IMPACT MEDIA, LLC
BALANCE SHEETS
May 31, 1999 and 1998
(UNAUDITED)
1999 1998
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ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 16,905 $ 15,282
Inventory 13,133 -
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TOTAL CURRENT ASSETS 30,038 15,282
EQUIPMENT, net of accumulated depreciation
of $6,643 and $650 31,237 10,498
PREPAID EXPENSES 3,940 -
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TOTAL ASSETS $ 65,215 $ 25,780
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LIABILITIES AND EQUITY
CURRENT LIABILITIES
Trade accounts payable $ 128,414 $ -
Accrued expenses 18,546 9,265
Advances from related party 12,337 -
Notes payable - related party 2,400 14,000
Notes payable - current portion 15,143 1,225
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TOTAL CURRENT LIABILITIES 176,840 24,490
NOTES PAYABLE 13,923 2,275
MEMBERS' EQUITY (125,548) (985)
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TOTAL LIABILITIES AND EQUITY $ 65,215 $ 25,780
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IMPACT MEDIA, LLC
STATEMENTS OF OPERATIONS AND MEMBERS' EQUITY
Five Months ended May 31, 1999 and 1998
(UNAUDITED)
1999 1998
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REVENUE
Net sales $ 722,899 $ 328,904
Cost of sales 353,391 234,721
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GROSS PROFIT 369,508 94,183
OPERATING EXPENSES
Selling 13,250 12,185
General and administrative 614,492 99,051
Depreciation 2,708 650
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630,450 111,886
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OPERATING LOSS (260,942) (17,703)
OTHER EXPENSE
Interest expense 962 -
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Loss before income taxes (261,904) (17,703)
Income taxes - -
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NET LOSS (261,904) (17,703)
MEMBERS' EQUITY
Balance - beginning of year 136,356 -
Contributions - 16,718
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Balance - end of year $ (125,548) $ (985)
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IMPACT MEDIA, LLC
STATEMENTS OF CASH FLOWS
Five Months ended May 31, 1999 and 1998
(UNAUDITED)
1999 1998
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CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (261,904) $ (17,703)
Adjustments to reconcile net loss to net cash
used by operating activities:
Depreciation 2,708 650
Changes in operating assets and liabilities:
Increase in inventory (633) -
Increase in other assets (1,550) -
Increase in trade accounts payable 104,524 -
Increase in accrued expenses 14,256 9,265
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Net cash used by operating activities (142,599) (7,788)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of equipment - (7,648)
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Net cash used by investing activities - (7,648)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash from notes payable 12,337 14,000
Principal payments on notes payable (4,493) -
Cash from contributions - 16,718
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Net cash flows from financing activities 7,844 30,718
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NET INCREASE (DECREASE) IN
CASH AND CASH EQUIVALENTS (134,755) 15,282
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD 151,660 -
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CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ 16,905 $ 15,282
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SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
During the five months ended May 31, 1998, $3,500 of equipment was purchased by
assuming $3,500 of long-term capital leases.