1
EXHIBIT 99.2
AIRSOFT INCORPORATED
BALANCE SHEET
(IN THOUSANDS, EXCEPT SHARE RELATED DATA)
MARCH 30,
1996
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(UNAUDITED)
ASSETS
Current assets:
Cash and cash equivalents $ 1,286
Accounts receivable, net 1,159
Inventories 12
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Total current assets 2,457
Property, plant and equipment, net 136
Other assets 6
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Total assets $ 2,599
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable 113
Accrued expenses 169
Deferred revenue 1,677
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Total liabilities 1,959
Stockholders' equity:
Preferred stock, $.001 par value; 7,000,000 shares
authorized, 6,739,514 shares oustanding 4,486
Common stock, $.001 par value; 23,000,000 shares
authorized, 5,012,500 shares outstanding 487
Accumulated deficit (4,333)
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Total stockholders' equity 640
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Total liabilities and stockholders' equity $ 2,599
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The accompanying notes are an integral part
of the financial statements.
2
AIRSOFT INCORPORATED
STATEMENT OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
THREE MONTHS ENDED
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MARCH 30, MARCH 31,
1996 1995
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Revenues $ 796 $ 34
Cost of revenues - 11
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Gross profit 796 23
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Operating expenses:
Research and development 363 298
Selling, general and administrative 470 530
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Total operating expenses 833 828
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Loss from operations (37) (805)
Interest income 10 30
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Net loss $ (27) $ (775)
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Net loss per share $(0.01) $(0.15)
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Shares used in computing net loss per share 5,013 5,007
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The accompanying notes are an integral part
of the financial statements.
3
AIRSOFT INCORPORATED
STATEMENT OF CASH FLOWS
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
(IN THOUSANDS)
THREE MONTHS ENDED
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MARCH 30, MARCH 31,
1996 1995
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(UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (27) $ (775)
Adjustments to reconcile net loss to net cash
provided by (used in) operating activities:
Depreciation and amortization 15 13
Loss on disposal of property - 29
Changes in assets and liabilities:
Accounts receivable 1,150 (18)
Inventories (12)
Prepaid expenses and other current assets 15 15
Accounts payable 32 (1)
Accrued expenses (63) 42
Deferred revenue (628) -
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Net cash provided by (used in) operating activities 482 (695)
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment (40) (52)
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Change in other assets (6) -
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Net cash used by investing activities (46) (52)
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CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of stock options and warrants - 5
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Net increase (decrease) in cash and cash equivalents 436 (742)
Cash and cash equivalents, beginning of period 850 2,638
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Cash and cash equivalents, end of period $1,286 $1,896
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The accompanying notes are an integral part
of the financial statements
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AIRSOFT, INC.
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION:
The accompanying unaudited financial statements include the accounts of
AirSoft, Inc., and have been prepared by AirSoft, Inc. in accordance
with generally accepted accounting principles. In the opinion of
management, these unaudited financial statements contain all
adjustments, consisting only of those of a normal recurring nature,
necessary for a fair presentation of the Company's financial position,
results of operations and cash flows at the dates and for the periods
indicated. The results of operations for the three-months ended
March 30, 1996 are not necessarily indicative of the results expected
for the full fiscal year. While the Company believes that the
disclosures presented are adequate to make these financial statements
not misleading, these financial statements should be read in
conjunction with the audited financial statements of AirSoft, Inc.
included elsewhere in this Form 8-K/A.
2. NET LOSS PER SHARE:
Net loss per share is calculated based on the weighted average number
of common shares and common equivalent shares assumed outstanding
during the period. Because there was a net loss in each period
presented, common stock equivalents were not included in the
calculation of net loss per share as their impact would be
anti-dilutive.
3. CASH AND CASH EQUIVALENTS:
The Company considers all highly liquid investments purchased with an
original maturity of three months or less to be cash equivalents, and
those with maturities of greater than three months as short-term
investments. At March 30, 1996 all of the Company's cash was invested
in bank and money market deposit accounts.
4. SUBSEQUENT EVENT:
On June 17, 1996, all shares of common and preferred stock of the
Company were acquired by Shiva Corporation in exchange for 691,587
shares of Shiva Corporation common stock. Subsequent to this date, the
Company is a wholly-owned subsidiary of Shiva Corporation.