Exhibit 99.5                      PRO FORMA FINANCIAL INFORMATION
 

BIOZONE PHARMACEUTICALS, INC.
INTRODUCTION TO PRO FORMA CONDENSED
COMBINED FINANCIAL STATEMENTS
(Unaudited)
 
The following unaudited pro forma condensed combined financial statements give effect to the merger between BioZone Pharmaceuticals, Inc. (“BioZone Pharma”) and BioZone Laboratories, Inc. (“BioZone Labs”), Equalan Pharma, LLC (“Equalan”), Equachem LLC (“Equachem”) and BetaZone, LLC (“BetaZone”) (all of which collectively are referred to as “the BioZone Group”), and the issuance by BioZone Pharma prior to June 30, 2011 of convertible notes payable.
 
On June 30, 2011, BioZone Pharma entered into (i) stock purchase agreements with the shareholders of BioZone  Labs pursuant to which BioZone Pharma purchased 100% of the outstanding common stock of BioZone Labs; (ii) LLC Membership Interest Purchase Agreements with the members of Equalan and Equachem pursuant to which BioZone Pharma purchased 100% of the outstanding membership interests of Equalan and Equachem; and (iii) LLC Membership Interest Purchase Agreements with certain members of BetaZone pursuant to which BioZone Pharma purchased 45% of the outstanding membership interests of BetaZone. As a result of these transactions, the former owners of the BioZone Group became the controlling stockholders of BioZone Pharma.  Accordingly, the merger has been accounted for as a reverse merger. The unaudited pro forma information is presented for illustration purposes only in accordance with the assumptions set forth below and in the notes to the pro forma condensed combined financial statements.
 
The unaudited pro forma condensed combined balance sheet as of December 31, 2010 combines the balance sheets of BioZone Pharma and the BioZone Group and gives pro forma effect to (i) BioZone Pharma’s issuance of convertible  notes as if the notes were issued in connection with the merger and (ii) the reverse merger between BioZone Pharma and the BioZone Group, in which the Biozone Group is deemed to be the acquiring entity for accounting purposes, as if the reverse merger had been completed as of December 31, 2010. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2010 combines the statement of operations of BioZone Pharma and the BioZone Group and gives pro forma effect to these transactions as if they were completed on January 1, 2010.
 
The amounts shown for BioZone Pharma have been derived from the historical financial statements, which have been retroactively adjusted to give effect to a forward stock split of 10 to 1, and the elimination of historical operations that are not being continued with the combined entity following the merger.
 
 
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Biozone Pharmacueticals, Inc
  
Proforma Balance Sheet
  
December 31, 2010
  
                                     
ASSETS
  
Biozone Pharmaceuticals
    
Biozone Laboratories
    
Equalan Pharma
    
Equachem
    
Proforma Adjustments
    
Proforma
  
                                     
Current Assets:
                                    
  Cash and cash equivalents
   $ 22,778     $ 117,121     $ 53,042     $ 58,532     $ 2,099,636 (4)   $ 2,351,109  
  Accounts receivable
             1,620,493       438,804       485,626       (1,199,587 ) (2)     1,345,336  
  Inventories
             2,191,539       238,904       73,156               2,503,599  
  Other Current Assets
             41,450       1,832                       43,282  
       Total current assets
     22,778       3,970,603       732,582       617,314       900,049       6,243,326  
                                                 
Property and Equipment, net
     5,260       3,256,873                               3,262,133  
Note receivable - related party
             52,077                               52,077  
Deferred financing costs, net
             11,648       23,714               150,364 (4)     185,726  
Investment in Real Property
     61,335                                       61,335  
 Total Assets
   $ 89,373     $ 7,291,201     $ 756,296     $ 617,314     $ 1,050,413     $ 9,804,597  
                                                 
 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
                                                
                                                 
 Current Liabilities:
                                                
 Note payable - bank
             2,039,055       231,904                       2,270,959  
 Accounts payable and accrued liabilities
   $ 82,443     $ 1,436,288     $ 469,628     $ 405,268     $ (1,199,587 ) (2)     1,194,040  
 Deferred income taxes
           $ 98,751                               98,751  
 Notes payable - shareholder
           $ 1,102,926                               1,102,926  
  Convertible notes payable
                                   $ 2,250,000 (4)     2,250,000  
 Current portion of long term debt
             277,299                               277,299  
 Total current liabilities
     82,443       4,954,319       701,532       405,268       1,050,413       7,193,975  
                                                 
 Long term debt
             3,275,977                               3,275,977  
                                                 
 STOCKHOLDERS' EQUITY (DEFICIT)
                                                
 Common stock
     37,700       184,000                       (154,671 ) (1)     67,029  
 Additional paid-in capital
     177,100                               (53,199 ) (1)     123,901  
 Accumulated deficit
     (204,335 )     (1,123,095 )     54,764       212,046       204,335 (1)     (856,285 )
 Total stockholders' equity
     10,465       (939,095 )     54,764       212,046       (3,535 )     2,610,622  
 Non-Controlling interest
     (3,535 )                             (3,535 )     -  
 Stockholders Equity
     6,930       (939,095 )     54,764       212,046       -       2,610,622  
                                                 
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
   $ 89,373     $ 7,291,201     $ 756,296     $ 617,314     $ 1,050,413     $ 9,804,597  
 
 
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Biozone Pharmacueticals, Inc
  
Proforma Statement of Operations
  
Year Ended December 31, 2010
  
                                     
   
Biozone Pharmaceuticals
    
Biozone Laboratories
    
Equalan Pharma
    
Equachem
    
Proforma Adjustments
    
Proforma
  
                                     
Revenue
   $ -     $ 13,354,712     $ 852,465     $ 387,533       (418,000 ) (2)   $ 14,176,710  
                                                 
Operating Expenses
                                                
Cost of Sales
     -       7,676,217       326,348       50,067       (418,000 ) (2)     7,634,632  
Selling geneal and administrative
             5,403,006       347,600       217,756               5,968,362  
Depreciation and amortization expense
             446,960                               446,960  
Research and development expenses
             212,042                               212,042  
Interest expense
             403,555       28,803                       432,358  
Equity earnings in non-consolidated subsidiary
                                     55,305 (3)     55,305  
Income tax benefit
             (95,945 )                             (95,945 )
      -       14,045,835       702,751       267,823       (362,695 )     14,653,714  
                                                 
Loss from Continuing Operations
     -       (691,123 )     149,714       119,710       (55,305 )     (477,004 )
                                                 
Loss from discontinued operations
     (49,410 )                             49,410 (5)     -  
                                                 
Net Loss
     (49,410 )     (691,123 )     149,714       119,710       (5,895 )     (477,004 )
                                                 
Add: Net loss attributable to noncontrolling interest
     932                               (932 ) (5)     -  
                                                 
Net loss attributable to the Company
     (48,478 )     (691,123 )     149,714       119,710       (6,827 )     (477,004 )
                                                 
Net loss per common share - basic and diluted
     (0.00 )                                     (0.01 )
                                                 
Weighted average of common shares - basic and diluted
     37,698,000                                       67,029,396  
 
 
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BioZone Pharmaceuticals, Inc.
Notes to Unaudited Pro-Forma Balance Sheet and Statement of Operations as of and for the year ending December 31, 2010

 
(1) 
Represents the effect of the reverse merger on Stockholders’ Equity (Deficit).
 
(2) 
Represents the elimination of intercompany balances and transactions.
 
(3)
Represents the 45% earnings of BetaZone, recorded under the equity method of accounting.
 
(4)
Represents the issuance on March 29, 2011 of 10% secured convertible promissory notes in the amount of $2,250,000 which mature on the earlier of September 29, 2011 or the closing date of a proposed financing transaction.
 
(5)
Represents the elimination of operations of BioZone Pharma which have been characterized as discontinued operations because they are not being continued in the combined entity following the merger.
 
 
 
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