EX-99.01 3 a2058706zex-99_01.htm EXHIBIT 99.01 Prepared by MERRILL CORPORATION
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Exhibit 99.01

HYBRID NETWORKS,INC.
Balance Sheet
July 2001 with pro forma
 (amounts in thousands)

    The following pro forma adjustments to the Company's historical unaudited balance sheet as of July 31, 2001 show the effect of the conversion of $7.5 million of convertible debentures plus accrued interest expense into 7,560 shares of newly issued Series K preferred stock, with a par value of $0.001 per share and a face value of $1,000 per share, which took place on August 13, 2001, and which was reported in the Company's S-3 filing with the SEC on August 17, 2001.

    The entities involved were the Halifax Fund LLP (investor) and Hybrid Networks, Inc. (issuer).

 
   July 2001
Actual
   Pro Forma
Adjustments
    
   July 2001
Pro Forma
ASSETS                      
  Cash & equivalents   $ 2,506   $ —       $ 2,506
  Accounts receivable     4,323     —         4,323
  Inventories-net     4,684     —         4,684
  Prepaid expenses     105     —         105
   
 
     
    Total current assets     11,618     —         11,618
  Fixed assets-net     1,913     —         1,913
  Other assets     895     (724 ) a     171
   
 
     
    Total assets   $ 14,426   $ (724 )     $ 13,702
   
 
     

LIABILITIES AND STOCKHOLDER'S EQUITY
 
 
 
 
 

Current liabilities:
 
 
 
 
 
 
 
 
 
 
 
  Accounts payable   $ 2,867   $ —       $ 2,867
  Accrued liabilities     2,200     (38 ) b     2,162
  Convertible debenture     5,500     —         5,500
   
 
     
    Total current liabilities     10,567     (38 )       10,529
 
Convertible notes-net
 
 
2,888
 
 
(2,887
)
c
 
 
1
  Other long term liabilities     135     —         135
   
 
     
    Total liabilities     13,590     (2,925 )       10,665
 
Stockholder equity
 
 
836
 
 
2,887
 
c
 
 
3,037
            38   b      
            (724 ) a      
   
 
     
  Total stockholder equity     836     2,201         3,037
   
 
     
    Total liabilities and stockholder's equity   $ 14,426   $ (724 )     $ 13,702
   
 
     
a
Unamortized balance of financing fees related to converted debenture to additional paid-in-capital.

b
Accrued interest through 7/31/2001 on convertible debenture to be added to amount converted to preferred shares

c
Original convertible principal ($7,500,000) plus accrued interest through 6/30/2001 ($11,000), less remaining beneficial conversion balance ($4,624,000).


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