Exhibit 99.1
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AVALON DIGITAL MARKETING SYSTEMS
Balance Sheet
As of September 30, 2004
ASSETS
Current Assets:
Cash (from Form 2-B, line 5) $ (8,854)
Accounts Receivable (from Form 2-E) 17,050
Receivable from Officers, Employees, Affiliates -
Inventory -
Other Current Assets:
Contract, AR -
Retainage 37,663
Prepaid and Other 36,650
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Total Current Assets $ 82,509
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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 (1,002,771)
Net Fixed Assets 216,166
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Other Long Term Assets:
License 6,000
Deposit 1,250
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TOTAL ASSETS 305,925
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LIABILITIES
Post Petition Liabilities:
Accounts Payable (from Form 2-E) 291,445
Notes Payable -
Rents and Leases Payable -
Taxes Payable (from Form 2-E) 19,919
Accrued interest -
Other:
Accrued Expense 299,528
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Total Post Petition Liabilities $ 610,892
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Pre-Petition Liabilities:
Priority Claims 160,989
Secured Debt 191,259
Unsecured Debt 9,057,060
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Total Pre-Petition Liabilities 9,409,308
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TOTAL LIABILITIES $ 10,020,200
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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 (894,081)
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TOTAL OWNERS' EQUITY $ 9,714,275
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TOTAL LIABILITIES AND OWNERS' EQUITY $ 305,925
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AVALON DIGITAL MARKETING SYSTEMS
Profit and Loss Statement
For Period September 1 to September 30, 2004
Gross Operating Revenue $ 117,867
Less: Discounts, Returns and Allowances -
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Net Operating Revenue $ 117,867
Cost of Goods Sold 6,280
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Gross Profit 111,587
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Operating Expenses
Salaries and Wages 80,063
Rents and Leases 6,843
Payroll Taxes (Employer) 6,884
Other:
Health Insurance 8,234
Fees/Licenses 770
G & A 10,802
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Total Operating Expenses 113,596
Operating Income (Loss) (2,009)
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Legal and Professional Fees 8,266
Depreciation, Depletion and Amortization 25,788
Interest Expense -
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Net Operating Income (Loss) (36,063)
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Non-Operating Income and Expenses
Other Non-Operating (Expenses) (1,425)
Gains (Losses) on Sale of Assets -
Interest Income -
Other Non-Operating Income -
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Net Non-Operating Income or (Expenses) (1,425)
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Net Income (Loss) Before Income Taxes (37,488)
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Federal and State Income Tax Expense (Benefit) -
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NET INCOME (LOSS) $ (37,488)
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