Exhibit 99.2
ELEMENT 21 GOLF COMPANY AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE AND THREE MONTHS ENDED MARCH 31, 2008 AND 2007
(unaudited)
Nine months Ended March 31, | Three months Ended March 31, | ||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||
REVENUES | $ | 952,562 | $ | 115,636 | $ | 565,630 | $ | 89,325 | |||||
COST OF SALES | 736,419 | 52,852 | 461,292 | 33,640 | |||||||||
GROSS MARGIN | 216,143 | 62,784 | 104,338 | 55,685 | |||||||||
General and administrative expenses | 4,128,770 | 5,319,668 | 1,274,478 | 1,742,099 | |||||||||
LOSS FROM OPERATIONS | (3,912,627 | ) | (5,256,884 | ) | (1,170,140 | ) | (1,686,414 | ) | |||||
OTHER INCOME (EXPENSE) | |||||||||||||
Interest income | 11,047 | 19,982 | 3,236 | 19,982 | |||||||||
Interest expense | (10,174 | ) | (1,018,570 | ) | (10,174 | ) | (194,953 | ) | |||||
Other income (expense) | 0 | 87,151 | 0 | 87,151 | |||||||||
Derivative income | 2,282,497 | 1,952,196 | 253,853 | 3,848,832 | |||||||||
2,283,370 | 1,040,759 | 246,915 | 3,761,012 | ||||||||||
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | (1,629,257 | ) | (4,216,125 | ) | (923,225 | ) | 2,074,598 | ||||||
Provision for income taxes | - | - | - | - | |||||||||
NET INCOME (LOSS) | (1,629,257 | ) | (4,216,125 | ) | (923,225 | ) | 2,074,598 | ||||||
Accretion of preferred stock dividends | - | 4,000,000 | - | - | |||||||||
INCOME (LOSS) APPLICABLE TO COMMON SHAREHOLDERS | $ | (1,629,257 | ) | $ | (8,216,125 | ) | $ | (923,225 | ) | $ | 2,074,598 | ||
Basic weighted average shares | 6,266,673 | 5,510,435 | 6,646,287 | 5,648,695 | |||||||||
Diluted weighted average shares | 6,266,673 | 5,510,435 | 6,646,287 | 6,141,506 | |||||||||
Basic income (loss) per share | ($0.26 | ) | ($1.49 | ) | ($0.14 | ) | $ | 0.37 | |||||
Diluted income (loss) per share | ($0.26 | ) | ($1.49 | ) | ($0.14 | ) | $ | 0.34 |