Exhibit 99.3
ColdSpark, Inc.
Balance Sheets
Unaudited
March 31, 2009 | December 31, 2008 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 598,356 | $ | 408,006 | ||||
Restricted cash | 50,854 | 50,854 | ||||||
Accounts receivable | 57,027 | 87,758 | ||||||
Prepaid expenses and other current assets | 5,283 | 10,462 | ||||||
Total current assets | 711,520 | 557,080 | ||||||
Property and equipment, net of accumulated depreciation of $225,966 and $204,026, respectively | 188,288 | 209,949 | ||||||
Deposit | 12,052 | 12,052 | ||||||
Total assets | $ | 911,860 | $ | 779,081 | ||||
Liabilities and Stockholders’ Deficit | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 46,503 | $ | 60,172 | ||||
Accrued expenses | 598,476 | 566,066 | ||||||
Deferred revenue | 1,546,889 | 1,220,834 | ||||||
Other current liabilities | 319,394 | 298,031 | ||||||
Notes payable | 3,000,000 | 2,500,000 | ||||||
Total current liabilities | 5,511,262 | 4,645,103 | ||||||
Long-term liabilities | 68,967 | 33,887 | ||||||
Total liabilities | 5,580,229 | 4,678,990 | ||||||
Stockholders’ deficit | ||||||||
Series A preferred stock, $0.0001 par value, 7,500,000 shares authorized, 7,264,948 shares issued and outstanding, at liquidation value | 6,405,718 | 6,405,718 | ||||||
Common stock, $.0001 par value, 30,000,000 shares authorized, 15,630,525 shares issued and outstanding | 1,563 | 1,563 | ||||||
Additional paid-in capital | 586,352 | 539,251 | ||||||
Accumulated deficit | (11,662,002 | ) | (10,846,441 | ) | ||||
Total stockholders’ deficit | (4,668,369 | ) | (3,899,909 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 911,860 | $ | 779,081 | ||||
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ColdSpark, Inc.
Statement of Operations
For the three months ended March 31,
Unaudited
2009 | 2008 | |||||||
Net revenues: | ||||||||
Software license revenue | $ | 185,969 | $ | 263,213 | ||||
Service and support revenue | 269,017 | 261,583 | ||||||
Total revenues | 454,986 | 524,796 | ||||||
Operating expenses: | ||||||||
Sales and marketing | 143,415 | 232,293 | ||||||
General and administrative | 1,052,519 | 1,169,105 | ||||||
Total operating expenses | 1,195,934 | 1,401,398 | ||||||
Loss from operations | (740,948 | ) | (876,602 | ) | ||||
Other income/(expense): | ||||||||
Interest income | — | 3,766 | ||||||
Interest expense | (74,614 | ) | (23,738 | ) | ||||
Total other income/(expense) | (74,614 | ) | (19,972 | ) | ||||
Net loss | $ | (815,562 | ) | $ | (896,574 | ) | ||
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ColdSpark, Inc.
Statement of Cash Flows
For the three months ended March 31,
Unaudited
2009 | 2008 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (815,562 | ) | $ | (896,574 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation | 21,940 | 26,902 | ||||||
Stock-based compensation | 47,101 | 4,678 | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 30,731 | (439,192 | ) | |||||
Prepaid expenses and other current assets | 5,179 | (29,145 | ) | |||||
Accounts payable | (13,669 | ) | (39,178 | ) | ||||
Accrued expenses | 32,410 | 31,611 | ||||||
Deferred revenue | 326,055 | 333,385 | ||||||
Other current and non liabilities | 66,764 | — | ||||||
Net cash used in operating activities | (299,051 | ) | (1,007,513 | ) | ||||
Cash flows from investing activities: | ||||||||
Decrease in restricted cash | — | 52,214 | ||||||
Purchase of property and equipment | (279 | ) | — | |||||
Net cash used in investing activities | (279 | ) | 52,214 | |||||
Cash flows from financing activities: | ||||||||
Increase in notes payable | 500,000 | 1,000,000 | ||||||
Payments on line of credit | (899 | ) | — | |||||
Principal payments on capitalized lease obligations | (9,421 | ) | (17,874 | ) | ||||
Net cash provided by financing activities | 489,680 | 982,126 | ||||||
Net increase in cash and cash equivalents | 190,350 | 26,827 | ||||||
Cash and cash equivalents, beginning of year | 408,006 | 340,140 | ||||||
Cash and cash equivalents, end of year | $ | 598,356 | $ | 366,967 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Capital expenditures funded by capital leases | $ | — | $ | 76,179 | ||||
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