EXHIBIT 99.2
PREMIER SOFTWARE TECHNOLOGIES, INC
CONDENSED BALANCE SHEET
(unaudited)
ASSETS
March 31,
--------
2000
----
Current assets:
Cash and cash equivalents......................................... $ 8,166
Accounts receivable............................................... 302,725
Prepaid expenses and other current assets......................... 41,920
-----------
Total current assets..................................... 352,811
Property and equipment, net......................................... 22,393
-----------
Total assets........................................................ $ 375,204
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LIABILITIES AND SHAREHOLDERS' DEFICIENCY
Current liabilities:
Accounts payable.................................................. $ 21,621
Accrued liabilities............................................... 9,919
Deferred revenue.................................................. 91,614
Income taxes payable.............................................. 27,830
-----------
Total current liabilities................................ 150,984
-----------
Stock compensation liability........................................ 2,767,549
Commitments (Note 6)
Shareholders' deficiency:
Common stock, no par value, 10,000,000 shares authorized;
53,354 shares issued and outstanding................................ 200
Accumulated deficit............................................... (2,543,529)
-----------
Total shareholders' deficiency........................... (2,543,329)
-----------
Total liabilities and shareholders' equity.......................... $ 375,204
===========
See notes to financial statements.
PREMIER SOFTWARE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF OPERATIONS
(unaudited)
Three months Three months
ended ended
March 31, March 31,
1999 2000
----------------------------
Revenues:
License...................................... $ - $ 43,300
Service...................................... 275,363 399,382
------------ ------------
Total revenues...................... 275,363 442,682
Costs of revenues:
License...................................... 24,327 27,189
Service...................................... 126,021 166,685
------------ ------------
Total cost of revenues.............. 150,348 193,874
Gross profit................................... 125,015 248,808
Operating expenses:
Research and development..................... 25,634 27,670
Sales and marketing.......................... 51,384 87,837
General and administrative................... 53,944 41,925
Stock compensation*.......................... 303,536 130,957
------------ ------------
Total operating expenses............ 434,498 288,389
Operating loss................................. (309,483) (39,581)
Interest income................................ 2,074 754
------------ ------------
Loss before income taxes....................... (307,409) (38,827)
------------ ------------
Income tax provision........................... (4,806) (27,639)
------------ ------------
Net loss....................................... $ (312,215) $ (66,466)
============ ============
*Stock compensation:
Cost of revenues........................... $ 198,797 $ 115,363
Research and development................... 104,739 15,594
------------ ------------
$ 303,536 $ 130,957
============ ============
See notes to financial statements.
18
PREMIER SOFTWARE TECHNOLOGIES, INC.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
Three months Three months
ended ended
March 31, March 31,
1999 2000
---------------------------
Cash flows from operating activities:
Net loss........................................................................ (312,215) $ (66,466)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization................................................. 1,680 2,182
Deferred income taxes......................................................... 4,806 27,639
Stock compensation expenses................................................... 303,536 130,957
Changes in assets and liabilities:
Accounts receivable......................................................... (69,832) (28,241)
Prepaid expenses and other current assets................................... 739 (7,851)
Accounts payable............................................................ 71,605 (11,393)
Accrued liabilities......................................................... 8,634 (166,569)
Deferred revenues........................................................... (1,079) 7,028
------------ ------------
Net cash provided by (used in) operating activities. 7,874 (112,714)
------------ ------------
Cash flows from investing activities:
Purchases of property and equipment............................................. - (10,491)
------------ ------------
Net increase (decrease) in cash and equivalents................................... 7,874 (123,205)
Cash and cash equivalents - beginning of period................................... 225,787 131,371
------------ ------------
Cash and cash equivalents - end of period......................................... $ 233,661 $ 8,166
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION -
Cash paid for income taxes...................................................... $ 13,395 $ 14,300
============ ============
See notes to financial statements.
PREMIER SOFTWARE TECHNOLOGIES, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
1. Basis of Presentation
The financial statements at March 31, 2000, for the three months ended
March 31, 1999 and 2000 are unaudited, but include all adjustments (consisting
only of normal recurring adjustments) that the Company considers necessary for a
fair presentation of financial position and operating results. Operating results
for the three month period ended March 31, 1999 and 2000 are not necessarily
indicative of results that may be expected for any future periods.
The accompanying unaudited interim financial statements have been prepared
with the assumption that users of the interim financial information have read
Premier Software Technologies, Inc. audited financial statements for the year
ended December 31, 1999. Accordingly, footnote disclosures which would
substantially duplicate the disclosures contained in these audited financial
statements have been omitted from these unaudited interim financial statements.
While management believes the disclosures presented are adequate to make these
financial statements not misleading, these financial statements should be read
in conjunction with Premier's audited financial statements and related notes.
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts reported in the financial statements. Actual
results may differ from those estimates.
2. Acquisition by Active Software, Inc.
In February 2000, the Company was acquired by Active Software, Inc.
(Active), a developer of software products for businesses that allow users to
integrate incompatible software applications across their extended enterprise of
customers, suppliers and partners. Active issued 121,308 shares of common stock,
options to purchase 11,548 shares of common stock, and paid $500,000 in cash in
exchange for all capital stock of the Company, net liabilities assumed of
approximately $296,000 and other costs of approximately $166,000.