Exhibit 99.2
ASI HOLDINGS LIMITED
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)
June 30, 2010
Condensed Consolidated Balance Sheet as of June 30, 2010 and December 31, 2009 (unaudited) | 2 |
Condensed Consolidated Statement of Operations for the six months period ended June 30, 2010 and 2009 (unaudited) | 3 |
Condensed Consolidated Statements of Cash Flows for the six months period ended June 30, 2010 and 2009 (unaudited) | 4 |
Notes to Condensed Consolidated Financial Statements (unaudited) | 5 to 11 |
ASI Holdings Limited
Condensed Consolidated Balance Sheets
(Unaudited)
As of | As of | |||||||
June 30, 2010 | December 31, 2009 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 272,432 | $ | 90,543 | ||||
Accounts receivable, net of allowance for bad debts | 5,404,565 | 4,767,736 | ||||||
Inventories, net | 2,606,109 | 1,709,107 | ||||||
Deposits | 46,029 | 24,688 | ||||||
Prepayments | 16,982 | 30,780 | ||||||
Other receivables | 6,664 | - | ||||||
Total current assets | 8,352,781 | 6,622,854 | ||||||
Property and equipment, at cost | 101,207 | 39,115 | ||||||
Less: accumulated depreciation | (50,960 | ) | (15,466 | ) | ||||
Property and equipment, net | 50,247 | 23,649 | ||||||
Total assets | $ | 8,403,028 | $ | 6,646,503 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
Current liabilities: | ||||||||
Secured bank overdraft | - | 28,923 | ||||||
Short term loan | 500,000 | 500,000 | ||||||
Accounts payable | 10,512,657 | 7,684,336 | ||||||
Provision for warranty service | 469,365 | 276,362 | ||||||
Accrued expenses and other payable | 509,237 | 577,825 | ||||||
Due to bank under factoring agreement | 25,652 | 504,368 | ||||||
Total liabilities | $ | 12,016,911 | $ | 9,571,814 | ||||
Stockholders' deficit | ||||||||
Common stock, $0..1282 par value; | 6,410 | 6,410 | ||||||
Other comprehensive loss | (26,494 | ) | (1,063 | ) | ||||
Accumulated deficit | (3,593,799 | ) | (2,930,658 | ) | ||||
Total stockholders' deficit | (3,613,883 | ) | (2,925,311 | ) | ||||
Total liabilities and stockholders' deficit | $ | 8,403,028 | $ | 6,646,503 |
See accompanying notes to condensed consolidated financial statements.
2
ASI Holdings Limited
Condensed Consolidated Statement of Operations
(Unaudited)
For Six Months Ending | ||||||||
June 30, 2010 | June 30, 2009 | |||||||
Net revenue | $ | 10,973,580 | $ | 8,009,840 | ||||
Cost of revenue | 10,201,436 | 7,018,201 | ||||||
Gross profit | 772,144 | 991,639 | ||||||
Operating expenses | ||||||||
Selling expenses | 220,230 | 21,985 | ||||||
General and administrative | 1,108,589 | 1,000,482 | ||||||
Total operating expenses | 1,328,819 | 1,022,467 | ||||||
Loss from operations | (556,675 | ) | (30,829 | ) | ||||
Other expenses: | ||||||||
Factoring charges | 106,465 | - | ||||||
Total other expenses | 106,465 | - | ||||||
Net loss from continuing operations | (663,141 | ) | (30,829 | ) | ||||
Other comprehensive loss | ||||||||
Foreign currency translation Loss | 25,431 | 5,723 | ||||||
Net comprehensive loss | $ | (688,571 | ) | $ | (36,552 | ) |
See accompanying notes to condensed consolidated financial statements.
3
ASI Holdings Limited
Condensed Consolidated Statement of Cash Flows
(Unaudited)
For Six Months Ended | ||||||||
June 30, 2010 | June 30, 2009 | |||||||
Operating activities: | ||||||||
Net loss from continuing operations | $ | (663,141 | ) | $ | (30,829 | ) | ||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||
Depreciation | 35,494 | 35,698 | ||||||
Increase in accounts receivable | (636,829 | ) | (3,128,176 | ) | ||||
Increase in inventory | (897,002 | ) | (2,067,647 | ) | ||||
Decrease in prepaid expenses | 13,798 | 605 | ||||||
Increase in other receivable | (6,665 | ) | - | |||||
Increase in deposits | (21,341 | ) | (1,163 | ) | ||||
Decrease non-controlling Interest | - | 12,287 | ||||||
Increase in accounts payable | 2,828,320 | 4,325,422 | ||||||
Increase/(decrease) in accrued expenses | (68,588 | ) | 642,893 | |||||
Increase in warranty provision | 193,003 | 105,960 | ||||||
Decrease related party | - | (71,837 | ) | |||||
Decrease secured bank draft | (28,923 | ) | - | |||||
Increase short term loan | - | 500,000 | ||||||
Net cash provided by operating activities from continuing operations | 1,411,269 | 354,042 | ||||||
Investing activities: | ||||||||
Acquisitions of property and equipment | (62,092 | ) | (33,000 | ) | ||||
Net cash used in investing activities |
4