Chemalite, Inc.

Exhibit 1 Pro-forma Financial Statement

Balance Sheet as at December 31, 1991 and 1992
Dec 31, 1991
(Actual)
Assets
($)
Cash
113,000
Accounts receivable
69,500
Inventories-raw materials
55,000
Inventories-finished good
0
Prepaid insurance
0
Property, plant and equipment
Accumulated depreciation
Land
Patent

212,500
-10,625
0
100,000

Total assets

539,375

Liabilities and Owners' Equity

Taxes payable
Short term debt
Deferred income taxes
Notes payable (10%)
Long-term debt (10%)
Dividends payable
Common stock
Retained earnings
Treasury stock

10,900
0
0
0
0
10,000
500,000
18,475
0

Total liabilities and owners' equity

539,375

Dec 31, 1992

(Pro-forma)
($)
9,490
139,530
75,450
104,680
65,000
1,120,000
-56,000
250,000
75,000
1,783,150

9,950
200,000
26,730
425,000
510,000
12,000
500,000
125,470
-26,000
1,783,150

Income Statement for the years ended Dec, 31, 1991 and 1992

Sales
Material
Labor
Rent
Utilities
Depreciation
Gross margin

Dec 31, 1991

(Actual)
($)
754,500
-195,000
-275,000
-50,000
-30,000
-10,625
193,875

Advertising
Research and development
Insurance
Amortization of patent
Selling and administration expenses
Gain on sale of equipment
Interest expennse
Prototypes
Legal fees

-22,500
0
0
-25,000
-75,000
0
-750
-23,750
-7,500

Income before taxes

Income taxes

39,375
-10,900

Net income

28,475

Dec 31, 1992

(Pro-forma)
($)
1,886,250
-452,700
-660,000
-25,000
-82,000
-61,625
604,925
-70,000
-63,250
-32,500
-25,000
-195,750
24,250
-58,750
0
0
183,925
-64,930
118,995