EX-99.2 4 g18434exv99w2.htm EX-99.2 EX-99.2
EXHIBIT 99.2
Comprehensive Care Corporation
Unaudited Pro Forma Balance Sheet — December 31, 2008
                                                                 
                    Pro Forma Adjustment           Pro Forma Adjustment    
    Core   CompCare   Core   Purchase                   Reverse   Pro
    Historical   Historical   Private   Hythiam   Core   Core   Acquisition   Forma
(In Thousands)   31-Dec-08   31-Dec-08   Transaction   Interest   Consol. (g)   Acquisition   ADJ   Consol.
Assets
                                                               
Current assets:
                                                               
Cash and cash equivalents
    503       1,136       1,000 (a)     (1,500 ) (b)     1,139                   1,139  
Net accounts receivable
          1,581                   1,581                   1,581  
Other current assets
           336                    336                    336  
 
                                                               
Total current assets
    503       3,053       1,000       (1,500 )     3,056                   3,056  
Property and equipment, net
          235                   235                   235  
Unallocated assets
                      13,258 (c) (d)     13,258                   13,258  
Goodwill, net
    25       991             (991 ) (e)     25                   25  
Other assets
           326                   326                    326  
 
                                                               
Total assets
    528       4,605       1,000       10,767       16,900                   16,900  
 
                                                               
 
                                                               
Liabilities and Equity
                                                               
Current liabilities:
                                                               
Accounts payable and accrued liabilities
    149       1,972                   2,121                   2,121  
Accrued claims payable
          6,791                   6,791                   6,791  
 
                                                               
Total current liabilities
    149       8,763                   8,912                   8,912  
 
                                                               
 
                                                               
Long-term liabilities:
                                                               
Long-term debt
          2,444                   2,444                   2,444  
Other liabilities
          2,589                   2,589                   2,589  
 
                                                               
Total long-term liabilities
          5,033                   5,033                   5,033  
 
                                                               
Total liabilities
          13,796                   13,945                   13,945  
 
                                                               
 
                                                               
Stockholders’ equity (deficit)
                                                               
Preferred stock
          720             (720 ) (e)           217 (h)           217  
Common stock
    18       83       4 (a)     (83 ) (e)     22       86 (i)     61 (j)     169  
Common stock subscribed
    4             (4 )                              
Treasury stock
                                  17 (i)     (17 ) (k)      
Additional paid-in capital
    1,516       57,919             (57,919 ) (e)     1,516       1,251 (h)(i)     (44 ) (j)     2,723  
Common stock subscriptions receivable
    (1,000 )           1,000 (a)                              
Retained earnings (accumulated deficit)
    (159 )     (67,918 )           67,918 (e)     (159 )                 (159 )
 
                                                               
Total stockholders’ equity (deficit)
    379       (9,196 )     1,000       9,196       1,379       1,571             2,950  
 
                                                               
Noncontrolling interest
          5             1,571 (f)     1,576       (1,571 ) (h)(i)           5  
 
                                                               
Total liabilities and equity
    528       4,605       1,000       10,767       16,900                   16,900  
 
                                                               


 

Notes:
(a)   Represents an issuance of 4,000,000 shares of Core Corporate Consulting Group, Inc. (Core) at $0.001 par value for $1,000,000 through a private transaction, as if it had been completed on December 31, 2008. There was no significant cost related to the transaction.
 
(b)   Reflects the purchase of Hythiam’s 48.85% interest in CompCare for $1,500,000, as if it had been completed on December 31, 2008.
 
(c)   The valuation of intangible assets such as customer contracts, provider network, and NCQA certification has not been completed yet.
 
(d)   Represents the excess amount of the acquisition cost and the fair value of noncontrolling interest over the carrying value of CompCare’s net assets acquired, as if the purchase had been completed on December 31, 2008:
 
         
 
  ($ In Thousands)
Total assets
    4,605  
Less:
       
Goodwill, net
    (991 )
Total liabilities
    (13,796 )
Total noncontrolling interest
    (5 )
 
       
Carrying value of CompCare’s net assets acquired
    (10,187 )
 
       
         
 
  ($ In Thousands)
Implied purchase price
    3,071  
Less:
       
Carrying value of CompCare’s net assets acquired
    (10,187 )
 
       
Unallocated assets
    13,258  
 
       
 
(e)   Elimination of CompCare’s historical balances.
 
(f)   Represents the estimated fair value of net assets acquired attributable to noncontrolling interest, as if the acquisition had been completed on December 31, 2008.
 
(g)   Core’s consolidated balance sheet as if it was prepared on December 31, 2008. Except for identifiable intangible assets, CompCare’s assets and liabilities approximate fair value.
 
(h)   Reflects the issuance of 1,675 shares of Series B-1 Convertible Preferred Stock at $50 par value, and 2,665 shares of Series B-2 Convertible Preferred Stock at $50 par value to acquire Core.
 
(i)   Reflects the issuance of 10,294,725 shares of common stock at $0.01 par value and the reacquisition of 1,739,130 shares of common stock owned by Core.
 
(j)   Represents the adjustment to reflect the equity structure of CompCare (Accounting Acquiree) in a reverse acquisition, as if the acquisition had been completed on December 31, 2008.
 
(k)   Cancels 1,739,130 shares of CompCare common stock reacquired during the acquisition of Core.

 


 

Comprehensive Care Corporation
Unaudited Pro Forma Statement of Operations
For the Twelve Months Ended December 31, 2008
                                                                 
                    Pro Forma Adjustment           Pro Forma Adjustment    
    Core   CompCare   Core   Purchase                   Reverse   Pro
    Historical   Historical   Private   Hythiam   Core   Core   Acquisition   Forma
(In Thousands, except per share data)   31-Dec-08   31-Dec-08   Transaction   Interest   Consol. (g)   Acquisition   ADJ   Consol.
 
                                                               
Revenues:
    10       35,156                   35,166                   35,166  
Operating expenses:
                                                               
Healthcare operating expenses
          36,496                   36,496                   36,496  
General administrative expenses
     169       3,742                   3,911                   3,911  
Other operating expenses
          104              640 (b)     744                   744  
 
                                                               
Total operating expenses
    169       40,342             640       41,151                   41,151  
 
                                                               
 
                                                               
Loss from operations
    (159 )     (5,186 )           (640 )     (5,985 )                 (5,985 )
 
Other non-operating income, net
          5                   5                   5  
Interest income
          26                   26                   26  
Interest expense
          (192 )                 (192 )                 (192 )
 
                                                               
Loss before income taxes from continuing operations
    (159 )     (5,347 )           (640 )     (6,146 )                 (6,146 )
Provision for income taxes
          5                   5                   5  
 
                                                               
Net loss from continuing operations
    (159 )     (5,352 )           (640 )     (6,151 )                 (6,151 )
 
                                                               
Net loss from continuing operations per common share:
                                                               
Basic and diluted
  $ (0.01 )   $ (0.67 )                   $ (0.28 )                   $ (0.37 )
Weighted average shares outstanding:
                                                               
Basic and diluted
    17,600       7,954       4,000 (a)     (7,954 )(c)     21,600       10,295 (d)     (21,600 )(e)     16,510  
 
                                                    7,954 (e)        
 
                                                    (1,739 )(f)        

 


 

Notes:
 
(a)   Represents an issuance of 4,000,000 shares of Core Corporate Consulting Group, Inc. (Core) at $0.001 par value for $1,000,000 through a private transaction, as if it had been completed on December 31, 2008. There was no significant cost related to the transaction.
 
(b)   Represents the estimated amortization of intangible assets acquired, as if the transaction had been completed on January 1, 2008. The estimated useful life is assumed at 3 years. The amortization is being recognized using the straight-line method.
 
(c)   Reflects the elimination of CompCare’s historical balances, as if the transaction had been completed on January 1, 2008.
 
(d)   Represents the issuance of 10,294,725 shares of CompCare common stock in connection with Core acquisition, as if it had been completed on January 1, 2008.
 
(e)   Represents the adjustment to reflect the equity structure of CompCare (Accounting Acquiree) in a reverse acquisition, as if the acquisition had been completed on January 1, 2008.
 
(f)   Cancels 1,739,130 shares of CompCare common stock reacquired during the acquisition, as if the cancellation had been done on January 1, 2008.