Exhibit No. 99.4
TECHNEST.COM, INC.
BALANCE SHEET
MARCH 31, 2001
ASSETS
(Unaudited)
CURRENT ASSETS:
Cash and cash equivalents $ 179,850
Note receivable - related party 266,000
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TOTAL CURRENT ASSETS 445,850
EQUIPMENT 793,127
INVESTMENTS 4,897,023
OTHER ASSETS 2,179
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$ 6,138,179
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 350,879
Accrued interest 45,153
Note payable - current portion 300,000
Deferred revenue 18,675
Other liabilities 33,341
----------------
TOTAL CURRENT LIABILITIES 748,048
----------------
NOTE PAYABLE 690,000
STOCKHOLDERS' EQUITY:
Preferred stock Series A, $.0001 par value;
authorized shares 50,000,000 shares;
14,875,000 shares issued and outstanding 1,488
Common stock, $.0001 par value;
authorized shares, 500,000,000 shares;
70,850,000 shares issued and outstanding 7,085
Additional paid-in capital 14,873,512
Common stock subscription receivable (7,035)
Accumulated deficit (10,174,919)
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TOTAL STOCKHOLDERS' EQUITY 4,700,131
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$ 6,138,179
================
See notes to financial statements.
TECHNEST.COM, INC.
STATEMENT OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 2001
(Unaudited)
INTEREST EXPENSE $ (19,500)
OTHER INCOME 38,311
OPERATING COSTS AND EXPENSES:
Selling, general and administrative 336,372
Depreciation and amortization 49,805
----------------
386,177
----------------
NET LOSS $ (367,366)
================
See notes to financial statements.
TECHNEST.COM, INC.
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2001
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $ (367,366)
------------------
Adjustments to reconcile net loss
to net cash used in operating activities:
Depreciation and amortization 49,805
Changes in assets and liabilities:
Accounts payable (20,390)
Accrued interest 19,500
Deferred revenue (37,750)
Other liabilities (4,040)
------------------
7,125
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NET CASH USED IN OPERATING ACTIVITIES (360,241)
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CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (10,366)
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NET CASH USED IN INVESTING ACTIVITIES (10,366)
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CASH FLOWS FROM FINANCING ACTIVITIES
Increase of note receivable - related party (166,000)
------------------
NET CASH USED IN FINANCING ACTIVITIES (166,000)
------------------
NET DECREASE IN CASH (536,607)
CASH - BEGINNING OF PERIOD 716,457
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CASH - END OF PERIOD $ 179,850
==================
See notes to financial statements.
Note 1-Basis of Interim Financial Statement Presentation
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim information.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
The results of operations for the interim periods shown in this report are not
necessarily indicative of expected results for any future interim period or for
the entire fiscal year. Technest believes that the quarterly information
presented includes all adjustments (consisting only of normal, recurring
adjustments) necessary for a fair presentation in accordance with generally
accepted accounting principles. The accompanying financial statements should be
read in conjunction with Technest's December 31, 2000, audited financial
statements included in this Form 8-K/A.