TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three Months
Ended
March 31,
--------------------------
2007 2006
------------ ------------
Revenues $ 17,945,067 $ 17,855,160
Cost of Revenues (including $278,916 and $-0-
to related parties in the three months ended
March 31, 2007 and 2006, respectively) 14,018,027 14,618,076
------------ ------------
Gross Profit 3,927,040 3,237,084
------------ ------------
Operating Expenses:
Selling, general and administrative
(including $250,000 to related parties in
the three months ended March 31, 2007 and
2006, respectively) 3,733,213 3,586,344
Research and development 16,241 --
Amortization of intangible assets 446,512 446,512
------------ ------------
Total Operating Expenses 4,195,966 4,032,856
------------ ------------
Operating Loss (268,926) (795,772)
------------ ------------
Other Expenses (Income), Net
Interest expense 658,245 763,469
Other income, net (7,077) (35,633)
------------ ------------
Total Other Expenses, Net 651,168 727,836
------------ ------------
Net Loss Applicable to Common Stockholders $ (920,094) $ (1,523,608)
============ ============
Basic and diluted Income (Loss) Per Common
Share $ (0.05) $ (0.10)
============ ============
Weighted Average Number of Common Shares
Outstanding - Basic and Diluted 16,815,136 15,677,163
============ ============
TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Nine Months
Ended
March 31,
--------------------------
2007 2006
------------ ------------
Revenues $ 53,665,577 $ 55,141,077
Cost of Revenues (including $623,482 and $-0-
to related parties in the nine months ended
March 31, 2007 and 2006, respectively) 42,665,001 44,845,200
------------ ------------
Gross Profit 11,000,576 10,295,877
------------ ------------
Operating Expenses:
Selling, general and administrative
(including $750,000 to related parties
in the nine months ended March 31, 2007
and 2006, respectively) 11,197,647 9,897,578
Research and development 49,858 138,448
Amortization of intangible assets 1,339,535 1,339,634
------------ ------------
Total Operating Expenses 12,587,040 11,375,660
------------ ------------
Operating Loss (1,586,464) (1,079,783)
------------ ------------
Other Expenses (Income), Net
Interest expense 3,120,036 2,359,289
Derivative income -- (25,046,489)
Other income, net (41,003) (118,811)
------------ ------------
Total Other Expenses (Income), Net 3,079,033 (22,806,011)
------------ ------------
Net Income (Loss) Applicable to Common
Stockholders $ (4,665,497) $ 21,726,228
============ ============
Basic Income (Loss) Per Common Share $ (0.28) $ 1.45
============ ============
Diluted Income (Loss) Per Common Share $ (0.28) $ 1.36
============ ============
Weighted Average Number of Common Shares
Outstanding - Basic 16,423,488 15,034,540
============ ============
- Diluted 16,423,488 15,997,985
============ ============
TECHNEST HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEET
MARCH 31, 2007
(Unaudited)
ASSETS
Current Assets
Cash and cash equivalents $ 1,648,919
Accounts receivable 9,545,217
Unbilled receivables 1,146,351
Restricted cash 250,000
Inventory 7,450
Prepaid expenses and other current assets 140,029
------------
Total Current Assets 12,737,966
------------
Property and Equipment - Net of accumulated depreciation and
amortization of $983,055 492,025
------------
Other Assets
Deposits 78,737
Deferred financing costs - Net of accumulated amortization
of $278,857 1,005,152
Definite-lived intangible assets -
Net of accumulated amortization of $4,825,060 10,212,995
Goodwill 14,035,551
------------
Total Other Assets 25,332,435
------------
$ 38,562,426
============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 10,047,535
Accrued expenses and other current liabilities 3,814,557
Due to related party 363,297
Revolving line of credit 4,415,184
Current portion of long-term debt 1,828,364
------------
Total Current Liabilities 20,468,937
Non Current Liabilities
Long-term debt, less current portion and discount of
$171,873 2,072,315
------------
Total Liabilities 22,541,252
------------
Commitments and Contingencies
Stockholders' Equity
Series A Convertible Preferred Stock - $.001 par value;
150 shares authorized; 64,325 shares issued and
outstanding (preference in liquidation of $64,325 at
March 31, 2007) --
Series C Convertible Preferred Stock - $.001 par value;
1,149,425 shares authorized; 632,185 issued and
outstanding (preference in liquidation of $1,375,002 at
March 31, 2007) 632
Common stock - par value $.001 per share; 500,000,000
shares authorized; 16,878,451 shares issued and
outstanding 16,877
Additional paid-in capital 35,907,101
Accumulated deficit (19,903,436)
------------
Total Stockholders' Equity 16,021,174
------------
$ 38,562,426
============
Contact Information: Contact: Stanley Wunderlich Consulting for Strategic Growth 1 (800) 625-2236 (516) 729-3714 swunderlich@cfsg1.com