<PAGE>
Exhibit 99.2
INDEX TO FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
PAGE
-----
<S> <C>
INVERNESS MEDICAL TECHNOLOGY, INC. (FORMERLY SELFCARE, INC.)
UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL
STATEMENTS
Notes to Unaudited Pro Forma Combined Condensed Financial Statements.......1
Unaudited Pro Forma Combined Condensed Balance Sheet as of
September 30, 2000.....................................................2
Notes to Unaudited Pro Forma Combined Condensed Balance Sheet
as of September 30, 2000...............................................3
Unaudited Pro Forma Combined Condensed Statement of Operations for
the Year Ended December 31, 1999.......................................4
Notes to Unaudited Pro Forma Combined Condensed Statement
of Operations for the Year Ended December 31, 1999.....................5
Unaudited Pro Forma Combined Condensed Statement of Operations for
the Nine Months Ended September 30, 1999...............................6
Notes to Unaudited Pro Forma Combined Condensed Statement
of Operations for the Nine Months Ended September 30, 1999.............7
Unaudited Pro Forma Combined Condensed Statement of
Operations for the Nine Months Ended September 30, 2000................8
Notes to Unaudited Pro Forma Combined Condensed Statement
of Operations for the Nine Months Ended September 30, 2000.............9
</TABLE>
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO UNAUDITED PRO FORMA COMBINED CONDENSED FINANCIAL STATEMENTS
On October 3, 2000, the Company entered into an Agreement and Plan of Merger
with Integ Incorporated (Integ) whereby the Company will issue an aggregate of
1,900,000 shares of common stock in consideration for all of Integ's common
equity, and $5,500,000 to redeem all of Integ's preferred stock. The acquisition
will be accounted for as a purchase of assets. Accordingly, the operating
results of Integ will be included in the Company's financial results from the
date of acquisition. The allocation of the purchase price to the fair value of
the assets acquired will be based upon an independent appraisal of the fair
value of the assets of Integ. The computations of the value of the Company
common stock to be issued and the redemption value to be paid to the Integ
preferred stockholders will be revised upon consummation of the merger to
reflect actual amounts at the closing date. The preliminary purchase price
allocation included in the accompanying Unaudited Pro Forma Financial Statements
is based upon estimates made by management and will be revised upon completion
of the appraisal and consummation of the merger. The unaudited pro forma
combined condensed financial statements combine (i) the historical consolidated
balance sheets of the Company and Integ as of September 30, 2000 and (ii) the
historical statements of operations for the year ended December 31, 1999 and the
nine months ended September 30, 1999 and 2000 as if the acquisition was
consummated on January 1, 1999. The pro forma information is not necessarily
indicative of either the results which would have actually been reported if the
acquisition of Integ occurred on January 1, 1999 or results which may be
reported in the future.
1
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
PRO FORMA COMBINED CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL ------------------------------
---------------------------- COMPANY
THE COMPANY INTEG ADJUSTMENTS COMBINED
------------- ------------ ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents............................. $ 6,139,848 $ 1,564,375 $(5,500,000)(1) $ 2,204,223
Accounts receivable................................... 25,150,308 127,085 25,277,393
Inventories........................................... 13,430,146 -- 13,430,146
Prepaid expenses and other current assets............. 1,565,276 -- 1,565,276
------------ ------------ ------------ ------------
Total current assets................................ 46,285,578 1,691,460 (5,500,000) 42,477,038
PROPERTY AND EQUIPMENT, AT COST:
Leasehold improvements................................ 790,031 -- 790,031
Buidings.............................................. 1,033,001 -- 1,033,001
Machinery & Equipment................................. 15,569,957 -- 15,569,957
Furniture and Fixtures................................ 789,971 8,438,016 9,227,987
Computer Equipment and Software....................... 1,895,572 -- 1,895,572
------------ ------------ ------------ ------------
20,078,532 8,438,016 -- 28,516,548
Less accumulated depreciation......................... (7,706,951) (3,571,626) (11,278,577)
------------ ------------ ------------ ------------
PROPERTY AND EQUIPMENT, NET............................. 12,371,581 4,866,390 -- 17,237,971
GOODWILL, TRADEMARKS AND OTHER INTANGIBLE ASSETS, NET... 59,473,407 -- 13,105,703 72,579,110
IN PROCESS RESEARCH AND DEVELOPMENT..................... -- -- 39,317,111 (3) --
(39,317,111)(3)
DEFERRED FINANCING COSTS AND OTHER
ASSETS, NET........................................... 1,725,885 4,640 1,730,525
------------ ------------ ------------ ------------
$119,856,451 $ 6,562,490 $ 7,605,703 $134,024,644
============ ============ ============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current portion of notes payable...................... $ 33,966,158 $ 1,331,831 $ 35,297,989
Accounts payable...................................... 14,643,718 34,806 14,678,524
Accrued expenses and other current liabilities........ 13,864,305 235,374 250,000 (2) 14,349,679
Current portion of deferred revenue................... 356,536 -- 356,536
------------ ------------ ------------ ------------
Total current liabilities........................... 62,830,717 1,602,011 250,000 64,682,728
Deferred revenue...................................... 305,912 -- 305,912
Other long-term liabilities........................... 139,000 -- 139,000
Notes payable, net of current portion................. 18,894,535 333,293 19,227,828
------------ ------------ ------------ ------------
Total long-term liabilities......................... 19,339,447 333,293 -- 19,672,740
------------ ------------ ------------ ------------
MANDATORILY REDEEMABLE PREFERRED STOCK OF A
SUBSIDIARY............................................ 4,327,561 -- 4,327,561
------------ ------------ ------------ ------------
STOCKHOLDERS' EQUITY:
Preferred stock....................................... -- 3,091,808 (3,091,908)(4) --
Common stock.......................................... 25,832 98,591 (98,591)(4) 27,732
1,900 (1)
Additional paid-in capital............................ 131,247,747 55,039,048 (55,039,048)(4) 182,545,847
51,298,100 (1)
Less--Treasury stock, at cost......................... (3,724,900) -- (3,724,900)
Accumulated deficit................................... (93,338,312) (53,522,319) 53,522,319 (4) (132,655,423)
(39,317,111)(5)
Accumulated other comprehensive income (loss)......... (851,641) (80,042) 80,042 (4) (851,641)
------------ ------------ ------------ ------------
Total stockholders' equity.......................... 33,358,726 4,627,186 7,355,703 45,341,615
------------ ------------ ------------ ------------
Total liabilities and stockholders' equity.......... $119,856,451 $ 6,562,490 $ 7,605,703 $134,024,644
============ ============ ============ ============
</TABLE>
2
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(UNAUDITED)
The accompanying unaudited pro forma condensed balance sheet has been prepared
by combining the historical results of the Company and Integ as of September 30,
2000 and reflects the following pro forma adjustments:
(1) Represents the issuance of 1,900,000 shares of Company common stock and the
payment of $5,500,000 in exchange for all of the outstanding common stock,
preferred stock, options and warrants of Integ.
(2) Represents the accrual of estimated direct acquisition costs.
(3) Represents the estimated allocation of the purchase price to in-process
research and development and other intangible assets and the related charge
to operations for the estimated value assigned to in-process research and
development.
(4) Represents the elimination of the Integ equity accounts.
3
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL ------------------------------
----------------------------- COMBINED
THE COMPANY INTEG ADJUSTMENTS COMPANY
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net product sales.................... $125,131,088 $ -- $125,131,088
Grants and other revenue............. 742,415 -- 742,415
------------ ------------ ------------ ------------
Net revenues......................... 125,873,503 -- 125,873,503
Cost of sales........................ 83,246,433 -- 83,246,433
------------ ------------ ------------ ------------
Gross profit......................... 42,627,070 -- 42,627,070
------------ ------------ ------------ ------------
Operating Expenses:
Research and development............. 6,905,900 4,217,282 11,123,182
Charge for in-process research and
development........................ -- -- $ 39,317,111 (2) --
(39,317,111)(3) --
Selling, general and
administrative..................... 35,390,211 3,285,948 1,310,570 (1) 39,986,729
------------ ------------ ------------ ------------
Total operating expenses............. 42,296,111 7,503,230 1,310,570 51,109,911
------------ ------------ ------------ ------------
Operating income (loss).............. 330,959 (7,503,230) (1,310,570) (8,482,841)
Interest expense, including
amortization of original issue
discount........................... (8,092,611) (340,129) (8,432,740)
Interest and other expense, net...... (532,470) (1,019) (533,489)
------------ ------------ ------------ ------------
Loss before dividends and accretion
on mandatorily redeemable preferred
stock of a subsidiary.............. (8,294,122) (7,844,378) (1,310,570) (17,449,070)
Dividends and accretion on
mandatorily redeemable
preferred stock of a subsidiary...... (225,996) -- (225,996)
------------ ------------ ------------ ------------
Loss before extraordinary loss and
income taxes....................... (8,520,118) (7,844,378) (1,310,570) (17,675,066)
Extraordinary loss on modification of
notes payable...................... (306,092) -- (306,092)
------------ ------------ ------------ ------------
Loss before income taxes............. (8,826,210) (7,844,378) (1,310,570) (17,981,158)
Provision for income taxes........... 245,342 -- 245,342
------------ ------------ ------------ ------------
Net loss............................. $ (9,071,552) $ (7,844,378) $ (1,310,570) $(18,226,500)
============ ============ ============ ============
Net loss per common share--basic..... $ (0.66)(1) $ (0.81) $ (0.97)
============ ============ ============
Net loss per common share--diluted... $ (0.66)(1) $ (0.81) $ (0.97)
============ ============ ============
Weighted average shares--basic....... 16,819,731 9,649,424 (7,749,424)(4) 18,719,731
============ ============ ============ ============
Weighted average shares--diluted..... 16,819,731 9,649,424 (7,749,424)(4) 18,719,731
============ ============ ============ ============
</TABLE>
(1) Historical basic and diluted net loss per common share is computed as
described in the Company's filing on Form 10-K as of and for the year
ended December 31, 1999, which is incorporated by reference herein.
4
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE YEAR ENDED DECEMBER 31, 1999
(UNAUDITED)
The accompanying unaudited pro forma condensed statement of operations has been
prepared by combining the historical results of the Company and Integ for the
year ended December 31, 1999 and reflects the following pro forma adjustments:
(1) Reflects amortization expense on acquired intangible assets based on their
estimated useful life of 10 years.
(2) Represents charge to operations for the estimated fair values of certain in
process research and development projects.
(3) Represents reversal of nonrecurring charges, in accordance with Securities
and Exchange Commission regulations.
(4) Represents a reduction of Integ shares to reflect the equivalent number of
Company shares, based on the terms of the related Agreement and Plan of
Merger.
5
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL ------------------------------
--------------------------- COMBINED
THE COMPANY INTEG ADJUSTMENTS COMPANY
----------- ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net product sales....................... $89,004,945 $ -- $ 89,004,945
Grants and other revenue................ 641,750 -- 641,750
----------- ----------- ------------ ------------
Net revenues............................ 89,646,695 -- -- 89,646,695
Cost of sales........................... 60,957,161 -- 60,957,161
----------- ----------- ------------ ------------
Gross profit........................ 28,689,534 -- -- 28,689,534
----------- ----------- ------------ ------------
Operating Expenses:
Research and development................ 4,356,715 3,323,413 7,680,128
Charge for in-process research and
development........................... -- -- $ 39,317,111 (2) --
(39,317,111)(3)
Selling, general and administrative..... 26,839,432 2,609,684 655,285 (1) 30,104,401
----------- ----------- ------------ ------------
Total operating expenses............ 31,196,147 5,933,097 655,285 37,784,529
----------- ----------- ------------ ------------
Operating loss.......................... (2,506,613) (5,933,097) (655,285) (9,094,995)
Interest expense, including amortization
of original issue discount............ (5,697,752) (532,194) (6,229,946)
Interest and other (expense) income,
net................................... (135,300) 289,497 154,197
----------- ----------- ------------ ------------
Loss before dividends and accretion on
mandatorily redeemable preferred
stock of a subsidiary............... (8,339,665) (6,175,794) (655,285) (15,170,744)
Dividends and accretion on mandatorily
redeemable preferred stock of a
subsidiary............................ (169,513) -- (169,513)
----------- ----------- ------------ ------------
Loss before extraordinary loss and
income taxes........................ (8,509,178) (6,175,794) (655,285) (15,340,257)
Extraordinary loss on modification of
notes payable......................... (306,092) -- (306,092)
----------- ----------- ------------ ------------
Loss before income taxes.............. (8,815,270) (6,175,794) (655,285) (15,646,349)
Provision for income taxes.............. 348,516 -- 348,516
----------- ----------- ------------ ------------
Net loss.............................. $(9,163,786) $(6,175,794) $ (655,285) $(15,994,865)
=========== =========== ============ ============
Net loss per common share--basic........ $ (0.64)(1) $ (0.64) $ (0.87)
=========== =========== ============
Net loss per common share--diluted...... $ (0.64)(1) $ (0.64) $ (0.87)
=========== =========== ============
Weighted average shares--basic.......... 16,503,290 9,643,883 (7,743,883)(4) 18,403,290
=========== =========== ============ ============
Weighted average shares--diluted........ 16,503,290 9,643,883 (7,743,883)(4) 18,403,290
=========== =========== ============ ============
</TABLE>
(1) Historical basic and diluted net loss per common share is computed as
described in the Company's filing on Form 10-Q as of and for the three
and nine months ended September 30, 1999, which is incorporated by
reference herein.
6
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999
(UNAUDITED)
The accompanying unaudited pro forma condensed statement of operations has been
prepared by combining the historical results of the Company and Integ for the
nine months ended September 30, 1999 and reflects the following pro forma
adjustments:
(1) Reflects amortization expense on acquired intangible assets based on their
estimated useful life of 10 years.
(2) Represents charge to operations for the estimated fair values of certain in
process research and development projects.
(3) Represents reversal of nonrecurring charges, in accordance with Securities
and Exchange Commission regulations.
(4) Represents a reduction of Integ shares to reflect the equivalent number of
Company shares, based on the terms of the related Agreement and Plan of
Merger.
7
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL -------------------------------
---------------------------- COMBINED
THE COMPANY INTEG ADJUSTMENTS COMPANY
------------ ----------- ------------ ------------
<S> <C> <C> <C> <C>
Net product sales.................... $121,070,826 $ -- $121,070,826
Grants and other revenue............. 246,959 -- 246,959
------------ ----------- ------------ ------------
Net revenues......................... 121,317,785 -- -- 121,317,785
Cost of sales........................ 70,595,222 -- 70,595,222
------------ ----------- ------------ ------------
Gross profit....................... 50,722,563 -- -- 50,722,563
------------ ----------- ------------ ------------
Operating Expenses:
Research and development............. 9,478,396 2,713,781 12,192,177
Selling, general and
administrative..................... 28,910,281 1,249,784 $ 655,285 (1) 30,815,350
------------ ----------- ------------ ------------
Total operating expenses........... 38,388,677 3,963,565 655,285 43,007,527
------------ ----------- ------------ ------------
Operating income (loss).............. 12,333,886 (3,963,565) (655,285) 7,715,036
Interest expense, including non-cash
interest expense relating to
issuance of warrants and
amortization of original issue
discount........................... (5,731,109) (304,992) (6,036,101)
Other income......................... 2,255,798 114,869 2,370,667
------------ ----------- ------------ ------------
Income (loss) before dividends and
accretion on mandatorily
redeemable preferred stock of a
subsidiary....................... 8,858,575 (4,153,688) (655,285) 4,049,602
Dividends and accretion on
mandatorily redeemable preferred
stock of a subsidiary.............. (383,314) -- (383,314)
------------ ----------- ------------ ------------
Income (loss) before extraordinary
loss and income taxes............ 8,475,261 (4,153,688) (655,285) 3,666,288
Extraordinary loss on modification of
notes payable...................... (799,729) -- (799,729)
------------ ----------- ------------ ------------
Income (loss) before income
taxes............................ 7,675,532 (4,153,688) (655,285) 2,866,559
Provision for income taxes........... 434,761 -- 434,761
------------ ----------- ------------ ------------
Net income (loss).................. $ 7,240,771 $(4,153,688) $ (655,285) $ 2,431,798
============ =========== ============ ============
Net income (loss) per common share --
basic.............................. $ 0.30(1) $ (0.42) $ 0.10
============ =========== ============
Net income (loss) per common share --
diluted............................ $ 0.26(1) $ (0.42) $ 0.08
============ =========== ============
Weighted average shares -- basic..... 22,618,417 9,827,211 (7,927,211)(2) 24,518,417
============ =========== ============ ============
Weighted average shares -- diluted... 27,346,752 9,827,211 (7,927,211)(2) 29,246,752
============ =========== ============ ============
</TABLE>
(1) Historical basic and diluted net income per common share is computed as
described in the Company's filing on Form 10-Q as of and for the three
and nine months ended September 30, 2000, which is incorporated by
reference herein.
8
<PAGE>
INVERNESS MEDICAL TECHNOLOGY, INC. AND SUBSIDIARIES
NOTES TO PRO FORMA COMBINED CONDENSED STATEMENT OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000
(UNAUDITED)
The accompanying unaudited pro forma condensed statement of operations has
been prepared by combining the historical results of the Company and Integ for
the nine months ended September 30, 2000 and reflects the following pro forma
adjustments:
(1) Reflects amortization expense on acquired intangible assets based on their
estimated useful life of 10 years.
(2) Represents a reduction of Integ shares to reflect the equivalent number of
Company shares, based on the terms of the related Agreement and Plan of
Merger.
9
