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VERTEX INTERACTIVE, INC. AND SUBSIDIARIES
PRO-FORMA BALANCE SHEET
(Unaudited)
Pro-forma
December 31, 2001 (A) (B) December 31, 2001
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CURRENT ASSETS:
Cash and cash equivalents $1,534,130 $ (9,553) $1,524,577
Accounts receivable, less allowance for doubtful accounts
of $380,892 9,467,514 9,467,514
Inventories, net 4,892,332 4,892,332
Prepaid expenses and other current assets 1,302,707 1,302,707
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Total current assets 17,196,683 - (9,553) 17,187,130
PROPERTY, EQUIPMENT, AND CAPITAL LEASES
Property and Equipment 6,375,705 6,375,705
Capital Leases 345,084 345,084
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Total property, equipment and capital leases 6,720,789 - - 6,720,789
Less: Accumulated depreciation and amortization (2,518,601) (2,518,601)
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Net property, equipment and capital leases 4,202,188 - - 4,202,188
OTHER ASSETS:
Intangible Assets, net of amortization of $4,132,138 29,063,183 29,063,183
Capitalized software, net of amortization of $59,507 385,473 385,473
Other assets 1,741,240 1,741,240
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Total other assets 31,189,896 - - 31,189,896
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Total assets $ 52,588,767 $ - $ (9,553) $ 52,579,214
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VERTEX INTERACTIVE, INC. AND SUBSIDIARIES
PRO-FORMA BALANCE SHEET
(Unaudited)
Pro-forma
December 31, 2001 (A) (B) December 31, 2001
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CURRENT LIABILITIES:
Current portion of obligations under capital leases $ 200,098 $ 200,098
Bank credit lines 1,879,827 1,879,827
Convertible notes payable 2,000,000 2,000,000
Convertible notes payable - related parties 359,375 359,375
Notes payable 2,460,911 2,460,911
Mortgage notes payable current portion 77,518 77,518
Accounts payable 6,663,859 6,663,859
Acquisition related accruals 329,485 329,485
Litigation related accruals 3,843,400 $(1,440,000) 2,403,400
Other accrued expenses and liabilities 10,839,735 $(218,717) 10,621,018
Advances from customers 603,851 603,851
Deferred revenue 5,089,374 5,089,374
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Total current liabilities 34,347,433 (1,440,000) (218,717) 32,688,716
LONG-TERM LIABILITIES:
Obligations under capital leases 21,670 21,670
Mortgage notes payable 1,349,637 1,349,637
Convertible notes payable - related parties 8,500,000 (781,283) 7,718,717
Other long term liabilities 126,572 126,572
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Total long-term liabilities 9,997,879 - (781,283) 9,216,596
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Series A preferred stock, par value $.01 per share; 2,000,000
shares authorized, 1,356,852 issued and outstanding
($10,000,000 aggregate liquidation preference) 13,569 13,569
Series B preferred stock, par value $0.01 per share; 1,000
shares authorized, 1,000 issued and outstanding
($1,000,000 aggregate liquidation preference) 10 10
Series C preferred stock, par value $.01 per share;
10,000 shares authorized, 997 issued and outstanding 10 10
Common stock, par value $.005 per share; 75,000,000 shares
authorized; 35,663,059 shares issued at December 31, 2001 178,316 178,316
Additional paid-in capital 151,841,925 1,440,000 990,437 154,272,362
Deferred compensation (113,483) (113,483)
Accumulated deficit (141,998,533) (141,998,533)
Accumulated other comprehensive loss (1,633,180) (1,633,180)
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8,288,624 1,440,000 990,447 10,719,071
Less: Treasury stock, 40,055 shares (at cost) (45,169) (45,169)
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Total stockholders' equity 8,243,455 1,440,000 990,447 10,673,902
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Total liabilities and stockholders' equity $ 52,588,767 $ - $ (9,553) $ 52,579,214
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(A) Record issuance of stock options in settlement of litigation
(b) Record conversion of $781,283 of convertible debt and $212,164 of accrued
interest, less $3,000 payment of fractional share value, into 997 shares of
Series C preferred stock, and payment of $6,553 of accrued interest