Advanced Medical Diagnostics, LLC
A Development Stage Company
Financial Statements
December 31, 2003
Independent Auditors' Report
To the Members of
Advanced Medical Diagnostics, LLC
We have audited the accompanying balance sheet of Advanced Medical
Diagnostics, LLC as of December 31, 2003 and the related statements
of income and members' equity and cash flows for the period October
30, 2003 (date of inception) through December 31, 2003. These
financial statements are the responsibility of the Company's
management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards
generally accepted in the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of Advanced
Medical Diagnostics, LLC as of December 31, 2003, and results of
their operations and cash flows for the period October 30, 2003 (date
of inception) through December 31, 2003 in conformity with accounting
principles generally accepted in the United States of America.
Rosenberg Rich Baker Berman & Company
Bridgewater, New Jersey
August 31, 2004
Advanced Medical Diagnostics, LLC
A Development Stage Company
Balance Sheet
December 31, 2003
Assets $ -
=========
Liabilities and Members' Equity (Deficit)
Short-term loan payable 5,280
---------
Total Current Liabilities 5,280
Commitments and contingencies -
Members' deficit accumulated during
the development stage (5,280)
---------
Total Liabilities and Members' Equity
(Deficit) $ -
=========
See notes to the financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Statement of Income and Members' Equity (Deficit)
October 30, 2003
(date of inception)
to December 31, 2003
--------------------
Sales $ -
Operating Expenses
General and administrative expenses 3,810
Research and development costs 3,665
-------
Total Operating Expenses 7,475
-------
Net Loss Before Benefit From Income Taxes $ (7,475)
Benefit From Income Taxes -
-------
Net Loss $ (7,475)
=======
Members' Equity (Deficit)
Beginning of Period -
Net Loss, Above (7,475)
Members' Contributions 2,195
-------
End of Period $ (5,280)
=======
See notes to the financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Statement of Cash Flows
October 30, 2003
(date of inception)
to December 31, 2003
--------------------
Cash Flows From Operating Activities
Net Loss $ (7,475)
------
Net Cash Used by Operating Activities (7,475)
------
Cash Flows From Financing Activities
Short-term loan payable 5,280
Member contributions 2,195
------
Net Cash Provided by Financing Activities 7,475
------
Net Increase (Decrease) in Cash -
Cash at Beginning of Period -
------
Cash at End of Period $ -
======
See notes to financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Notes to the Financial Statements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization
Advanced Medical Diagnostics, LLC (the "Company") was formed on October 30,
2003, for the purpose of developing, manufacturing and marketing "Advanced
Medical Diagnostics HIV (1 & 2) Rapid Test", a HIV diagnostic kit. The Company
has operated as a development stage enterprise since its inception by devoting
substantially all of its efforts to research and development, developing
markets for its product and raising capital to support these efforts. The
Company shall be dissolved and its affairs wound up in accordance with the Act
and the Agreement on November 1, 2023 unless the term shall be extended by
amendment to the Agreement and the Articles.
Research and Development Costs
Research and development costs are charged to operations as incurred and
amounted to $3,665 for the period October 30, 2003 (date of inception) to
December 31, 2003.
Income Taxes
The Company is a limited liability company taxed as a partnership in which
all elements of income and deductions are included in the tax returns of the
members of the Company. Therefore, no income tax provision is recorded by the
Company.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
SHORT-TERM LOAN PAYABLE
Short-term loan payable represents advances by Transportation Logistics
International, Inc. The advances are due on demand and bear no interest.
COMMITMENTS AND CONTINGENCIES
The Company entered into a compensation agreement with its President for
$75,000 per year commencing upon the Company receiving its first bona fide
order of a minimum of 25,000 HIV test kits. As of December 31, 2003, no bona
fide order was received.
On June 3, 2004, the Company entered into an agreement with (Sourcing
Specialists II LLC (SSII) an entity owned by the officers of the Company. The
agreement states that the principles of SSII will provide services to the
Company through December 31, 2006, in exchange for SSII receiving a royalty
equal to $0.235 per diagnostic kit sold by the Company, and a commission equal
to 12% of gross sales prices of any product sold, where the officer introduces
the purchase to the company.
Advanced Medical Diagnostics, LLC
A Development Stage Company
Notes to the Financial Statements
SUBSEQUENT EVENTS
Subsequent to December 31, 2003, the Company began leasing office space
from a related party on a month to month basis. The monthly rent is $1,912.
On June 1, 2004, the members of the Company sold all of their membership
interests to Transportation Logistics International, Inc., a publicly traded
corporation.
Advanced Medical Diagnostics, LLC
A Development Stage Company
Balance Sheet
March 31, 2003
(Unaudited)
Assets $ -
========
Liabilities and Members' Equity
Short-term loan payable 14,524
--------
Total Current Liabilities 14,524
--------
Members' Equity (Deficit) (14,524)
--------
Total Liabilities and Members' Equity $ -
========
See notes to financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Statement of Income and Members' Equity (Deficit)
Three Months Ended October 30, 2003
March 31, 2004 (date of inception)
(Unaudited) to March 31, 2004
(Unaudited)
------------------ ------------------
Sales $ - $ -
Operating Expenses
General and administrative expenses 16,479 20,289
Research and development costs - 3,665
-------- --------
Total Operating Expenses 16,479 23,954
-------- --------
Net Loss Before Benefit From Income
Taxes (16,479) (23,954)
Benefit From Income Taxes - -
-------- --------
Net Loss $ (16,479) $ (23,954)
======== ========
Members' Equity (Deficit)
Beginning of Period $ (5,280) $ -
Net Loss, Above (16,479) (23,954)
Members' Contributions 7,235 9,430
-------- --------
End of Period $ (14,524) $ (14,524)
======== ========
See notes to financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Statement of Income and Members' Equity
Three Months Ended October 30, 2003
March 31, 2004 (date of inception)
to March 31, 2004
------------------ ------------------
Cash Flows From Operating
Activities
Net Loss $ (16,479) $ (23,954)
-------- --------
Net Cash (Used) by Operating
Activities (16,479) (23,954)
-------- --------
Cash Flows From Financing Activities
Short-term loan payable 9,244 14,524
Member contributions 7,235 9,430
-------- --------
Net Cash Provided by Financing
Activities 16,479 23,954
-------- --------
Net Increase (Decrease) in Cash - -
Cash at Beginning of Period - -
-------- --------
Cash at End of Period $ - $ -
======== ========
See notes to financial statements
Advanced Medical Diagnostics, LLC
A Development Stage Company
Notes to the Financial Statements
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of Organization
Advanced Medical Diagnostics, LLC (the "Company") was formed on October 30,
2003, for the purpose of developing, manufacturing and marketing "Advanced
Medical Diagnostics HIV (1 & 2) Rapid Test", a HIV diagnostic kit. The Company
has operated as a development stage enterprise since its inception by devoting
substantially all of its efforts to research and development, developing
markets for its product and raising capital to support these efforts.
Research and Development Costs
Research and development costs are charged to operations as incurred.
Income Taxes
The Company has elected to file as a Limited Liability Corporation for Federal
and State income tax purposes, thus income is taxed to the shareholders
personally.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
SHORT-TERM LOAN PAYABLE
Short-term loan payable represents advances by Transportation Logistics
International, Inc. The advances are due on demand and bear no interest.
COMMITMENTS AND CONTINGENCIES
The Company entered into a compensation agreement with its President for
$75,000 per year commencing upon the Company receiving its first bona fide
order of a minimum of 25,000 HIV test kits. As of March 31, 2004, no bona
fide order was received.
On June 3, 2004, the Company entered into an agreement with (Sourcing
Specialists II LLC (SSII) an entity owned by the officers of the Company.
The agreement states that the principles of SSII will provide services to the
Company through December 31, 2006, in exchange for SSII receiving a royalty
equal to $0.235 per diagnostic kit sold by the Company, and a commission
equal to 12% of gross sales prices of any product sold, where the officer
introduces the purchase to the company.
In March 2004, the Company began leasing office space from a related party
on a month to month basis. The monthly rent is $1,912.
SUBSEQUENT EVENTS
On June 1, 2004, the members of the Company sold all of their membership
interests to Transportation Logistics International, Inc., a publicly traded
corporation.