EXHIBIT 99.3
Unaudited Pro Forma Condensed Consolidated Financial Statements
The following unaudited pro forma consolidated statement of operations
reflects the consolidated results of operations of APA Optics, Inc. (APA) for
the year ended March 31, 2003 with those of Americable, Inc. (Americable) under
the assumptions set forth in the accompanying notes. The unaudited pro forma
consolidated balance sheet combines the APA and Americable balance sheets as of
March 31, 2003 giving effect to the transaction as if the transaction had
occurred for the statements of operation as of the beginning of the period
presented and for the balance sheet presentations.
The pro forma adjustments are based upon available information and upon
certain assumptions that management believes are reasonable. The pro forma
financial statements and accompanying notes should be read in conjunction with
the historical statements and the notes thereto.
The unaudited pro forma condensed consolidated financial statements are
provided for informational purposes only in response to Securities and Exchange
Commission ("SEC") requirements and do not purport to represent what APA's
financial position or results of operations would actually have been if the
transaction had in fact occurred at such dates or to project APA's financial
position or results of operations for any future date or period.
APA OPTICS, INC.
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
March 31, 2003
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APA Optics Americable Pro Forma APA Optics
Historical Historical Adjustments Pro Forma
------------- ------------- ------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 22,235,686 $ 1,425,821 $ (1,960,000) (a) $ 20,275,686
(1,425,821) (a)
Accounts receivable 468,576 660,847 (66,847) (a) 1,062,576
Investments -- 174,420 (174,420) (a) --
Due from affiliate -- 134,638 (134,638) (a) --
Due from officer -- 68,756 (68,756) (a) --
Inventories 1,398,203 1,344,089 (706,089) (a) 2,036,203
Prepaid expenses 134,045 169,306 (169,306) (a) 134,045
Bond reserve funds 75,000 -- -- 75,000
------------- ------------- ------------- -------------
Total current assets 24,311,510 3,977,877 (4,705,877) 23,583,510
Property, plant and equipment, net 3,989,344 991,484 (541,484) (a) 4,439,344
Goodwill 2,500,296 -- 278,000 (a) 2,778,296
Other assets 1,032,546 235,000 (235,000) (a) 1,032,546
------------- ------------- ------------- -------------
Total assets $ 31,833,696 $ 5,204,361 $ (5,204,361) $ 31,833,696
============= ============= ============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt 1,846,922 1,200,939 (1,200,939) (a) 1,846,922
Accounts payable 454,804 438,812 (438,812) (a) 454,804
Accrued expenses 286,267 474,795 (474,795) (a) 286,267
------------- ------------- ------------- -------------
Total current liabilities 2,587,993 2,114,546 (2,114,546) 2,587,993
Long-term debt 326,760 6,966,899 (6,966,899) (a) 326,760
Shareholders' equity:
Common stock 118,723 -- -- 118,723
Additional paid-in capital 52,001,681 13,296,291 (13,296,291) (a) 52,001,681
Accumulated deficit (23,201,461) (17,173,375) 17,173,375 (a) (23,201,461)
------------- ------------- ------------- -------------
Total shareholders' equity 28,918,943 (3,877,084) 3,877,084 28,918,943
------------- ------------- ------------- -------------
Total liabilities and shareholders' equity $ 31,833,696 $ 5,204,361 $ (5,204,361) $ 31,833,696
============= ============= ============= =============
SEE ACCOMPANYING NOTES TO CONDENSED FINANCIAL STATEMENTS
APA OPTICS, INC.
UNAUDITED PRO FORMA CONDENSED STATEMENTS OF OPERATIONS
For the Year Ended March 31, 2003
---------------------------------
APA Optics Americable Pro Forma APA Optics
Historical Historical Adjustments Pro Forma
------------ ------------ ------------ -------------
Revenues $ 436,157 $ 8,047,780 $ -- $ 8,483,937
Costs and expenses:
Cost of sales 2,802,597 5,919,368 -- 8,721,965
Research and development 1,212,219 -- -- 1,212,219
Selling, general and administrative 1,750,807 7,849,295 -- 9,600,102
------------ ------------ ------------ -------------
5,765,623 13,768,663 -- 19,534,286
------------ ------------ ------------ -------------
Loss from operations (5,329,466) (5,720,883) -- (11,050,349)
Interest income 436,925 -- -- 436,925
Interest expense (115,893) (708,284) -- (824,177)
Other expense -- (188,476) -- (188,476)
------------ ------------ ------------ -------------
321,032 (896,760) -- (575,728)
------------ ------------ ------------ -------------
Loss before income taxes (5,008,434) (6,617,643) -- (11,626,077)
Income tax expense (benefit) 1,000 (18,491) -- (17,491)
------------ ------------ ------------ -------------
Net loss $(5,009,434) $(6,599,152) $ -- $(11,608,586)
============ ============ ============ =============
Net loss per share:
Basic and diluted $ (0.42) $ -- $ -- $ (0.98)
============ ============ ============ =============
Weighted average shares outstanding:
Basic and diluted 11,873,914 -- -- 11,873,914
============ ============ ============ =============
SEE ACCOMPANYING NOTES TO CONDENSED FINANCIAL STATEMENTS
NOTES TO UNAUDITED PRO FORMA CONDENSED FINANCIAL STATEMENTS
Balance Sheet
(a) To record acquisition and to eliminate items not purchased.
--- Acquired the assets at fair value:
Accounts receivable $ 594,000
Inventories 638,000
Property, plant and equipment 450,000
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1,682,000
Payment for assets (1,960,000)
-----------
Excess purchase price (goodwill) $ 278,000
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The allocation of purchase price to goodwill is preliminary.