EX-99.3 5 dex993.txt UNAUDITED BALANCE SHEET EXHIBIT 99.3 REAL TIME LOGIC, INC. dba RT Logic! [GRAPHIC] INTERIM FINANCIAL STATEMENTS (UNAUDITED) SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001 REAL TIME LOGIC, INC. dba RT LOGIC! BALANCE SHEET AS OF SEPTEMBER 30, 2002 (Unaudited)
September 30, 2002 ---------------------------------------------------------------------------------------- Assets: Current Assets Cash and cash equivalents $582,932 Accounts receivable 5,511,259 Tax receivable 3,169,350 Other current assets 634,925 ---------------------------------------------------------------------------------------- Total current assets 9,898,466 ---------------------------------------------------------------------------------------- Property, plant and equipment 614,518 ---------------------------------------------------------------------------------------- $10,512,984 ---------------------------------------------------------------------------------------- Liabilities and Shareholders' Equity: Current liabilities Accounts payable $1,072,561 Accrued expenses 1,426,131 Billings in excess of revenue 1,946,096 Line of credit 802,190 ---------------------------------------------------------------------------------------- Total current liabilities 5,246,978 ---------------------------------------------------------------------------------------- Shareholders' equity Common stock 465,247 Paid in capital 4,572,838 Retained earnings 5,352,501 Notes receivable - shareholders' (5,124,580) ---------------------------------------------------------------------------------------- 5,266,006 ---------------------------------------------------------------------------------------- $10,512,984 ----------------------------------------------------------------------------------------
The accompanying notes should be read with this financial statement. REAL TIME LOGIC, INC. dba RT LOGIC! STATEMENTS OF INCOME SIX MONTHS ENDED SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001 (Unaudited)
2002 2001 ----------------- ----------------- Contract revenue $8,782,443 $6,000,964 Cost of contract revenue 6,108,380 2,874,741 ----------------- ----------------- Gross profit 2,674,063 3,126,223 Operating expenses: Selling, general and administrative expenses 1,401,183 922,020 Research and development costs 531,311 500,534 ----------------- ----------------- Income from operations 741,569 1,703,669 ----------------- ----------------- Other income 32,912 39,094 ----------------- ----------------- Income before income tax provision 774,481 1,742,763 Income tax provision (271,068) (609,967) ----------------- ----------------- Net income $503,413 $1,132,796 ================= =================
The accompanying notes should be read with this financial statement. Real Time Logic, inc. dba RTLOGIC! STATEMENTS OF CASH FLOWS SIX MONTHS ENDED SEPTEMBER 30, 2002 AND SEPTEMBER 30, 2001 (Unaudited)
2002 2001 -------------------- ------------------- Cash Flows from Operating Activities: Net income $ 503,413 $ 1,132,796 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 94,091 99,882 Changes in operating assets and liabilities: Accounts receivable (1,866,033) (965,672) Other assets 107,391 (214,295) Accounts payable 401,532 (58,241) Accrued expenses (372,327) 336,891 Billings in excess of revenue 737,739 (44,910) -------------------- ------------------- Net cash (used in) provided by operating activities (394,194) 286,451 -------------------- ------------------- Cash Flows from Investing Activities: Issuance of notes receivable-shareholders (5,124,580) - Purchases of property and equipment (72,559) (226,114) -------------------- ------------------- Net cash used in investing activities (5,197,139) (226,114) -------------------- ------------------- Cash Flows from Financing Activities: Proceeds from the issuance of common stock 1,403,488 9,000 Repurchase of common stock (18,550) (26,812) Proceeds received on line of credit 802,190 - -------------------- ------------------- Net cash used in financing activities 2,187,128 (17,812) -------------------- ------------------- Net (decrease) increase in Cash and Cash Equivalents (3,404,205) 42,525 Cash and Cash Equivalents, beginning of period 3,987,137 2,178,417 -------------------- ------------------- Cash and Cash Equivalents, end of period $ 582,932 $ 2,220,942 ==================== ===================
The accompanying notes should be read with this financial statement. REAL TIME LOGIC, INC. dba RT LOGIC! Notes to Unaudited Interim Financial Statements In the opinion of management, these interim financial statements reflect all adjustments consisting only of normal recurring accruals necessary for a fair presentation of results for such periods. The financial statements, which are condensed and do not include all disclosures included in the annual financial statements, should be read in conjunction with the consolidated financial statements of the Company for the fiscal year ended March 29, 2002 and March 30, 2001. The results of operations for any interim period are not necessarily indicative of results for the full year. In August 2002 the company loaned employees a total of $5.1 million to exercise 1,441,360 non-qualified stock options and to pay related withholding taxes. As a result of this transaction the Company will realize an income tax deduction equal to the difference in the exercise price of the options and the fair value of the Company's common stock on the date of exercise. The related income tax benefit of $3.2 million is recorded as an asset in the accompanying balance sheet as of September 30, 2002. The tax benefit is offset by a direct credit to shareholders' equity.