BLUE MOUNTAIN RESOURCES, INC. UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION
Exhibit 99.2
BLUE MOUNTAIN RESOURCES, INC.
UNAUDITED PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL INFORMATION
Basis of Presentation
On March 31, 2008, Blue Mountain Resources, Inc. (the “Company”) entered into an Agreement and Plan of Reorganization (the “Plan of Reorganization”) with Patient Access Solutions, Inc., a New York corporation. The closing of the transaction took place on March 31, 2008 (the “Closing Date”) and resulted in the acquisition of Patient Access Solutions, Inc. (the “Acquisition”). Pursuant to the terms of the Plan of Reorganization, The Company acquired all of the outstanding capital stock and ownership interests of Patient Access Solutions, Inc. (the “Interests”) from the Patient Access Solutions, Inc. for an aggregate of 2,900,000 shares, or 35% of the Company’s common stock.
Under the Share Exchange Agreement, at the Closing on March 31, 2008, our authorized capital stock consists of 8,300,000 shares of common stock, par value $0.001 per share. As of March 31, 2008 and immediately after Closing, an aggregate of 8,300,000 shares of Common Stock were outstanding, including shares issued pursuant to the Closing. Generally accepted accounting principles require that the company whose shareholders retain the majority interest in a combined business be treated as the acquirer for accounting purposes, resulting in a reverse acquisition. Accordingly, the share exchange transaction has been accounted for as a recapitalization of the Company.
The unaudited pro forma condensed consolidated statements of income (loss) combine the historical condensed consolidated statements of income (loss) of the Company and Patient Access Solutions, Inc., giving effect to the share exchange and other related events as if it had occurred on January 1, 2006 and January 1, 2007. The unaudited pro forma condensed consolidated balance sheet combines the historical condensed consolidated balance sheets of the Company and Patient Access Solutions Inc., giving effect to the share exchange and other related events as if it had been consummated on December 31, 2007. These unaudited pro forma condensed consolidated financial statements have been prepared for comparative purposes only and do not purport to be indicative of the results of operations which actually would have resulted had the transaction occurred on the date indicated and are not necessarily indicative of the results that may be expected in the future.
1
BLUE MOUNTAIN RESOURCES, INC
PRO-FORMA CONSOLIDATING BALANCE SHEETS
DECEMBER 31, 2007
| Blue Mountain Resources, Inc. |
Patient Access Solutions |
Pro Forma Adjustments |
Pro Forma Amount |
||||||||||||
| ASSETS | |||||||||||||||
| Current assets: |
|||||||||||||||
| Cash |
$ | 3,692 | $ | 943 | (1) | (3,692 | ) | $ | 943 | ||||||
| Accounts receivable |
— | 44,185 | 44,185 | ||||||||||||
| Prepaid rent |
— | 12,083 | 12,083 | ||||||||||||
| Inventory |
— | 19,250 | 19,250 | ||||||||||||
| Current portion of investment in sales type leases |
— | 216,503 | 216,503 | ||||||||||||
| — | — | — | |||||||||||||
| Other current assets |
— | 1,000 | 1,000 | ||||||||||||
| Total current assets |
3,692 | 293,964 | 293,964 | ||||||||||||
| Property and equipment, net |
— | 303,966 | 303,966 | ||||||||||||
| Long term portion of investment in sales type leases |
— | 505,173 | 505,173 | ||||||||||||
| 809,139 | 809,139 | ||||||||||||||
| $ | 3,692 | $ | 1,103,103 | $ | 1,103,103 | ||||||||||
| Current liabilities: |
|||||||||||||||
| Accounts payable |
$ | 5,561 | $ | 125,136 | (1) | (5,561 | ) | $ | 125,136 | ||||||
| Payroll taxes payable |
76,599 | 76,599 | |||||||||||||
| Current portion of obligations under capital leases |
216,335 | 216,335 | |||||||||||||
| Loans from related parties |
10,329 | (1) | (10,329 | ) | — | ||||||||||
| Notes payable |
— | 553,000 | 553,000 | ||||||||||||
| Total current liabilities |
15,890 | 971,070 | 971,070 | ||||||||||||
| Long Term portion of obligations under capital leases |
505,391 | 505,391 | |||||||||||||
| Stockholders’ deficiency: |
|||||||||||||||
| Common stock |
5,400 | — | 2,800 | 8,200 | |||||||||||
| Additional paid-in capital |
17,100 | 377,407 | (1) | 12,198 | 406,705 | ||||||||||
| (2) | (34,698 | ) | (37,498 | ) | |||||||||||
| (2,800 | ) | ||||||||||||||
| Accumulated deficit |
(34,698 | ) | (750,765 | )(2) | 34,698 | (750,765 | ) | ||||||||
| Total stockholders’ equity (deficiency) |
(12,198 | ) | (373,358 | ) | (373,358 | ) | |||||||||
| $ | 3,692 | $ | 1,103,103 | $ | 1,103,103 | ||||||||||
2
| (1 | ) | ||||||
| Cash |
3,692 | ||||||
| Account payable |
5,561 | ||||||
| Loans from related party |
10,329 | ||||||
| Additional paid-in capital |
12,198 | ||||||
| To record the elimination of Tradeshow Products Accumulated Deficit |
|||||||
| (2 | ) | ||||||
| Accumulated deficit |
34,698 | ||||||
| Additional paid-in capital |
34,698 | ||||||
| Elimination of accumulated deficit |
|||||||
| (3 | ) | ||||||
| Additional paid-in capital |
2,800 | ||||||
| Common stock |
2,800 |
To record issuance of 2,800,000 shares of common stock to shareholders of Patient Access Solutions, Inc.
3
BLUE MOUNTAIN RESOURCES, INC
PROFORMA CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2007
| Blue Mountain Resources, Inc. |
Patient Access Solutions |
Pro Forma Adjustments |
Pro Forma Amount | ||||||||||||
| Revenues: |
|||||||||||||||
| Revenue |
$ | — | $ | 322,643 | $ | 322,643 | |||||||||
| Cost of Goods sold |
108,773 | 108,773 | |||||||||||||
| 213,870 | 213,870 | ||||||||||||||
| Operating expenses: |
|||||||||||||||
| General and administrative expenses |
7,306 | 805,533 | (7,306 | ) | 805,533 | ||||||||||
| Mineral properties |
10,393 | (10,393 | ) | — | |||||||||||
| Professional fees |
9,542 | (9,542 | ) | — | |||||||||||
| Depreciation & Amortization |
— | 23,657 | 23,657 | ||||||||||||
| Total operating expenses |
27,241 | 829,190 | 829,190 | ||||||||||||
| (Loss) income from operations |
(27,241 | ) | (615,320 | ) | (615,320 | ) | |||||||||
| Interest expense |
69,941 | 69,941 | |||||||||||||
| (Loss) income before provision for income taxes |
(27,241 | ) | (685,261 | ) | (685,261 | ) | |||||||||
| Provision for income taxes |
— | — | — | ||||||||||||
| Net loss |
$ | (27,241 | ) | $ | (685,261 | ) | $ | (685,261 | ) | ||||||
4
BLUE MOUNTAIN RESOURCES, INC
PROFORMA CONSOLIDATING STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 2006
| Blue Mountain Resources, Inc. |
Patient Access Solutions |
Pro Forma Adjustments |
Pro Forma Amount | ||||||||||||
| Revenues: |
|||||||||||||||
| Revenue |
$ | — | $ | 219,991 | $ | 219,991 | |||||||||
| Cost of Goods sold |
89,463 | 89,463 | |||||||||||||
| 130,528 | 130,528 | ||||||||||||||
| Operating expenses: |
|||||||||||||||
| General and administrative expenses |
822 | 184,204 | (822 | ) | 184,204 | ||||||||||
| Depreciation & Amortization |
— | 11,828 | 11,828 | ||||||||||||
| Total operating expenses |
822 | 196,032 | 196,032 | ||||||||||||
| (Loss) income from operations |
(822 | ) | (65,504 | ) | (65,504 | ) | |||||||||
| Interest expense |
— | — | |||||||||||||
| (Loss) income before provision for income taxes |
(822 | ) | (65,504 | ) | (65,504 | ) | |||||||||
| Provision for income taxes |
— | — | — | ||||||||||||
| Net loss |
$ | (822 | ) | $ | (65,504 | ) | $ | (65,504 | ) | ||||||
5
