EXHIBIT 99.2
BLUE HILL DATA SERVICES, INC.
FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 2007
(UNAUDITED)
BLUE HILL DATA SERVICES, INC. | ||||
BALANCE SHEET | ||||
AS OF SEPTEMBER 30, 2007 | ||||
(UNAUDITED) | ||||
Amount | ||||
ASSETS | ||||
Current assets: | ||||
Cash and cash equivalents | $ | 35,571 | ||
Accounts receivable, net | 1,130,571 | |||
Prepaids expenses and other current assets | 52,272 | |||
Total current assets | 1,218,414 | |||
Fixed assets: | ||||
Computer software | 1,007,110 | |||
Computer equipment | 1,958,829 | |||
Equipment | 785,542 | |||
Leasehold improvements | 212,057 | |||
Accumulated depreciation & amortization | (2,939,044 | ) | ||
Fixed assets, net | 1,024,494 | |||
Other assets | 51,000 | |||
TOTAL ASSETS | $ | 2,293,908 | ||
LIABILITIES & EQUITY | ||||
Current liabilities: | ||||
Accounts payable | $ | 230,027 | ||
Accrued expenses | 56,594 | |||
Current portion of long-term debt | 284,835 | |||
Current portion of treasury stock loan payable | 382,259 | |||
Deferred revenue | 645,396 | |||
Total current liabilities | 1,599,111 | |||
Long-term debt, net of current portion | 519,680 | |||
Treasury stock loan payable, net of current portion | 1,036,536 | |||
Total liabilities | 1,556,216 | |||
Equity | ||||
Common stock | 1,500 | |||
Treasury stock | (2,500,000 | ) | ||
Shareholders distributions | (294,626 | ) | ||
Retained earnings | 1,931,707 | |||
Total equity | (861,419 | ) | ||
TOTAL LIABILITIES & EQUITY | $ | 2,293,908 | ||
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BLUE HILL DATA SERVICES, INC. | ||||
INCOME STATEMENT | ||||
FOR THE NINE MONTHS ENDING SEPTEMBER 30, 2007 | ||||
(UNAUDITED) | ||||
Amount | ||||
Revenue: | ||||
IT outsouring services | $ | 5,640,064 | ||
Operating expenses: | ||||
Cost of services | 2,298,016 | |||
Selling, general and administrative | 2,910,543 | |||
Total operating expenses | 5,208,559 | |||
Operating income | 431,505 | |||
Other expense (income) | ||||
Interest expense, net | 119,111 | |||
Other income | (14,051 | ) | ||
Total other expense | 105,060 | |||
Net income | $ | 326,445 |
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BLUE HILL DATA SERVICES, INC. | ||||
STATEMENT OF CASH FLOW | ||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2007 | ||||
(UNAUDITED) | ||||
2007 | ||||
Cash flows from operating activities: | ||||
Net income | $ | 326,445 | ||
Adjustments to reconcile net income to net cash | ||||
provided by operating activities: | ||||
Depreciation and amortization | 164,390 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | (105,336 | ) | ||
Prepaids and other assets | 86,734 | |||
Accounts payable | 67,121 | |||
Accrued expenses | (76,814 | ) | ||
Deferred revenue | 104,889 | |||
Net cash provided by operating activities | 567,429 | |||
Cash flows from investing activities: | ||||
Purchase of equipment | (311,660 | ) | ||
Net cash used in investing activities | (311,660 | ) | ||
Cash flows from financing activities: | ||||
Proceeds from bank borrowings | 346,128 | |||
Repayment of treasury stock loan | (283,861 | ) | ||
Distributions to shareholders | (294,626 | ) | ||
Net cash used in financing activities | (232,359 | ) | ||
Net increase in cash | 23,410 | |||
Cash - beginning of period | 12,161 | |||
Cash - end of period | $ | 35,571 |
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