COMTECH CONSOLIDATION GROUP, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
The months ended March 31, 1999
and years ended December 31, 1998 and 1997
1999 1998 1997
Revenues $ 4,974,608 8,795,947 293,748
Operating expenses:
Health care operations 3,986,095 6,960,452
Internet operations 141,93 763,54 327,571
Corporate operations 76,6 251,68 100,793
Amortization 8, 19,8 3,3
Depreciation 10,3 56,7 30,10
Total operating expenses 4,223,215 8,052,255 461,826
Operating income (loss) 751,39 743,69 (168,078)
Other income (expenses):
Interest income 3,
Interest expense (3, (31,1
Net earnings (loss) (note 8 $ 747,87 715,58 (168,078)
Net earnings (loss) per share $ (0
Weighted average common shares 14,719,450 14,719,450 5,281,277
COMTECH CONSOLIDATION GROUP, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
March 31, 1999 and December 31, 1998
<TABLE>
<S> <C> <C>
Assets 1999 1998
Current assets:
Cash $ 150,560 150,624
Accounts receivable, less allowances for contractual
adjustments and doubtful accounts of $4,596,043
in 1998 and $2,610,771 in 1998 5,001,268 3,697,506
Receivables from related parties 1,100,000 1,100,000
Prepaid expenses 291,641 262,463
Total current assets 6,543,469 5,210,593
Property and equipment, net of accumulated
depreciation and amortization (notes 4 and 5) 602,972 595,687
Excess of cost over net assets of businesses
acquired, less accumulated amortization of
$30,346 in 1999 and $22,171 in 1998 (note 2) 1,669,654 1,503,829
Other assets 242,250 244,457
Total assets $ 9,058,345 7,554,566
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses 1,528,701 1,364,618
Accrued salaries and related liabilities 1,486,545 1,284,949
Due to third-party payors 1,478,812 1,503,623
Loans payable to shareholders 277,882 277,882
Notes payable 213,795 181,888
Convertible subordinated debentures (note 8) 195,000 195,000
Current installments of long-term debt (note 5) 82,25 24,2
Total current liabilities 5,262,991 4,832,202
Long-term debt, less current installments (note 5) 301,706 80,6
Total liabilities 5,564,697 4,912,897
Stockholders' equity (notes 2, 3, 6 and 8):
Preferred stock, $.01 par value. Authorized
1,000,000 shares: issued and outstanding,
29,410 shares in 1998
Class B, 8% cumulative and convertible
Common stock, $.00967 par value. Authorized
30,000,000 shares: issued and outstanding,
16,970,849 shares in 1999 and 16,970,849
shares in 1998 164,108 164,108
Additional paid-in capital 2,137,413 2,033,413
Retained earnings (deficit) 1,191,833 443,954
Total stockholders' equity (deficit) 3,493,648 2,641,769
Commitments and contingent liabilities (notes 6, 8, 9, 11, 12 and 13)
Total liabilities and stockholders' equity $ 9,058,345 7,554,666
</TABLE>
Joel B. Flowers, Jr.
Chief Financial Officer
