Exhibit 99.1
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AVALON DIGITAL MARKETING SYSTEMS
Balance Sheet
As of January 31, 2004
ASSETS
Current Assets:
Cash (from Form 2-B, line 5) $ 140,257
Accounts Receivable (from Form 2-E) 11,422
Receivable from Officers, Employees, Affiliates -
Inventory -
Other Current Assets:
Contract, AR 222,834
Retainage 93,323
Prepaid and Other 37,894
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Total Current Assets $ 505,730
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Fixed Assets:
Land -
Building -
Equipment, Furniture and Fixtures 1,218,937
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Total Fixed Assets 1,218,937
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Less: Accumulated Depreciation (787,546)
Net Fixed Assets 431,391
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Other Long Term Assets:
License 14,000
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TOTAL ASSETS 951,121
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LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) 215,709
Notes Payable -
Rents and Leases Payable 6,700
Taxes Payable (from Form 2-E) 19,042
Accrued interest 1,800
Other:
Accrued Expense 314,106
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Total Post Petition Liabilities $ 557,357
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Pre-Petition Liabilities:
Priority Claims 160,989
Secured Debt 322,637
Unsecured Debt 9,177,093
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Total Pre-Petition Liabilities 9,660,719
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TOTAL LIABILITIES $ 10,218,076
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OWNERS' EQUITY
Capital Stock or Owner's Investment $ 8,714
Paid-In Capital 28,051,203
Retained Earnings:
Pre Petition (36,880,111)
Post Petition (446,761)
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TOTAL OWNERS' EQUITY $ (9,266,955)
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TOTAL LIABILITIES AND OWNERS' EQUITY $ 951,121
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AVALON DIGITAL MARKETING SYSTEMS
Profit and Loss Statement
For Period January 1 to January 31, 2004
Gross Operating Revenue $ 188,216
Less: Discounts, Returns and Allowances -
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Net Operating Revenue $ 188,216
Cost of Goods Sold 23,100
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Gross Profit 165,116
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Operating Expenses
Salaries and Wages 98,910
Rents and Leases 6,700
Payroll Taxes (Employer) 8,865
Other:
Health Insurance 9,098
Fees/Licenses 20,000
G & A 21,507
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Total Operating Expenses 165,080
Operating Income (Loss) 36
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Legal and Professional Fees 44,909
Depreciation, Depletion and Amortization 31,158
Interest Expense 1,008
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Net Operating Income (Loss) (77,039)
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Non-Operating Income and Expenses
Other Non-Operating (Expenses) 1,567
Gains (Losses) on Sale of Assets -
Interest Income -
Other Non-Operating Income -
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Net Non-Operating Income or (Expenses) 1,567
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Net Income (Loss) Before Income Taxes (78,606)
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Federal and State Income Tax Expense (Benefit) -
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NET INCOME (LOSS) $ (78,606)
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