Rand Worldwide : Financial Statements as of March 31, 2022

Rand Worldwide Inc. and Subsidiaries

Consolidated Financial Statements

For the quarter ended March 31, 2022

TABLE OF CONTENTS

Consolidated Financial Statements ......................................................................................................................... 3 Notes to Consolidated Financial Statements .......................................................................................................... 8

Rand Worldwide, Inc. and Subsidiaries

Consolidated Balance Sheets

(unaudited)

Assets Current assets:

Cash

Accounts receivable, less allowance of $227,000 as of

March 31, 2022 and $208,000 as of June 30, 2021 Other receivables

Income tax receivable

Prepaid expenses and other current assets Deferred income taxes

Total current assets

Property and equipment:

March 31, 2022

June 30, 2021

$

• 11,822,000 $ 1,613,000

• 45,812,000 30,706,000

908,000 618,000

- 105,000

3,203,000 217,000 61,962,000

2,157,000 - 35,199,000

• Computer software and equipment 3,666,000 3,679,000

• Office furniture and equipment 1,506,000 1,563,000

Leasehold improvements

Less accumulated depreciation and amortizationCustomer lists, net of accumulated amortization of $17,852,000 as of March 31, 2022 and $16,000,000 as of

227,000 5,399,000 (4,125,000)

1,274,000

495,000 5,737,000 (4,538,000)

1,199,000

• June 30, 2021 26,340,000 28,192,000

• Right-of-use assets 3,565,000 4,777,000

• Goodwill 16,527,000 16,540,000

Trade name, net of accumulated amortization of $3,337,000

as of March 31, 2022 and $3,205,000 as of June 30, 2021 Deferred income taxes

594,000 726,000

- 550,000

Other assets

592,000 131,000

Total assets

$ 110,854,000

$

87,314,000

Rand Worldwide, Inc. and Subsidiaries Consolidated Balance Sheets (Continued)

March 31, 2022

June 30, 2021

Liabilities and stockholders' equity
Current liabilities:
Borrowings under line of credit	-	$	1,160,000
Current portion of note payable, net	7,600,000	7,600,000
Accounts payable and accrued expenses	31,647,000	20,943,000
Accrued compensation and related benefits	5,750,000	5,440,000
Deferred revenue	9,675,000	8,146,000
Deferred tax liability	2,271,000	-
Current portion of lease liabilities	1,405,000	1,583,000
Total current liabilities	58,348,000	44,872,000
Long-term liabilities:
Note payable, net	24,593,000	30,274,000
Accounts payable	-	766,000
Deferred revenue	2,806,000	2,002,000
Lease liabilities	2,267,000	3,286,000
Total liabilities	88,014,000	81,200,000
Series G Junior Preferred Stock	-	11,000
Stockholders' equity:
Convertible preferred stock (See Footnote 4)	-	-
Common stock, $0.01 par value; 40,000,000 shares
authorized; issued and outstanding shares of 33,578,100
and 33,561,433 at March 31, 2022 and June 30, 2021,
respectively	336,000	336,000
Additional paid-in capital	5,784,000	5,776,000
Retained earnings	16,791,000	-
Accumulated other comprehensive loss	(71,000)	(9,000)
Total stockholders' equity	22,840,000	6,103,000
Total liabilities and stockholders' equity	$	87,314,000
See accompanying notes.

$

$ 110,854,000

Rand Worldwide, Inc. and Subsidiaries Consolidated Statement of Operations

Three months ended

March 31, 2022

Revenues:

Product sales	$	73,701,000
Service revenue	9,163,000
Commission revenue	3,631,000
Total revenues	86,495,000
Cost of revenues:
Cost of product sales	50,532,000
Cost of service revenue	5,704,000
Total cost of revenues	56,236,000
Gross margin	30,259,000
Operating expenses:
Selling, general and administrative	14,356,000
Depreciation and amortization	822,000
Total operating expenses	15,178,000
Operating income	15,081,000
Other income (expense):
Interest expense	(200,000)
Currency exchange loss	(9,000)
Gain on interest rate swap	384,000
Total other income	175,000
Income before income taxes	15,256,000
Income tax expense	4,609,000
Net income	10,647,000
Preferred stock dividends	(1,000)
Net income available to common stockholders	$	10,646,000
Earnings per common share attributable to common shareholders - basic	$	0.32
Earnings per common share attributable to common shareholders - diluted	$	0.32
Shares used for computing income per common share:
Weighted average shares used in computation - basic	33,578,100
Weighted average shares used in computation - diluted	33,693,440
See accompanying notes.