EX-99.2 3 a07-15668_1ex99d2.htm EX-99.2

Exhibit 99.2

Unaudited Interim Financial Statements
PATHFIRE, INC.
Balance Sheets
March 31, 2007 and 2006

 

 

 

2007

 

2006

 

Assets

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

1,739,610

 

$

2,119,348

 

Accounts receivable, less allowances of $105,017 in 2007 and $95,447 in 2006

 

2,566,648

 

2,323,896

 

Inventory

 

46,273

 

375,425

 

Prepaid and other current assets

 

322,690

 

346,908

 

Total current assets

 

4,675,221

 

5,165,577

 

Property and equipment, net

 

3,271,460

 

3,601,989

 

Other assets

 

1,479,958

 

1,827,049

 

 

 

$

9,426,639

 

$

10,594,615

 

 

 

 

 

 

 

Liabilities, Convertible Preferred Stock and Warrants,and Stockholders’ Deficit

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

860,221

 

$

666,361

 

Accrued expenses

 

1,067,350

 

498,528

 

Deferred revenue

 

2,020,821

 

3,806,069

 

Capital lease obligations

 

36,843

 

9,011

 

Long-term Debt

 

2,389,668

 

1,309,006

 

Total current liabilities

 

6,374,903

 

6,288,975

 

 

 

 

 

 

 

Long-term debt, less current portion

 

2,227,777

 

2,051,243

 

Deferred revenue, less current portion

 

1,452,962

 

 

Capital lease obligations, less current portion

 

125,287

 

3,571,003

 

Total long-term liabilities

 

3,806,026

 

5,622,246

 

Total liabilities

 

10,180,929

 

11,911,221

 

Total redeemable convertible preferred stock and warrants

 

131,933,358

 

125,843,440

 

 

 

 

 

 

 

Stockholders’ deficit:

 

 

 

 

 

Series E convertible preferred stock, no par value;

 

273,188

 

273,188

 

Series E-1 convertible preferred stock, no par value

 

 

 

Unamortized contract incentive, Series E, Series F and Series K

 

(11,817

)

(449,445

)

Common stock, no par value

 

232,985

 

232,905

 

Additional paid-in capital

 

4,674,620

 

7,263,528

 

Accumulated deficit

 

(137,856,283

)

(134,479,881

)

Treasury stock, at cost

 

(341

)

(341

)

Total stockholders’ deficit

 

(132,687,648

)

(127,160,046

)

 

 

$

9,426,639

 

$

10,594,615

 

 




 

Unaudited Interim Financial Statements
PATHFIRE, INC.
Statements of Operations
Three Months Ended March 31, 2007 and 2006

 

 

2007

 

2006

 

Revenue

 

$

4,267,144

 

$

3,204,730

 

 

 

 

 

 

 

Costs and expenses:

 

 

 

 

 

Delivery and material costs

 

648,768

 

470,239

 

Customer support operations

 

1,321,100

 

1,337,140

 

Engineering, research, and development

 

757,528

 

779,608

 

Sales and marketing

 

598,658

 

623,168

 

General and administrative

 

685,353

 

439,631

 

Depreciation and amortization

 

611,980

 

608,048

 

Loss from operations

 

(356,243

)

(1,053,104

)

Other income (expense)

 

 

 

 

 

Interest income

 

29,458

 

22,109

 

Interest expense

 

(176,526

)

(165,291

)

Gain(loss) on sale of property and equipment

 

 

 

Total other income (expense)

 

(147,068

)

(143,182

)

Net loss

 

$

(503,311

)

$

(1,196,286

)

 




 

Unaudited Interim Financial Statements
PATHFIRE, INC.
Statements of Cash Flows
Three Months Ended March 31, 2007 and 2006

 

 

2007

 

2006

 

Cash flows from operating activities:

 

 

 

 

 

Net loss

 

$

(503,311

)

$

(1,196,286

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation and amortization of property and equipment

 

611,980

 

608,048

 

Amortization of debt discount

 

16,578

 

24,678

 

Other noncash charges

 

275,547

 

114,027

 

(Gain) Loss on sale assets

 

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Accounts receivable

 

148,611

 

(462,826

)

Inventory

 

91,214

 

12,274

 

Prepaid expenses and other current assets

 

(122,134

)

113,318

 

Accounts payable and other liabilities

 

(319,641

)

(569,254

)

Deferred revenue

 

(1,478,161

)

436,589

 

Net cash used in operating activities

 

(1,279,317

)

(919,432

)

Cash flows used in investing activities:

 

 

 

 

 

Purchase of property and equipment

 

(121,556

)

(194,945

)

Proceeds from sale of property and equipment

 

 

 

 

 

Net cash used in investing activities

 

(121,556

)

(194,945

)

Cash flows from financing activities:

 

 

 

 

 

Proceeds from issuance of common stock

 

 

981

 

Proceeds from issuance of convertible preferred stock, net of issuance costs

 

 

 

Proceeds from the issuance of long-term debt

 

 

 

Short-term borrowings (payments) on revolving line of credit

 

 

 

Payments on long-term debt and capital lease obligations

 

(19,280

)

(13,452

)

Net cash used in financing activities

 

(19,280

)

(12,471

)

Net change in cash and cash equivalents

 

(1,420,153

)

(1,126,848

)

Cash and cash equivalents at beginning of period

 

3,159,763

 

3,246,196

 

Cash and cash equivalents at end of period

 

$

1,739,610

 

$

2,119,348

 

 




 

Unaudited Interim Financial Statements
PATHFIRE, INC.
Statements of Stockholders’ Deficit
For the three-month period ended March 31, 2007

 

 

Series E

 

Unamortized

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

 

 

 

convertible preferred stock

 

contract

 

Common stock

 

paid-in

 

Accumulated

 

Treasury stock

 

 

 

 

 

Shares

 

Amount

 

incentive

 

Shares

 

Amount

 

capital

 

deficit

 

Shares

 

Amount

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2006

 

1,743,756

 

273,188

 

(120,939

)

7,033,986

 

232,985

 

5,619,161

 

(137,312,972

)

1,024,998

 

(341

)

(131,308,918

)

Amortization of contract incentive

 

 

 

109,122

 

 

 

 

 

 

 

109,122

 

Accrued dividends on Series L preferred stock

 

 

 

 

 

 

 

(40,000

)

 

 

(40,000

)

Accretion on convertible preferred stock and warrants

 

 

 

 

 

 

(944,541

)

 

 

 

(944,541

)

Net loss

 

 

 

 

 

 

 

(503,311

)

 

 

(503,311

)

Balance at March 31, 2007

 

1,743,756

 

$

273,188

 

$

(11,817

)

7,033,986

 

$

232,985

 

$

4,674,620

 

$

(137,856,283

)

1,024,998

 

$

(341

)

$

(132,687,648

)