Let's see if I can explain this.
Pro forma financial statements are financial statements adjusted to reflect a projected
or planned transaction. As a financial statement showing the forecast or projected
operating results and balance sheet, as in pro forma income statements,
balance sheets, and statements of cash flows.
In other words, they have a projected income of $7,273,847,
amortization of 19,425,479, (now keep in mind that amortization of intangibles,
is a non-cash outlay)
Profit from operations 3,376,723
Interest income 3,897,124
=====================================================
Go2Net, Inc.
Unaudited Pro Forma Condensed Statements of Operations (A)
Three Months Ended
December 31, 1999 December 31, 1998
Revenue $14,002,230 $2,600,040
Cost of revenue 2,356,691 688,092
Gross profit 11,645,539 1,911,948
Operating expenses:
Sales and marketing 3,587,917 920,883
General and administrative 3,314,984 733,561
Product development 1,365,915 394,926
Total operating expenses 8,268,816 2,049,370
Income/(loss) from operations 3,376,723 (137,422)
Interest income, net 3,897,124 115,772
Pro forma income/(loss) $7,273,847 $(21,650)
Diluted pro forma income/(loss)
per common share (B) $0.16 $(0.00)
Shares used in computing
diluted pro forma income/(loss)
per common share (B) 46,859,380 29,383,388
(A) These financial statements exclude federal income tax benefit, stock compensation,
merger related-expenses and amortization of intangibles, which are summarized in the
following table. They do not purport to be financial statements prepared in accordance
with Generally Accepted Accounting Principles.
The following table reconciles the pro forma net income/(loss)
excluding these charges to net loss for the periods presented.
(B) Pro forma basic net income/(loss) per share is $0.16 and $(0.00) for the three months
ended December 31, 1999 and December 31, 1998, respectively.
Go2Net, Inc.
Reconciliation of Pro Forma Income/(Loss) to Net Loss
(Unaudited)
Three Months Ended
December 31, 1999 December 31, 1998
Pro forma income/(loss) $7,273,847 $(21,650)
Merger related costs -- 650,257
Stock compensation expense 2,689 70,947
Amortization of intangibles 19,425,479 --
Federal income tax benefit (847,907) --
Net loss applicable to
common shareholders $(11,306,414) $(742,854)
Go2Net, Inc.
Unaudited Condensed Statements of Operations
Three Months Ended
December 31, 1999 December 31, 1998
Revenue $14,002,230 $2,600,040
Cost of revenue 2,356,691 688,092
Gross profit 11,645,539 1,911,948
Operating expenses:
Sales and marketing 3,587,917 920,883
General and administrative 3,314,984 733,561
Product development 1,365,915 394,926
Merger related costs -- 650,257
Stock compensation expense 2,689 70,947
Amortization of intangibles 19,425,479 --
Total operating expenses 27,696,984 2,770,574
Loss from operations (16,051,445) (858,626)
Interest income, net 3,897,124 115,772
Loss before taxes (12,154,321) (742,854)
Income tax benefit 847,907 --
Net loss $(11,306,414) $(742,854)
Basic and diluted net loss
per common share $(0.38) $(0.03)
Shares used in computing
basic and diluted net loss
per common share 30,035,238 25,250,308
Diluted pro forma income/(loss)
per common share before nonrecurring
charges, non cash charges and
income tax benefit $0.16 $(0.00)
Shares used in computing diluted
pro forma income/(loss)
per common share 46,859,380 29,383,388
Go2Net, Inc.
Condensed Balance Sheets
(Unaudited)
December 31, 1999 September 30, 1999
Assets
Current assets:
Cash and cash equivalents $66,364,315 $66,786,513
Short-term investments 170,591,000 151,000,000
Trade accounts receivables, net 6,887,981 5,712,977
Other accounts receivable 3,609,120 3,818,410
Deferred tax asset, net 2,374,484 2,144,637
Prepaid expenses and
other current assets 666,128 750,848
Total current assets 250,493,028 230,213,385
Property and equipment, net 3,879,449 3,254,594
Other assets 1,093,764 1,164,553
Long-term investments 44,659,793 53,771,208
Investments in affiliates 92,151,301 21,676,129
Deposits 250,000 250,000
Intangibles, net 198,981,373 197,929,199
Total assets $591,508,708 $508,259,068
Liabilities and
stockholders' equity
Current liabilities:
Accounts payable $878,616 $1,253,843
Accrued expenses $2,989,570 $3,139,409
Accrued compensation
and benefits 938,275 2,425,013
Deferred revenue 6,688,740 3,072,755
Total current liabilities 11,495,201 9,891,020
Deferred revenue 479,355 530,796
Deferred tax liability 38,499,559 16,905,877
Commitments and contingencies -- --
Stockholders' equity:
Preferred stock 450,872,103 450,927,510
Common stock 67,748,463 42,721,806
Accumulated other
comprehensive income 48,938,726 2,500,337
Accumulated deficit (26,524,699) (15,218,278)
Total stockholders' equity 541,034,593 480,931,375
Total liabilities and
stockholders' equity $591,508,708 $508,259,068 |
