OSK CAPITAL II CORPORATION
(A Development Stage Company)
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(Amounts Expressed in United States Dollars)
OSK CAPITAL II CORPORATION
(A Development Stage Company)
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2005
(Amounts Expressed in United States Dollars)
TABLE OF CONTENTS
Interim Consolidated Balance Sheet 1 - 2
Interim Consolidated Statements of Operations and Deficit 3
Interim Consolidated Statements of Cash Flows 4
Interim Consolidated Statements of Changes in Stockholder Deficiency 5
Notes to Consolidated Financial Statements 6
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Interim Consolidated Balance Sheet
As at June 30, 2005
(Amounts expressed in United States Dollars) Page 1
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June 30, September 30
2005 2004
(Unaudited)
------------ ------------
Assets
Current
Cash $ -- $ --
Accounts receivable 49,635 6,260
Sales tax receivable 7,963 --
Inventory 102,490 25,134
------------ ------------
160,088 31,394
Capital assets 95,442 --
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$ 255,530 $ 31,394
============ ============
Approved on behalf of the board:
Director
- --------------------------------------------
Director
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The accompanying notes are an integral part of these interim consolidated
financial statements.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Interim Consolidated Balance Sheet
As at June 30, 2005
(Amounts expressed in United States Dollars) Page 2
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June 30, September 30
2005 2004
(Unaudited)
------------ ------------
Liabilities
Current
Bank indebtedness $ 3,683 $ --
Accounts payable 42,852 30,846
Loans payable 50,291 29,998
Loan payable - parent company 309,998 --
Debentures payable 289,325 --
------------ ------------
696,149 60,844
------------ ------------
Stockholders' Deficiency
Capital stock (note 3) 30,426 79
Comprehensive income (loss) (19,266) 1,691
Deficit (451,779) (31,220)
------------ ------------
Total stockholders' deficit (440,619) (29,450)
------------ ------------
Total liabilities and stockholders' deficiency $ 255,530 $ 31,394
============ ============
The accompanying notes are an integral part of these interim consolidated
financial statements.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Interim Consolidated Statement of Operations
For the Three Months and Nine Months Period Ended
June 30, 2005 and From Inception
(Amounts Expressed in United States Dollars) Page 3
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March 2,
1999
(Inception)
to
Three Months June 30, Nine Months June 30, June 30,
--------------------------------- --------------------------------- --------------
2005 2004 2005 2004 2005
-------------- -------------- -------------- -------------- --------------
Sales $ 82,416 $ -- $ 160,775 $ -- $ 164,993
-------------- -------------- -------------- -------------- --------------
Cost of sales
Inventory, beginning of period 116,235 -- 30,814 -- 30,814
Purchases 32,154 -- 170,210 -- 205,891
-------------- -------------- -------------- -------------- --------------
-- 201,024 -- 236,705
Inventory, end of year 102,490 -- 102,490 -- 134,215
-------------- -------------- -------------- -------------- --------------
45,899 -- 98,534 -- 102,490
-------------- -------------- -------------- -------------- --------------
Gross profit 36,517 -- 62,241 -- 62,503
-------------- -------------- -------------- -------------- --------------
Operating expenses
Sales and promotion 59,164 -- 183,333 -- 183,333
Professional and consulting fees 26,207 -- 132,293 -- 246,564
Telecommunication and network
costs (10,773) -- 55,623 -- 59,390
Salaries and wage levies 14,613 -- 40,616 -- 40,616
Interest on long term debt 6,602 -- 8,776 -- 8,776
Delivery and transport 1,796 -- 12,022 -- 12,022
Telephone 410 -- 3,107 -- 3,107
Interest and service charges 730 -- 2,881 -- 2,881
Office and general 5,470 -- 15,884 -- 15,884
Amortization 9,468 -- 28,265 -- 28,265
-------------- -------------- -------------- -------------- --------------
113,687 -- 482,800 -- 600,838
-------------- -------------- -------------- -------------- --------------
Net loss $ (77,170) $ -- $ (420,559) $ -- $ 538,335
============== ============== ============== ============== ==============
Net earnings (loss) per share $ (0.03) $ (0.00) $ (0.17) $ (0.00) $ (0.21)
============== ============== ============== ============== ==============
Weighted average number
of shares outstanding 2,500,767 -- 2,500,767 -- 2,500,767
============== ============== ============== ============== ==============
The accompanying notes are an integral part of these interim consolidated
financial statements.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Interim Consolidated Statement of Cash Flows
For the Three Months and Nine Months Period Ended
June 30, 2005 and From Inception
(Amounts Expressed in United States Dollars) Page 4
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March 2,
1999
Three Months Nine Months (Inception) to
June June June 30,
2005 2005 2005
-------------- -------------- --------------
Operating activities
Net earnings (loss) $ (77,170) $ (420,559) $ (420,559)
Add: Amortization 9,468 28,265 28,265
Increase (decrease) in accounts receivable (14,370) (43,379) (43,379)
Increase in sales tax (1,090) (7,963) (7,963)
Increase (decrease) in inventory 18,746 (77,356) (77,356)
Increase in accounts payable 3,794 12,006 12,006
-------------- -------------- --------------
Net cash used in operating activities (60,622) (537,251) (537,251)
-------------- -------------- --------------
Investing activities
Variation in assets 20,729 (86,048) (86,048)
-------------- -------------- --------------
Net cash provided by investing activities 20,729 (86,048) (86,048)
-------------- -------------- --------------
Financing activities
Variation in bank indebtedness 3,683 3,683 3,683
Increase in loan payable 20,822 20,293 20,293
Variation in loan from parent company (126,619) 309,998 309,998
Increase in debentures payable 142,007 289,325 289,325
-------------- -------------- --------------
39,893 623,299 623,299
-------------- -------------- --------------
Net increase (decrease) -- -- --
Cash and cash equivalents beginning of year -- -- --
-------------- -------------- --------------
Cash and cash equivalents end of year $ -- $ -- $ --
============== ============== ==============
The accompanying notes are an integral part of these interim consolidated
financial statements.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Interim Consolidated Statement of Stockholders' Deficiency
As at June 30, 2005
(Amounts Expressed in United States Dollars) Page 5
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Common Stock Total
-------------------------------- --------------
Deficit
Accumulated
Additional During the
Paid in Development Stockholders'
Shares Amount Capital Stage Deficiency
-------------- -------------- -------------- -------------- --------------
At August 27, 2004 -- $ -- $ -- $ -- --
Issue of stock for cash 100 79 -- -- --
Net loss for the year 2004 -- -- -- (31,220) (31,220)
-------------- -------------- -------------- -------------- --------------
Balance, September 30, 2004 100 79 -- (31,220) (31,220)
Recapitalization pursuant to
reverse acquisition 30,425,900 30,347 -- -- --
Net loss for the nine months
ended June 30, 2005 -- -- -- (420,559) (420,559)
-------------- -------------- -------------- -------------- --------------
30,426,000 $ 30,426 $ -- $ (451,779) $ (451,779)
============== ============== ============== ============== ==============
The accompanying notes are an integral part of these interim consolidated
financial statements.
OSK CAPITAL II CORPORATION
(A Development Stage Company)
Notes to Interim Consolidated Financial Statements
June 30, 2005
(Amounts Expressed in United States Dollars) Page 6
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1. Basis of consolidation
The consolidated financial statements include accounts of OSK Capital II
Corporation and its wholly owned subsidiary Teliphone Inc. for the nine
month period ended June 30, 2005.
2. Interim reporting
While the information presented in the accompanying consolidated interim
three months financial statements is unaudited, it includes all
adjustments, which are in the opinion of management necessary to present
fairly the consolidated financial position, results of operations for the
interim consolidated periods presented. All adjustments are normal
recurring nature. It is suggested that these Interim consolidated
financial statements be read in conjunction with the company's September
30, 2004 annual financial statements.
3. Capital stock
Authorized
The Company is authorized to issue 125,000,000 shares of common stock at
$0.001 par value. As at September 30, 2004, 3,416,000 shares were issued
and outstanding.
On July 29, 2004, the company amended its certificate of incorporation to
increase the number of authorized shares of common stock from 25,000,000
to 125,000,000.
There are no warrants or options outstanding to issue any additional
shares of common stock.
During the period the company entered into a share purchase agreement to
acquire all of the outstanding shares of Teliphone Inc. through the
issuance of 30,425,900 common shares of its share capital with a stated
par value of $0.001.