Exhibit 99.1 (c) 1
ARCLIGHT SYSTEMS LLC
Unaudited Balance Sheets
September 30, 2003 and December 31, 2002
September 30, 2003 | December 31, 2002 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 37,366,835 | $ | 56,212,589 | ||
Accounts receivable, net of allowance for doubtful accounts of $87,000 and $0 in 2003 and 2002, respectively | 23,000 | — | ||||
Prepaid expenses | 470,785 | 479,714 | ||||
Other current assets | 79,188 | 391,848 | ||||
Total current assets | 37,939,808 | 57,084,151 | ||||
Property and equipment, net of accumulated depreciation of $2,590,999 and $1,958,303 in 2003 and 2002, respectively | 2,315,887 | 2,852,060 | ||||
Capitalized software, net of accumulated amortization of $600,859 and $229,237 in 2003 and 2002, respectively | 874,719 | 1,273,342 | ||||
Intangible assets, net of accumulated amortization of $7,066,980 and $4,241,466 in 2003 and 2002, respectively | 23,481,871 | 26,307,385 | ||||
Total assets of discontinued operations | 182,430 | 1,106,828 | ||||
Total assets | $ | 64,794,715 | $ | 88,623,766 | ||
Liabilities and Members’ Equity | ||||||
Current liabilities: | ||||||
Accounts payable | $ | 704,335 | $ | 327,525 | ||
Payable to Cardinal Health | 8,526 | 360,820 | ||||
Distribution payable | 15,055,000 | 18,115,000 | ||||
Accrued payroll, bonus and related | 1,081,034 | 866,200 | ||||
Accured software development fees | — | 82,500 | ||||
Customer deposits | 1,100,000 | 1,162,500 | ||||
Other accrued expenses | 1,791,325 | 1,727,211 | ||||
Total current liabilities | 19,740,220 | 22,641,756 | ||||
Total liabilities of discontinued operations | 598,796 | 1,048,484 | ||||
Total liabilities | 20,339,016 | 23,690,240 | ||||
Members’ equity: | ||||||
Class A equity; 2,500,000 units authorized, issued and outstanding | 3,137,932 | 3,137,932 | ||||
Class B equity; 5,000,000 units authorized, 4,027,952 issued and outstanding in 2003 and 2002, respectively | 27,078,835 | 27,078,835 | ||||
Class C equity; 2,500,000 units authorized, 370,604 units issued and outstanding in 2003 and 2002, respectively | 3,700,403 | 3,547,277 | ||||
Retained earnings | 10,538,529 | 31,169,482 | ||||
Total members’ equity | 44,455,699 | 64,933,526 | ||||
Total liabilities and members’ equity | $ | 64,794,715 | $ | 88,623,766 | ||
See accompanying notes to financial statements.