Xtant Medical Holdings, Inc. - FORM 8-K - EX-99.3 - July 7, 2010

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8-K - Xtant Medical Holdings, Inc.v189893_8k.htm
EX-99.2 - Xtant Medical Holdings, Inc.v189893_ex99-2.htm
EX-10.4 - Xtant Medical Holdings, Inc.v189893_ex10-4.htm
EX-10.2 - Xtant Medical Holdings, Inc.v189893_ex10-2.htm
EX-21.1 - Xtant Medical Holdings, Inc.v189893_ex21-1.htm
EX-10.8 - Xtant Medical Holdings, Inc.v189893_ex10-8.htm
EX-3.2(A) - Xtant Medical Holdings, Inc.v189893_ex3-2a.htm
EX-10.7 - Xtant Medical Holdings, Inc.v189893_ex10-7.htm
EX-10.6 - Xtant Medical Holdings, Inc.v189893_ex10-6.htm
EX-99.1 - Xtant Medical Holdings, Inc.v189893_ex99-1.htm
EX-10.5 - Xtant Medical Holdings, Inc.v189893_ex10-5.htm
EX-10.9 - Xtant Medical Holdings, Inc.v189893_ex10-9.htm
EX-10.3 - Xtant Medical Holdings, Inc.v189893_ex10-3.htm
EX-10.10 - Xtant Medical Holdings, Inc.v189893_ex10-10.htm
Exhibit 99.3
 
BACTERIN INTERNATIONAL, INC.
Balance Sheet
March 31, 2010

   
Bacterin
International, Inc.
    
K-Kitz, Inc.
    
Pro Forma
Adjustments
    
Footnotes
    
Pro Forma
Combined
  
                               
Assets                               
Current Assets
                              
Cash and cash equivalents
   $ 280,103     $ 62,434     $ 5,697,403    
a,b
     $ 6,039,940  
Accounts receivable (net)
     1,558,944       5,571       (5,571 )  
a
       1,558,944  
Notes receivable
     426,565       -       -             426,565  
Notes receivable from stockholder
     22,178       -       -             22,178  
Inventories, net
     5,556,378       29,316       (29,316 )  
a
       5,556,378  
Prepaid and other current assets
     40,000       5,194       (5,194 )  
a
       40,000  
Total Current Assets
     7,884,168       102,515       5,657,322             13,644,005  
                                       
Property and Equipment, Net
     3,136,498       -       -             3,136,498  
                                       
Other Assets
                                      
Intangible assets, net
     557,627       -       -             557,627  
Other assets
     13,675       -       -             13,675  
    $ 11,591,968     $ 102,515     $ 5,657,322           $ 17,351,805  
                                       
Liabilities and Members' Equity
                                      
Current Liabilities
                                      
Accounts payable
   $ 1,252,695     $ 13,033     $ (13,033 )  
a
     $ 1,252,695  
Warrant derivative liability
     515,227       -       -             515,227  
Accrued liabilities
     571,750       -       (82,329 )  
a,b
       489,421  
Current deferred tax liability
     -       1,834       (1,834 )  
a
       -  
Notes payable
     740,615       -       -             740,615  
Notes payable to stockholders
     183,461       -       -             183,461  
Current portion of capital lease obligations
     69,584       -       -             69,584  
Current portion of convertible notes payable
     3,516,163       -       (1,666,163 )  
a,b
       1,850,000  
Current portion of long-term debt
     1,193,591       -       -             1,193,591  
Total Current Liabilities
     8,043,086       14,867       (1,763,359 )           6,294,594  
                                    -  
Long-term Liabilities
                                      
Capital lease obligations, less current portion
     17,474                             17,474  
Long-term debt, less current portion
     333,548                             333,548  
Total Liabilities
     8,394,108       14,867       (1,763,359 )           6,645,616  
                                       
Stockholders' Equity
                                      
Common stock, $.00001 par value; 100,000,000 shares authorized; issued and outstanding XXX shares in 2009
     565       6       69    
a,b
       640  
Additional paid in capital
     22,394,210       96,795       7,411,459    
a,b
       29,902,464  
Treasury stock, 117,794 shares
     (76,566 )     -       -             (76,566 )
Retained earnings
     (19,120,349 )     (9,153 )     9,153    
a
       (19,120,349 )
Total Stockholders' Equity
 
   3,197,860       87,648       7,420,681             10,706,189  
    $ 11,591,968     $ 102,515     $ 5,657,322           $ 17,351,805  

a 
Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.
b 
Proforma adjustments for the completion of the $7,508,329 round of equity finanicing as part of the proposed stock offering and partial conversion of convertible notes payable.

The accompanying notes are an integral part of the financial statements.
 
 
BACTERIN INTERNATIONAL, INC.
Statement of Income
For the three months ended March 31, 2010

   
Bacterin International,
Inc.
    
K-Kitz, Inc.
    
Pro Forma
Adjustments
    
Footnotes
    
Pro Forma
Combined
  
                               
Revenues                                      
Revenue
   $ 2,707,124     $ 16,812     $ (16,812 )  
a
     $ 2,707,124  
Royalties and other
     29,309       -       -             29,309  
Total Revenue
     2,736,433       16,812       (16,812 )           2,736,433  
                                       
Cost of revenue
     604,622       9,657       (9,657 )  
a
       604,622  
                                       
Gross Profit
     2,131,811       7,155       (7,155 )           2,131,811  
                                       
Operating Expenses
                                      
Selling, general, and administrative
     1,671,081       16,383       (16,383 )  
a
       1,671,081  
Compensation expense
     1,483,871       -       -             1,483,871  
Total Operating Expenses
     3,154,952       16,383       (16,383 )           3,154,952  
                                       
Income from Operations
     (1,023,141 )     (9,228 )     9,228             (1,023,141 )
                                       
Other Income (Expense)
                                      
Interest expense
     (625,797 )     -       -             (625,797 )
Other
     5,924       -       -             5,924  
                                       
Total Other Income (Expense)
 
   (619,873 )     -       -             (619,873 )
                                       
Net Income Before Benefit (Provision)
                                      
for Income Taxes
     (1,643,014 )     (9,228 )     9,228             (1,643,014 )
                                       
Benefit (Provision) for Income Taxes
                                      
Current
     -       -       -             -  
Deferred
     -       -       -             -  
                                       
Net Income
   $ (1,643,014 )   $ (9,228 )   $ 9,228           $ (1,643,014 )
                                       
EPS Basic for Net Income
   $ (0.03 )                        
XX
  
                                       
Weighted Average Shares Outstanding
     56,461,755                          
XX
  

a
Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

The accompanying notes are an integral part of the financial statements.
 
 
Balance Sheet
December 31, 2009

   
Bacterin
International, Inc.
    
K-Kitz, Inc.
    
Pro Forma
Adjustments
    
Footnotes
    
Pro Forma
Combined
  
                               
Assets                              
Current Assets
                              
Cash and cash equivalents
   $ 54,155     $ 46,012     $ 8,409,201    
a,b
     $ 8,509,368  
Accounts receivable (net)
     1,314,418       52,202       (52,202 )  
a
       1,314,418  
Related party accounts receivable
     -       16,687       (16,687 )  
a
       -  
Notes receivable
     270,565       -       -             270,565  
Notes receivable from stockholder
     -       -       -             -  
Inventories, net
     5,000,713       18,978       (18,978 )  
a
       5,000,713  
Prepaid and other current assets
     30,000       3,894       (3,894 )  
a
       30,000  
Total Current Assets
     6,669,851       137,773       8,317,440             15,125,064  
                                       
Property and Equipment, Net
     3,248,096       -       -             3,248,096  
                                       
Other Assets
                                      
Intangible assets, net
     554,268       -       -             554,268  
Other assets
     13,675       -       -             13,675  
    $ 10,485,890     $ 137,773     $ 8,317,440           $ 18,941,103  
                                       
Liabilities and Members' Equity
                                      
Current Liabilities
                                      
Accounts payable
   $ 1,403,950     $ 23,460     $ (23,460 )  
a
     $ 1,403,950  
Warrant derivative liability
   $ 75,231     $ -     $ -             75,231  
Related party accounts payable
     -       15,603       (15,603 )  
a
       -  
Accrued liabilities
     463,633       -       (82,329 )  
a,b
       381,304  
Current deferred tax liability
     -       1,834       (1,834 )  
a
       -  
Notes payable
     1,126,690       -       -             1,126,690  
Notes payable to stockholders
     183,461       -       -             183,461  
Current portion of capital lease obligations
     85,071       -       -             85,071  
Current portion of convertible notes payable
     820,787       -       1,029,213    
a,b
       1,850,000  
Current portion of long-term debt
     1,202,574       -       -             1,202,574  
Total Current Liabilities
     5,361,397       40,897       905,987             6,308,281  
                                       
Long-term Liabilities
                                      
Capital lease obligations, less current portion
     27,074       -       -             27,074  
Long-term debt, less current portion
     412,545       -       -             412,545  
Total Liabilities
     5,801,016       40,897       905,987             6,747,900  
                                    -  
Stockholders' Equity
                                      
Common stock, $.00001 par value; 100,000,000 shares authorized; issued and outstanding XXX shares in 2009
     565       6       69    
a,b
       640  
Additional paid in capital
     22,238,210       96,795       7,411,459    
a,b
       29,746,464  
Treasury stock
     (76,566 )     -       -             (76,566 )
Retained earnings
     (17,477,335 )     75       (75 )  
a
       (17,477,335 )
Total Stockholders' Equity
     4,684,874       96,876       7,411,453             12,193,203  
    $ 10,485,890     $ 137,773     $ 8,317,440           $ 18,941,103  

a 
Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.
b 
Proforma adjustments for the completion of the $7,508,329 round of equity finanicing as part of the proposed stock offering and partial conversion of convertible notes payable.
 
The accompanying notes are an integral part of the financial statements.
 
 
Statement of Income
For the Year Ended December 31, 2009

   
Bacterin International,
Inc.
    
K-Kitz, Inc.
    
Pro Forma
Adjustments
    
Footnotes
    
Pro Forma
Combined
  
                               
Revenues                                      
Revenue
   $ 7,101,357     $ 295,520     $ (295,520 )  
a
     $ 7,101,357  
Royalties and other
     292,136       -       -             292,136  
Total Revenue
 
   7,393,493       295,520       (295,520 )           7,393,493  
                                       
Cost of sales
     2,318,142       213,254       (213,254 )  
a
       2,318,142  
                                       
Gross Profit
     5,075,351       82,266       (82,266 )           5,075,351  
                                       
Operating Expenses
                                      
Selling, general, and administrative
     4,161,941       72,301       (72,301 )  
a
       4,161,941  
Compensation expense
     4,535,964       -       -             4,535,964  
Total Operating Expenses
 
   8,697,905       72,301       (72,301 )           8,697,905  
                                       
Income from Operations
     (3,622,554 )     9,965       (9,965 )           (3,622,554 )
                                       
Other Income (Expense)
                                      
Interest expense
     (513,934 )     -       -             (513,934 )
Other
     10,746       -       -             10,746  
                                       
Total Other Income (Expense)
     (503,188 )     -       -             (503,188 )
                                       
Net Income Before Benefit (Provision)
                                      
for Income Taxes
     (4,125,742 )     9,965       (9,965 )           (4,125,742 )
                                       
Benefit (Provision) for Income Taxes
                                      
Current
     -                             -  
Deferred
     -       (1,834 )     1,834    
a
       -  
                                       
Net Income
   $ (4,125,742 )   $ 8,131     $ (8,131 )         $ (4,125,742 )
                                       
EPS Basic for Net Income
     (.08 )                        
XX
  
                                       
Weighted Average Shares Outstanding
     52,911,010                          
XX
  

a 
Proforma adjustment to remove all operating revenue, expenses, assets, liabilities and equity as the transaction assumings the full winding up of the K-Kitz, Inc. operations.

The accompanying notes are an integral part of the financial statements.
 
 

Xtant Medical Holdings, Inc. Reports