G. Conduct a ratio analysis of Spatial Technology's past income statements and balance sheets. Note any performance strengths and weaknesses and discuss any ratio trends. H. Use cash flow statements for Spatial Technology, Inc. to determine whether the venture has been building or burning cash, as well as possible trends in building or burning cash. HAN sta cous UN In El ala bibliis ilsiasi Title buill is at man THE MENU MAR 11 MAR 1954 JUN 30 1914 SEP DEC: UN DECT IN THOUSANDE 130 130 11 10 734 100 1.306 200 150 IEED coe Rovoties Prepaid Maintenance and To Cost of Grous profit Doting experts Said marketing Peth and development General and native Total operating expe Ewing our cursions Other Det Earrings low before income and extraordinary Incore as perse Earrings on tore extrem Extraordinary man only deguiset of debt Netcomings ali ga lala lala si ARA & CL bolezlila sa lilasi TEL AT 11530 Le lila bila 1957 Gli alu a la slaluna lile lils 101 1122 10 III Source Spatial Tecnico Proiectul SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LAMOUNTS IN THOUSANDS, EXCEPT SHARES ASSETS DECEMBER PRO FORMA JUNE TUNAUDITED IUNAUDITED 5 2 1 2215 E Purchase 24 10 51537 LIABILITIES AND STOCKHOLDERS' DEFICIT 5 3 410 IBRE 279 296 1.130 1.726 2421 500 3.921 500 585 455 848 1220 3.508 1.231 1.779 3,818 3.600 3.818 14.155 14, 155 14,155 Comment bien Nel poble Accounts payable Accrued royalties payable Other accrued expenses Deferred revenue Total current liabilities Notes payable Total liabilities Mandatory redeemable convertible preferred stock. $0 01 par value 7.566,324 shares authorized 6,381 473 shares issued and outstanding liquidation preference of $14,154,550 Stockholders' deficit Common stock. $0.01 por value, 20,000,000 shares authorized: 1,023,208, 1,060,791, and 1,089.571 shares issued in 1994, 1995, and 1996, respectively (5,188, 169 shares pro forma) Additional paid-in capital Accumulated deficit Treasury stock at cost, 250,000 shares of common stock Foreign currency translation adjustment Total stockholders' deficit Commitments and contingency 10 143 (15,260) 11 183 114,8721 11 419 114,888 52 14,533 114.688 (78) (176) (30) (15.313) $ 2.763 (176) (61) 114 915 $ 2,848 178 114336 $ 3,637 (181) SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS AMOUNTS IN THOUSANDS) YEARS ENDED DECEMBER 19 1994 SEX MONTHS ENDED JUNE Sopron me LUNAUDITED 23 317 4 115 142 11511 212 47 63 1117 81 1511 410 997 11245 303 326 181 1985 59 100 1238 2) 154) 210 A to neconcile et ming to be cath eded by operating activities Edary-gon on any extinguishment of Diction and mortization Common stoc sund for SERVICES accrued on conversion of stockholder rites Danges in operating assets and liabilities Aunts receivable Pugad expenses and other Accounts payable Accrued expenses Deferred revenue Net cash provided fused by operating activities Ostrows from investing activities Addition to equipment Additions to purchased computer software Net cash used by investing activities Oist flows from financing activities Principal payments on notes payable and capital leases Poceeds from exercise of common stock options and amants Proceeds from notes payable Proceeds from issuance of preferred stock net Purchase of treasury stock Net cash provided (used) by financing activities Foreign currency translation adjustment affecting cash Net increase (decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosures Cash paid for interest Cash paid for income taxes (238) 2002 0212 154 --- | 11661 (5011 1100 E-m* ||| 4 392 100 41 100 50 2.200 1.202 1175) 3.121 1637 175 $ 1,812 (397) (30) 11,524) 1812 $ 288 41 1311 135 288 $153 291 288 $579 1101 117 237 153 $390 $ 20 S $ 34 42 $ 71 $83 $ 76 $127 $ 29 $ 91 $101 Source: Spatial Technology Prospectus Exhibit Sa Income Statements polone YEAR ENDED DECEMBER 31 SIX MONTHS ENDED JUNE 20, 1995 1995 1991 1992 1993 1994 1995 IN THOUSANDS, EXCEPT PER SHARE DATA) $ 4731 $ 2,507 562 1.47 140 1207 12,1 520 12348 1.728 1.461 250 748 5.729 873 $ 3,528 RS 2,571 1,341 7525 1.354 6,161 $1,00 100 4 2.131 6548 705 5,543 2592 8.6.29 677 7,652 7381 1.154 5.231 1213 4,286 299 3987 403 2411 2 499 1.016 2.710 3.166 2,907 2.770 1.851 Statements of Operations Data Revenue License fons Royalties Prepaid royalties Maintenance and training Total revenue Cost of sales Gross profit Operating expenses Sales and marketing Research and development General and administrative Severance costs Total operating expenses Earnings floss) from operations Other expense, net Earnings (loss) before income taxes and extraordinary items Income tax expense (1) Earnings (loss) before extraordinary item Extraordinary item (2) Net earnings floss 1506 1496 30 2942 3.123 1.210 1574 1.913 282 3.220 3.843 1,776 300 9,139 12.9062 1611 8826 5.526 11.070) 7.528 11,357 119 3.661 326 130 7.275 677 115 4354 280 151 1983 11,1221 (1.3851 25 11.411) (2.999 42 13,0111 11.025 137 11,162 $ 298 562 174 388 286 97 199 220 45 184 11,122) $ 150 $ 199 $ 388 $13.011 $11.411) $(1122) Source: Spatial Technology Prospectus #*#/f a *[1?rir Stiiterravur ftwarede/24 THREE MONTHS ENDED MAR 31, 1994 JUM 90, 1994 EP. 10, 1994 0[01! 1994 AN 14, JAN, , 1995 1995 LIN THOUSANDS) 5EP 30. 1995 hE, 14 1885 AAA 3 1996 Ju 1996 $1.212 $ 951 718 $1,397 510 $ 390 127 100 288 905 158 747 716 2.385 232 2.153 745 2,652 171 248 156 552 852 288 Revenue License fees Royalties Prepaid royalties Maintenance and training Total revenue Cost of sales Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Earnings (los) from operations Other expense.net Earnings (loss before income taxes and extraordinary item Income tax expense Earnings (loss before extraordinary item Extraordinary item gain on early extinguishment of debt Net earnings (loss Source Spatial Technology Prospectus I | ] % # | | | # % $| | g gg | #| | | | #| = | | | # # #| # # #| | | | * # # 15 * | | 785 835 330 2000 153 L} 939 978 437 2354 122 121) 1.882 19451 1201 112 123 64 105 (190 125 D [E $ Sa 125 $1965 5b Balance Sheets SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ASSETS DECEMBER 31 JUNE 30, 1996 TUNAUDITEDI PRO FORMA JUNE 30. 1996 IUNAUDITED 1994 1995 $ 200 $ 153 $ 390 Current assets Cash and cash equivalents Accounts receivable net of allowance of $102. $34, and $94 in 1994, 1995, 1996, respectively Prepaid expenses and other Total current assets Equipment net Purchased computer software.net 2.293 1.893 179 2.225 1.742 185 2.215 256 282 $ 2,760 2954 373 410 $3637 246 $ 2848 LIABILITIES AND STOCKHOLDERS' DEFICIT $ $ IEEEE 019 500 585 455 848 1.220 1.130 1.726 3.421 410 398 1.231 1,779 3,818 3,608 3,921 3.808 3,818 Current liabilities Notes payable Accounts payable Accrued royalties payable Other accrued expenses Deferred revenue Total current liabilities Notes payable Total liabilities Mandatory redeemable convertible preferred stock. $0.01 par value: 7.566,324 shares authorized: 6,381,473 shares issued and outstanding: liquidation preference of $14,154,550 Stockholders' deficit Common stock, 5001 par valoa 20,000.00 shams authorized 1023.208.10979 1,088.571 shares issued in 1994- 1996, respectively 5,189 160 forma) Additional paid in capital Accumulated delicit Treasury stock at cost 250,000 short of common stock Foreign currency translation adjustment Total stockholders' delicit Commitments and contingency 14.155 14.155 14.155 10 140 115.260) 11 183 (14 872) 11 419 1146881 52 14.533 114,688) - 1176) (30) 115,313 $ 2,763 (176) 161) (14,915) $ 2.848 178 114,336) $ 3,637 1781 (181) AL TECHNOLOGY INC. AND SUBSIDLARES CONSOLIDATED STATEMENTS OF CASH FLOWS AMOUNTS IN THOUSANDS YEARS ENDED DECEMBER 10 SE MONTHSENOLD JUNE Cash flows from operating activities Net canings floss) IUNITED 317 4 2 212 53 1141) 1113 34 Adjustments to reconcile net earnings ass to cash provided used by operating activities Extraordinary item-gain on Bally extinguishment of Depreciation and amortization Common stock issued for services Interest accrued on conversion of stockholder notes Changes in operating assets and liabilities Accounts receivable Prepaid expenses and other Accounts payable Accrued expenses Deferred revenue Net cash provided (used) by operating activities Cash flows from investing activities Additions to equipment Additions to purchased computer software Net cash used by investing activities Cash flows from financing activities Principal payments on notes payable and capital leases Proceeds from exercise of common stock options and warrants Proceeds from notes payable Proceeds from issuance of preferred stock, net Purchase of treasury stock Net cash provided (used) by financing activities Foreign currency translation adjustment affecting cash Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalenter end of period Supplemental disclosures Cash paid for interest Cash paid for income and 18. ble Isle 1" 1542 3541 I Blesse a ble llega 1 11 3 | | 8 9 81 ||@|||| IER: - ED EDE DI 1896 785 3 1136 11524 1812 5.288 291 288 $579 1686 34 $ 71 $ 83 5 20 $101 Source: Spatial Technology Prospectus G. Conduct a ratio analysis of Spatial Technology's past income statements and balance sheets. Note any performance strengths and weaknesses and discuss any ratio trends. H. Use cash flow statements for Spatial Technology, Inc. to determine whether the venture has been building or burning cash, as well as possible trends in building or burning cash. HAN sta cous UN In El ala bibliis ilsiasi Title buill is at man THE MENU MAR 11 MAR 1954 JUN 30 1914 SEP DEC: UN DECT IN THOUSANDE 130 130 11 10 734 100 1.306 200 150 IEED coe Rovoties Prepaid Maintenance and To Cost of Grous profit Doting experts Said marketing Peth and development General and native Total operating expe Ewing our cursions Other Det Earrings low before income and extraordinary Incore as perse Earrings on tore extrem Extraordinary man only deguiset of debt Netcomings ali ga lala lala si ARA & CL bolezlila sa lilasi TEL AT 11530 Le lila bila 1957 Gli alu a la slaluna lile lils 101 1122 10 III Source Spatial Tecnico Proiectul SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS LAMOUNTS IN THOUSANDS, EXCEPT SHARES ASSETS DECEMBER PRO FORMA JUNE TUNAUDITED IUNAUDITED 5 2 1 2215 E Purchase 24 10 51537 LIABILITIES AND STOCKHOLDERS' DEFICIT 5 3 410 IBRE 279 296 1.130 1.726 2421 500 3.921 500 585 455 848 1220 3.508 1.231 1.779 3,818 3.600 3.818 14.155 14, 155 14,155 Comment bien Nel poble Accounts payable Accrued royalties payable Other accrued expenses Deferred revenue Total current liabilities Notes payable Total liabilities Mandatory redeemable convertible preferred stock. $0 01 par value 7.566,324 shares authorized 6,381 473 shares issued and outstanding liquidation preference of $14,154,550 Stockholders' deficit Common stock. $0.01 por value, 20,000,000 shares authorized: 1,023,208, 1,060,791, and 1,089.571 shares issued in 1994, 1995, and 1996, respectively (5,188, 169 shares pro forma) Additional paid-in capital Accumulated deficit Treasury stock at cost, 250,000 shares of common stock Foreign currency translation adjustment Total stockholders' deficit Commitments and contingency 10 143 (15,260) 11 183 114,8721 11 419 114,888 52 14,533 114.688 (78) (176) (30) (15.313) $ 2.763 (176) (61) 114 915 $ 2,848 178 114336 $ 3,637 (181) SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS AMOUNTS IN THOUSANDS) YEARS ENDED DECEMBER 19 1994 SEX MONTHS ENDED JUNE Sopron me LUNAUDITED 23 317 4 115 142 11511 212 47 63 1117 81 1511 410 997 11245 303 326 181 1985 59 100 1238 2) 154) 210 A to neconcile et ming to be cath eded by operating activities Edary-gon on any extinguishment of Diction and mortization Common stoc sund for SERVICES accrued on conversion of stockholder rites Danges in operating assets and liabilities Aunts receivable Pugad expenses and other Accounts payable Accrued expenses Deferred revenue Net cash provided fused by operating activities Ostrows from investing activities Addition to equipment Additions to purchased computer software Net cash used by investing activities Oist flows from financing activities Principal payments on notes payable and capital leases Poceeds from exercise of common stock options and amants Proceeds from notes payable Proceeds from issuance of preferred stock net Purchase of treasury stock Net cash provided (used) by financing activities Foreign currency translation adjustment affecting cash Net increase (decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period Supplemental disclosures Cash paid for interest Cash paid for income taxes (238) 2002 0212 154 --- | 11661 (5011 1100 E-m* ||| 4 392 100 41 100 50 2.200 1.202 1175) 3.121 1637 175 $ 1,812 (397) (30) 11,524) 1812 $ 288 41 1311 135 288 $153 291 288 $579 1101 117 237 153 $390 $ 20 S $ 34 42 $ 71 $83 $ 76 $127 $ 29 $ 91 $101 Source: Spatial Technology Prospectus Exhibit Sa Income Statements polone YEAR ENDED DECEMBER 31 SIX MONTHS ENDED JUNE 20, 1995 1995 1991 1992 1993 1994 1995 IN THOUSANDS, EXCEPT PER SHARE DATA) $ 4731 $ 2,507 562 1.47 140 1207 12,1 520 12348 1.728 1.461 250 748 5.729 873 $ 3,528 RS 2,571 1,341 7525 1.354 6,161 $1,00 100 4 2.131 6548 705 5,543 2592 8.6.29 677 7,652 7381 1.154 5.231 1213 4,286 299 3987 403 2411 2 499 1.016 2.710 3.166 2,907 2.770 1.851 Statements of Operations Data Revenue License fons Royalties Prepaid royalties Maintenance and training Total revenue Cost of sales Gross profit Operating expenses Sales and marketing Research and development General and administrative Severance costs Total operating expenses Earnings floss) from operations Other expense, net Earnings (loss) before income taxes and extraordinary items Income tax expense (1) Earnings (loss) before extraordinary item Extraordinary item (2) Net earnings floss 1506 1496 30 2942 3.123 1.210 1574 1.913 282 3.220 3.843 1,776 300 9,139 12.9062 1611 8826 5.526 11.070) 7.528 11,357 119 3.661 326 130 7.275 677 115 4354 280 151 1983 11,1221 (1.3851 25 11.411) (2.999 42 13,0111 11.025 137 11,162 $ 298 562 174 388 286 97 199 220 45 184 11,122) $ 150 $ 199 $ 388 $13.011 $11.411) $(1122) Source: Spatial Technology Prospectus #*#/f a *[1?rir Stiiterravur ftwarede/24 THREE MONTHS ENDED MAR 31, 1994 JUM 90, 1994 EP. 10, 1994 0[01! 1994 AN 14, JAN, , 1995 1995 LIN THOUSANDS) 5EP 30. 1995 hE, 14 1885 AAA 3 1996 Ju 1996 $1.212 $ 951 718 $1,397 510 $ 390 127 100 288 905 158 747 716 2.385 232 2.153 745 2,652 171 248 156 552 852 288 Revenue License fees Royalties Prepaid royalties Maintenance and training Total revenue Cost of sales Gross profit Operating expenses Sales and marketing Research and development General and administrative Total operating expenses Earnings (los) from operations Other expense.net Earnings (loss before income taxes and extraordinary item Income tax expense Earnings (loss before extraordinary item Extraordinary item gain on early extinguishment of debt Net earnings (loss Source Spatial Technology Prospectus I | ] % # | | | # % $| | g gg | #| | | | #| = | | | # # #| # # #| | | | * # # 15 * | | 785 835 330 2000 153 L} 939 978 437 2354 122 121) 1.882 19451 1201 112 123 64 105 (190 125 D [E $ Sa 125 $1965 5b Balance Sheets SPATIAL TECHNOLOGY INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (AMOUNTS IN THOUSANDS, EXCEPT SHARES) ASSETS DECEMBER 31 JUNE 30, 1996 TUNAUDITEDI PRO FORMA JUNE 30. 1996 IUNAUDITED 1994 1995 $ 200 $ 153 $ 390 Current assets Cash and cash equivalents Accounts receivable net of allowance of $102. $34, and $94 in 1994, 1995, 1996, respectively Prepaid expenses and other Total current assets Equipment net Purchased computer software.net 2.293 1.893 179 2.225 1.742 185 2.215 256 282 $ 2,760 2954 373 410 $3637 246 $ 2848 LIABILITIES AND STOCKHOLDERS' DEFICIT $ $ IEEEE 019 500 585 455 848 1.220 1.130 1.726 3.421 410 398 1.231 1,779 3,818 3,608 3,921 3.808 3,818 Current liabilities Notes payable Accounts payable Accrued royalties payable Other accrued expenses Deferred revenue Total current liabilities Notes payable Total liabilities Mandatory redeemable convertible preferred stock. $0.01 par value: 7.566,324 shares authorized: 6,381,473 shares issued and outstanding: liquidation preference of $14,154,550 Stockholders' deficit Common stock, 5001 par valoa 20,000.00 shams authorized 1023.208.10979 1,088.571 shares issued in 1994- 1996, respectively 5,189 160 forma) Additional paid in capital Accumulated delicit Treasury stock at cost 250,000 short of common stock Foreign currency translation adjustment Total stockholders' delicit Commitments and contingency 14.155 14.155 14.155 10 140 115.260) 11 183 (14 872) 11 419 1146881 52 14.533 114,688) - 1176) (30) 115,313 $ 2,763 (176) 161) (14,915) $ 2.848 178 114,336) $ 3,637 1781 (181) AL TECHNOLOGY INC. AND SUBSIDLARES CONSOLIDATED STATEMENTS OF CASH FLOWS AMOUNTS IN THOUSANDS YEARS ENDED DECEMBER 10 SE MONTHSENOLD JUNE Cash flows from operating activities Net canings floss) IUNITED 317 4 2 212 53 1141) 1113 34 Adjustments to reconcile net earnings ass to cash provided used by operating activities Extraordinary item-gain on Bally extinguishment of Depreciation and amortization Common stock issued for services Interest accrued on conversion of stockholder notes Changes in operating assets and liabilities Accounts receivable Prepaid expenses and other Accounts payable Accrued expenses Deferred revenue Net cash provided (used) by operating activities Cash flows from investing activities Additions to equipment Additions to purchased computer software Net cash used by investing activities Cash flows from financing activities Principal payments on notes payable and capital leases Proceeds from exercise of common stock options and warrants Proceeds from notes payable Proceeds from issuance of preferred stock, net Purchase of treasury stock Net cash provided (used) by financing activities Foreign currency translation adjustment affecting cash Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalenter end of period Supplemental disclosures Cash paid for interest Cash paid for income and 18. ble Isle 1" 1542 3541 I Blesse a ble llega 1 11 3 | | 8 9 81 ||@|||| IER: - ED EDE DI 1896 785 3 1136 11524 1812 5.288 291 288 $579 1686 34 $ 71 $ 83 5 20 $101 Source: Spatial Technology Prospectus