Exhibit 99.2 |
(Unaudited financial statements) |
Interactive Nutrition International, Inc.
Balance Sheet
March 31, 2007
(Unaudited)
Balance Sheet
March 31, 2007
(Unaudited)
ASSETS | ||||
CURRENT ASSETS | ||||
Cash | $ | 701,754 | ||
Accounts receivable | 1,875,791 | |||
Inventory | 2,487,328 | |||
Prepaid expenses and other current assets | 268,878 | |||
Total current assets | 5,333,751 | |||
Property, plant and equipment, net | 848,859 | |||
OTHER ASSETS | ||||
Intellectual property | 12,954,000 | |||
Total noncurrent assets | 12,954,000 | |||
TOTAL ASSETS | $ | 19,136,610 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
CURRENT LIABILITIES | ||||
Accounts payable, accrued expenses and other current liabilities | $ | 1,772,681 | ||
Income taxes payable - current | 2,193,662 | |||
Total current liabilities | 3,966,343 | |||
NONCURRENT LIABILITIES | ||||
Deferred income taxes payable | 831,505 | |||
Note payable to Nesracorp | 9,603,750 | |||
Capital leases payable and other long-term liabilities | 160,349 | |||
Total noncurrent liabilities | 10,595,604 | |||
TOTAL LIABILITIES | 14,561,947 | |||
COMMITMENTS AND CONTINGENCIES | - | |||
SHAREHOLDERS' EQUITY | ||||
Share capital | 87 | |||
Retained earnings | 3,941,189 | |||
Other comprehensive income | 633,387 | |||
Total shareholders' equity | 4,574,663 | |||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 19,136,610 |
The accompanying notes are an integral part of these Financial Statements |
1
Interactive Nutrition International, Inc. | ||||
Statements of Operations | ||||
For the three months ended March 31, 2007 | ||||
(Unaudited) | ||||
SALES REVENUE | $ | 3,902,154 | ||
COST OF SALES REVENUE | 3,008,336 | |||
893,818 | ||||
OPERATING EXPENSES | ||||
Selling, general and administrative expenses | 374,962 | |||
Interest expense | 302,754 | |||
Total operating expenses | 677,716 | |||
OPERATING INCOME | 216,102 | |||
Income taxes | 98,888 | |||
Net Income | $ | 117,214 | ||
Basic and diluted income per share | $ | 1,161 | ||
Weighted shares outstanding - basic and diluted | 101 |
The accompanying notes are an integral part of these Financial Statements |
2
Interactive Nutrition International, Inc. |
Statement of Cash Flows |
For the Three Months Ending March 31, 2007 |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income | $ | 117,214 | ||
Adjustment to reconcile net income to net cash provided by operating activities | 284,785 | |||
Net cash provided by operating activities | 401,999 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | - | |||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Payments on capital leases | (10,641 | ) | ||
Effect of exchange rate changes on cash | (40,427 | ) | ||
Net cash used in financing activities | (51,068 | ) | ||
NET INCREASE IN CASH | 350,931 | |||
CASH, BEGINNING OF PERIOD | 350,823 | |||
CASH, END OF PERIOD | $ | 701,754 | ||
SUPPLEMENTAL DISCLOSUREOF CASH FLOW INFORMATION: | ||||
Interest paid | $ | 3,915 | ||
Taxes paid | $ | - |
The accompanying notes are an integral part of these Financial Statements |
3
Interactive Nutrition International, Inc.
Notes to the Unaudited Financial Statements
March 31, 2007
Note 1. Basis of Presentation
The company is incorporated under the laws of Canada and is a manufacturer of quality sport nutrition and health food products.
The unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments which are necessary for a fair presentation of the results for the interim periods presented, such adjustments being of a normal recurring nature. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included for the year ended December 31, 2006 included in this Form 8-K/A.
4