Exhibit 99.5
LOTUS PACIFIC, INC.
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 1999
(Unaudited)
ASSETS
Lotus Pacific Pro Forma
Inc. Acquisitions Adjustments Totals
------------- ------------ ------------- ----------
Current assets:
Cash ....................... $ 249,599 $ 1,319,152 $ 1,568,751
Accounts receivable ........ 11,031,334 1,866,019 12,897,353
Inventory .................. 1,331,051 1,728,273 3,059,324
Other ...................... 9,035 49,528 58,563
---------- ---------- -----------
Total current assets ..... 12,621,019 4,962,972 17,583,991
Property and equipment:
Furniture and office equipment 104,978 636,295 741,273
Equipment ................... 1,540,222 474,585 2,014,807
Leasehold improvements ...... 1,041 73,814 74,855
--------- --------- ------------
1,646,241 1,184,694 2,830,935
Less: accumulated depreciation (593,993) (510,261) (1,104,254)
---------- --------- ------------
1,052,248 674,433 1,726,681
Other assets:
Cash surrender value
of life insurance ........ 13,436 13,436
Intangible asset, net of
accumulated amortization... 4,915,473 713 4,916,186
Goodwill, net of
accumulated amortization... 25,265,317 $101,473,036 126,738,353
Deposits .................... 23,775 57,563 81,338
Investment in affiliates .... 5,128,852 5,128,852
---------- --------- ------------ -----------
35,333,417 71,712 101,473,036 136,878,165
$49,006,684 $5,709,117 $101,473,036 $156,188,837
============ ========== ============ ============
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities:
Accounts payable and
accrued expenses .......... $ 8,099,044 $ 853,077 $ 8,952,121
Loans payable ............... 16,173 16,173
------------ --------- ------------
Total current liabilities.. 8,099,044 869,250 8,968,294
Minority interest in subsidiary 6,512,289 1,887,430 8,399,719
Commitments
Stockholders equity:
Common stock ................ 63,784 63,784
Preferred stock, Series A ... 4 4
Common stock warrants ....... 80,000 80,000
Additional paid-in capital .. 38,343,349 4,839,867 113,580,947 156,764,163
Accumulated deficit ......... (4,091,786) (13,995,341) (18,087,127)
------------ ---------- ------------- ------------
34,395,351 4,839,867 99,585,606 138,820,824
$49,006,684 $5,709,117 $101,473,036 $156,188,837
============ =========== ============= ============
LOTUS PACIFIC, INC.
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED MARCH 31, 1999
(Unaudited)
Lotus Pacific Pro Forma
Inc. Acquisitions Adjustments Totals
--------------- ------------- ----------- -----------
Sales ........................ $19,030,444 $2,325,898 $ 21,356,342
Cost of sales ................ 16,740,554 2,156,238 18,896,792
------------ ---------- ------------
Gross profit ............... 2,289,890 169,660 2,459,550
Royalty income ............... 124,125 124,125
Operating expenses:
Selling, general &
administrative expenses .... 2,543,168 3,321,173 $10,331,203 16,195,544
Research and development .... 571,747 1,400,910 1,972,657
------------ ---------- ----------- ----------
3,114,915 (4,722,083) (10,331,203) 18,168,201
Operating loss ............... (700,900) (4,552,423) (10,331,203) (15,584,526)
Other income (expense):
Interest income ............. 33,104 46,387 79,491
Equity in income (loss) of
unconsolidated subsidiaries . (721,733) (721,733)
Other income ................. 56,100 56,100
------------ --------- ------------ -----------
(688,629) 102,487 (586,142)
Net income (loss) before income taxes,
minority interest in income of
consolidated subsidiary and
discontinued operations ..... (1,389,529) (4,449,936) (16,170,668)
Minority interest in loss of
consolidated subsidiaries ... 902,745 902,745
Loss from discontinued operations (53,017) (53,017)
Loss on sale of subsidiaries . (590,641) (590,641)
----------- ------------ ------------- -----------
Net income (loss) ............ $(1,130,442) $(4,449,936) $(10,331,203) $(15,911,581)
============ ============ ============== =============
Earnings (loss) per share:
Basic........................ $ (.03) $ (.09) $ (.33)
=========== =========== ==========
The following unaudited pro forma information represents the results of
operations for the nine months ended March 31, 1999 of the Company as if the
acquisitions had taken place on July 1, 1998. These pro forma results of
operations have been prepared for comparative purposes only and do not purport
to be indicative of the results of operations which actually would have
resulted had the acquisitions occurred on the date indicated, or which may
result in the future.
The figures include amortization of goodwill as if the acquisitions had taken
place on July 1, 1998, and amounted to $10,331,203.