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Exhibit 99.04
CHECKPOINT (HOLDINGS) LIMITED
ADJUSTED CONDENSED CONSOLIDATED BALANCE SHEET
AS OF APRIL 30, 2000
(Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
US GAAP
Basis Adjusted
Historical US GAAP Historical Non-recurring Historical
Checkpoint (A) Adjustments (C) Checkpoint Activities (D) Checkpoint
--------------- --------------- ----------- --------------------- -----------
<S> <C> <C> <C> <C> <C>
ASSETS
------
CURRENT ASSETS
Cash and equivalents $ 2,102 $ 2,102 $ 2,102
Accounts receivable, net 6,096 6,096 $ (609) 5,487
Inventories, net 1,923 1,923 (623) 1,300
Prepaid and other current assets 1,006 $ 945 1,951 (55) 1,896
------- ------- ------- ------- -------
Total current assets 11,127 945 12,072 (1,287) 10,785
Depreciable assets, net 2,704 2,704 (31) 2,673
Intangible assets, net 14,627 14,627 14,627
Other assets 129 129 129
------- ------- ------- ------- -------
Total assets $28,587 $ 945 $29,532 $(1,318) $28,214
======= ======= ======= ======= =======
LIABILITIES AND STOCKHOLDERS' DEFICIT
-------------------------------------
CURRENT LIABILITIES
Borrowings due within one year $ 1,834 $ 1,834 $ 1,834
Accounts payable 1,550 1,550 $ (228) 1,322
Accrued expenses 3,284 3,284 (492) 2,792
Other current liabilities 353 353 353
Deferred revenue and deposits 2,895 $ 3,811 6,706 6,706
------- ------- ------- ------- -------
Total current liabilities 9,916 3,811 13,727 (720) 13,007
Long-term liabilities 20,652 20,652 20,652
------- ------- ------- ------- -------
Total liabilities 30,568 3,811 34,379 (720) 33,659
STOCKHOLDERS' DEFICIT
Common stock 345 345 345
Additional paid-in-capital 3,330 3,330 3,330
Retained deficit (5,656) (2,866) (8,522) (598) (9,120)
------- ------- ------- ------- -------
Total stockholders' deficit (1,981) (2,866) (4,847) (598) (5,445)
------- ------- ------- ------- -------
Total liabilities and stockholders'
deficit $28,587 $ 945 $29,532 $(1,318) $28,214
======= ======= ======= ======= =======
</TABLE>
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CHECKPOINT (HOLDINGS) LIMITED
ADJUSTED CONDENSED CONSOLIDATED PROFIT AND LOSS ACCOUNTS
FOR THE YEAR ENDED APRIL 30,2000
(Unaudited)
(Dollars in thousands)
<TABLE>
<CAPTION>
US GAAP
Basis Adjusted
Historical US GAAP Historical Non-recurring Historical
Checkpoint (B) Adjustments (C) Checkpoint Activities (D) Checkpoint
-------------- --------------- ----------- -------------- -----------
<S> <C> <C> <C> <C> <C>
Net revenue $33,256 $ (329) $32,927 $(4,648) $28,279
Costs and expenses
Cost of revenues 13,034 3,796 16,830 (2,034) 14,796
Selling, general and administrative 18,214 (5,159) 13,055 (1,896) 11,159
Amortization of intangibles - acquisition 3,331 3,331 3,331
Research and development 1,234 1,303 2,537 2,537
------- ------- ------- ------- -------
Total costs and expenses 35,813 (60) 35,753 (3,930) 31,823
------- ------- ------- ------- -------
Operating loss (2,557) (269) (2,826) (718) (3,544)
Other expense (2,291) (2,291) (13) (2,304)
Loss on sale of subsidiary (543) (543) 543
------- ------- ------- ------- -------
Loss from operations (5,391) (269) (5,660) (188) (5,848)
Benefit for income taxes (32) (32)
------- ------- ------- ------- -------
Net loss $(5,391) $ (269) $(5,660) $ (156) $(5,816)
======= ======= ======= ======= =======
</TABLE>
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ADJUSTED HISTORICAL CHECKPOINT (HOLDINGS) LIMITED
NOTES TO FINANCIAL STATEMENTS
(unaudited)
The adjusted historical financial statements of Checkpoint (Holdings)
Limited, which are unaudited, reflect adjustments made to the historical
audited financial statements of Checkpoint as of and for the twelve month
period ended April 30, 2000, which are included as part of this Form 8-K/A.
(A) Historical audited amounts reported in the balance sheet for Checkpoint are
presented in accordance with U.K. Generally Accepted Accounting Principles
("UK GAAP") and have been converted from British Sterling to U.S. dollars
using the exchange rate in effect at April 30, 2000.
(B) Historical audited amounts reported in the statement of operations for
Checkpoint are presented in accordance with UK GAAP and have been converted
from British Sterling to U.S. dollars using the average exchange rate for
the twelve month period ended April 30, 2000.
(C) US GAAP adjustments reflect adjustments to the historic financial
information of Checkpoint, as prepared in accordance with UK GAAP, such that
the financial information is in conformity with accounting principles
generally accepted in the United States. The US GAAP adjustments reflect the
deferral of certain revenue ($3,811) and related cost of revenue ($945) as
of April 30, 2000, and the net reduction of certain revenue ($329) and
related cost of revenue ($60) for the twelve month period ended April 30,
2000. Additionally, the US GAAP adjustments reflect a reclassification of
expenses from selling, general and administrative expenses ($5,159) to cost
of revenues ($3,856) and research and development ($1,303) to conform with
the reporting classifications used in the United States.
(D) During the fiscal year ended April 30, 2000, Checkpoint completed the sale
of Compagnie Nationale des Machines de Bureau SA ("CNMB") and Checkpoint
International SA de CV ("CISA"), each of which was a Checkpoint subsidiary.
Additionally, subsequent to April 30, 2000 but prior to the acquisition of
Checkpoint by the Company, Checkpoint disposed of its electromechanical
business line. Accordingly, in deriving the adjusted historical Checkpoint
financial information, these non-recurring operating activities and the
respective balance sheet amounts associated with these activities have been
eliminated from the historical Checkpoint financial statements.
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