Exhibit 99.2
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AVALON DIGITAL MARKETING SYSTEMS
Balance Sheet
As of October 31, 2003
ASSETS
Current Assets:
Cash (from Form2-B, line 5) $ 30,344
Accounts Receivable (from Form 2-E) 17,817
Receivable from Officers, Employees, Affiliates -
Inventory -
Other Current Assets:
Contract, AR 430,622
Retainage 142,642
Prepaid & Other 59,180
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Total Current Assets $ 680,605
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Fixed Assets:
Land -
Building -
Equipment, Furniture and Fixtures 1,212,937
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Total Fixed Assets 1,212,937
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Less: Accumulated Depreciation (695,995)
Net Fixed Assets 516,942
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Other Long Term Assets:
License 17,000
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TOTAL ASSETS 1,214,547
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LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) 108,560
Notes Payable -
Rents and Leases Payable 6,700
Taxes Payable (from Form 2-E) 24,789
Accrued interest 1,800
Other:
Accrued Expense 131,408
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Total Post Petition Liabilities $ 273,257
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Pre-Petition Liabilities:
Priority Claims 397,152
Secured Debt 412,129
Unsecured Debt 9,176,245
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Total Pre-Petition Liabilities 9,985,526
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TOTAL LIABILITIES $ 10,258,783
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OWNERS' EQUITY
Capital Stock or Owner's Investment $ 8,713
Paid-In Capital 28,051,203
Retained Earnings:
Pre Petition (36,880,111)
Post Petition (224,041)
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TOTAL OWNERS' EQUITY $ (9,044,236)
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TOTAL LIABILITIES AND OWNERS' EQUITY $ 1,214,547
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AVALON DIGITAL MARKETING SYSTEMS
Profit and Loss Statement
For Period October 1 to October 31, 2003
Gross Operating Revenue $ 205,828
Less: Discounts, Returns and Allowances -
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Net Operating Revenue $ 205,828
Cost of Goods Sold 15,255
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Gross Profit 190,573
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Operating Expenses
Salaries and Wages 103,946
Rents and Leases 6,700
Payroll Taxes (Employer) 7,484
Other:
Health Insurance 9,647
Fees/Licenses 20,000
G & A 12,850
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Total Operating Expenses 160,627
Operating Income (Loss) 29,946
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Legal and Professional Fees 50,166
Depreciation, Depletion and Amortization 31,694
Interest Expense 24,800
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Net Operating Income (Loss) (76,714)
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Non-Operating Income and Expenses
Other Non-Operating (Expenses) 4,354
Gains (Losses) on Sale of Assets -
Interest Income -
Other Non-Operating Income -
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Net Non-Operating Income or (Expenses) 4,354
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Net Income (Loss) Before Income Taxes (81,068)
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Federal and State Income Tax Expense (Benefit) -
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NET INCOME (LOSS) $ (81,068)
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