||||||
| Site equipment |
431,296 | 53,522 | — | 484,818 | |||||||||||||
| Accumulated depreciation |
(48,536 | ) | (6,344 | ) | — | (54,880 | ) | ||||||||||
| Net fixed assets |
382,760 | 47,178 | — | 429,938 | |||||||||||||
| Other Assets |
|||||||||||||||||
| Segment library |
410,000 | 13,495 | — | 423,495 | |||||||||||||
| Accumulated amortization |
(27,667 | ) | (1,125 | ) | — | (28,792 | ) | ||||||||||
| Net segment library |
382,333 | 12,370 | — | 394,703 | |||||||||||||
| Security deposit |
14,800 | — | — | 14,800 | |||||||||||||
| Goodwill |
— | — | 50,000 | A | 90,947 | ||||||||||||
| 40,947 | B | ||||||||||||||||
| Total other assets |
397,133 | 12,370 | 90,947 | 500,450 | |||||||||||||
| TOTAL ASSETS |
$ | 849,765 | $ | 64,908 | $ | 90,947 | $ | 1,005,620 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||||||
| Current Liabilities |
|||||||||||||||||
| Accounts payable |
$ | 229,044 | $ | 105,855 | $ | — | $ | 334,899 | |||||||||
| Accrued expenses |
331,073 | — | — | 331,073 | |||||||||||||
| Promissory note payable-related party |
600,000 | — | — | 600,000 | |||||||||||||
| Due to related parties |
700 | — | — | 700 | |||||||||||||
| TOTAL LIABILITIES |
1,160,817 | 105,855 | — | 1,266,672 | |||||||||||||
| Common stock |
1,579,021 | 1 | 50,000 | A | 1,669,969 | ||||||||||||
| — | 40,947 | B | |||||||||||||||
| Accumulated deficit |
(1,890,073 | ) | (40,948 | ) | — | (1,931,021 | ) | ||||||||||
| TOTAL STOCKHOLDERS’ DEFICIT |
(311,052 | ) | (40,947 | ) | 90,947 | (261,052 | ) | ||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ | 849,765 | $ | 64,908 | $ | 90,947 | $ | 1,005,620 | |||||||||
AMHN, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR YEAR ENDED DECEMBER 31, 2009
| Historical | Adjustment | Consolidated | |||||||||||||
| AMHN | SPECTRUM | ||||||||||||||
| Revenues, net |
$ | 10,569 | $ | 3,235 | $ | — | $ | 13,804 | |||||||
| Expenses |
|||||||||||||||
| Operating costs |
43,152 | — | — | 43,152 | |||||||||||
| Selling, general and administration |
1,536,899 | 36,714 | — | 1,573,613 | |||||||||||
| Depreciation and amortization expense |
76,203 | 7,469 | 83,672 | ||||||||||||
| Interest expense |
8,856 | — | — | 8,856 | |||||||||||
| Total expenses |
1,665,110 | 44,183 | — | 1,709,293 | |||||||||||
| Net loss before provision for income taxes |
$ | (1,654,541 | ) | $ | (40,948 | ) | $ | — | $ | (1,695,489 | ) | ||||
| Loss per share, basic and diluted |
$ | (0.23 | ) | $ | (40.95 | ) | $ | (0.10 | ) | ||||||
| Weighted average number of shares outstanding |
7,264,707 | 1,000 | 16,290,209 | ||||||||||||
AMHN, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
MARCH 31, 2010
| Historical | |||||||||||||||||
| AMHN | SPECTRUM | Adjustments | Consolidated | ||||||||||||||
| ASSETS |
|||||||||||||||||
| Current Assets |
|||||||||||||||||
| Cash |
$ | 48,049 | $ | 2,125 | $ | — | $ | 50,174 | |||||||||
| Accounts receivable00 |
15,329 | 11,512 | — | 26,841 | |||||||||||||
| Prepaid expenses |
1,981 | — | — | 1,981 | |||||||||||||
| Total current assets |
65,359 | 13,637 | — | 78,996 | |||||||||||||
| Fixed Assets |
|||||||||||||||||
| Site equipment |
483,796 | 235,522 | — | 719,318 | |||||||||||||
| Accumulated depreciation |
(85,936 | ) | (25,378 | ) | — | (111,314 | ) | ||||||||||
| Net fixed assets |
397,860 | 210,144 | — | 608,004 | |||||||||||||
| Other Assets |
|||||||||||||||||
| Segment library |
410,000 | 13,495 | — | 423,495 | |||||||||||||
| Accumulated amortization |
(48,167 | ) | (4,498 | ) | — | (52,665 | ) | ||||||||||
| Net segment library |
361,833 | 8,997 | — | 370,830 | |||||||||||||
| Security deposit |
14,800 | — | — | 14,800 | |||||||||||||
| Goodwill |
— | — | 50,000 | A | 203,254 | ||||||||||||
| 153,254 | B | ||||||||||||||||
| Total other assets |
376,633 | 8,997 | 203,254 | 588,884 | |||||||||||||
| TOTAL ASSETS |
$ | 839,852 | $ | 232,778 | $ | 203,254 | $ | 1,275,884 | |||||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
|||||||||||||||||
| Current Liabilities |
|||||||||||||||||
| Accounts payable |
$ | 359,413 | $ | 386,032 | $ | — | $ | 745,445 | |||||||||
| Accrued expenses |
338,883 | — | — | 338,883 | |||||||||||||
| Promissory note payable-related party |
800,000 | — | — | 800,000 | |||||||||||||
| TOTAL LIABILITIES |
1,498,296 | 386,032 | — | 1,884,328 | |||||||||||||
| Common stock |
1,579,021 | 1 | 50,000 | A | 1,782,276 | ||||||||||||
| — | 153,254 | B | |||||||||||||||
| Accumulated deficit |
(2,237,465 | ) | (153,255 | ) | — | (2,390,720 | ) | ||||||||||
| TOTAL STOCKHOLDERS’ DEFICIT |
(658,444 | ) | (153,254 | ) | 203,254 | (608,444 | ) | ||||||||||
| TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY |
$ | 839,852 | $ | 232,778 | $ | 203,254 | $ | 1,275,884 | |||||||||
AMHN, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
FOR THREE MONTHS ENDED MARCH 31, 2010
| Historical | |||||||||||||||
| AMHN | SPECTRUM | Adjustment | Consolidated | ||||||||||||
| Revenues, net |
$ | 15,329 | $ | 8,277 | $ | — | $ | 23,606 | |||||||
| Expenses |
|||||||||||||||
| Operating costs |
32,625 | — | — | 32,625 | |||||||||||
| Selling, general and administration |
263,665 | 98,177 | — | 361,842 | |||||||||||
| Depreciation and amortization expense |
57,900 | 22,407 | 80,307 | ||||||||||||
| Interest expense |
8,531 | — | — | 8,531 | |||||||||||
| Total expenses |
362,721 | 120,584 | — | 483,305 | |||||||||||
| Net loss before provision for income taxes |
$ | (347,392 | ) | $ | (112,307 | ) | $ | — | $ | (459,699 | ) | ||||
| Loss per share, basic and diluted |
$ | (0.02 | ) | $ | (112.31 | ) | $ | (0.03 | ) | ||||||
| Weighted average number of shares outstanding |
15,790,209 | 1,000 | 16,290,209 | ||||||||||||
AMHN, INC. AND SUBSIDIARIES
PRO-FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The following unaudited pro-forma consolidated financial statements give effect to the acquisition of Spectrum Health Network, Inc. (“Spectrum”) by AMHN, Inc. (“AMHN” and the “Company”) and are based on estimates and assumptions set forth herein and in the notes to such pro-forma statements.
On June 11, 2010, Spectrum entered into an Agreement and Plan of Reorganization with AMHN, SHN Acquisition Corp., and Gordon Communication, Inc. (“Gordon”), and upon closing of the transaction, Spectrum became a wholly-owned subsidiary of AMHN (the “Agreement”).
The following unaudited consolidated pro-forma financial information for the year ended December 31, 2009 and for the three months ended March 31, 2010 gives effect to the above as if the transactions had occurred at the beginning of the periods. The unaudited pro-forma consolidated balance sheet at December 31, 2009 and March 31, 2010 assumes the effects of the above as if these transactions had occurred as of December 31, 2009 and March 31, 2010.
AMHN, INC. AND SUBSIDIARIES
PRO-FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
The unaudited pro- forma consolidated financial statements are based upon, and should be read in conjunctions with AMHN’s audited financial statements as of and for the year ended December 31, 2009 and its unaudited financial statements as of and for the three months ended March 31, 2010 and the historical financial statements of Spectrum from its inception (October 21, 2009) through March 31, 2010.
The unaudited pro forma consolidated financial statements and notes thereto contained forward-looking statements that involve risks and uncertainties. Therefore, our actual results may vary materially from those discussed herein. The unaudited pro forma consolidated financial statements do not purport to be indicative of the results that would have been reported had such events actually occurred on the dates specified, nor is it indicative our future results.
AMHN, INC. AND SUBSIDIARIES
NOTES TO
PRO-FORMA UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
NOTE A – ADJUSTMENT
| (a) | To record the issuance of 500,000 shares of Common Stock to Gordon pursuant to the Closing on June 11, 2010. As a result of this transaction, the Company acquired all of the assets and assumed all of the liabilities of Spectrum. |
| (b) | To reflect the results of the Agreement whereby Gordon exchanged 100% of the issued and outstanding shares of Common Stock of Spectrum for 500,000 shares of Common Stock of AMHN. |
NOTE B – PRO-FORMA WEIGHTED AVERAGE SHARES OUTSTANDING
Pro-forma shares of Common Stock outstanding assuming the transaction occurred as of October 21, 2009.
| AMHN shares outstanding |
15,790,209 | |
| Shares issued in acquisition transaction |
500,000 | |
| 16,290,209 | ||