Exhibit 99.1
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AVALON DIGITAL MARKETING SYSTEMS
Balance Sheet
As of November 30, 2003
ASSETS
Current Assets:
Cash (from Form2-B, line 5) $ 51,071
Accounts Receivable (from Form 2-E) 4,680
Receivable from Officers, Employees, Affiliates -
Inventory -
Other Current Assets:
Contract, AR 360,630
Retainage 184,114
Prepaid and Other 55,814
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Total Current Assets $ 656,309
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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 (726,692)
Net Fixed Assets 486,245
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Other Long Term Assets:
License 16,000
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TOTAL ASSETS 1,158,554
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LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) 143,940
Notes Payable -
Rents and Leases Payable 6,700
Taxes Payable (from Form 2-E) 24,986
Accrued interest 1,800
Other:
Accrued Expense 191,408
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Total Post Petition Liabilities $ 368,834
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Pre-Petition Liabilities:
Priority Claims 163,885
Secured Debt 412,129
Unsecured Debt 9,349,211
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Total Pre-Petition Liabilities 9,925,225
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TOTAL LIABILITIES $ 10,294,059
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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 (315,310)
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TOTAL OWNERS' EQUITY $ (9,135,505)
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TOTAL LIABILITIES AND OWNERS' EQUITY $ 1,158,554
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AVALON DIGITAL MARKETING SYSTEMS
Profit and Loss Statement
For Period November 1 to November 30, 2003
Gross Operating Revenue $ 172,033
Less: Discounts, Returns and Allowances -
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Net Operating Revenue $ 172,033
Cost of Goods Sold 1,454
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Gross Profit 170,579
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Operating Expenses
Salaries and Wages 106,495
Rents and Leases 6,700
Payroll Taxes (Employer) 7,066
Other:
Health Insurance 11,091
Fees/Licenses 20,000
G & A 7,013
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Total Operating Expenses 158,365
Operating Income (Loss) 12,214
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Legal and Professional Fees 46,986
Depreciation, Depletion and Amortization 31,697
Interest Expense 24,800
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Net Operating Income (Loss) (91,269)
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Non-Operating Income and Expenses
Other Non-Operating (Expenses) -
Gains (Losses) on Sale of Assets -
Interest Income -
Other Non-Operating Income -
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Net Non-Operating Income or (Expenses) -
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Net Income (Loss) Before Income Taxes (91,269)
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Federal and State Income Tax Expense (Benefit) -
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NET INCOME (LOSS) $ (91,269)
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