EX-99.4 6 exhibit99-4_11492.txt ZAP FINANCIAL STATEMENTS EXHIBIT 99.4 ------------ Unaudited Pro Forma Condensed Combined Financial Statements The accompanying Unaudited Pro Forma Condensed Combined Statements of Operations (the " Pro Forma Statements of Operations ") for the year ended December 31, 2001 gives effect to the RAP acquisition as if it occurred on January 1, 2001 and the VV acquisition for the period from February 26, 2001 (VV was incorporated on February 26, 2001). The historical amounts for ZAP are based upon the amounts as reported in ZAP's Form 10-KSB for the year ended December 31, 2001. The Pro Forma Statements of Operations for the six months ended June 30, 2002 were based upon the unaudited financial information for RAP and VV and for ZAP the amounts were based upon the results as reported in the Form10QSB for the period. The Unaudited Pro Forma Condensed Combined Balance Sheet (the "Pro Forma Balance Sheet") gives effect to the acquisition of RAP and VV as if it had occurred on June 30, 2002. The Pro Forma Statements of Operations and Pro Forma Balance Sheet and the accompanying notes (the " Pro Forma Financial Information") should be read in conjunction with, and are qualified by, the historical financial statements of ZAP contained in the Form 10-KSB as of December 31, 2001 and the Form 10-QSB for the six months ended June 30, 2002. The Pro Forma Financial Information is intended for informational purposes only and does not purport to represent (i) the future results of operations of ZAP or (ii) the actual results of operations of ZAP had the acquisition occurred on the dates assumed. In addition, the pro forma results are not intended to be a projection of future results. 1 ZAP Unaudited Pro Forma Condensed Combined Balance Sheet June 30, 2002 (in $000's)
Zap Rap Group Voltage Pro Forma Pro Forma as Vehicles Adjustments Adjusted Assets Current Assets Cash $ 348 $ 220 $ 4 $ -- $ 572 Accounts receivable, net of allowance for doubtful accounts of $1,125 216 1,103 5 -- 1,324 Inventories 1,269 442 129 -- 1,840 Prepaid expenses and other assets 88 -- -- -- 88 -------- -------- -------- -------- -------- Total current assets 1,921 1,765 139 -- 3,825 -------- -------- -------- -------- -------- Property and Equipment, net of accumulated depreciation of $768 342 47 6 -- 395 -------- -------- -------- -------- -------- Other Assets Patents & Trademarks 274 -- -- -- 274 Goodwill 100 -- -- 2,571 2,671 Deposits and other 89 -- -- -- 89 -------- -------- -------- -------- -------- Total other assets 463 -- -- 2,571 3,034 -------- -------- -------- -------- -------- Total assets $ 2,726 $ 1,812 $ 145 $ 2,571 $ 7,254 ======== ======== ======== ======== ======== Liabilities and Stockholders' Equity (Deficit) Current Liabilities Accounts payable 50 1,313 245 -- 1,608 Accrued liabilities and other expenses 177 -- -- -- 177 Current maturities of long-term debt 119 -- -- -- 119 Current maturities of obligations under capital leases 10 -- -- -- 10 -------- -------- -------- -------- -------- Total current liabilities 356 1,313 245 -- 1,914 -------- -------- -------- -------- -------- Other Liabilities Long-Term Debt, less current maturities 235 -- -- -- 235 Obligations under capital leases, less current maturities 25 -- -- -- 25 -------- -------- -------- -------- -------- Total other liabilities 260 -- -- -- 260 -------- -------- -------- -------- -------- Stockholders' Equity (Deficit) Preferred stock, authorized 50,000 shares of no par -- -- -- -- -- Common stock, authorized 100,000 shares of no par value; issued and outstanding 3,015 shares 18,296 28 3 2,939 21,266 Retained Earnings ( Accumulated deficit) (16,186) 471 (103) (368) (16,186) -------- -------- -------- -------- -------- Total stockholders' equity (deficit) 2,110 499 (100) 2,571 5,080 -------- -------- -------- -------- -------- Total liabilities and stockholders' equity $ 2,726 $ 1,812 $ 145 $ 2,571 $ 7,254 ======== ======== ======== ======== ======== SEE ACCOMPANYING NOTES TO THE UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
1 ZAP Unaudited Pro Forma Condensed Combined Statement of Operations Six Months Ended June 30, 2002 (in $000's except per share amounts)
Zap Rap Voltage Pro Forma Pro Forma as Group Vehicles Adjustments Adjusted Net Sales $ 780 $ 3,984 $ -- $ -- $ 4,764 Cost of goods sold 540 2,984 -- -- 3,524 ------- ------- ------- ------- ------- Gross profit 240 1,000 -- -- 1,240 ------- ------- ------- ------- ------- Operating expenses Selling 133 48 -- -- 181 General and administrative 1,116 682 -- -- 1,798 Research and development 30 0 -- -- 30 ------- ------- ------- ------- ------- 1,279 730 -- -- 2,009 ------- ------- ------- ------- ------- Profit (Loss) from operations before reorganization items and extraordinary gain (1,039) 270 -- -- (769) ------- ------- ------- ------- ------- Other income (expense) Interest income (expense) (10) 1 -- -- (9) Other income (expense) 27 -- -- -- 27 ------- ------- ------- ------- ------- 17 1 -- -- 18 ------- ------- ------- ------- ------- Profit (Loss) before reorganization terms and extraordinary gain (1,022) 269 -- -- (753) ------- ------- ------- ------- ------- Reorganization items: Professional fees 165 -- -- -- 165 Provision to rejected executory contracts 31 -- -- -- 31 ------- ------- ------- ------- ------- 196 -- -- -- 196 ------- ------- ------- ------- ------- Net profit (loss) before preferred dividend and extraordinary gain (1,218) 269 -- -- (949) Preferred dividend -- -- -- -- ------- ------- ------- ------- ------- Profit (loss) before extraordinary gain (1,218) 269 -- -- (949) Extraordinary gain on forgiveness of debt (Note 2) 4,058 -- -- -- 4,058 ------- ------- ------- ------- ------- Net income $ 2,840 $ 269 $ -- $ -- $ 3,109 ======= ======= ======= ======= ======= Net loss per common share basic and diluted restated for reverse stock split (Note B) Loss per share before extraordinary gain $(1.24) $(0.18)(B) Extraordinary gain 4.14 .75 (B) ------ ------ Net gain per share-basic and diluted $ 2.90 $ .57 (B) ====== ====== Weighted average of common shares outstanding basic and diluted 980 -- -- 4,500 (B) 5,480 (B) ------- ------- ------- ------- ------- SEE ACCOMPANYING NOTES TO THE UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
2 ZAP Unaudited Pro Forma Condensed Combined Statement of Operations Year Ended December 31, 2001 (in $000's, except per share amounts)
Zap Rap Voltage Pro Forma Pro Forma Group Vehicles Adjustments as Adjusted Net Sales $ 4,998 $ 6,365 $ 60 $ -- $ 11,423 Cost of goods sold 5,850 4,937 49 -- 10,836 -------- -------- -------- -------- -------- Gross profit (loss) (852) 1,429 11 -- 588 Operating expenses Selling 1,098 647 8 -- 1,753 General and administrative 4,083 651 53 -- 4,787 Research and development 500 -- -- -- 500 Impairment of intangibles 2,610 -- -- -- 2,610 -------- -------- -------- -------- -------- 8,291 1,298 61 -- 9,650 -------- -------- -------- -------- -------- Profit (Loss) from operations (9,143) 131 (50) -- (9,062) Other income (expense) Interest expense (11) (36) (2) -- (49) Other income (expense) (44) 17 (50) -- (77) -------- -------- -------- -------- -------- (55) (19) (52) -- (126) -------- -------- -------- -------- -------- Profit (Loss) before income taxes (9,198) 112 (102) -- (9,188) Provision for income taxes 1 60 -- -- (59) -------- -------- -------- -------- -------- NET PROFIT (LOSS) $ (9,199) $ 52 $ (102) $ -- $ (9,247) -------- -------- -------- -------- -------- Net loss attributable to common shares Net loss $ (9,199) $ 52 $ (102) $ -- $ (9,247) Preferred dividend (138) -- -- -- (138) -------- -------- -------- -------- -------- $ (9,337) $ 52 $ (102) $ -- $ (9,385) ======== ======== ======== ======== ======== Net loss per common share Basic and diluted restated for the Reverse stock split (Note B) $ (8.65) $ (1.68) (B) ======== ======== Weighted average common shares outstanding 1,079 4,500(B) 5,579(B) -------- -------- SEE ACCOMPANYING NOTES TO THE UNAUDITED PRO FORMA CONDENSED FINANCIAL INFORMATION
3 Notes to the Unaudited Pro Forma Condensed Combined Financial Information (1) Pro Forma Adjustments and Assumptions (A) The consideration paid by ZAP in connection with the acquisition of RAP Group, Inc and of Voltage Vehicles consists of the following : - Zap acquired all of the outstanding stock of RAP on July 1, 2002 for 4,000,000 shares of its common stock valued at $2,640,000. - ZAP also acquired all of the outstanding stock of Voltage Vehicles for 500,000 shares of its common stock which was valued at $330,000. - Both of these transactions were approved by ZAP's Second Amended Plan of Reorganization of June 17, 2002. The following represents the allocation of the purchase price over the historical net book values of the acquired assets and assumed liabilities of RAP at June 30, 2002. (in thousands) Assets acquired: Cash......................................... $ 220 Accounts receivable ........................ 1,103 Inventory .................................. 442 Property and equipment ..................... 47 Goodwill ................................... 2,141 ------- 3,953 Liabilities assumed ........................ (1,313) ------- Purchase price ............................. $ 2,640 ======= 4 The following represents the allocation of the purchase price over the historical net book values of the acquired assets and assumed liabilities of Voltage Vehicles at June 30, 2002. (in thousands) Assets acquired: Cash........................................... $ 4 Accounts receivable .......................... 5 Inventory .................................... 129 Property and equipment ....................... 6 Goodwill ..................................... 431 ----- 575 Liabilities assumed .......................... (245) Purchase price ............................... $ 330 ===== (B) The pro forma basic and diluted net loss per share is computed by dividing the net loss attributable to common stockholders by the weighted average number of common shares outstanding. The calculation of the weighted average number of shares outstanding assumes that 4,500,000 shares of ZAP common stock issued in connection with the acquisitions of RAP and VV were outstanding as of January 1, 2001. The shares outstanding were also restated to account for ZAP's reverse stock split which occurred July 1, 2002. 5