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Exhibit 99.6
THOMAS GROUP, INC.
INTERLINK TECHNOLOGIES, INC.
STATEMENTS OF CASH FLOWS
TEN MONTHS ENDED JUNE 30, 1995 AND JUNE 30, 1994
(in thousands)
(Unaudited)
Ten Months Ended Ten Months Ended
June 30, 1995 June 30, 1994
================ ================
Cash Flows From Operating Activities
Net Income (Loss) $ 465 $ (1,120)
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities:
Depreciation and Amortization 298 278
Changes in Operating Assets and Liabilities:
(Increase) Decrease in Accounts Recei (685) 388
Decrease in Prepaids and Other Assets 95 7
Decrease in Accounts Payable (76) 590
Increase (Decrease) in Corporate Taxe 91 (42)
Increase in Deferred Revenue 586 112
Increase (Decrease) in Accrued Expenses
and Other Liabilities 1 (51)
----- --------
Net Cash Provided by Operating Activities 775 162
Cash Flows From Investing Activities
Purchase of Property and Equipment (34) (35)
Increase in Software Development Costs (119) (411)
----- --------
Net Cash Used by Investing Activities (153) (446)
Net Cash Flows From Financing Activities
Net (Decrease) Increase in Demand Note Paya (150) 400
Payments on Long-Term Debt (66) (98)
Payments on Capital Lease Obligations (4) (31)
Increase (Decrease) in Loans Payable - Offi (14) 148
----- --------
Net Cash Used by Financing Activities (234) 419
----- --------
Net Increase in Cash 388 135
Cash Beginning of Period 31 (116)
----- --------
Cash End of Period $ 419 $ 19
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The accompanying notes are an integral part of this statement.
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THOMAS GROUP, INC.
INTERLINK TECHNOLOGIES, INC.
NOTES TO FINANCIAL STATEMENTS FOR THE TEN MONTHS ENDED JUNE 30, 1995
(Unaudited)
1. The unaudited financial statements include all adjustments which, in
the opinion of management, are necessary to present fairly the results of
operations of the Interlink Technologies, Inc. (Interlink) for the interim
periods presented. Such adjustments are of a normal and recurring nature. The
unaudited financial statements should be read in conjunction with the financial
statements and notes thereto as of and for the years ended August 31, 1994 and
1993.. The results of operations for the ten month period ended June 30, 1995
are not necessarily indicative of the results of operations for the entire
year.
2. Uncertainty - In the normal course of business Interlink purchases
computer equipment from third party vendors and sells it to customers. In May
1995 Interlink settled a dispute with a customer over vendor equipment which
was determined to be non-conforming to the purpose needed by the customer. The
sale price to the customer was refunded by Interlink and the disputed equipment
was returned to and a full refund received from the vendor. Interlink then
sold a different vendor's equipment to the customer for an increased profit to
Interlink of approximately $100,000.
3. Operations - Management has taken certain steps since mid 1994 and is
currently implementing others to improve operating results and continue the
Interlink's viability as a going concern. Management's actions include
reducing overhead expenses, increasing sales efforts, and expending revenue
sources. As a result of these efforts Interlink earned net income of $465,000
for the ten months ended June 30, 1995.