Langer Inc. and Subsidiaries | |||||||||||||
Unaudited Pro Forma Consolidated Balance Sheet | |||||||||||||
March 31, 2008 | |||||||||||||
March 31, | Regal | Adjustments | Pro forma | ||||||||||
2008 | 3/31/08 | 3/31/08 | 3/31/08 | ||||||||||
Assets: | |||||||||||||
Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 2,122,597 | $ | - | $ | 501,000 | $ | 2,623,597 | |||||
Restricted cash - escrow | 1,000,000 | - | 1,000,000 | ||||||||||
Accounts receivable, net of allowance for doubtful accounts and returns and allowances aggregating $1,466,837 | 9,800,654 | 1,081,386 | 8,719,268 | ||||||||||
Inventories, net | 6,930,487 | 60,000 | 6,870,487 | ||||||||||
Prepaid expenses and other current assets | 1,225,772 | 8,348 | 1,217,424 | ||||||||||
Total Current Assets | 21,079,510 | 1,149,734 | 501,000 | 20,430,776 | |||||||||
Property and equipment, net | 13,820,855 | 134,024 | 13,686,831 | ||||||||||
Identifiable intangible assets, net | 14,117,560 | - | 14,117,560 | ||||||||||
Goodwill | 21,956,430 | - | (1,277,521 | ) | 20,678,909 | ||||||||
Other assets | 1,288,869 | 7,773 | 1,281,096 | ||||||||||
Total Assets | $ | 72,263,224 | $ | 1,291,531 | $ | (776,521 | ) | $ | 70,195,172 | ||||
Liabilities and Stockholders' Equity | |||||||||||||
Current Liabilities: | |||||||||||||
Accounts payable | $ | 4,306,609 | $ | 219,824 | $ | 60,000 | $ | 4,146,785 | |||||
Liabilities related to assets held for sale | - | - | - | ||||||||||
Other current liabilities, including current maturities of note payable | 4,149,066 | 182,769 | 3,966,297 | ||||||||||
Unearned revenue | 319,860 | - | 319,860 | ||||||||||
Total Current Liabilities | 8,775,535 | 402,593 | 60,000 | 8,432,942 | |||||||||
Long-term debt: | |||||||||||||
5% Covertible notes, net of discount of $368,566 | 28,511,434 | - | 28,511,434 | ||||||||||
Notes payable | 103,214 | - | 103,214 | ||||||||||
Obligation under capital lease | 2,700,000 | - | 2,700,000 | ||||||||||
Unearned revenue | 79,300 | - | 79,300 | ||||||||||
Deferred income taxes payable | 1,809,273 | - | 1,809,273 | ||||||||||
Other Liabilities | 1,031,002 | - | 1,031,002 | ||||||||||
Total Liabilities | 43,009,758 | 402,593 | 60,000 | 42,667,165 | |||||||||
Stockholders' Equity: | |||||||||||||
Preferred stock, $1.00 par value; authorized 250,000 shares; no shares issued | - | ||||||||||||
Common stock, $.02 par value; authorized 50,000,000 shares; issued 11,588,512 | 231,771 | - | 231,771 | ||||||||||
Additional paid in capital | 53,837,248 | 64,149 | 53,773,099 | ||||||||||
Accumulated Deficit | (24,564,687 | ) | 824,789 | (836,521 | ) | (26,225,997 | ) | ||||||
Accumulated Other Comprehensive Income | 691,750 | 691,750 | |||||||||||
Total | 30,196,082 | 888,938 | (836,521 | ) | 28,470,623 | ||||||||
Treasury stock at cost, 451,652 shares | (942,616 | ) | - | (942,616 | ) | ||||||||
Total | 29,253,466 | 888,938 | (836,521 | ) | 27,528,007 | ||||||||
Total Liabilities and Stockholders' Equity | $ | 72,263,224 | $ | 1,291,531 | $ | (776,521 | ) | $ | 70,195,172 |
Footnote: | ||||||||||
The column labeled Regal represents the assets and liabilities of Regal Medical Supply, LLC as of March 31, 2008. |
Adjustments: | ||||||||||
Adjustments represent the details of the sale of Regal Medical Supply, LLC as follows: |
Cash received | $ | 501,000 | ||
Net assets sold | (888,938 | ) | ||
Goodwill written off | (1,277,521 | ) | ||
Transaction costs related to sale | (60,000 | ) | ||
Pro forma net loss on sale of Regal | $ | (1,725,459 | ) |
Langer Inc. and Subsidiaries | ||||||||||
Unaudited Pro Forma Consolidated Statement of Operations | ||||||||||
For the Three Months Ended March 31, 2008 | ||||||||||
Consolidated | Regal | Pro forma | ||||||||
Income From Continuing Operations: | ||||||||||
Net Sales | $ | 15,778,171 | $ | 1,001,255 | $ | 14,776,916 | ||||
Cost of Sales | 10,910,781 | 329,049 | 10,581,732 | |||||||
Gross Profit | 4,867,390 | 672,206 | 4,195,184 | |||||||
General and administrative expenses | 3,641,431 | 114,661 | 3,526,770 | |||||||
Selling expenses | 2,255,843 | 639,789 | 1,616,054 | |||||||
Research and development expenses | 269,795 | - | 269,795 | |||||||
Operating Loss | (1,299,679 | ) | (82,244 | ) | (1,217,435 | ) | ||||
Other Income (Expense): | ||||||||||
Interest income | 23,994 | - | 23,994 | |||||||
Interest expense | (557,718 | ) | - | (557,718 | ) | |||||
Other | (16 | ) | - | (16 | ) | |||||
Other Expense, net | (533,740 | ) | - | (533,740 | ) | |||||
Loss Before Income Taxes | (1,833,419 | ) | (82,244 | ) | (1,751,175 | ) | ||||
(Provision for) Benefit From Income Taxes | (18,182 | ) | - | (18,182 | ) | |||||
Net Loss from continuing operations | $ | (1,851,601 | ) | $ | (82,244 | ) | $ | (1,769,357 | ) | |
Net Loss per common share: | ||||||||||
Basic and diluted: | ||||||||||
Loss from continuing operations | $ | (0.17 | ) | $ | (0.16 | ) | ||||
Weighted average number of common shares used | ||||||||||
in the computation of net (loss) per share: | ||||||||||
Basic and diluted | 11,136,860 | 11,136,860 |
Footnote: | |||||||
The column labeled Regal represents the operating results of Regal for the period presented. |
Langer Inc. and Subsidiaries | ||||||||||
Unaudited Pro Forma Consolidated Statement of Operations | ||||||||||
For the Year Ended December 31, 2007 | ||||||||||
Consolidated | Regal | Pro forma | ||||||||
Income From Continuing Operations: | ||||||||||
Net Sales | $ | 62,912,298 | $ | 3,752,324 | $ | 59,159,974 | ||||
Cost of Sales | 40,523,793 | 1,114,754 | 39,409,039 | |||||||
Gross Profit | 22,388,505 | 2,637,570 | 19,750,935 | |||||||
General and administrative expenses | 14,066,476 | 373,499 | 13,692,977 | |||||||
Selling expenses | 9,418,661 | 2,672,939 | 6,745,722 | |||||||
Research and development expenses | 837,934 | - | 837,934 | |||||||
Operating Loss | (1,934,566 | ) | (408,868 | ) | (1,525,698 | ) | ||||
Other Income (Expense): | ||||||||||
Interest income | 257,964 | - | 257,964 | |||||||
Interest expense | (2,186,100 | ) | - | (2,186,100 | ) | |||||
Other | 22,329 | - | 22,329 | |||||||
Other Expense, net | (1,905,807 | ) | - | (1,905,807 | ) | |||||
Loss Before Income Taxes | (3,840,373 | ) | (408,868 | ) | (3,431,505 | ) | ||||
(Provision for) Benefit From Income Taxes | (234,771 | ) | - | (234,771 | ) | |||||
Net Loss from continuing operations | $ | (4,075,144 | ) | $ | (408,868 | ) | $ | (3,666,276 | ) | |
Net Loss per common share: | ||||||||||
Basic and diluted: | ||||||||||
Loss from continuing operations | $ | (0.35 | ) | $ | (0.32 | ) | ||||
Weighted average number of common shares used | ||||||||||
in the computation of net (loss) per share: | ||||||||||
Basic and diluted | 11,484,486 | 11,484,486 |
Footnote: | ||||||||||
The column labeled Regal represents the operating results of Regal for the period presented. |
Langer Inc. and Subsidiaries | ||||||||||
Unaudited Pro Forma Consolidated Statement of Operations | ||||||||||
For the Three Months Ended March 31, 2007 | ||||||||||
Consolidated | Regal | Pro forma | ||||||||
Income From Continuing Operations: | ||||||||||
Net Sales | $ | 14,320,963 | $ | 734,481 | $ | 13,586,482 | ||||
Cost of Sales | 9,030,234 | 197,797 | 8,832,437 | |||||||
Gross Profit | 5,290,729 | 536,684 | 4,754,045 | |||||||
General and administrative expenses | 3,243,498 | 8,991 | 3,234,507 | |||||||
Selling expenses | 2,098,238 | 453,358 | 1,644,880 | |||||||
Research and development expenses | 196,711 | - | 196,711 | |||||||
Operating Loss | (247,718 | ) | 74,335 | (322,053 | ) | |||||
Other Income (Expense): | ||||||||||
Interest income | 131,854 | - | 131,854 | |||||||
Interest expense | (525,769 | ) | - | (525,769 | ) | |||||
Other | (7,016 | ) | - | (7,016 | ) | |||||
Other Expense, net | (400,931 | ) | - | (400,931 | ) | |||||
Loss Before Income Taxes | (648,649 | ) | 74,335 | (722,984 | ) | |||||
(Provision for) Benefit From Income Taxes | (63,631 | ) | - | (63,631 | ) | |||||
Net Loss from continuing operations | $ | (712,280 | ) | $ | 74,335 | $ | (786,615 | ) | ||
Net Loss per common share: | ||||||||||
Basic and diluted: | ||||||||||
Loss from continuing operations | $ | (0.06 | ) | $ | (0.07 | ) | ||||
Weighted average number of common shares used | ||||||||||
in the computation of net (loss) per share: | ||||||||||
Basic and diluted | 11,183,415 | 11,183,415 |
Footnote: | ||||||||||
The column labeled Regal represents the operating results of Regal for the period presented. |