PROJECTAVISION, INC.
BALANCE SHEETS
--------------------------------------------------------------------------------
December 31, September 30,
1997 1998
------------ -------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 1,331,925 $ 1,050,287
Accounts receivable-net of allowances 377,608 261,207
Inventory 1,857,604 1,950,893
Investments - -
Other current assets 1,001,629 1,028,341
----------- -----------
Total Current Assets 4,568,766 4,290,728
PROPERTY AND EQUIPMENT
Furniture, fixtures and equipment 127,128 68,421
Tooling 5,907,288 6,010,078
Computers and software 259,048 268,088
Assets under capital leases 47,989 47,989
Leasehold improvements 185,030 185,030
----------- -----------
6,526,483 6,579,606
Less: Accumulated depreciation and amortization 851,250 1,392,286
----------- -----------
Property and equipment, net 5,675,233 5,187,320
OTHER ASSETS 168,358 2,002,108
----------- -----------
TOTAL ASSETS $10,412,357 $11,480,156
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 2,466,676 $ 2,343,720
Accrued liabilities 1,070,638 405,137
Current portion of capital lease obligations 15,229 17,193
----------- -----------
Total Current Liabilities 3,552,543 2,766,050
----------- -----------
LONG-TERM LIABILITIES
Long-term portion of capital lease obligations 22,851 9,699
Other Long-Term Liabilities 250,000 250,000
Convertible Debt 900,000 140,000
----------- -----------
Total Long-term Liabilities 1,172,851 399,699
----------- -----------
TOTAL LIABILITIES 4,725,394 3,165,749
COMMITMENTS AND CONTINGENCIES - -
STOCKHOLDERS' EQUITY
Preferred Stock
Series A Preferred Stock, $.01 par value
100 shares authorized, 100 shares issued
($100,000 liquidation preference) - -
Series B Preferred Stock, $.01 par value, 434,667 shares
authorized, 351,258 shares outstanding as of December 31, 1997
and September 30, 1998 ($ 1,756,290 liquidation preference) 3,512 3,512
Series D Preferred Stock, $100 par value, 60,000 shares
authorized; 51,000 shares issued on December 31, 1997
and 36,900 on September 30, 1998 ($100 per share liquidation preference) 5,100,000 3,690,000
Series E Preferred Stock, $1,000 par value, 1,650 shares
authorized; 1,650 shares issued on December 31, 1997
and 1,510 on September 30, 1998 ($1,000 per share liquidation preference) 1,650,000 1,510,000
Series F Preferred Stock, $1,000 par value, 2,850 shares
authorized; 2,850 shares issued on September 30, 1998
($1,000 per share liquidation preference) - 2,850,000
Series G Preferred Stock, $1,000 par value, 2,400 shares
authorized; 2,400 shares issued on September 30, 1998
($1,000 per share liquidation preference) - 2,400,000
Common stock $.0001 par value - 50,000,000 shares
authorized; 19,998,997 and 31,819,751 issued and
outstanding in 1997 and 1998 respectively 1,999 3,181
Additional paid-in capital 44,535,906 49,372,834
Accumulated Deficit (45,604,454) (51,515,120)
----------- -----------
Total Stockholders' Equity 5,686,963 8,314,407
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $10,412,357 $11,480,156
=========== ===========
See Notes to Financial Statements
F-2
PROJECTAVISION, INC
STATEMENTS OF OPERATIONS (Unaudited)
--------------------------------------------------------------------------------
Three Months Ended September 30, Nine Months Ended September 30,
-------------------------------- ----------------------------------
1997 1998 1997 1998
--------- -------- -------- --------
REVENUE $ 358,784 $ 352,470 $ 409,889 $ 931,770
----------- ----------- ----------- -----------
LESS: COST OF SALES 344,517 280,805 395,629 789,072
----------- ----------- ----------- -----------
GROSS PROFIT 14,267 71,665 14,260 142,698
OPERATING EXPENSES
General and administrative 600,340 680,913 2,257,628 2,382,479
Salaries 445,642 392,725 1,167,036 1,206,983
Legal fees 304,935 65,543 1,048,571 738,476
Depreciation (13,558) 182,311 412,105 541,036
Research and development 304,750 134,114 486,634 864,412
Patent and license expense 21,679 9,112 204,200 81,758
----------- ----------- ----------- -----------
Total Operating Expenses 1,663,788 1,464,718 5,576,174 5,815,144
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (1,649,521) (1,393,053) (5,561,914) (5,672,446)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE)
(Provision for)/recovery of
allowances on advances (100,000) 1,563,433 (100,000) 1,942,290
Interest income 28,030 16,827 158,784 33,073
Interest expense - 8% Debentures (31,781) (1,796) (90,190) (16,247)
Interest expense - Amortization of
debt expense - - (89,122) (16,250)
----------- ----------- ----------- -----------
Other income/(expense) - Net (103,751) 1,578,464 (120,528) 1,942,866
----------- ----------- ----------- -----------
Net Income/(Loss) (1,753,272) 185,411 (5,682,442) (3,729,580)
Dividends on Preferred Stock (473,895) (372,589) (2,158,296) (2,181,059)
----------- ----------- ----------- -----------
Net Loss Attributable to Common
Shareholders $(2,227,167) $ (187,178) $(7,840,738) $(5,910,639)
=========== =========== =========== ===========
Net Loss per Share Attributable
to Common Shareholders $(.12) $(.01) $(.45) $(.25)
=========== =========== =========== ===========
AVERAGE NUMBER OF SHARES
OUTSTANDING 19,009,450 28,842,100 17,595,111 24,098,721
=========== =========== =========== ===========
See Notes to Financial Statements
F-3 |
