Acquisition and Revenues:
Effective as of September 1, 1998, the Company acquired (the "NEOS Acquisition") all of the issued and outstanding common stock of Northeast One Stop, Inc. ("NEOS"), from the sole stockholder of NEOS for approximately $3,000,000, of which $750,000 was in the form of a promissory note (of which $375,000 has been paid and the remaining $375,000 is payable by August 31, 1999), and stock options to purchase 250,000 shares of Common Stock.
As a result, the results of operations of the Company commencing as of September 1, 1998, reflect in large part the operations of NEOS. Furthermore, following the NEOS Acquisition the Company changed its fiscal year end to August 31. For the year ended August 29, 1998, NEOS had net sales of $34,793,341 and for the nine months ended May 31, 1999, NEOS had net sales of $33,740,295, which constituted approximately 99% (on a pro forma basis) and 99% (on an actual basis), respectively, of the Company's total net sales for such periods.
The way I figure it, $33,740,295.00 / 9 (Ist ( months) = $3,748,922(per month) x 3 remaining months = 11,246,764.00 for a total fiscal year of $44,987,055.00 to show up in the forth coming K.
They have had to suffer a great deal of expenses last quarter paying the note for the acquistion and adding equipment and such to expand their business.
Also what was once a minor catalog order house has grown extremely well in the past year.
:-)
GAry |
