Exhibit 99.2
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Balance Sheet
December 31, 2003 and September 30, 2004
ASSETS
2003 2004
(audited) (unaudited)
---------- ---------
CURRENT ASSETS
Cash and cash equivalents $ 8,680 $ 677,890
Accounts receivable 1,612,945 2,343,017
Note receivable 6,400 149,667
Costs and estimated earnings on uncompleted
contracts in excess of billings 137,382
Inventory 570,794 3,289,420
Funds in Escrow 476,354
Other current assets 392,407 366,676
---------- ----------
TOTAL CURRENT ASSETS $2,591,226 $7,440,406
Property, plant and equipment 532,388 1,612,321
Investment 25,000
Goodwill 597,724
Other non-current assets 122,167 126,328
---------- ----------
TOTAL ASSETS $3,245,781 $9,801,779
========== ==========
The accompanying notes are an integral part of these condensed consolidated
financial statements.
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Balance Sheet
December 31, 2003 and September 30, 2004
LIABILITIES AND STOCKHOLDERS' EQUITY
2003 2004
(audited) (unaudited)
----------- -----------
CURRENT LIABILITIES
Notes payable - short term $ 798,862 $ 109,696
Notes payable - related party 417,000
Accounts payable - trade 1,691,853 1,573,398
Accounts payable - related party 71,827
Due to factor 394,391
Customer deposits 27,800 27,000
Billings in excess of costs and estimated
earnings on contracts in progress 323,686
Accrued liabilities 688,518 927,323
Income taxes payable 311,182
Commitments and contingencies
Shares subject to mandatory redemption 400,535 400,535
----------- -----------
TOTAL CURRENT LIABILITIES $ 4,397,472 $ 3,766,134
LONG-TERM LIABILITIES
Notes payable - long term portion
----------- -----------
TOTAL LONG-TERM LIABILITIES
----------- -----------
TOTAL LIABILITIES 4,397,472 3,766,134
=========== ===========
STOCKHOLDERS' EQUITY
Common stock, $.001 par value, 50,000,000
shares authorized 14,680,000 and
30,650,386 shares issued 2003 and 2004
and 14,680,000 and 30,650,386
shares outstanding 2003 and 2004 18,110 31,280
Additional paid-in capital 2,412,123 6,976,700
Deferred compensation (332,000)
Contributed capital 620,289 620,289
Retained earnings (3,870,213) (1,592,624)
----------- -----------
Total paid-in capital and accumulated deficit (1,151,691) 6,035,645
----------- -----------
TOTAL STOCKHOLDERS' EQUITY (1,151,691) 6,057,253
=========== ===========
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 3,245,781 $ 9,801,779
=========== ===========
The accompanying notes are an integral part of these condensed consolidated
financial statements.
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Statement of Operations
For the Three and Nine Months Ended September 30, 2003 and 2004
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
2003 2004 2003 2004
------------ ------------ ------------ ------------
Net sales $ 5,091,825 $ 8,112,082 $ 12,611 185 $ 16,698,987
Cost of sales (4,465,474) (6,208,825) (10,640,024) (11,810,539)
------------ ------------ ------------ ------------
Gross profit 626,351 1,903,257 1,971,161 4,888,448
Selling, general and administrative
expense (1,454,328) (1,787,144) (3,021,597) (3,404,548
------------ ------------ ------------ ------------
Penalties (19,976) (21,255) (156,277) (211,767)
------------ ------------ ------------ ------------
Gain (loss) from operations (847,953) 94,858 (1,206,713) 1,272,133
Other income (expense):
Interest income 62,063 3,159 187,356 64,551
Interest expense (113,788) (50,765 (377,646) (235,578)
Discounts taken 13,271 27,544
Miscellaneous expense (1,643) (17,124) (9,084)
Miscellaneous income 5 10,938 10,513 13,521
Gain on renegotiation of contracts 607,194 1,144,502
------------ ------------ ------------ ------------
Pre-tax net income (901,316) 678,655 (1,403,613) 2,277,589
Income tax without carryforward (278,031) (933,083)
Reduction from carryforward of NOL 278,031 933,083
------------ ------------ ------------ ------------
Net profit (loss) $ (901,316) $ 678,655 $ (1,403,613) $ 2,277,589
============ ============ ============ ============
Net profit (loss) per share (0.06) 0.02 (0.10) 0.10
Net profit (loss) per share,
Fully diluted $ (0.06) $ 0.02 $ (0.10) $ 0.09
============ ============ ============ ============
The accompanying notes are an integral part of these condensed consolidated
financial statements.
RENEGADE VENTURE (NEV.) CORPORATION
Consolidated Statement of Changes in Stockholder's Equity
For the Year Ended December 31, 2003 and the Nine Months Ended September 30, 2004
Additional Contributed Deferred
Paid-in Capital Compensation
Common Stock Capital
Shares Amount Amount Amount Amount
------ ------ ------ ------ ------
Balance at December 31, 2002 18,980,000 19,360 1,904,075 520,289 (66,000)
Activity through March 31, 2003
Shares issued 50,000 50 14,950
Shares returned (50,000) (50) 50
Compensation expensed 18,000
Activity through June 30, 2003
Compensation expensed 18,000
Activity through September 30, 2003
Shares issued 5,610,000 5,610 (16,440)
Shares returned (1,560,000) (1,560) 531,390 (320,000)
Compensation expensed 18,000
No stock held in Treasury * (114,000)
Activity through December 31, 2003
Shares issued 2,800,000 2,800 501,200 100,000
----------- ----------- ----------- ----------- -----------
Balance at December 31, 2003 25,830,000 26,210 2,821,225 620,289 (332,000)
Activity through March 31, 2004
Compensation expensed 12,000
Activity through June 30, 2004
Shares issued 9,600,000 9,600 3,009,600
Shares returned (250,000) (392,435)
Shares returned (8,100,000) (8,100) (16,667)
Shares pledged (World Jet) 1,000 499,000
Activity through September 30, 2004
Shares issued (World Jet) 1,000,000
Shares vested 2,570,386 2,570 1,055,977 320,000
----------- ----------- ----------- ----------- -----------
Balance at September 30, 2004 30,650,386 31,280 6,976,700 620,289 0
* shown as Treasury Stock at December 31, 2002
Note: The Board of Directors has voided, due to lack of consideration,
1,500,000 shares of common stock issued to Seajay Holding Company, Inc. On
June 29, 2004, the Board, through its attorney, filed suit to recover these
1,500,000 shares. There have been no entries in the accompanying financial
statements related to the voiding of the Seajay stock.
RENEGADE VENTURE (NEV) CORPORATION
Consolidated Statement of Cash Flows
For the Three and Nine Months Ended September 30, 2003 and 2004
(unaudited)
Three Months ended Nine Months ended
September 30, September 30,
2003 2004 2003 2004
----------- ----------- ----------- -----------
Increase (Decrease) in Cash and Cash Equivalents:
Cash flows from operating activities:
Net Profit/(Loss) $ (901,316) $ 678,655 $(1,403,613) $ 2,277,589
Adjustments to reconcile net loss to net
cash provided (used) by operating activities:
Depreciation 31,948 101,417 86,649 215,881
Allowance for Doubtful Accounts 509
Inventory write downs 55,208 157,291
Gain from renegotiation (607,194) (1,144,502)
Expenses paid with stock 18,000 355,240 69,000 402,199
Changes in Assets and Liabilities:
Accounts receivable 577,043 (277,478) (1,172,506) (280,517)
Prepaid expenses (49,075) (77,982) (43,841) 1,541
Costs and estimated earnings in excess of
billings on contracts in progress (211,545) (137,382) (197,345)
Inventory (210,947) (1,435,567)
Assets held for sale 965,250
Restricted Funds (75,083) 1,250,000 (75,083) (400,945)
Other current assets (2,978) 8,913 (77,271) (21,823)
Other non-current assets 118,523 2,157
Accounts payable-trade (729,062) 989,891 1,084,178 981,932
Accounts payable-related party (79,202) (79,202) 56,737
Due to factor 266,992 36,671 848,976 (102,452)
Customer deposits (17,200) 24,200 2,800 (800)
Billings in excess of cost and estimated
earnings on contracts in progress (84,112) (304,919) (461,067)
Income tax payable (463,690)
Shares subject to mandatory redemption 400,535
Accrued liabilities (352,879) (94,335) 128,641 (455,259)
Net cash provided by/(used for) operating
activities (524,697) 1,789,958 (425,925) (672,941)
Cash flows from investing activities:
Purchase of property, plant and equipment (107,571) (5,727) (148,331) (1,244,114)
Net cash used for investing activities (107,571) (5,727) (148,331) (1,244,114)
Cash flows from financing activities:
Notes payable 171,010 (934,415) 697,283 (728,104)
Notes payable - related party 48,938 (1,485,653) (117,000) (1,526,218)
Issuance of stock 437,000 2,115 19,798 11,715
Paid in capital 946,832 3,956,432
Note receivable (2,911) 275,684
Note receivable - related party 6,400
Net cash provided by/(used for) financing
activities 656,948 (1,474,032) 600,081 1,995,909
Net increase in cash and cash equivalents 24,680 310,199 25,824 78,854
Cash and cash equivalents at beginning of period 3,035 367,691 1,891 599,036
Cash and cash equivalents at end of period 27,715 677,890 27,715 677,890
=========== =========== =========== ===========
The accompanying notes are an integral part of these condensed consolidated
financial statements.