Exhibit 99.2
Correction to the information provided in PHC, Inc.
press release dated September 25, 2007
The company's cash and cash equivalents totaled $3.4 million at June 30, 2007,
an increase from $1.6 million at the end of the previous fiscal year. Total net
receivables from patient care at 2007 fiscal year end was $6.6 million, a
decrease of 6% from $7.0 million at the previous year end. The balance sheet
current ratio was 1.96:1 at June 30, 2007. Stockholders' equity increased 36% to
a record $18.3 million at June 30, 2007 from $13.5 million at the end of the
previous year.
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PHC, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
June 30,
2007 2006
__________ __________
ASSETS
Current assets:
Cash and cash equivalents $3,395,173 $1,820,105
Accounts receivable, net of allowance
for doubtful accounts of $3,764,585
and $3,100,586 at June 30, 2007 and 2006,
respectively 6,524,387 6,955,475
Pharmaceutical research receivables 1,942,268 1,470,019
Prepaid expenses 688,600 490,655
Other receivables and advances 868,628 751,791
Deferred tax assets 2,015,000 2,841,000
__________ __________
Total current assets 15,434,056 14,329,045
__________ __________
Accounts receivable, non-current 35,000 40,000
Other receivables 91,697 53,457
Property and equipment, net 2,121,191 1,799,888
Deferred financing costs, net of amortization of
$150,124 and $106,422 at June 30,
2007 and 2006, respectively 613,865 117,023
Customer relationships, net of amortization of
$380,000 and $260,000 at
June 30, 2007 and 2006, respectively 2,020,000 2,140,000
Goodwill 3,508,576 2,664,643
Other assets 3,465,356 571,931
__________ __________
Total assets $27,289,741 $21,715,987
=========== ===========
LIABILITIES
Current liabilities:
Accounts payable $1,261,841 $1,509,659
Current maturities of long-term debt 1,134,300 918,013
Revolving credit note 1,518,742 1,603,368
Deferred revenue 433,301 385,742
Current portion of obligations under capital
leases 205,858 57,881
Accrued payroll, payroll taxes and benefits 1,631,693 1,619,672
Accrued expenses and other liabilities 1,702,772 1,026,419
__________ __________
Total current liabilities 7,888,507 7,120,754
Long-term debt, less current maturities 831,387 1,021,546
Obligations under capital leases 226,706 61,912
Deferred tax liabilities 93,000 56,000
__________ __________
Total liabilities 9,039,600 8,260,212
__________ __________
Commitments and contingent liabilities
STOCKHOLDERS' EQUITY
Preferred stock, 1,000,000 shares authorized, none
issued or outstanding -- --
Class A Common Stock, $.01 par value; 30,000,000
shares authorized, 19,622,076 and 17,874,966
shares issued at June 30, 2007 and 2006,
respectively 196,221 178,749
Class B Common Stock, $.01 par value; 2,000,000 shares
authorized, 775,760 and 775,760 issued and
outstanding at June 30, 2007 and 2006, respectively,
each convertible into one share of Class A Common
Stock 7,758 7,758
Additional paid-in capital 26,812,808 23,718,197
Treasury stock, 199,098 and 199,098 class A common
shares at cost at June 30, 2007 and 2006,
respectively (191,700) (191,700)
Accumulated deficit (8,574,946) (10,257,229)
__________ __________
Total stockholders' equity 18,250,141 13,455,775
__________ __________
Total liabilities and stockholders'
equity $27,289,741 21,715,987
=========== ===========
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