Interpharm Clarifies Comparative Financial History COMMACK, N.Y.,
Feb. 26 /PRNewswire-FirstCall/ -- Interpharm Holdings, Inc. (Amex:
IPA; the "Company") has received a number of inquiries from
investors who have expressed confusion regarding the Company's
historical financial information for periods prior to June 30,
2003. The Company's historical information for periods prior to
June 30, 2003, as presented in Yahoo! and other on-line sources, is
that of the Company's predecessor, Atec Group, Inc., and not the
Company. On May 30, 2003, Atec Group, Inc., which was in the
computer systems integration business, sold its business to BAAR
Group, Inc. Simultaneous with the disposition of its computer
business, Atec Group, Inc. acquired Interpharm, Inc. which is
engaged in the business of developing, manufacturing and marketing
generic prescription strength and over-the-counter pharmaceutical
products, and changed its name to Interpharm Holdings, Inc.
Information on these transactions, and other information, such as
certain historical financial information about Interpharm, Inc.,
was filed with the Securities and Exchange Commission in Atec
Group, Inc.'s definitive proxy statement, on May 2, 2003 (the
"Proxy Statement"). The Company's reports filed with the Securities
and Exchange Commission after May 30, 2003, reflect the current and
historical operations of Interpharm Holdings, Inc. Reports filed by
Atec Group, Inc. prior to May 30, 2003, reflect the operations of
Atec Group, Inc., with the exception of the Proxy Statement.
Investors and others wishing to obtain comparative financial
summaries, or any other information regarding the Company, should
not rely on any sources other than press releases issued by the
Company, filings with theSecurities and Exchange Commission after
May 30, 2003 and the Proxy Statement. The Company's reports filed
with the Securities and Exchange Commission are available at the
SEC's website, http://www.sec.gov/, and through the Company's
website, http://www.interpharminc.com/. Copies of reports, as well
as press releases, will be provided free of charge upon request
made by calling 631-543-2800, extension 404. For the convenience of
our investors, the Company presents below its historical financial
information for the three-month periods ended December 31, 2003,
September 30, 2003, June 30, 2003, and March 31, 2003. Interpharm
Holdings, Inc. Statements of Income Unaudited For the Quarterly
periods Ended 31-Dec-03 30-Sep-03 30-Jun-03 31-Mar-03 Total Sales,
net $11,706,231 $6,875,348 $7,762,436 7,191,002 Cost of Sales
9,087,956 5,443,518 6,390,110 5,824,712 Gross Profit 2,618,275
1,431,830 1,372,326 1,366,290 Operating Expenses Selling, general
and administrative 860,060 1,033,775 771,893 502,552 Related party
rent expense 18,000 18,000 18,000 18,000 Research and development
154,035 35,000 142,151 43,450 Total Operating Expenses 1,032,095
1,086,775 932,044 564,002 Operating Income 1,586,180 345,055
440,282 802,288 Other Income (Expenses) Related party interest
expense - - (28,313) (40,812) Interest income 2,446 2,759 8,166 -
Interest expense (4,852) (6,147) (34,848) (28,451) Total Other
Expenses (2,406) (3,388) (54,995) (69,263) Income Before Income
Taxes 1,583,774 341,667 385,287 733,025 Income Taxes 559,677
114,228 142,217 252,450 Net Income $1,024,097 $227,439 $243,070
$480,575 Interpharm Holdings, Inc. (IPA) Consolidated Balance Sheet
As At 31-Dec-03 30-Sep-03 30-Jun-03 31-Mar-03 (Unaudited)
(Unaudited) (Audited) (Unaudited) Assets Current Assets Cash and
Cash Equivalents $ 1,503,936 $ 2,431,577 $ 2,336,203 $ 218,697
Short Term Investments 61,199 49,642 48,462 41,328 Net Receivables
7,032,571 4,084,579 4,930,109 5,043,363 Notes Receivable - -
1,000,000 - Inventories 5,927,631 6,869,436 4,583,205 3,293,917
Other Current Assets 519,095 603,830 224,149 116,978 Deferred Tax
Assets 23,500 23,500 23,500 60,500 Total Current Assets 15,067,932
14,062,564 13,145,628 8,774,783 Notes Receivable - - 524,092 -
Property and Equipment 5,590,400 5,013,811 4,085,302 3,392,113
Deferred Tax Assets 2,537,900 2,537,900 2,537,900 - Other Assets
961,379 262,260 45,873 11,379 Deferred Acquisition Costs - - -
103,564 Total Assets $24,157,611 $21,876,535 $20,338,795
$12,281,839 Liabilities and Stockholders' Current Liabilities
Accounts Payable, Accrued Expenses and Other Liabilities $
6,542,799 5,852,615 $5,314,341 $ 3,543,632 Lines of Credit 424,847
424,847 2,064,793 2,064,793 Current Maturities of Long-Term Debt -
- 224,241 237,482 Due to Related Party - - - 345,563 Total Current
Liabilities 6,967,646 6,277,462 7,603,375 6,191,470 Long-Term Debt,
less current maturities - - 237,521 289,317 Other liabilities
29,535 29,535 29,535 - Due to Related Party - - - 3,000,000 Total
Liabilities 6,997,181 6,306,997 7,870,431 9,480,787 Stockholders'
Equity Preferred Stocks 350,971 350,971 352,021 20,504 Common Stock
180,230 180,181156,717 61,512 Retained Earnings 1,921,214 897,117
669,678 426,607 Treasury Stock (797,868) (797,868) (797,868) -
Additional Paid-In-Capital 15,481,567 14,926,378 12,076,237
2,287,984 Other Stockholders' Equity 24,316 12,759 11,579 4,445
Total Stockholders' Equity 17,160,430 15,569,538 12,468,364
2,801,052 Total Liabilities and Stockholders' equity $24,157,611
$21,876,535 $20,338,795 $12,281,839 For further information, please
contact George Aronson, who joined the Company as its new Chief
Financial Officer as of January, 2003. Mr. Aronson has over twenty
years of experience as a CPA, is licensed by the state of New York
and is a member of the AICPA. Prior to joining the Company, Mr.
Aronson served nine years as the Chief Financial Officer of Direct
Insite Corp., a publicly traded company. James Charles, the
Company's former Chief Financial Officer, will be assisting Mr.
Aronson and the Company in a transitional role. In issuing this
press release, the Company does not purport to be aware of all, or
for that matter, any other inaccurate information relating to the
Company released by any third-party, and hereby disclaims any duty
to correct any such inaccurate information that may exist or may be
released by third- parties in the future ABOUT INTERPHARM
Interpharm is in the business of developing, manufacturing and
distributing generic pharmaceutical products in the United States.
The Company currently markets 19 products, representing various
dosage strengths for 11 distinct drugs that it manufactures. Since
June 30, 2003, the Company has been manufacturing Atenolol and
Allopurinol for URL / Mutual. Interpharm also has five drugs that
are currently under development. FORWARD-LOOKING STATEMENTS
Statements made in this news release may contain forward-looking
statements concerning Interpharm Holdings, Inc.'s business and
products involving risks and uncertainties that could cause actual
results to differ materially from those reflected in the
forward-looking statements. The actual results may differ
materially depending on a number of risk factors including, but not
limited to, the following: general economic and business
conditions, development, shipment, market acceptance, and
additional competition from existing and new competitors, changes
in technology, and various other factors beyond Interpharm
Holdings, Inc.'s control. Other risks inherent in Interpharm
Holdings, Inc.'s business are described in ATEC Group, Inc.'s
Definitive Proxy Statement, filed with the Securities and Exchange
Commission on May 2, 2003, Form 10-K, filed on September 29, 2003
Forms 10-Q filed on November 14, 2003 and February 17, 2004, and
the "Management's Discussion and Analysis of Financial Condition
and Results of Operations" sections contained therein. The
acquisition of Interpharm, Inc. is described in the foregoing proxy
materials, as well as in ATEC's Form 8-K, filed with the Securities
and Exchange Commission on February 27, 2003, our Form 8-K, filed
on June 16, 2003 and our amended Form 8-K, filed on August 11,
2003. Interpharm Holdings, Inc. undertakes no obligation to revise
or update any forward-looking statements to reflect events or
circumstances after the date of this release. All information in
this release is as of February 26, 2004. Interpharm Holdings, Inc.
undertakes no duty to update any forward-looking statement
toconform the release to actual results or changes in the Company's
circumstances or expectations after the date of this release.
DATASOURCE: Interpharm Holdings, Inc. CONTACT: George Aronson of
Interpharm Holdings, Inc., +1-631-952-0214, ext. 101 Web site:
http://www.interpharminc.com/
Copyright