Exhibit 99.1 (c) 3
ARCLIGHT SYSTEMS LLC
Unaudited Statements of Cash Flows
Nine months ended September 30, 2003 and 2002
2003 | 2002 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (20,536,245 | ) | $ | 56,707,381 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Net income from discontinued operations | (1,635,331 | ) | (76,544,403 | ) | ||||
Depreciation | 949,504 | 1,258,859 | ||||||
Amortization of intangible assets | 2,825,514 | 2,320,191 | ||||||
Amortization of capitalized software | 370,755 | 113,538 | ||||||
Net loss from disposal of assets | — | 550,682 | ||||||
Non-cash data costs | 153,126 | — | ||||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | (23,000 | ) | — | |||||
Prepaid expenses and other assets | 321,589 | (407,962 | ) | |||||
Accounts payable | 376,810 | (24,670 | ) | |||||
Payable to Cardinal Health | (352,294 | ) | (761,659 | ) | ||||
Other assets and liabilities, net of investing activity related accruals | 216,448 | 1,743,838 | ||||||
Net cash used in continuing operations | (17,333,124 | ) | (15,044,205 | ) | ||||
Net cash from discontinued operations | 2,110,041 | 4,768,471 | ||||||
Net cash used in operating activities | (15,223,083 | ) | (10,275,734 | ) | ||||
Cash flows from investing activities: | ||||||||
Net proceeds from sale of ScriptLINE business | — | 77,950,455 | ||||||
Purchases of property and equipment | (413,331 | ) | (434,697 | ) | ||||
Capitalized software | (54,632 | ) | (906,537 | ) | ||||
Net cash provided by (used in) investing activities | (467,963 | ) | 76,609,221 | |||||
Cash flows from financing activities: | ||||||||
Proceeds from issuance of note payable to related parties | — | 4,000,000 | ||||||
Repayments of notes payable to related parties | — | (9,000,000 | ) | |||||
Distributions | (3,154,708 | ) | — | |||||
Net cash used in financing activities | (3,154,708 | ) | (5,000,000 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (18,845,754 | ) | 61,333,487 | |||||
Cash and cash equivalents at beginning of period | 56,212,589 | 937,350 | ||||||
Cash and cash equivalents at end of period | $ | 37,366,835 | $ | 62,270,837 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | — | $ | 114,045 | ||||
Noncash financing activities: | ||||||||
Intangible assets received through the issuance of Class B and C units | $ | — | $ | 3,542,285 | ||||
See accompanying notes to financial statements.