COSTAR TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AND
INDEPENDENT ACCOUNTANT'S REVIEW REPORT
June 30, 2022
Independent Accountant's Review Report
Board of Directors
Costar Technologies, Inc.
Coppell, Texas
Results of Review of Interim Financial Information
We have reviewed the consolidated financial statements of Costar Technologies, Inc. and its subsidiaries (collectively, the "Company"), which comprise the balance sheet as of June 30, 2022, and the related consolidated statements of operations for the three-month and six-month periods ended June 30, 2022 and 2021, and cash flows for the six-month periods ended June 30, 2022 and 2021, and the related notes (collectively referred to as the interim financial information).
Based on our review, we are not aware of any material modifications that should be made to the accompanying interim financial information for it to be in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Basis for Review Results
We conducted our review in accordance with auditing standards generally accepted in the United States of America (GAAS) applicable to reviews of interim financial information. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. A review of interim financial information is substantially less in scope than an audit conducted in accordance with GAAS, the objective of which is an expression of an opinion regarding the financial information as a whole, and accordingly, we do not express such an opinion. We are required to be independent of the Company and to meet our other ethical responsibilities in accordance with the relevant ethical requirements relating to our review. We believe that the results of the review procedures provide a reasonable basis for our conclusion.
Responsibilities of Management for the Interim Financial Information
Management is responsible for the preparation and fair presentation of the financial information in accordance with U.S. GAAP and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of interim financial information that is free from material misstatement, whether due to fraud or error.
Board of Directors
Costar Technologies, Inc.
Page 2
Report on Consolidated Balance Sheet as of December 31, 2021
We have previously audited, in accordance with auditing standards generally accepted in the United States of America, the consolidated balances sheet as of December 31, 2021, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the year then ended (not presented herein); and we expressed an unmodified audit opinion on those audited consolidated financial statements in our report dated March 31, 2022. In our opinion, the accompanying consolidated balance sheet of the Company as of December 31, 2021, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.
Emphasis of Matter
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2, the Company entered into a Forbearance Agreement with its bank in June 2022 which extended the forbearance period through February 2023. Management's plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our conclusion is not modified with respect to this matter.
Dallas, Texas
August 15, 2022
COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONTENTS
Independent Accountant's Review Report | 1 - 2 |
Consolidated Financial Statements | |
Consolidated Balance Sheets | 3 |
Consolidated Statements of Operations | 4 |
Consolidated Statements of Changes in Stockholders' Equity | 5 |
Consolidated Statements of Cash Flows | 6 |
Notes to Consolidated Financial Statements | 7-22 |
COSTAR TECHNOLOGIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (AMOUNTS SHOWN IN THOUSANDS)
June 30, 2022 | December 31, 2021 | ||||
ASSETS | (Reviewed) | (Audited) | |||
Current assets | |||||
Cash and cash equivalents | $ | 3 | $ | 4 | |
Accounts receivable, less allowance for doubtful accounts | 5,923 | 6,544 | |||
of $282 and $205, respectively | |||||
Inventories | 19,178 | 15,069 | |||
Prepaid expenses and other current assets | 3,222 | 3,562 | |||
Total current assets | 28,326 | 25,179 | |||
Non-current assets | |||||
Property and equipment, net | 82 | 164 | |||
Intangible assets, net | 4,789 | 5,274 | |||
Goodwill | 5,574 | 5,574 | |||
Right of use assets, net | 1,060 | 1,214 | |||
Other non-current assets | 117 | 114 | |||
Total non-current assets | 11,622 | 12,340 | |||
Total assets | |||||
$ | 39,948 | $ | 37,519 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities | |||||
Accounts payable | $ | 8,948 | $ | 6,935 | |
Accrued expenses and other current liabilities | 3,133 | 3,894 | |||
Line of credit | 11,942 | 9,337 | |||
Current maturities of long-term debt, net of unamortized | |||||
financing fees | 2,414 | 2,807 | |||
Current maturities of lease liabilities | 624 | 732 | |||
Total current liabilities | 27,061 | 23,705 | |||
Long-Term liabilities | |||||
Deferred tax liability | 179 | 179 | |||
Non-current maturities of lease liabilities | 525 | 608 | |||
Total long-term liabilities | 704 | 787 | |||
Total liabilities | 27,765 | 24,492 | |||
Stockholders' Equity | |||||
Preferred stock | |||||
Common stock | 3 | 3 | |||
Additional paid-in capital | 157,909 | 157,899 | |||
Accumulated deficit | (141,208) | (140,354) | |||
Less common stock held in treasury, at cost | (4,521) | (4,521) | |||
Total stockholders' equity | 12,183 | 13,027 | |||
Total liabilities and stockholders' equity | $ | 39,948 | $ | 37,519 |
See notes to consolidated financial statements. | 3 |
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Costar Technologies Inc. published this content on 15 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 August 2022 02:41:09 UTC.