EXHIBIT 99.2
UNAUDITED FINANCIAL STATEMENTS OF TRILLIANT CORPORATION AS OF JUNE 30, 2005 AND DECEMBER 31, 2004 AND FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004
TRILLIANT CORPORATION
UNAUDITED FINANCIAL STATEMENTS
JUNE 30, 2005 AND DECEMBER 31, 2004
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TRILLIANT CORPORATION
TABLE OF CONTENTS
PAGE | |
Unaudited Financial Statements: | |
Unaudited Balance Sheets as of June 30, 2005 and December 31, 2004 | 3 |
Unaudited Statements of Operations for the three and six months ended June 30, 2005 and 2004 | 4 |
Unaudited Statements of Cash Flows for the six months ended June 30, 2005 and 2004 | 5 |
Notes to Unaudited Financial Statements | 6 |
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TRILLIANT CORPORATION
BALANCE SHEETS
UNAUDITED
June 30, | December 31, | ||||||
2005 | 2004 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Accounts receivable, net | $ | 153,651 | $ | 222,556 | |||
Total current assets | 153,651 | 222,556 | |||||
Property and equipment, net | 12,832 | 19,078 | |||||
Intangible assets, net | 1,250 | 1,250 | |||||
Total assets | $ | 167,733 | $ | 242,884 | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
Current liabilities: | |||||||
Bank line of credit | $ | 50,746 | $ | 50,191 | |||
Notes payable - related parties | 254,542 | 269,903 | |||||
Accounts payable | 27,555 | 15,727 | |||||
Accrued liabilities | 14,947 | 27,410 | |||||
Total current liabilities | 347,790 | 363,231 | |||||
Long term debt - related party | 24,341 | 30,249 | |||||
Total liabilities | 372,131 | 393,480 | |||||
Stockholders’ deficit: | |||||||
Common stock, no par value, 10,000,000 shares authorized, issued and outstanding at June 30, 2005 and December 31, 2004, respectively. | 1,000 | 1,000 | |||||
Additional paid-in capital | 2,100 | 2,100 | |||||
Treasury stock | (39,877 | ) | (39,877 | ) | |||
Accumulated deficit | (167,621 | ) | (113,819 | ) | |||
Total stockholders’ deficit | (204,398 | ) | (150,596 | ) | |||
Total liabilities and stockholders’ deficit | $ | 167,733 | $ | 242,884 |
The accompanying notes are an integral part of the financial statements.
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TRILLIANT CORPORATION
STATEMENTS OF OPERATIONS
THREE AND SIX MONTHS ENDED JUNE 30, 2005 AND 2004
UNAUDITED
Three months ended June 30, | Six months ended June 30, | ||||||||||||
2005 | 2004 | 2005 | 2004 | ||||||||||
Service revenue | $ | 290,962 | $ | 307,093 | $ | 514,382 | $ | 548,499 | |||||
Selling, general and administrative expenses | 309,757 | 381,113 | 561,009 | 830,956 | |||||||||
Loss from operations | (18,795 | ) | (74,020 | ) | (46,627 | ) | (282,457 | ) | |||||
Interest expense and other | 3,120 | 1,553 | 7,175 | 8,909 | |||||||||
Net loss | $ | (21,915 | ) | $ | (75,573 | ) | $ | (53,802 | ) | $ | (291,366 | ) |
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TRILLIANT CORPORATION
STATEMENTS OF CASH FLOWS
SIX MONTHS ENDED JUNE 30, 2005 AND 2004
UNAUDITED
June 30, | |||||||
2005 | 2004 | ||||||
Cash flows from operating activities: | |||||||
Net loss | $ | (53,802 | ) | $ | (291,366 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation | 6,246 | 8,504 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | 68,905 | 79,268 | |||||
Accounts payable and accrued liabilities | (635 | ) | 22,091 | ||||
Net cash provided by (used in ) operating activities | 20,714 | (181,503 | ) | ||||
Cash flows from financing activities: | |||||||
Proceeds from notes payable to related parties | 2,784 | 150,500 | |||||
Repayment of notes payable to related parties | (8,137 | ) | (53,193 | ) | |||
Proceeds from bank line of credit | 27,360 | 18,085 | |||||
Repayment of bank line of credit | (42,721 | ) | (1,477 | ) | |||
Net cash provided by (used in) financing activities | (20,714 | ) | 113,915 | ||||
Net increase (decrease) in cash and cash equivalents | - | (67,588 | ) | ||||
Cash and cash equivalents at beginning of period | - | 67,588 | |||||
Cash and cash equivalents at end of period | $ | - | $ | - | |||
Supplemental disclosures: | |||||||
Cash paid for interest | $ | 6,416 | $ | 7,420 |
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TRILLIANT CORPORATION
NOTES TO FINANCIAL STATEMENTS
UNAUDITED
1. | BASIS OF PRESENTATION |
The accompanying unaudited interim financial statements of Trilliant Corporation ("Trilliant"), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission ("SEC"), and should be read in conjunction with the audited financial statements and notes thereto contained in Trilliant's audited financial statements for the year ended December 31, 2004. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which substantially duplicate the disclosure contained in the audited financial statements for fiscal 2004 have been omitted.
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