Exhibit 99.2
CSI BUSINESS FINANCE, INC.
BALANCE SHEET
JUNE 30, 2005
UNAUDITED
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ASSETS
CURRENT ASSETS
Cash $ 19,413
Prepaid expense 2,188
Minimum lease payments receivable 152,854
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Total current assets 174,455
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NONCURRENT ASSETS
Minimum lease payments receivable 215,783
Fixed assets, net 833
Intangible assets, net 27,647
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Total noncurrent assets 244,263
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TOTAL ASSETS $418,718
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 3,934
Accrued liabilities 1,383
Unearned income 65,783
Advances from parent 101,612
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Total current liabilities 172,712
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NONCURRENT LIABILITIES, Unearned income 41,005
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COMMITMENTS AND CONTINGENCIES --
SHAREHOLDERS' EQUITY
Preferred stock, 1,000 shares authorized, $0.01 par value:
Series A cumulative preferred stock, par value $0.01, 500
shares authorized, 200 shares issued and outstanding,
dividend of $10.00 per share per month, aggregated
liquidation and redemption value of $240,000 2
Common stock, par value $0.01, 9,000 shares
authorized, 1,000 shares issued and outstanding 10
Additional paid-in-capital 200,988
Retained earnings 4,001
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Total shareholders' equity 205,001
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $418,718
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The accompanying note is an integral part of these financial statements.
CSI BUSINESS FINANCE, INC.
STATEMENT OF OPERATIONS FOR THE SIX MONTHS
ENDED JUNE 30, 2005
UNAUDITED
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REVENUE
Lease income $41,311
Fee income 47,113
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88,424
OPERATING EXPENSES
Salaries and benefits 32,106
Commissions 3,828
Business development, travel and entertainment 634
Depreciation and amortization 5,887
Rent 5,114
Professional fees 10,797
Other 8,151
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Total expenses 66,517
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Income before provision for income taxes 21,907
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INCOME TAX PROVISION
Current income tax expense 4,010
Deferred income tax expense --
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Total income tax expense 4,010
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NET INCOME 17,897
Preferred dividends paid 12,000
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INCOME APPLICABLE TO COMMON SHARES $ 5,897
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Net Loss Per Share-Basic and Diluted: $ 5.90
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Weighted average number of shares outstanding during
the year--basic and diluted 1,000
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The accompanying note is an integral part of these financial statements.
CSI BUSINESS FINANCE, INC.
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED
JUNE 30, 2005
UNAUDITED
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CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 17,897
Adjustment to reconcile net income to net cash
used in operating activities:
Depreciation and amortization 5,887
(increase) decrease in assets:
Accounts receivable, other 23,180
Prepaid expense (2,188)
Minimum lease payments receivable 64,573
Increase (decrease) in liabilities
Accounts payable 3,934
Accrued liabilities 1,383
Unearned income (41,310)
Advances from parent (27,906)
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Net cash provided by operating activities 45,450
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CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of fixed assets (1,000)
Purchases of minimum lease payments receivable (25,037)
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Net cash used in investing activities (26,037)
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NET CHANGE IN CASH 19,413
CASH, BEGINNING OF PERIOD --
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CASH, END OF YEAR $ 19,413
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SUPPLEMENTAL INFORMATION
Interest paid $ --
Taxes paid $ --
Preferred dividends paid by charge to parent
intercompany account $ 12,000
The accompanying note is an integral part of these financial statements.
CSI BUSINESS FINANCE, INC.
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NOTES TO THE UNAUDITED FINANCIAL STATEMENTS
JUNE 30, 2005
NOTE 1 - BASIS OF PRESENTATION
The accompanying unaudited financial statements of CSI Business Finance, Inc.
have been prepared in accordance with the accounting principles generally
accepted in the United States of America for interim financial reporting. They
do not include all of the information and footnotes required by accounting
principles generally accepted in the United States of America for complete
financial statements. In the opinion of management, all adjustments, consisting
only of normal recurring adjustments, considered necessary for a fair
presentation, have been included in the accompanying unaudited financial
statements. Operating results for the periods presented are not necessarily
indicative of the results that may be expected for the full year.
These financial statements should be read in conjunction with the financial
statements and footnotes for the year ended December 31, 2004 which are filed in
the Form 8K/A.