Exhibit 99.1
B2 Digital dba Hotel Movie Network
Balance Sheet
As of March 31, 2008
March 31, 2008 | ||||||||
ASSETS | ||||||||
Current Assets | ||||||||
Checking/Savings | ||||||||
American Express | –3,561.70 | |||||||
Bank Non-Cash Deposit Correction | –15.09 | |||||||
Checking at Bank of America | 11,068.87 | |||||||
Office Petty Cash Account | 43.97 | |||||||
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Total Checking/Savings | 7,536.05 | |||||||
Accounts Receivable | ||||||||
Accounts Receivable | 276,303.87 | |||||||
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Total Accounts Receivable | 276,303.87 | |||||||
Other Current Assets | ||||||||
Bad Debt Allowance | –218,655.35 | |||||||
Inventory Asset | 2,327,272.82 | |||||||
Inventory Asset Valuation Allow | –2,041,403.65 | |||||||
Loan | 14,238.00 | |||||||
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Total Other Current Assets | 81,451.82 | |||||||
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Total Current Assets | 365,291.74 | |||||||
Fixed Assets | ||||||||
Accum. Deprec. E & M | –918,252.23 | |||||||
Equipment & Machinery | 357,282.06 | |||||||
Field Test Equipment | ||||||||
Equipment-Other | 1,103.12 | |||||||
FTG | 23,939.97 | |||||||
PPV | 9,865.69 | |||||||
Field Test Equipment – Other | 2,214.00 | |||||||
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Total Field Test Equipment | 37,122.78 | |||||||
Leasehold Improvements | 29,485.46 | |||||||
Office Equipment | ||||||||
Bench Test Equipment | 1,248.77 | |||||||
Computer | 14,891.12 | |||||||
Office Equipment – Other | 6,691.74 | |||||||
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Total Office Equipment | 22,831.63 | |||||||
Office Furniture | 1,367.00 | |||||||
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Total Fixed Assets | –470,163.30 | |||||||
Other Assets | ||||||||
Hotel Movie Express Equipment | 470,163 30 | |||||||
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Total Other Assets | 470,163.30 | |||||||
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TOTAL ASSETS | 365,291.74 | |||||||
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B2 Digital dba Hotel Movie Network
Balance Sheet
As of March 31, 2008
March 31, 2008 | ||||
LIABILITIES & EQUITY | ||||
Liabilities | ||||
Current Liabilities | ||||
Accounts Payable | ||||
Accounts Payable | 35,114.54 | |||
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Total Accounts Payable | 35,114.54 | |||
Credit Cards | ||||
American Express Business Gold | –623.85 | |||
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Total Credit Cards | –623.85 | |||
Other Current Liabilities | ||||
Emerst McKay | 50,000.00 | |||
Paul LaBarre | 50,000.00 | |||
Retainers | 1,125.77 | |||
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Total Other Current Liabilities | 101,125.77 | |||
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Total Current Liabilities | 135,616.46 | |||
Long Term Liabilities | ||||
Free To Guest Deposit Account | 7,588.70 | |||
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Total Long Term Liabilities | 7,588.70 | |||
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Total Liabilities | 143,205.16 | |||
Equity | ||||
Common Stock | 25,000.00 | |||
Inventory Allowance | –220.62 | |||
Paid in capital | 1,873,072.00 | |||
Retained Earnings | –1,687,680.88 | |||
Net Income | 11,916.08 | |||
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Total Equity | 222,086.58 | |||
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TOTAL LIABILITIES & EQUITY | 365,291.74 | |||
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B2 Digital dba Hotel Movie Network
Profit & Loss
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||||||||||
Ordinary Income/Expense | ||||||||||||
Income | ||||||||||||
Billable Field Service | 262.50 | |||||||||||
Equipment Sales | 250.00 | |||||||||||
Reimbursed Charges | 1,615.20 | |||||||||||
Sales | ||||||||||||
Free To Guest | ||||||||||||
Directv Commissions | 7,346.42 | |||||||||||
FTG Adjustment | –2,224.80 | |||||||||||
Free To Guest – Other | 204,259.62 | |||||||||||
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Total Free To Guest | 209,381.24 | |||||||||||
PPV Programing | ||||||||||||
PPV Adjustments | –1,341.32 | |||||||||||
PPV Hotel Commission Adjustment | –12,740.87 | |||||||||||
PPV Programing – Other | 10,522.30 | |||||||||||
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Total PPV Programing | –3,559.89 | |||||||||||
Sales – Other | 0.00 | |||||||||||
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Total Sales | 205,821.35 | |||||||||||
Uncategorized Income | 694.98 | |||||||||||
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Total Income | 208,644.03 | |||||||||||
Cost of Goods Sold | ||||||||||||
*Cost of Goods Sold/inventory | 815.71 | |||||||||||
Cost of Goods Sold | –25,229.09 | |||||||||||
Progrming Fees | ||||||||||||
FTG Fees | 112,228.05 | |||||||||||
Royalties | ||||||||||||
20th Century Fox Royalty | 1,087.54 | |||||||||||
Hollywood Adult Video | 230.43 | |||||||||||
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Total Royalties | 1,317.97 | |||||||||||
Progrming Fees – Other | 4,638.98 | |||||||||||
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Total Progrming Fees | 118,185.00 | |||||||||||
Sales Adjustments | 467.19 | |||||||||||
VHS Duplication Cost | ||||||||||||
VHS Blank Tapes | 312.50 | |||||||||||
VHS Duplication Cost – Other | 6,875.50 | |||||||||||
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Total VHS Duplication Cost | 7,188.00 | |||||||||||
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Total COGS | 101,426.81 | |||||||||||
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B2 Digital dba Hotel Movie Network
Profit & Loss
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||||||||||
Gross Profit | 107,217.22 | |||||||||||
Expense | ||||||||||||
Advertising | 30,560.25 | |||||||||||
alarm monitoring services | 180.00 | |||||||||||
Automobile Expense | 59.20 | |||||||||||
Batteries | 86.44 | |||||||||||
Dish Residential | –293.05 | |||||||||||
Fees | –564.13 | |||||||||||
Fees Ex. | 263.42 | |||||||||||
Field Service | 2,459.35 | |||||||||||
Interest Expense | ||||||||||||
Finance Charge | 3.70 | |||||||||||
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Total Interest Expense | 3.70 | |||||||||||
INTERNET SERVICES | 486.00 | |||||||||||
Late Fee | 45.00 | |||||||||||
LATE FEE | 30.00 | |||||||||||
Lease Payment | 1,551.46 | |||||||||||
Licenses and Permits | 100.00 | |||||||||||
Miscellaneous | 0.54 | |||||||||||
Office and Storage Expences | ||||||||||||
Rent | 17,600.00 | |||||||||||
Security System | 50.00 | |||||||||||
Storage Units | 2464.35 | |||||||||||
Office and Storage Expences – Other | 1454.35 | |||||||||||
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Total Office and Storage Expences | 21,568.70 | |||||||||||
Office Supplies | 1,054.14 | |||||||||||
Parts | ||||||||||||
Computer Programming/Software | 175.00 | |||||||||||
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Total Computer | 175.00 | |||||||||||
Digital PPV Rack | 5,024.71 | |||||||||||
Electronics | 647.43 | |||||||||||
Tools | 523.47 | |||||||||||
Parts – Other | 691.87 | |||||||||||
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Total Parts | 7,062.48 | |||||||||||
Permits | 10.00 | |||||||||||
Postage and Delivery | ||||||||||||
Federal Express | 367.44 |
B2 Digital dba Hotel Movie Network
Profit & Loss
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||||||||||
Freight Charges | 720.70 | |||||||||||
Pitney Bowes Postage Machine | 400.50 | |||||||||||
Postage Refill | 857.01 | |||||||||||
UPS | ||||||||||||
Return Service | 5.76 | |||||||||||
Service Charges | 94.00 | |||||||||||
Shipping Charge Corrections | 57.15 | |||||||||||
UPS – Other | 4382.56 | |||||||||||
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Total UPS | 4,539.47 | |||||||||||
Postage and Delivery – Other | 95.41 | |||||||||||
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Total Postage and Delivery | 6,980.53 | |||||||||||
Professional Fees | ||||||||||||
Maintenance Agreement | 802.64 | |||||||||||
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Total Professional Fees | 802.64 | |||||||||||
Repairs | ||||||||||||
Building Repairs | 928.44 | |||||||||||
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Total Repairs | 928.44 | |||||||||||
Salary | ||||||||||||
Administrative | 3,500.00 | |||||||||||
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Total Salary | 3,500.00 | |||||||||||
Service Charges | ||||||||||||
American Express | 68.13 | |||||||||||
Merchant Fees | ||||||||||||
Amex | 50.65 | |||||||||||
EPS | 383.85 | |||||||||||
Legacy | 26.85 | |||||||||||
Northern Leasing | 1,470.40 | |||||||||||
Visa/MC | 40.19 | |||||||||||
Merchant Fees – Other | 376.69 | |||||||||||
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Total Merchant Fees | 2,348.63 | |||||||||||
Service Charges – Other | 203.75 | |||||||||||
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Total Service Charges | 2620.51 | |||||||||||
Shipping Supplies | 2110.39 | |||||||||||
Taxes | ||||||||||||
Payroll Taxes | 2762.70 | |||||||||||
Taxes – Other | 134.87 | |||||||||||
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B2 Digital dba Hotel Movie Network
Profit & Loss
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||||||||||
Total Taxes | 2897.57 | |||||||||||
Telephone | ||||||||||||
Cellular Phone | 306.11 | |||||||||||
Telephone – Other | 5190.20 | |||||||||||
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Total Telephone | 5496.31 | |||||||||||
Travel & Ent | ||||||||||||
Meals | 289.02 | |||||||||||
Travel | 250.00 | |||||||||||
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Total Travel & Ent | 539.02 | |||||||||||
Utilities | ||||||||||||
Electric | 3941.46 | |||||||||||
Water, Gas & Trash | 1,495.14 | |||||||||||
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Total Utilities | 5,436.60 | |||||||||||
Vehicles | ||||||||||||
Vehicle Maintenance | ||||||||||||
Chevy-Brian | 85.50 | |||||||||||
Vehicle Maintenance – Other | 103.76 | |||||||||||
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Total Vehicle Maintenance | 189.26 | |||||||||||
Vehicles – Other | 368.29 | |||||||||||
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Total Vehicles | 557.55 | |||||||||||
voided check | 0.00 | |||||||||||
Work Expense | ||||||||||||
Gas | 812.89 | |||||||||||
Meals | 272.07 | |||||||||||
Misc. | 64.93 | |||||||||||
Work Expense – Other | 2,223.18 | |||||||||||
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Total Work Expense | 3,373.07 | |||||||||||
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Total Expense | 99,906.13 | |||||||||||
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Net Ordinary Income | 7,311.09 | |||||||||||
Other Income/Expense | ||||||||||||
Other Income | ||||||||||||
Other Income | 4,900.11 | |||||||||||
Refund | 17.38 | |||||||||||
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Total Other Income | 4917.49 | |||||||||||
Other Expense | ||||||||||||
Other Expenses | 312.50 | |||||||||||
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B2 Digital dba Hotel Movie Network
Profit & Loss
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||||||
Total Other Expense | 312.50 | |||||||
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Net Other Income | 4604.99 | |||||||
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Net Income | 11,916.08 | |||||||
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B2 Digital dba Hotel Movie Network
Statement of Cash Flows
April 2007 through March 2008
Twelve Months Ended March 31, 2008 | ||||
OPERATING ACTIVITIES | ||||
Net Income | 11,916.08 | |||
Adjustments to reconcile Net Income to net cash provided by operations: | ||||
Accounts Receivable | –13,889.30 | |||
Inventory Asset | 345.91 | |||
Inventory Asset Valuation Allow | 35.71 | |||
Loan | –14,238.00 | |||
Accounts Payable | 18,844.32 | |||
American Express Business Gold | –623.85 | |||
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Net cash provided by Operating Activities | 2,390.87 | |||
FINANCING ACTIVITIES | ||||
Inventory Allowance | –220.62 | |||
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Net cash provided by Financing Activities | –220.62 | |||
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Net cash increase for period | 2,170.25 | |||
Cash at beginning of period | 5,365.80 | |||
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Cash at end of period | 7,536.05 | |||
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