EX-99.2 3 ilinc_8k-ex9902.txt Exhibit 99.2 ILINC COMMUNICATIONS, INC. AND SUBSIDIARIES PRO FORMA UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET (IN THOUSANDS) March 31, Pro Forma Pro Forma 2008 Adjustments As Adjusted ---------------------------------------------------- Assets Current assets: Cash and cash equivalents $ 669 $ 669 Certificate of deposit 373 373 Accounts receivable, net 627 627 Prepaid and other current assets 272 272 Held for sale - assets 3,145 (372) (A) 2,773 ---------------------------------------------------- Total current assets 5,086 4,714 Property and equipment, net 566 566 Goodwill 9,520 9,520 Intangible assets, net 869 869 Other assets 14 14 ---------------------------------------------------- Total assets $ 16,055 $ 15,683 ==================================================== Liabilities and Shareholders' Equity Current liabilities: Current portion of long term debt $ 95 $ 95 Accounts payable trade 612 612 Accrued liabilities 751 751 Current portion of capital lease liabilities 120 120 Deferred revenue 1,507 1,507 Held for sale - liabilities 778 (224) (A) 554 ---------------------------------------------------- Total current liabilities 3,863 3,639 Long term debt, less current maturities, net of discount and beneficial conversion feature 7,535 7,535 Capital lease liabilities, less current maturities 256 256 Deferred tax liability 384 384 ---------------------------------------------------- Total liabilities 12,038 11,814 ---------------------------------------------------- Shareholders' Equity Preferred stock series A & B, 10,000,000 shares authorized: Series A preferred stock, .001 par value, 105,000 shares outstanding -- -- Series B preferred stock, .001 par value, 59,500 shares outstanding -- -- Common Stock 35 35 Additional paid-in capital 46,498 46,498 Accumulated deficit (41,108) (148) (A) (41,256) Less: 1,432,412 treasury shares at cost (1,408) (1,408) ---------------------------------------------------- Total shareholders' equity 4,017 3,869 ---------------------------------------------------- Total liabilities and shareholders' equity $ 16,055 $ 15,683 ==================================================== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS. ILINC COMMUNICATIONS, INC. PRO FORMA CONDENSED COMBINED STATEMENT OF OPERATIONS FOR THE TWELVE MONTHS ENDED MARCH 31, 2008 (IN THOUSANDS, EXCEPT PER SHARE DATA) Twelve months ended Pro Forma Pro Forma March 31, 2008 Adjustments As Adjusted -------------------------------------------------------- Revenues Software licenses $ 3,235 $ 3,235 Subscription and hosting services 2,810 2,810 Software maintenance and other services 2,768 2,768 -------------------------------------------------------- TOTAL REVENUES 8,813 8,813 -------------------------------------------------------- Cost of revenues Software licenses 126 126 Subscription and hosting services 437 437 Software maintenance and other services 803 803 Amortization of technology 158 158 -------------------------------------------------------- TOTAL COST OF REVENUES 1,524 1,524 -------------------------------------------------------- GROSS PROFIT 7,289 7,289 -------------------------------------------------------- Operating expenses Research and development 2,127 2,127 Sales and marketing 4,571 4,571 General and administrative 2,772 2,772 -------------------------------------------------------- Total operating expenses 9,470 9,470 -------------------------------------------------------- Loss from operations (2,181) (2,181) Interest expense (1,242) (1,242) Amortization of beneficial debt conversion (116) (116) -------------------------------------------------------- Total interest expense (1,358) (1,358) Interest charges and other (24) (24) Loss from continuing operations before income taxes (3,563) (3,563) Income tax expense (85) (85) -------------------------------------------------------- Loss from continuing operations (3,648) (3,648) Income from discontinued operations 1,464 (248) (B),(C) 1,216 -------------------------------------------------------- Net loss (2,184) (2,432) Series A and B preferred stock dividends (134) (134) -------------------------------------------------------- Loss available to common shareholders $ (2,318) $ (2,566) ======================================================== Income (loss) per common share, basic and diluted From continuing operations $ (0.11) $ (0.11) From discontinued operations 0.04 0.04 ----------- ----------- Loss per common share $ (0.07) $ (0.07) =========== =========== Number of shares used in calculation of loss per share: Basic and diluted 33,881 33,881 =========== =========== THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE FINANCIAL STATEMENTS.
NOTES TO PRO FORMA UNAUDITED CONDENSED COMBINED FINANCIAL STATEMENTS The purchase price of the audio conferencing business has been initially allocated as if the purchase was consummated on June 30, 2008 as follows: Total Minimum Cash proceeds $ 415,000 Less: Property and equipment, net (17,000) Goodwill (153,000) Intangible assets (39,000) Liabilities related to transaction (3,000) ------------- Gain on sale $ 203,000 ============= (A) The total purchase price has initially been allocated to assets sold and liabilities extinguished based upon their estimated fair values in accordance with Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." The excess purchase price over the estimated fair value of the tangible and identifiable assets sold and liabilities extinguished has been included in retained earnings on the balance sheet. (B) Reflects the elimination of actual revenue related to the events business associated with our audio conferencing operations of $631,000 for the year ended March 31, 2008. (C) Reflects the elimination of actual expenses, primarily for salaries and benefits, telecommunications costs, rent and depreciation and miscellaneous office costs directly related to the events business associated with our audio conferencing operations of $383,000 for the year ended March 31, 2008.