EXHIBIT 99(a)
MEDCROSS, INC. AND SUBSIDIARIES
PROFORMA CONSOLIDATED BALANCE SHEET
(unaudited)
Assets
As Reported Proforma
June 30, 1996 Adjustments June 30, 1996
Current assets
Cash and cash equivalents $ 383,954 $10,101,312 $10,485,266
Accounts receivable less allowance of $681,600 910,124 - 910,124
Inventory 830,098 - 830,098
Prepaid expenses 95,383 - 95,383
--------- ---------- ----------
Total current assets 2,219,559 10,101,312 12,320,871
--------- ---------- ----------
Net property and equipment 2,258,504 - 2,258,504
--------- ---------- ----------
Investment in unconsolidated subsidiary 6,250 - 6,250
Intangible assets, net of amortization of $881,901 3,243,844 9,800,000 13,043,844
Other assets 30,482 - 30,482
--------- ---------- ----------
Total assets $ 7,758,639 $19,901,312 $27,659,951
========= ========== ==========
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable and accrued expenses $ 2,483,634 $( 617,539) $ 1,866,095
Advance deposits received 233,728 - 233,728
Accrued royalty fees 450,000 ( 450,000) -
Note payable - related party 663,500 ( 575,500) 88,000
Note payable - other 1,805,000 ( 748,000) 1,057,000
Current portion of long-term debt - related party 39,230 - 39,230
Current portion of long-term debt - other 488,957 - 488,957
Current obligations under capital lease 230,918 - 230,918
--------- ---------- ----------
Total current liabilities 6,394,967 ( 2,391,039) 4,003,928
--------- ---------- ----------
Long-term debt - related 68,579 - 68,579
Obligations under capital leases 396,762 - 396,762
Minority equity interest in consolidated subsidiaries 333,165 - 333,165
Commitments and contingencies
Stockholders' equity
Preferred stock 75,000 2,400,000 2,475,000
Common stock 59,112 13,650 72,762
Other stockholders' equity 431,054 19,878,701 20,309,755
--------- ---------- ----------
Total stockholders' equity 565,166 22,292,351 22,857,517
--------- ---------- ----------
Total liabilities and stockholders' equity $ 7,758,639 $ 19,901,312 $27,659,951
========= ========== ==========
99(a)1
MEDCROSS, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA CONSOLIDATED BALANCE SHEET
The Pro Forma Consolidated Balance Sheet of Medcross, Inc. (the "Company") has
been prepared based upon the Balance Sheet as previously reported in the Form
10-QSB for the period ending June 30, 1996 with pro forma entries to reflect
the events subsequent to such date and summarized as follows:
1. the sale by the Company of 240,000 shares of Class C Preferred Stock
for $60 per share, after payment of commissions and other expenses
related to the offering;
2. the extinguishment of certain short-term debt;
3. the issuance by the Company of $717,000 in 8% Convertible Promissory
Notes;
4. the release of 1.6 million shares of the Company's Common Stock held
in escrow for the benefit of the shareholders of ILINK, Ltd.; and
5. the issuance of 350,000 shares of the Company's Common Stock pursuant
to the conversion of a portion of the principal of the 10% Promissory
Notes.
The Pro Forma Consolidated Balance Sheet is condensed and unaudited and was
prepared solely to reflect the effect on the Company's Balance Sheet at June 30,
1996 of the subsequent events as described above. The date of June 30, 1996 was
selected because the Company did not prepare or report financial information on
a monthly basis subsequent to such date. The Pro Forma Consolidated Balance
Sheet does not reflect any other operations or changes in financial condition
which may have occurred subsequent to June 30, 1996 nor does it include
Statements of Income, Cash Flows or footnote disclosures which are normally
included with financial statements.
99(a)2