Exhibit 99.1 (b) 2
ARCLIGHT SYSTEMS LLC
Balance Sheets
December 31, 2002 and 2001
2002 | 2001 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 56,212,589 | $ | 937,350 | |||
Accounts receivable, net of allowance for doubtful accounts of $0 in 2002 and 2001 | 601,050 | 612,951 | |||||
Prepaid expenses | 479,714 | 332,798 | |||||
Other current assets | 391,848 | 2,417 | |||||
Total assets of discontinued operations | 505,778 | 1,440,196 | |||||
Total current assets | 58,190,979 | 3,325,712 | |||||
Property and equipment, net | 2,852,060 | 3,128,751 | |||||
Capitalized software, net of accumulated amortization of $229,237 and $10,325 in 2002 and 2001, respectively | 1,273,342 | 1,870,725 | |||||
Intangible assets, net of accumulated amortization of $4,241,466 and $985,161 in 2002 and 2001, respectively | 26,307,385 | 26,021,405 | |||||
Total assets | $ | 88,623,766 | $ | 34,346,593 | |||
Liabilities and Members’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 327,525 | $ | 162,673 | |||
Payable to Cardinal Health | 444,052 | 1,102,357 | |||||
Distribution payable | 18,115,000 | — | |||||
Accrued payroll, bonus and related | 928,973 | 398,988 | |||||
Accrued software development fees | 82,500 | 1,270,382 | |||||
Customer deposits | 1,262,500 | — | |||||
Other accrued expenses | 1,881,211 | 721,681 | |||||
Total liabilities of discontinued operations | 648,479 | 1,348,607 | |||||
Total current liabilities | 23,690,240 | 5,004,688 | |||||
Notes payable due to Class A members | — | 5,000,000 | |||||
Total liabilities | 23,690,240 | 10,004,688 | |||||
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 and 4,017,202 units issued and outstanding in 2002 and 2001, respectively | 27,078,835 | 27,006,566 | |||||
Class C equity; 2,500,000 units authorized, 370,604 and 0 units issued and outstanding in 2002 and 2001, respectively | 3,547,277 | — | |||||
Retained earnings (accumulated deficit) | 31,169,482 | (5,802,593 | ) | ||||
Total members’ equity | 64,933,526 | 24,341,905 | |||||
Total liabilities and members’ equity | $ | 88,623,766 | $ | 34,346,593 | |||
See accompanying notes to financial statements.