EX-99.2 4 dex992.htm UNAUDITED BALANCE SHEET OF CODING TECHNOLOGIES AB AS OF JUNE 30, 2007 Unaudited balance sheet of Coding Technologies AB as of June 30, 2007

Exhibit 99.2

CODING TECHNOLOGIES AB

FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED

JUNE 30, 2007 and JUNE 30, 2006

TABLE OF CONTENTS

 

     Page

Consolidated balance sheet of as of June 30, 2007

    2

Consolidated income statement for the six months ended June 30, 2007 and June 30, 2006

    3

Consolidated statements of cash flows for the six months ended June 30, 2007 and June 30, 2006

    4

Notes to consolidated financial statements

    5

 

1

CODING TECHNOLOGIES AB

Balance Sheet

(in thousands of SEK)

 

     Note    June 30, 2007

Intangible assets

      

License rights

    3    16,189

Patents

    3    14,780

Tangible assets

      

Machinery and equipment

    4    3,778

Financial assets

      

Participation in association companies

    5    909
       

Total fixed assets

       35,656

Current receivables

      

Accounts receivables

       22,898

Other receivables

       432

Prepaid expenses and accrued income

    6    2,215

Cash and bank deposits

      

Bank balances

       118,406
       

Total current assets

       143,951
       

Total assets

       179,607
       

Restricted Equity

      

Share capital

    8    1,025

Statutory reserve

    8    —  

Other restricted reserves

    8    —  

Non-restricted equity

      

Share premium reserve

    8    597

Retained loss

    8    79,161

Net profit for the year

    8    20,001
       

Total equity

       100,784

Long-term liabilities

      

Convertible loan

       23,750

Warrant financing

    7    29
       

Total long-term liabilities

       23,779

Current liabilities

      

Accounts payable

       2,559

Tax liabilities

       1,677

Other current liabilities

       1,279

Accrued expenses and deferred income

    6    49,529
       

Total current liabilities

       55,044
       

Total Equity and liabilities

       179,607
       

See accompanying notes.

 

2

CODING TECHNOLOGIES AB

Income Statement

(in thousands of SEK)

 

          Six Months Ended  
     Note    June 30, 2007     June 30, 2006  

Operating income

        

Net sales

       70,594     39,551  

Operating expenses

        

Cost of sales licenses

       (6,636 )   (5,333 )

Other external expenses

       (19,618 )   (12,931 )

Personnel costs

       (21,536 )   (17,122 )

Depreciation, amortization and write downs of tangible and intangible assets

    4,5    (2,075 )   (1,608 )
               
      (49,865 )   (36,994 )
               

Net operating profit

       20,729     2,557  
               

Income or loss from financial investments

        

Writedown of financial investments

    5    —       —    

Interest income and similar profit items

    1    1,879     174  

Interest cost and similar loss items

    2    (886 )   (7 )
               
      993     167  

Profit before tax

       21,722     2,724  
               

Tax on net profit for the year

       (1,721 )   (2,074 )
               

Net profit for the year

       20,001     650  
               

See accompanying notes.

 

3

CODING TECHNOLOGIES AB

Statement of Cash Flow

(in thousands of SEK)

 

     Six Months Ended  
     June 30, 2007     June 30, 2006  

P&L generated cash flow

     

Profit before tax

    21,722     2,724  

Depreciation

    2,075     1,608  

Tax

    (1,721 )   (2,074 )
            
   22,076     2,258  

Change in working capital

     

Current receivables

    7,278     4,407  

Current liabilities

    (4,982 )   (8,826 )
            
   2,296     (4,419 )
            

Cash flow from operations

   24,372     (2,161 )

Investments

     

License rights

    (784 )   13  

Patents

    (1,512 )   —    

Machinery and equipment

    (907 )   94  

Participations in association companies

    —       0  
            
   (3,203 )   107  
            

Net cash flow

   21,169     (2,054 )

Financing

     

Translation difference

    (308 )   (534 )

Share issue

    (109 )   302  

Long term liabilities

    6     1  
            
   (411 )   (231 )

Change in cash position

    20,758     (2,285 )
            

Opening cash balance

    97,648     42,138  
        

Closing cash balance

    118,406     39,853  
            

See accompanying notes.

 

4

Note 1 Interest income and similar profit items

 

     Six Months Ended
(in thousands of SEK)    June 30, 2007    June 30, 2006

Interest income, external

    1,879    889

Exchange rate gains

    —      3,013

Dividend

    —      —  
         
   1,879    3,902

 

Note 2 Interest expense and similar loss items

 

     Six Months Ended
(in thousands of SEK)    June 30, 2007    June 30, 2006

Interest expense

    —      534

Exchange rate loss

    886    —  
         
   886    534

 

Note 3 Intangible assets

 

License rights       
(in thousands of SEK)    June 30, 2007  

Acquisition value at beginning of year

    26,531  

Purchases

    784  

Sales

    —    

Translation differences

    (42 )
      

Acquisition value at end of period (June 30, 2007)

    27,273  

Amortization at beginning of year

    (9,554 )

Amortization for the period

    (1,030 )

Sales

    —    

Translation differences

    —    
      

Amortization at end of period (June 30, 2007)

    (10,584 )

Closing balance, planned residual value

    16,689  

Patents

   
(in thousands of SEK)    June 30, 2007  

Acquisition value at beginning of year

    14,956  

Purchases

    1,512  

Sales

    —    
      

Acquisition value at end of period (June 30, 2007)

    16,468  

Amortization at beginning of year

    (1,788 )

Amortization for the period

    (400 )
      

Amortization at end of period (June 30, 2007)

    (2,188 )

Closing balance, planned residual value

    14,280  

 

5

Note 4 Tangible assets

 

Tangible assets       
(in thousands of SEK)    June 30, 2007  

Acquisition value at beginning of year

    8,227  

Purchases

    907  

Sales/discards

    —    

Translation differences

    28  
      

Acquisition value at end of period (June 30, 2007)

    9,162  

Depreciation at beginning of year

    (4,671 )

Depreciation for the period

    (713 )

Sales/discards

    —    

Translation differences

    —    
      

Depreciation at end of period (June 30, 2007)

    (5,384 )

Closing balance, planned residual value

    3,778  

 

Note 5 Financial assets

 

Participations in group companies       
(in thousands of SEK)    June 30, 2007  

Acquisition value at beginning of year

    —    

Acquisitions/divestitures

    709  
      

Acquisition value at end of period (June 30, 2007)

    709  

Participations in associated companies

(in thousands of SEK)

    June 30, 2007  

Acquisition value at beginning of year

    1,062  

Acquisitions/divestitures

    (862 )
      

Acquisition value at end of period (June 30, 2007)

    200  

 

Note 6 Accruals and prepaid items

 

Prepaid expenses and accrued income     
(in thousands of SEK)    June 30, 2007

Rent

    233

Car leasing

    21

License income

    941

Other

    1,020
    
   2,215

 

6

Accrued expenses and deferred income     
(in thousands of SEK)    June 30, 2007

Vacation pay

    2,684

Accrued wages

    726

Other accrued liabilities

    46,119
    
   49,529

 

Note 7 Debt instruments with attached warrants

 

  a) A debt instrument with a nominal value of SEK 7,130 is current and accruing no interest, and matured on 31 August 2006. The Company had deviated from the preemptive rights of shareholders in order to offer employees and stakeholders an opportunity to own shares in the Company. The debt instrument carries a detachable warrant which conveys the right to subscribe for new shares not sooner than 1 January 2005 and not later than 15 December 2007 for 7,130 shares in the Company at a subscription price of SEK 640 per share. Of the program 6,130 warrants were outstanding 31 December 2006.

 

  b) A debt instrument with a nominal value of SEK 7,820 is current and accruing no interest, and will mature as of October 1, 2008. The Company had deviated from the preemptive rights of shareholders in order to offer employees and stakeholders an opportunity to own shares in the Company. The debt instrument carries a detachable warrant which conveys the right to subscribe for new shares not sooner than 1 January, 2005 and not later than September 1, 2008 for 7,820 shares in the Company at a subscription price of SEK 1,500 per share. Of the program 7,745 warrants were outstanding 31 December 2006.

 

  c) A debt instrument with a nominal value of SEK 14,385 is current and accruing no interest, and will mature as of October 1, 2008. The Company had deviated from the preemptive rights of shareholders in order to offer employees and stakeholders an opportunity to own shares in the Company. The debt instrument carries a detachable warrant which conveys the right to subscribe for new shares not sooner than 1 January, 2005 and not later than September 1, 2008 for 14,385 shares in the Company at a subscription price of SEK 800 per share. Of the program 13,485 warrants were outstanding 31 December 2006.

 

  d) During 2004, the Company repaid a debt instrument with a nominal value of SEK 20.0 million issued to the Company’s shareholders. The debt instrument carried detachable warrants which convey the right to subscribe for new shares not sooner than 1 January, 2005 and not later than December 15, 2007 for 31,250 shares in the Company at a subscription price of SEK 640 per share. Of the program 31,250 warrants were outstanding 31 December 2006.

 

Note 8 Equity

Share capital was composed as follows as of the six months ended June 30, 2007:

 

     Number of
outstanding
shares		    Share capital,
(in thousands
of SEK)

Shares, par value SEK 1

    1,025,267    1,025

 

7

All shares convey one (1) vote

 

Share capital

    (in thousands of
SEK)		  

Amount at beginning of year

    171  

Change during the year

    855  
      

Amount at end of period (June 30, 2007)

    1,026  

Share premium reserve

    (in thousands of
SEK)		  

Amount at beginning of year

    597  

Transfer to statutory reserve

    —    

Share premium reserve of the year

    —    
      

Amount at end of period (June 30, 2007)

    597  

Other restricted reserves

    (in thousands of
SEK)		  

Amount at beginning of year

    1,059  

Translation difference

    (1,027 )

Transfer from Share premium reserve

    —    
      

Amount at end of period (June 30, 2007)

    32  

Retained loss

    (in thousands of
SEK)		  

Amount at beginning of year

    79,130  

Translation difference

    —    

Net profit for the financial year

    20,001  
      

Amount at end of period (June 30, 2007)

    99,131  

 

8