my point is as follows ....duh..:) mulla711
ALL AMERICAN FOOD GROUP, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
JULY 31, 1998
(A) Adjustment represents the elimination of the balance
sheets of the following subsidiaries as of October 31, 1997:
St. Pete Bagel Acquisition Corp., G.I.D. Distributors, Inc.,
Bleeker Street Bagels Inc. and Sammy's NY Bagels, Inc.
(B) Represents the reclassification to compensation of a
note receivable due from an officer.
(C) Represents approximately $29,000 write-off for
inventory disposition.
(D) Prepaid expenses comprised primarily of various short
term consulting contracts originally paid for through the
issuance of the Company's common stock. The Company has
abandoned these contracts which has resulted in a $100,000
charge to consulting expense in this nine month period ended
July 31, 1998 and a charge of $720,000 to accumulated
deficit in the accompanying pro forma condensed consolidated
financial statements.
(E) The Company has recognized losses from the disposition
and abandonment of various fixed assets approximating
$145,000 in the aggregate and a charge of $800,000 to
accumulated deficit in the accompanying pro forma condensed
consolidated financial statements. Additionally, the
elimination of the subsidiaries disclosed in Note (J) above
resulted in the reduction of $690,000 of fixed assets.
(F) The Company has recognized additional amortization of
intangible assets approximating $228,000 in the aggregate
and a charge of $195,000 to accumulated deficit in the
accompanying pro forma condensed consolidated financial
statements. Additionally, the elimination of the
subsidiaries disclosed in Note (J) above resulted in the
reduction of $965,000 of intangible assets recorded from
previous business acquisitions.
(G) The Company has recognized a charge of $50,000 to
accumulated deficit in the accompanying pro forma condensed
consolidated financial statements. Additionally, the
elimination of the subsidiaries disclosed in Note (J) above
resulted in the reduction of $20,000 of security deposits.
(H) The Company has had various adverse judgements entered
against it. The Company has accrued $1,000,000 for
satisfaction of these judgements. Additionally, the
elimination of the subsidiaries disclosed in Note (J) above
resulted in the reduction of $175,000 of accounts payable.
(I) The elimination of the balance sheets of the St. Pete
Bagel Acquisition Corp., G.I.D. Distributors, Inc., Bleeker
Street Bagels Inc. and Sammy's NY Bagels, Inc. subsidiaries
as of July 31, 1998 resulted in the recording of a net
accounts receivable due from the subsidiaries. St. Pete
Bagel Acquisition Corp. has forfeited its assets as a result
of defaults on various contracts and the assets of G.I.D.
Distributors, Inc., Bleeker Street Bagels Inc. and Sammy's
NY Bagels, Inc have been disposed of or abandoned.
Accordingly, there does not exist any assets to satisfy the
receivable. Therefore the Company has taken a charge for
the loss on such receivables.
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