EX-99.1 4 p16974_ex99-1.txt PRO FORMA FINANCIAL STATEMENTS Exhibit 99.1 Pro Forma Financial Statements Introduction On April 14, 2003 the Company sold to Niche Marketing the assets and worldwide ownership rights to the REALM(R) Women, REALM(R) Men and inner REALM(R) product lines. Included in the sale were all trademarks, trade names, trade dress, goodwill and inventory. The following pro forma balance sheet and income statement presents the effect that the sale of REALM(R) Women, REALM(R) Men and inner REALM(R) product line would have had on the Company's 2002 operating results and on the year-end balance sheet. Human Pheromone Sciences, Inc. Consolidated Balance Sheet - Pro Forma
Previously Pro Forma (in thousands except share data) reported Adjustments balance -------- ----------- -------- Assets Current assets: Cash and cash equivalents $ 1,394 $ 1,429 $ 2,823 Accounts receivable, net of allowances of $70 249 70 319 Inventory, net 529 (379) 150 Other current assets 26 -- 26 -------- ------- -------- Total current assets 2,198 1,120 3,318 Property and equipment, net 5 -- 5 Product licenses 149 (99) 50 -------- ------- -------- $ 2,352 $ 1,021 $ 3,373 ======== ======= ======== Liabilities, Convertible Redeemable Preferred Stock and Shareholders' Deficiency Current liabilities: Accounts payable $ 201 $ (72) $ 129 Deferred income 315 (315) -- Accrued income taxes -- 111 111 Accrued professional fees 57 -- 57 Accrued vacation 34 -- 34 Other accrued expenses 19 -- 19 -------- ------- -------- Total current liabilities 626 (276) 350 Commitments and Contingencies Convertible redeemable preferred stock: Preferred stock, issuable in series, no par value, 10,000,000 shares authorized: Series AA 1,433,333 convertible shares issued and outstanding, total liquidation value $2,150; 2,146 -- 2,146 Series BB 17,448 convertible shares issued and outstanding, total liquidation value $1,745 1,560 -- 1,560 -------- ------- -------- Total convertible redeemable preferred stock 3,706 -- 3,706 -------- ------- -------- Shareholders' deficiency: Common stock, no par value, 13,333,333 shares authorized, 3,429,839 shares issued and outstanding 17,667 -- 17,667 Foreign currency translation (66) -- (66) Accumulated deficit (19,581) 1,297 (18,284) -------- ------- -------- Total shareholders' deficiency (1,980) 1,297 (683) -------- ------- -------- $ 2,352 $ 1,021 $ 3,373 ======== ======= ========
Human Pheromone Sciences, Inc. Consolidated Statements of Operations and Comprehensive Loss - Pro Forma Year ending December 31, 2002
Previously Pro Forma (in thousands except per share data) reported Adjustments balance ------------------------------------------------------ -------- ----------- ------- Net revenue, including license fees of $463 $ 1,956 $(1,403) $ 553 Cost of goods sold 693 (542) 151 ------- ------- ------- Gross profit 1,263 (861) 402 ------- ------- ------- Operating expenses: Research and development 296 -- 296 Selling, general and administrative 1,140 (94) 1,046 ------- ------- ------- Total operating expenses 1,436 (94) 1,342 ------- ------- ------- Loss from operations (173) (767) (940) ------- ------- ------- Other (expense) income Interest income (expense) 21 -- 21 Other (expense) (61) 61 -- ------- ------- ------- Total other income (expense) (40) 61 21 ------- ------- ------- Net loss from continuing operations (213) (706) (919) Net income and net gain on assets to be sold -- 2,003 2,003 ------- ------- ------- Net income (loss) available to common shareholders (213) 1,297 1,084 Other comprehensive income (loss) - translation adjustment 2 -- 2 ------- ------- ------- Comprehensive income (loss) $ (211) $ 1,297 $ 1,086 ======= ======= ======= Net (loss) per common share-basic From continuing operations $ (0.06) $ (0.20) $ (0.26) ======= ======= ======= Net income (loss) $ (0.06) $ 0.37 $ 0.31 ======= ======= ======= Net (loss) per common share-fully diluted From continuing operations $ (0.06) $ (0.20) $ (0.26) ======= ======= ======= Net income (loss) (0.06) 0.25 0.19 ======= ======= ======= Weighted average common shares outstanding - basic 3,430 3,430 ======= ======= Weighted average common shares outstanding - fully diluted 3,430 5,695 ======= =======
Human Pheromone Sciences, Inc. Notes to Pro Forma Financial Statements December 31, 2002 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Net Earnings (Loss) Per Share The Company follows the provisions of SFAS No. 128, Earnings Per Share. SFAS No. 128 provides for the calculation of "Basic" and Diluted" earning per share. Basic earnings (loss) per share is computed using the weighted-average number of common shares outstanding. Diluted earnings (loss) per share are computed using the weighted-average number of common shares and dilutive common shares outstanding during the period. For the years ended December 31, 2002 options to purchase 482,000 shares of common stock, respectively, were excluded from the computation of diluted earnings per share since their effect would be antidilutive.