Notes to Consolidated Financial Statements. 28 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Tech Squared Inc.: We have audited the accompanying consolidated balance sheets of Tech Squared Inc. (a Minnesota corporation) and Subsidiaries as of December 31, 1998 and 1997, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 1998. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tech Squared Inc. and Subsidiaries as of December 31, 1998 and 1997, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1998, in conformity with generally accepted accounting principles. XXXXXX XXXXXXXX LLP Minneapolis, Minnesota February 19, 1999 XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31 1998 1997 ------------ ---------- ASSETS Current Assets: Cash and cash equivalents................................. $ 4,436,276 $ 300 Restricted cash........................................... 229,466 143,623 Available-for-sale securities............................. -- 467,438 Trade accounts receivable, less allowance for doubtful accounts of $365,000 and $180,000, respectively......... 3,387,907 2,727,883 Inventories............................................... 1,783,905 1,890,480 Prepaids and other current assets......................... 416,666 234,936 ------------ ---------- Total current assets.................................. 10,254,220 5,464,660 Property and Equipment, net................................. 499,874 346,419 Receivable From Officer/Stockholder......................... -- 201,512 Mining Assets............................................... 190,000 748,276 Investment in Digital River................................. 106,500,000 839,202 ------------ ---------- $117,444,094 $7,600,069 ============ ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving line of credit.................................. $ 7,395 $ 765,728 Current maturities of long-term debt...................... 15,000 80,000 Accounts payable.......................................... 5,008,449 2,816,959 Accrued compensation and benefits......................... 205,156 239,748 Other accrued expenses.................................... 1,404,776 791,743 Dividend payable to officer/shareholder................... 200,000 200,721 ------------ ---------- Total current liabilities............................. 6,840,776 4,894,899 Dividend Payable to Officer/Shareholder..................... 83,857 283,136 Long-Term Debt, less current maturities..................... -- 15,000 Deferred Income Taxes....................................... 39,815,000 -- Redeemable Preferred Stock, 12% cumulative convertible, $1 par value, 1,000,000 shares authorized; 160,000 shares issued and outstanding.................................... 247,744 216,700 ------------ ---------- Commitments and Contingencies (Note 7) Stockholders' Equity: Common stock, no par value, 25,000,000 shares authorized; 11,603,075 and 10,375,037 shares issued and outstanding, respectively............................................ 3,990,200 3,189,436 Stock subscription receivable............................. (284,000) -- Retained earnings (accumulated deficit)................... 2,894,345 (912,539) Unrealized gain (loss) on available-for-sale securities... 63,856,172 (86,563) ------------ ---------- Total stockholders' equity............................ 70,456,717 2,190,334 ------------ ---------- $117,444,094 $7,600,069 ============ ========== The accompanying notes are an integral part of these consolidated balance sheets. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31
Appears in 1 contract
Samples: Exhibit 1 (Tech Squared Inc)
Notes to Consolidated Financial Statements. 28 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Tech Squared Inc.: 25-35 Report of Independent Auditors The Board of Directors and Shareholders ACT Teleconferencing, Inc. We have audited the accompanying consolidated balance sheets of Tech Squared ACT Teleconferencing, Inc. (a Minnesota corporation) and Subsidiaries as of December 31, 1998 1997 and 19971996, and the related consolidated statements of operations, comprehensive income (loss), stockholdersshareholders' equity and cash flows for each of the three years in the period ended December 31, 1998then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Tech Squared ACT Teleconferencing, Inc. and Subsidiaries as of at December 31, 1998 1997 and 19971996, and the consolidated results of their its operations and their its cash flows for each of the three years in the period ended December 31, 1998then ended, in conformity with generally accepted accounting principles. XXXXXX XXXXXXXX ERNST & YOUNG LLP MinneapolisDenver, Minnesota Colorado February 1920, 1999 XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF 1998 ACT Teleconferencing, Inc. Consolidated Balance Sheets DECEMBER 31 1998 31, 1997 ------------ ---------- 1996 ----------------------------------------- ASSETS Current Assets: Cash and cash equivalents................................. equivalents $ 4,436,276 451,434 $ 300 Restricted cash........................................... 229,466 143,623 Available-for-sale securities............................. -- 467,438 Trade accounts receivable, less allowance 621,742 Accounts receivable (net of allowances for doubtful 2,885,125 1,356,471 accounts of $365,000 18,992 and $180,000255,494 for 1997 and 1996, respectively......... 3,387,907 2,727,883 Inventories............................................... 1,783,905 1,890,480 Prepaids ) Prepaid expenses and other current assets......................... 416,666 234,936 ------------ ---------- Total current assets.................................. 10,254,220 5,464,660 Property and Equipment, net................................. 499,874 346,419 Receivable From Officer/Stockholder......................... -- 201,512 Mining Assets............................................... 190,000 748,276 Investment in Digital River................................. 106,500,000 839,202 ------------ ---------- $117,444,094 $7,600,069 203,673 55,994 Inventory 136,116 125,850 Available for sale marketable securities 50,000 50,000 ----------------------------------------- TOTAL CURRENT ASSETS 3,726,348 2,210,057 Telecommunications equipment 2,651,395 1,664,697 Office equipment 1,910,606 702,019 Less: accumulated depreciation (1,094,938) (736,556) ---------------------------------------- TOTAL EQUIPMENTNET 3,467,063 1,630,160 Goodwill 736,300 245,052 --------------------------------------- TOTAL ASSETS $ 7,929,711 $ 4,085,269 ======================================= LIABILITIES Notes payable $ 540,014 $ 74,784 Accounts payable 1,349,337 764,520 Accrued liabilities 777,526 339,299 Current portion of long term debt 253,251 177,312 Income taxes payable 293,238 156,991 ---------------------------------------- TOTAL CURRENT LIABILITIES 3,213,366 1,512,906 Long-term debt 613,714 395,960 Deferred income taxes 117,454 41,042 Minority interest 607,244 367,404 Shareholders' equity: Preferred stock, no par value, 1,000,000 shares authorized - none issued Common stock, no par value, 10,000,000 shares authorized 3,612,758 and 2,939,930 shares issued and outstanding in 1997 and 1996, respectively 6,158,584 4,022,671 Accumulated deficit (2,729,069) (2,292,261) Currency translation adjustment (51,582) 37,547 ------------------------------------------ TOTAL SHAREHOLDERS' EQUITY 3,377,933 1,767,957 ------------------------------------------ TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 7,929,711 $ 4,085,269 ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving line of credit.................................. $ 7,395 $ 765,728 Current maturities of long-term debt...................... 15,000 80,000 Accounts payable.......................................... 5,008,449 2,816,959 Accrued compensation and benefits......................... 205,156 239,748 Other accrued expenses.................................... 1,404,776 791,743 Dividend payable to officer/shareholder................... 200,000 200,721 ------------ ---------- Total current liabilities............................. 6,840,776 4,894,899 Dividend Payable to Officer/Shareholder..................... 83,857 283,136 Long-Term Debt, less current maturities..................... -- 15,000 Deferred Income Taxes....................................... 39,815,000 -- Redeemable Preferred Stock, 12% cumulative convertible, $1 par value, 1,000,000 shares authorized; 160,000 shares issued and outstanding.................................... 247,744 216,700 ------------ ---------- Commitments and Contingencies (Note 7) Stockholders' Equity: Common stock, no par value, 25,000,000 shares authorized; 11,603,075 and 10,375,037 shares issued and outstanding, respectively............................................ 3,990,200 3,189,436 Stock subscription receivable............................. (284,000) -- Retained earnings (accumulated deficit)................... 2,894,345 (912,539) Unrealized gain (loss) on available-for-sale securities... 63,856,172 (86,563) ------------ ---------- Total stockholders' equity............................ 70,456,717 2,190,334 ------------ ---------- $117,444,094 $7,600,069 ================================= See notes to consolidated financial statements. ACT Teleconferencing, Inc. Consolidated Statements of Operations YEAR ENDED DECEMBER 31, 1997 1996 ------------------------------------- Net revenues $ 10,234,403 $ 6,219,946 Costs and expenses: Cost of teleconferencing services 4,727,236 3,604,729 Marketing, general and administration 5,408,940 3,538,866 Total costs and expenses 10,136,176 7,143,595 Income (loss) before income taxes and minority interest 98,227 (923,649) Income taxes (332,566) (164,591) Minority interest in earnings of consolidated subsidiary (202,469) (119,867) ------------------------------------- Net (loss) $ (436,808) $ (1,208,107) ===================================== The accompanying (Loss) per common share $(0.14) $(0.41) ===================================== Weighted average shares outstanding 3,204,747 2,911,187 See notes are an integral part to consolidated financial statements. ACT Teleconferencing, Inc. Consolidated Statements of these Shareholders' Equity Common Stock ------------------------------- Currency Accumulated Translation Shares Amount Deficit Adjustment Total ---------------------------------------------------------------------------------- Balance at December 31, 1995 2,318,000 $2,157,940 $ (1,084,154) $ - $ 1,073,786 Shares issued for cash 712,497 1,987,531 - - 1,987,531 Expiration of put issued in connection with prior year acquisition - 125,000 - - 125,000 Reduction of purchase price related to acquisition (100,000) (250,000) - - (250,000) Cashless exercise of employee stock options 8,333 - - - - Exercise of employee stock options 1,100 2,200 - - 2,200 Currency translation adjustment - - - 37,547 37,547 Net (Loss) - - (1,208,107) - (1,208,107) ---------------------------------------------------------------------------------- Balance December 31, 1996 2,939,930 4,022,671 (2,292,261) 37,547 1,767,957 Exercise of employee stock options 43,500 52,000 52,000 Exercise of 1994 private placement warrants 514,950 1,520,834 1,520,834 Issuance of shares as fee to warrant placement agent 33,000 115,500 115,500 Shares issued in connection with the acquisition of MaTS Ltd. 81,378 447,579 447,579 Currency translation adjustment (89,129) (89,129) Net (Loss) (436,808) (436,808) ----------------------------------------------------------------------------------------- Balance December 31, 1997 3,612,758 $6,158,584 $(2,729,069) $ (51,852) $ 3,377,933 ========================================================================================= See notes to consolidated balance sheetsfinancial statements. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ACT Teleconferencing, Inc. Consolidated Statements of Cash Flows YEAR ENDED DECEMBER 3131 1997 1996 ------------------------------------------ OPERATING ACTIVITIES Net (loss) $ (436,808) $ (1,208,107) Adjustments to reconcile net income to net cash used for operating activities: Depreciation 358,382 288,670 Amortization of goodwill 18,054 38,463 Deferred income tax 76,416 22,491 Minority interest 202,469 119,867 ------------------------------------------ Cashflows before changes in operating assets and 218,513 (738,616) liabilities Changes in operating assets and liabilities (Net of effect of business combinations): Accounts receivable (1,310,000) (676,021) Inventory 73,276 (14,376) Prepaid expenses and other assets (124,612) (25,774) Accounts payable 424,460 162,867 Accrued liabilities 356,356 175,214 ------------------------------------------ Net cash used for operating activities (362,007) (1,116,706) INVESTING ACTIVITIES Property and equipment purchases (1,618,359) (759,337) Short Term Notes (26,739) Investment in marketable security (50,000) Cash paid for MaTS acquisition net of cash acquired (101,257) ========================================== Net cash used for investing activities (1,746,355) (809,337) FINANCING ACTIVITIES Net proceeds from issuance (repayment) of debt 258,985 142,840 Net proceeds from issuance of common stock 1,688,334 2,115,473 ------------------------------------------ Net cash provided by financing activities 1,947,319 2,258,313 Effect of exchange rate changes on cash (9,265) 1,127 ------------------------------------------ Net (decrease) increase in cash and cash equivalents (170,308) 333,397 Cash and cash equivalents, beginning of year 621,742 288,345 ------------------------------------------ Cash and cash equivalents, end of year $ 451,434 $ 621,742 ========================================== See notes to consolidated financial statements.
Appears in 1 contract
Notes to Consolidated Financial Statements. 28 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Tech Squared Inc.: We have audited the accompanying consolidated balance sheets of Tech Squared Inc. (a Minnesota corporation) and Subsidiaries as of December 31, 1998 and 1997, and the related consolidated statements of operations, comprehensive income (loss), stockholders' equity and cash flows for each of the three years in the period ended December 31, 1998. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Tech Squared Inc. and Subsidiaries as of December 31, 1998 and 1997, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1998, in conformity with generally accepted accounting principles. XXXXXX XXXXXXXX LLP Minneapolis, Minnesota February 19, 1999 XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31 1998 1997 -------------- ------------ ---------- ASSETS Current Assets: Cash and cash equivalents................................. ........................................................ $ 4,436,276 $ 300 Restricted cash........................................... .................................................................. 229,466 143,623 Available-for-sale securities............................. .................................................... -- 467,438 Trade accounts receivable, less allowance for doubtful accounts of $365,000 and $180,000, respectively......... ......................................................... 3,387,907 2,727,883 Inventories............................................... ...................................................................... 1,783,905 1,890,480 Prepaids and other current assets......................... ................................................ 416,666 234,936 -------------- ------------ ---------- Total current assets.................................. ......................................................... 10,254,220 5,464,660 Property and Equipment, net................................. ........................................................ 499,874 346,419 Receivable From Officer/Stockholder......................... ................................................ -- 201,512 Mining Assets............................................... ...................................................................... 190,000 748,276 Investment in Digital River................................. ........................................................ 106,500,000 839,202 -------------- ------------ ---------- $$ 117,444,094 $$ 7,600,069 ============ ========== -------------- ------------ -------------- ------------ LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving line of credit.................................. ......................................................... $ 7,395 $ 765,728 Current maturities of long-term debt...................... ............................................. 15,000 80,000 Accounts payable.......................................... ................................................................. 5,008,449 2,816,959 Accrued compensation and benefits......................... ................................................ 205,156 239,748 Other accrued expenses.................................... ........................................................... 1,404,776 791,743 Dividend payable to officer/shareholder................... .......................................... 200,000 200,721 -------------- ------------ ---------- Total current liabilities............................. .................................................... 6,840,776 4,894,899 Dividend Payable to Officer/Shareholder..................... ............................................ 83,857 283,136 Long-Term Debt, less current maturities..................... ............................................ -- 15,000 Deferred Income Taxes....................................... .............................................................. 39,815,000 -- Redeemable Preferred Stock, 12% cumulative convertible, $1 par value, 1,000,000 shares authorized; 160,000 shares issued and outstanding.................................... ......................... 247,744 216,700 -------------- ------------ ---------- Commitments and Contingencies (Note 7) Stockholders' Equity: Common stock, no par value, 25,000,000 shares authorized; 11,603,075 and 10,375,037 shares issued and outstanding, respectively............................................ ......................... 3,990,200 3,189,436 Stock subscription receivable............................. .................................................... (284,000) -- Retained earnings (accumulated deficit)................... .......................................... 2,894,345 (912,539) Unrealized gain (loss) on available-for-sale securities... .......................... 63,856,172 (86,563) -------------- ------------ ---------- Total stockholders' equity............................ ................................................... 70,456,717 2,190,334 -------------- ------------ ---------- $$ 117,444,094 $$ 7,600,069 ============ ========== -------------- ------------ -------------- ------------ The accompanying notes are an integral part of these consolidated balance sheets. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31 1998 1997 1996 ------------- ------------- ------------- Net sales........................................................... $ 38,800,270 $ 36,995,277 $ 37,386,715 Cost of sales....................................................... 33,829,265 32,527,878 33,475,525 ------------- ------------- ------------- Gross profit.................................................. 4,971,005 4,467,399 3,911,190 ------------- ------------- ------------- Selling and marketing expenses...................................... 3,101,205 1,882,729 2,083,961 General and administrative expenses................................. 2,734,190 2,182,458 2,676,190 ------------- ------------- ------------- Total operating expenses...................................... 5,835,395 4,065,187 4,760,151 ------------- ------------- ------------- Income (loss) from operations....................................... (864,390) 402,212 (848,961) Gain on sale of securities.......................................... 3,780,872 26,646 -- Loss on mining assets............................................... (538,276) -- -- Interest expense, net............................................... (96,677) (85,078) (43,068) Equity in loss from Digital River................................... (1,829,207) (1,356,370) -- ------------- ------------- ------------- Income (loss) before income taxes and minority interest in losses of Digital River...................................... 452,322 (1,012,590) (892,029) Provision for income taxes.......................................... 988,000 -- -- ------------- ------------- ------------- Loss before minority interest..................................... (535,678) (1,012,590) (892,029) Minority interest in losses of Digital River........................ -- -- 275,634 ------------- ------------- ------------- Net loss.......................................................... (535,678) (1,012,590) (616,395) Preferred stock dividends........................................... 31,045 19,200 35,000 ------------- ------------- ------------- Net loss applicable to common shares.............................. $ (566,723) $ (1,031,790) $ (651,395) ------------- ------------- ------------- ------------- ------------- ------------- Net loss per common share, basic and diluted........................ $ (0.05) $ (.10) $ (.06) ------------- ------------- ------------- ------------- ------------- ------------- Weighted average common shares outstanding, basic and diluted....................................................... 11,050,724 10,374,870 10,374,870 ------------- ------------- ------------- ------------- ------------- ------------- The accompanying notes are an integral part of these consolidated financial statements. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) FOR THE YEARS ENDED DECEMBER 31 1998 1997 1996 ------------- ------------- ----------- Net loss.............................................................. $ (535,678) $ (1,012,590) $ (616,395) ------------- ------------- ----------- Other comprehensive income, net of tax: Unrealized gains (losses) on securities-- Unrealized holding gains (losses) arising during the year........................................................ 67,723,607 (199,917) (260,000) Less--Reclassification adjustment for gains included in net loss............................................................ (3,780,872) (26,646) -- ------------- ------------- ----------- Other comprehensive income (loss)..................................... 63,942,735 (226,563) (260,000) ------------- ------------- ----------- Comprehensive income (loss)........................................... $ 63,407,057 $ (1,239,153) $ (876,395) ------------- ------------- ----------- ------------- ------------- ----------- The accompanying notes are an integral part of these consolidated financial statements. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31
Appears in 1 contract
Samples: Tech Squared Inc
Notes to Consolidated Financial Statements. 28 7 25 [ERNST & YOUNG LETTERHEAD] REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To Tech Squared Inc.: AUDITORS Board of Directors Educational Medical, Inc. We have audited the accompanying consolidated balance sheets of Tech Squared Educational Medical, Inc. (a Minnesota corporation) and Subsidiaries subsidiaries as of December March 31, 1998 1994 and 1997, 1993 and the related consolidated statements of operations, comprehensive income (loss), stockholdersshareholders' equity and cash flows for each of the three years in the period ended December March 31, 19981994. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Tech Squared Educational Medical, Inc. and Subsidiaries as of December subsidiaries at March 31, 1998 1994 and 19971993, and the consolidated results of their operations and their cash flows for each of the three years in the period ended December March 31, 19981994, in conformity with the generally accepted accounting principles. XXXXXX XXXXXXXX LLP Minneapolis/s/ ERNST & YOUNG June 14, Minnesota February 191994 Educational Medical, 1999 XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS OF DECEMBER Inc. and Subsidiaries Consolidated Balance Sheets MARCH 31 1998 1997 ------------ ---------- 1994 1993 ------------------------------ ASSETS (Note 2) Current Assetsassets: Cash and cash equivalents................................. equivalents $ 4,436,276 2,745,288 $ 300 Restricted cash........................................... 229,466 143,623 Available-for-sale securities............................. -- 467,438 Trade accounts 6,533,006 Accounts receivable: Trade, less allowance for doubtful accounts of $365,000 780,000 and $180,000875,000, respectively......... 3,387,907 2,727,883 Inventories............................................... 1,783,905 1,890,480 Prepaids respectively 2,292,275 1,614,438 Income taxes refundable 680,000 -- Prepaid expenses 676,664 458,875 Deferred income taxes (Note 7) -- 177,548 ------------------------------ Total current assets 6,394,227 8,783,867 Property and equipment, net (Note 5) 2,830,689 1,146,364 Other assets: Deferred debt issuance costs, net of accumulated amortization of $173,000 and $97,000, respectively 166,506 180,378 Covenants not to compete, net of accumulated amortization of $312,000 and $50,000, respectively 1,564,724 1,199,996 Goodwill and other current intangible assets......................... 416,666 234,936 ------------ ---------- , net of accumulated amortization of $4,155,000 and $4,045,000, respectively 7,382,573 4,968,889 Other assets 102,524 20,237 ------------------------------ Total current assets.................................. 10,254,220 5,464,660 Property and Equipment, net................................. 499,874 346,419 Receivable From Officer/Stockholder......................... -- 201,512 Mining Assets............................................... 190,000 748,276 Investment in Digital River................................. 106,500,000 839,202 ------------ ---------- assets $117,444,094 18,441,243 $7,600,069 16,299,731 ============ ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Revolving line of credit.................................. $ 7,395 $ 765,728 Current maturities of long-term debt...................... 15,000 80,000 Accounts payable.......................................... 5,008,449 2,816,959 Accrued compensation and benefits......................... 205,156 239,748 Other accrued expenses.................................... 1,404,776 791,743 Dividend payable to officer/shareholder................... 200,000 200,721 ------------ ---------- Total current liabilities............................. 6,840,776 4,894,899 Dividend Payable to Officer/Shareholder..................... 83,857 283,136 Long-Term Debt, less current maturities..................... -- 15,000 Deferred Income Taxes....................................... 39,815,000 -- Redeemable Preferred Stock, 12% cumulative convertible, $1 par value, 1,000,000 shares authorized; 160,000 shares issued and outstanding.................................... 247,744 216,700 ------------ ---------- Commitments and Contingencies (Note 7) Stockholders' Equity: Common stock, no par value, 25,000,000 shares authorized; 11,603,075 and 10,375,037 shares issued and outstanding, respectively............................................ 3,990,200 3,189,436 Stock subscription receivable............................. (284,000) -- Retained earnings (accumulated deficit)................... 2,894,345 (912,539) Unrealized gain (loss) on available-for-sale securities... 63,856,172 (86,563) ------------ ---------- Total stockholders' equity............................ 70,456,717 2,190,334 ------------ ---------- $117,444,094 $7,600,069 ============ ========== The accompanying notes are an integral part of these consolidated balance sheets. XXXX XXXXXXX INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31
Appears in 1 contract
