Exhibit 99.1
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AVALON DIGITAL MARKETING SYSTEMS
Balance Sheet
As of December 31, 2003
ASSETS
Current Assets:
Cash (from Form2-B, line 5) $ 140,083
Accounts Receivable (from Form 2-E) 6,636
Receivable from Officers, Employees, Affiliates -
Inventory -
Other Current Assets:
Contract, AR 289,422
Retainage 103,640
Prepaid and Other 41,396
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Total Current Assets $ 581,177
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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 (757,388)
Net Fixed Assets 455,549
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Other Long Term Assets:
License 15,000
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TOTAL ASSETS 1,051,726
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LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) 189,635
Notes Payable -
Rents and Leases Payable 6,700
Taxes Payable (from Form 2-E) 12,770
Accrued interest 1,800
Other:
Accrued Expense 211,408
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Total Post Petition Liabilities $ 422,313
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Pre-Petition Liabilities:
Priority Claims 163,885
Secured Debt 365,514
Unsecured Debt 9,288,364
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Total Pre-Petition Liabilities 9,817,763
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TOTAL LIABILITIES $ 10,240,076
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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 (368,155)
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TOTAL OWNERS' EQUITY $ (9,188,350)
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TOTAL LIABILITIES AND OWNERS' EQUITY $ 1,051,726
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AVALON DIGITAL MARKETING SYSTEMS
Profit and Loss Statement
For Period December 1 to December 31, 2003
Gross Operating Revenue $ 175,279
Less: Discounts, Returns and Allowances -
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Net Operating Revenue $ 175,279
Cost of Goods Sold 2,523
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Gross Profit 172,756
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Operating Expenses
Salaries and Wages 76,014
Rents and Leases 6,700
Payroll Taxes (Employer) 4,050
Other:
Health Insurance 10,506
Fees/Licenses 20,000
G & A 11,024
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Total Operating Expenses 128,294
Operating Income (Loss) 44,462
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Legal and Professional Fees 48,750
Depreciation, Depletion and Amortization 31,696
Interest Expense 8,384
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Net Operating Income (Loss) (44,368)
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Non-Operating Income and Expenses
Other Non-Operating (Expenses) 8,477
Gains (Losses) on Sale of Assets -
Interest Income -
Other Non-Operating Income -
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Net Non-Operating Income or (Expenses) 8,477
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Net Income (Loss) Before Income Taxes (52,845)
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Federal and State Income Tax Expense (Benefit) -
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NET INCOME (LOSS) $ (52,845)
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