EFTA00293493.pdf

SCHRODINGER, INC. AND SUBSIDIARIES Confidential Consolidated Balance Sheet March 31, 2014 Assets Current assets: Cash and cash equivalents $ 10,632,546 Accounts receivable, net of allowance for doubtful accounts of $62,120 3,531,694 Other receivables 119,385 Prepaid expenses 652,857 Other assets 13,318.611 Total current assets 28,255,093 Property and equipment, net 3,766,185 Intangible assets, net 334,913 Security deposits 797.519 33,153,710 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 1,363,185 Accrued payroll, taxes and benefits 2,139,473 Deferred revenue 21,239,364 Other accrued expenses 1,066,912 Total current liabilities 25,808,933 Long-term deferred revenue 4,272,713 Deferred rent 809,027 Total Liabilities 30,890,673 Stockholders' equity: Series A Convertible preferred stock, $0.01 par value. 134,704,785 shares authorized; 1,347,048 134,704,785 shares issued and outstanding Series B Convertible preferred stock, $0.01 par value. 29,468,101 shares authorized; 294,681 29,468,101 shares issued and outstanding Series C Convertible preferred stock, $0.01 par value. 47,242,235 shares authorized; 472,422 47,242,235 shares issued and outstanding Common stock, $0.01 par value. 273,300,000 shares authorized; 243,440 24,344,016 shares issued and outstanding Additional paid-in capital 60,718,124 Accumulated deficit (60,812,679) Total stockholders' equity 2,263,037 33,153,710 EFTA00293493 SCHRDDINGEFt, INC. AND SUBSIDIARIES Confidential Consolidated Income Statement (Statement of Operations) Quarter Ended March 31, 2014 Revenues: Products 7,605,422 Services 1,196,743 Total revenues 8,802,165 Cost of revenues 1,741.543 Gross profit 7,060,622 Operating expenses: Research and development 5,507,380 Sales and marketing 2,721,190 General and administrative 2,433,816 Total operating expenses 10,662,386 Income (Loss) from operations (3,601,764) Other income (expense): Interest income 14,744 Other income, net 14,744 Income (Loss) before taxes (3,587,020) Income tax expense 11.955 Net Income (Loss) (3,598,974) EFTA00293494 SCHRODINGEFt, INC. AND SUBSIDIARIES Confidential Consolidated Statement of Cash Flows Quarter Ended March 31, 2014 Cash flows from operating activities: Net income (loss) (3,598,974) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 300,570 Increase in assets, net of acquisition: Accounts receivable 4,735,839 Other receivables 221,204 Prepaid expenses and deposits 7,787 Other assets (14,663) Increase in liabilities, net of acquisition: Accounts payable 515,657 Accrued Payroll, taxes and benefits (152,188) Deferred revenue 3,522,269 Other accrued liabilities (1,249,200) Net cash provided by operating activities 4,288,302 Cash flows from investing activities: Purchases of property and equipment (127,146) Proceeds from long term securities, net 4,740,247 Purchase of intangible assets Contingent liabilities (169,245) Net cash used in investing activities 4,443,857 Cash flows from financing activities: Issuance of common stock 116,060 Net cash provided by financing activities 116,060 Net increase in cash and cash equivalents 8,848,219 Cash and cash equivalents at beginning of period 1,784,327 Cash and cash equivalents at end of period $ 10,632,546 EFTA00293495