COMTECH CONSOLIDATION GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Unaudited)
March 31, 1999 and 1998
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Assets 1999 1998
Current assets:
Cash $ 150,560 10,532
Accounts receivable, less allowances for contractual
adjustments and doubtful accounts of $4,596,043
in 1999 and $1,000 in 1998 5,001,268 -
Receivables from related parties 1,100,000 -
Prepaid expenses 291,641 -
Total current assets 6,543,469 10,532
Property and equipment, net of accumulated
depreciation and amortization 602,972 129,069
Excess of cost over net assets of businesses
acquired, less accumulated amortization of
$30,346 in 1999 and $9,506 in 1998 1,669,654 392,848
Other assets 242,250 1,830
Total assets $ 9,058,345 534,279
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses 1,528,701 73,331
Accrued salaries and related liabilities 1,486,545 -
Due to third-party payors 1,478,812 -
Loans payable to shareholders 277,882 297,134
Notes payable 213,795 -
Convertible subordinated debentures 195,000 -
Current installments of long-term debt 82,256 -
Total current liabilities 5,262,991 370,465
Long-term debt, less current installments 301,706 304,703
Total liabilities 5,564,697 675,168
Stockholders' equity:
Preferred stock, $.01 par value. Authorized
1,000,000 shares: issued and outstanding,
29,410 shares in 1998
Class B, 8% cumulative and convertible 294 -
Common stock, $.00967 par value. Authorized
30,000,000 shares: issued and outstanding,
18,250,849 shares in 1999 and 14,226,200
shares in 1998 164,108 124,552
Additional paid-in capital 2,137,413 76,422
Retained earnings (deficit) 1,191,833 (341,863)
Total stockholders' equity (deficit) 3,493,648 (140,889)
Commitments and contingent liabilities
Total liabilities and stockholders' equity $ 9,058,345 534,279
COMTECH CONSOLIDATION GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
Three months ended March 31, 1999 and 1998
(Unaudited)
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1999 1998
Revenues $ 4,974,608 295,600
Operating expenses:
Health care operations 3,979,773
Internet operations 141,939 341,812
Corporate operations 76,697 7,118
Amortization 8,175 7,152
Depreciation 16,631 9,750
Total operating expenses 4,223,215 365,832
Operating income (loss) 751,393 (70,232)
Other income (expenses):
Interest income 18
Interest expense (3,532)
Net earnings (loss) $ 747,879 (70,232)
Net earnings (loss) per share $ 0.04 (0.01)
Weighted average common shares 17,726,000 13,576,200
COMTECH CONSOLIDATION GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
Three months ended March 31, 1999 and 1998
(Unaudited)
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1999 1998
Cash flows from operating activities:
Net earnings (loss) $ 747,879 (70,232)
Adjustments to reconcile net earnings (loss) to net
cash provided by (used in) operating activities:
Depreciation and amortization of property
and equipment 16,631 9,750
Amortization of excess of cost over net
assets of businesses acquired 8,175 7,152
(Increase) decrease in accounts receivable (1,303,762) 9,081
Increase in prepaid expenses (29,178)
Increase (decrease) in other assets 2,207 (377)
Increase (decrease) in accounts payable
and accrued expenses 264,188 (4,372)
Increase in accrued salaries and related
liabilities 246,201 76,260
Decrease in amount due to third-party payors (24,811)
Net cash provided by (used in)
operating activities (72,470) 27,262
Cash flows from investing activities:
Purchase of property and equipment (13,916)
Net cash used in investing activities (13,916)
Cash flows from financing activities:
Proceeds from borrowing from shareholders 3,500
Repayments to shareholders (22,753)
Principal payments on long-term debt (17,678)
Proceeds from issuance of shares under private placement 104,000
Net cash provided by (used in)
financing activities 86,322 (19,253)
Net increase (decrease) in cash 8,009
Cash at beginning of year 150,624 2,523
Cash at end of year $ 150,560 10,532
Supplemental disclosures:
Noncash investing and financing activities $
Joel B. Flowers, Jr., CPA
Chief Financial Officer
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