Exhibit 99.2
QuickShip, Inc.
Balance Sheets
(Unaudited)
September 30,
Assets 2000 1999
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Current assets:
Cash and cash equivalents $ 21,118 $ 19,897
Marketable securities, available-for-sale -- 41,293
Accounts receivable, less allowance of $10,000 and $30,000 for 2000 and
1999, respectively 8,929 247,881
Employee receivables 63,728 20,248
Prepaid expenses and other assets 152,438 78,351
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Total current assets 246,213 407,670
Property and equipment, net 1,097,740 1,068,961
Other assets 41,800 65,226
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Total assets $ 1,385,753 $ 1,541,857
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Liabilities and Shareholders' Deficit
Current liabilities:
Accounts payable $ 460,489 $ 630,450
Accrued liabilities 374,271 13,384
Notes payable 4,025,852 1,797,897
Current portion of long-term debt 4,482 9,310
Deferred revenue 6,716 8,455
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Total current liabilities 4,871,810 2,459,496
Long-term debt, less current maturities 38,072 44,755
Accrued dividends on preferred stock -- 150,000
Redeemable Convertible Preferred stock, $100 par value, 20,000 shares
authorized, issues and outstanding -- 2,000,000
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Total liabilities 4,909,882 4,654,251
Shareholders' Deficit:
Common stock, $1 par value, 200,000 shares authorized, 813 and 650 shares
issued and outstanding for 2000 and 1999, respectively
813 650
Additional paid-in-capital 2,316,504 --
Accumulated deficit (5,841,446) (3,113,044)
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Total shareholders' deficit (3,524,129) (3,112,394)
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Total liabilities and shareholders' deficit $ 1,385,753 $ 1,541,857
========================================
See accompanying notes to unaudited financial statements.
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QuickShip, Inc.
Statements of Operations
(Unaudited)
Nine-month period
ended September 30,
2000 1999
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Net sales $ 246,772 $ 1,048,099
Cost of sales 7,516 107,079
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Gross profit 239,256 941,020
Selling, general and administrative expenses 1,636,618 986,552
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Operating loss (1,397,362) (45,532)
Non-operating expenses (396,112) (109,969)
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Net loss (1,793,474) (155,501)
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Preferred dividends -- (150,000)
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Net loss attributable to common shareholders $ (1,793,474) $ (305,501)
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See accompanying notes to unaudited financial statements.
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QuickShip, Inc.
Statements of Cash Flows
(Unaudited)
Nine-month period ended September 30,
2000 1999
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Operating activities
Net loss $ (1,793,474) $ (155,501)
Adjustments to reconcile net loss to net cash used in
operating activities:
Depreciation and amortization 209,165 184,285
Changes in operating assets and liabilities:
Accounts receivable 6,630 (142,009)
Employee receivables (21,765) (14,853)
Prepaid expenses and other assets (75,556) (65,102)
Accounts payable 252,503 528,774
Accrued liabilities 338,911 12,166
Deferred revenue (1,305) (423,340)
--------------------- ----------------------
Net cash used in operating activities (1,084,891) (75,580)
Investing activities
Purchases of property and equipment (132,010) (272,633)
Proceeds from sale of marketable securities 25,368 --
Purchases of marketable securities -- (41,293)
Payments received on notes receivable 17,141 18,845
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Net cash used in investing activities (89,501) (295,081)
Financing activities
Proceeds from (payments on) line of credit, net 684,304 123,098
Proceeds from notes payable 517,801 200,000
Proceeds from long-term debt 4,674 46,599
Payments on long-term debt (13,196) (6,839)
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Net cash provided by financing activities 1,193,583 362,858
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Increase (decrease) in cash and cash equivalents 19,191 (7,803)
Cash and cash equivalents at beginning of period 1,927 27,700
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Cash and cash equivalents at end of period $ 21,118 $ 19,897
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See accompanying notes to unaudited financial statements.
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QuickShip, Inc.
Notes to Condensed Financial Statements
(Unaudited)
September 30, 2000
Note 1. Basis of Presentation
The accompanying unaudited condensed financial statements have been prepared in
accordance with accounting principles generally accepted in the United States
for interim financial information and reflect all normal recurring adjustments,
which in the opinion of management are necessary for a fair presentation of the
results for the periods shown. Operating results for the periods from January 1,
2000 through September 30, 2000, are not necessarily indicative of the results
that may be expected for the full fiscal year or for any future period. The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenue and expenses during the reporting
period. Actual results could differ from those estimates and assumptions.
The accompanying financial statements should be read in conjunction with the
audited financial statements of QuickShip, Inc. for the year ended December 31,
1999 and the notes thereto included in this Form 8K/A of Blue Rhino Corporation.
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