SECURED DIVERSIFIED INVESTMENT, LTD.

TABLE OF CONTENTS

SEPTEMBER 30, 2008
 
   
   
Notes to the Pro Forma Adjustments
 
 
SECURED DIVERSIFIED INVESTMENT, LTD.
PRO FORMA COMBINED BALANCE SHEETS (unaudited)
SEPTEMBER 30, 2008

ASSETS
Secured Diversified Investment, Ltd.
  
Galaxy Gaming, Inc.
  
Pro Forma Adjustments
  
Total
Current Assets
              
Cash and cash equivalents
 $ 14,741   $ 19,902       $ 34,643
Accounts receivable, net
   0     240,502         240,502
Prepaid expenses and taxes
   0     93,537         93,537
Inventory
   0     48,376         48,376
Real estate investments
   150,000     0         150,000
Due from related parties
   0     26,146         26,146
Note receivable - current portion
   0     55,245         55,245
Total Current Assets
   164,741     483,708         648,449
                     
Property and Equipment, Net
   0     30,198         30,198
                     
Other Assets
                    
Patents and trademarks, net
   0     143,088         143,088
Note receivable - long term
   0     455,769         455,769
Total Other Assets
   0     598,857         598,857
                     
TOTAL ASSETS
 $ 164,741   $ 1,112,763       $ 1,277,504
                     
LIABILITIES AND STOCKHOLDERS’ DEFICIT
                    
Current Liabilities
                    
Accounts payable
 $ 348,499   $ 184,933   (348,499)a   $ 184,933
Accrued expenses and taxes
   334,844     148,318   (334,844)a     148,318
Due to related parties
   0     408,713         408,713
Notes payable – current portion
   0     23,014         23,014
Total Current Liabilities
   683,343     764,978         764,978
                     
Long Term Liabilities
                    
Notes payable
   0     1,197,837         1,197,837
                     
TOTAL LIABILITIES
   683,343     1,962,815         1,962,815
                     
STOCKHOLDERS’ DEFICIT
                    
Capital stock
   163     10,000  
(163)b
(10,000)c
29,000d
     29,000
Unissued shares
   5,830     0   (5,830)b     0
Paid in capital
   8,818,647     125  
(8,818,647)b
(125)c
145,866d
     145,866
Accumulated deficit
   (9,343,242)     (860,177)   9,343,242b     (860,177)
TOTAL STOCKHOLDERS’ DEFICIT
   (518,602)     (850,052)         (685,311)
                     
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY DEFICIT
 $ 164,741   $ 1,112,763       $ 1,277,504

See accompanying notes to the Pro Forma adjustments.
F-1
SECURED DIVERSIFIED INVESTMENT, LTD.
PRO FORMA COMBINED STATEMENTS OF OPERATIONS (unaudited)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2008

 
Secured Diversified Investment, Ltd.
  
Galaxy Gaming, Inc,
  
Pro Forma Adjustments
Totals
             
Gross Revenues
 $ 0   $ 1,690,413     $ 1,690,413
Cost of Goods Sold
   0     96,852       96,852
Gross Profit
   0     1,593,561       1,593,561
                   
Operating Expenses
   248,316     1,743,813       1,992,129
Operating Loss
   (248,316)     (150,252)       (398,568)
                   
Other Income (Expense)
   (71,668)     (83,806)       (155,474)
                   
Net Loss Before Provision for Income Taxes
   (319,984)     (234,058)       (554,042)
                   
Provision for Income Taxes
   0     0       0
                   
Net Loss
 $ (319,984)   $ (234,058)     $ (554,042)
                   
Weighted Average Number Of Shares Outstanding
                 29,000,000d
Net Loss Per Share
               $ (0.02)
 
See accompanying notes to the Pro Forma adjustments.
F-2
SECURED DIVERSIFIED INVESTMENT, LTD.
NOTES TO THE PRO FORMA ADJUSTMENTS (unaudited)
SEPTEMBER 30, 2008



(a) Elimination of Secured Diversified Investment, Ltd. liabilities due to bankruptcy

(b) Elimination of Secured Diversified Investment, Ltd. equity due to bankruptcy

(c) Elimination of Galaxy Gaming, Inc. common stock and paid in capital in exchange for new shares of Secured Diversified Investment, Ltd.

(d) Issuance of 29,000,000 shares of $.001 par value common stock of Secured Diversified Investment, Ltd.   25,000,000 were issued in exchange for 100% ownership of Galaxy Gaming, Inc.
4,000,000 shares were issued to past creditors of Secured Diversified Investment, Ltd.