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Financial Statements
	Balance Sheet ……………………………………………………………………	1
	Statements of Operations ………………………………………………………..	2
	Statements of Cash Flows ……………………………………………………….	3
	Notes to Financial Statements …………………………………………………..	4-7

 

 

ASSETS
Current Assets:
Cash and cash equivalents		$	35,772
Accounts receivable (less allowance for doubtful    accounts of $5,000)			56,620
Total Current Assets			92,392
Property and Equipment:
Property and equipment			1,115,984
Less—Accumulated depreciation			(730,896	)
Net Property and Equipment			385,088
Other Assets:
Other assets			443
Employee loan			23,000
Total Other Assets			23,443
Total Assets			500,923
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current Liabilities:
Accounts payable			92,022
Accrued expenses			2,542
Credit Line Payable			99,970
Due to Related Party			9,000
Total Current Liabilities			203,534
Due to shareholder			1,836,097
Stockholders’ Deficiency:
Common stock (par value $0.10; 1,000 shares authorized; 198.50 shares issued and outstanding)			20
Additional paid in capital			1,813,974
Accumulated deficit			(3,352,702	)
Total Stockholders' Deficiency			(1,538,708	)
Total Liabilities and Stockholders' Deficiency		$	500,923

 

 

 

 

 

		2008				2007
Sales		$	328,587			$	337,917
Cost of sales			163,603				169,667
Gross Profit			164,984				168,250
Selling, general and administrative			286,644				280,191
Loss from Operations			(121,660	)			(111,941	)
Other Income (expense):
Interest Income			36				630
Interest Expense			(876	)		-­
Total Other Income (Expense)			(840	)			630
Loss before provision for income taxes			(122,500	)			(111,311	)
Provision for income taxes			-				-
Net Loss		$	(122,500	)		$	(111,311	)

FOR THE SIX MONTHS ENDED JUNE 30, 2008 AND 2007

		2008				2007
Cash Flows from Operating Activities:
Net loss		$	(122,500	)		$	(111,311	)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation			57,132				59,867
Changes in Assets and Liabilities:
Accounts receivable			(21,735	)			(53,591	)
Employee Loan			(5,000	)			-
Other Assets			-				459
Security Deposit			-				(5,975	)
Accounts payable			44,215				13,526
Accrued expenses			755				(999	)
Due to Related Party			9,000				-
Net Cash Provided by (Used in) Operating Activities			(38,133	)			98,024
Cash Flows from Investing Activities:
Cash paid for equipment			(63,868	)			(154,261	)
Net Cash Used in Investing Activities			(63,868	)			(154,261	)
Cash Flows from Financing Activities:
Advances from credit line			99,970				-
Advances from shareholder			-				247,215
Net Cash Provided by Financing Activities			99,970				247,215
Decrease in Cash and Cash Equivalents			(2,031	)			(5,070	)
Cash and Cash Equivalents, Beginning of Period			37,803				23,624
Cash and Cash Equivalents, End of Period		$	35,772			$	18,554
Cash paid for interest expense		$	876			$	-
Cash paid for income taxes		$	-			$	-

 

 

 

 

 

 

 

 

 

 

 

 

Furniture and fixtures	7   years
Machinery and equipment	5-7   years
Leasehold Improvements	5-39 years

 

		June 30, 2008
Storage equipment		$	766,646
Website and software			150,208
Furniture and fixtures			22,837
Computer hardware and software			75,498
Data Center			100,795
			1,115,984
Less: Accumulated depreciation			730,896
Net property and equipment		$	385,088

 

 

 

 

 

 

 

(i)

the Participant’s employment with the Corporation has terminated because he has become Disabled;

(ii)	the Participant has died;

(iii)

the Participant’s employment with the Corporation has been terminated by the Corporation without “cause”;

(iv)	the sale, transfer or assignment of all or substantially all of the Corporation’s assets (whether tangible or intangible), not in the ordinary course of business, whether in a single transaction or a series of transactions;

(v)	the sale, transfer or assignment of more than fifty (50%) percent of the outstanding capital stock of the Corporation, whether in a single transaction or a series of transactions.

 

 

 

 

 

 

 

 

 

 

 

 

 

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