Exhibit 99.2
MOORE & ASSOCIATES, CHARTERED
ACCOUNTANTS AND ADVISORS
PCAOB REGISTERED
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors
My Quote Zone, Inc.
Las Vegas, Nevada
We have audited the accompanying balance sheets of My Quote Zone, Inc. as of
September 30, 2005 and September 30, 2004, and the related statements of
operations, stockholders' equity and cash flows for the period from inception
on December 26, 2003 through September 30, 2005. 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 standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audits 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 My Quote Zone, Inc. as of
September 30, 2005 and September 30, 2004 and the results of its operations and
its cash flows for the period from inception on December 26, 2003 through
September 30, 2005, in conformity with accounting principles generally accepted
in the United States of America.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As discussed in Note 3 to the
financial statements, the Company's recurring losses and lack of operations
raises substantial doubt about its ability to continue as a going concern.
Management's plans concerning these matters are also described in Note 3. The
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
/s/ Moore & Associates, Chartered
- ---------------------------------
Moore & Associates Chartered
Las Vegas, Nevada
December 22, 2005
2675 S. Jones Blvd. Suite 109, Las Vegas, NV 89146
(702) 253-7511 Fax (702) 253-7501
F-1
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
Balance Sheets
(a development stage company)
September 30, 2004
September 30, 2005
Balance Sheets
Sept. 30 Sept. 30,
2005 2004
-------- ---------
Assets
Current Assets:
Cash $ 10,000 $ 3,408
-------- ---------
Total Assets 10,000 3,408
======== =========
Liabilities and Stockholders' Equity
Stockholders' equity:
Series A preferred stock, $0.001
par value, 2,000,000 shares authorized,
no shares issued or outstanding - -
Series B preferred stock, $0.001
par value, 2,000,000 shares authorized,
no shares issued or outstanding - -
Series C preferred stock, $0.001
par value, 1,000,000 shares authorized,
no shares issued or outstanding - -
Common stock, $0.001 par value, 70,000,000
shares authorized, 30,000,000, 36,000,000
shares issued and outstanding as of 9/30/2004
and 9/30/05 respectfully 6,000 5,000
Additional paid-in capital 9,000 -
Earnings (Deficit) accumulated during
development stage (5,000) (1,592)
-------- ---------
10,000 3,408
-------- ---------
$ 10,000 $ 3,408
======== ==========
The accompanying notes are an integral part of these statements
F-2
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
Statements of Operations
(a development stage company)
For the period year-end September 30, 2004 and September 30, 2005
For the period from December 26, 2003 (inception) to September 30, 2005
Statements of Operations
December 24, 2003
Year Ending Year Ending (Inception) to
September 30, September 30, September 30,
2005 2004 2005
------------- ------------ -----------------
Revenue - 4,430 $ 4,430
------------- ------------ -----------------
Expenses:
Organizational
and startup
costs 530 530
General and
administrative
expenses 3,408 5,492 8,900
------------- ------------ -----------------
Total expenses 3,408 6,022 9,430
------------- ------------ -----------------
Net income (loss)$ (3,408) $ (1,592) $ (5,000)
============= ============ =================
Weighted average
number of common
shares outstanding-
basic and fully
diluted 36,000,000 30,000,000
============= ============
Net income (loss)
per share-
basic and fully
diluted $ (0.00) $ (0.00)
============= ============
The accompanying notes are an integral part of these statements
F-3
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
Statement of Stockholders' Equity
(a development stage company)
From December 26, 2003 (inception) to September 30, 2005
Statement of Stockholders' Equity
Income (Deficit)
Accumulated
Common Stock Additional During Total
------------------ Paid-in Subscription Development Stockholders
Shares Amount Capital Receivable Stage Equity
---------- ------- ---------- ---------- ------------ ----------
December 2003
Founders
Shares 30,000,000 $ 5,000 $ - $ (2,470) $ - $ 2,530
February 2004
Cash received
for sale of
common stock 2,470 2,470
Net (loss),
year ended
September 30,
2004 (1,592) (1,592)
---------- ------- ---------- ---------- ------------ ----------
Balance,
September 30,
2004 30,000,000 5,000 - - (1,592) 3,408
May 2005
504 offering
issued
for cash 6,000,000 1,000 9,000 - - 10,000
September 2005
Recapitalization
Per 6-for-1 forward
Split 30,000 (30,000) -
Net (loss),
year ended,
September 30,
2005 (3,408) (3,408)
---------- ------- ---------- ---------- ------------ ----------
Balance,
September 30,
2005 36,000,000 6,000 39,000 - (35,000) 10,000
========== ======= ========== ========== ============ ==========
The accompanying notes are an integral part of these statements
F-4
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
Statement of Cash Flows
(a development stage company)
For the period year-end September 30, 2004 and September 30, 2005
from December 26, 2003 (inception) to September 30, 2005
Statement of Cash Flows
December 24, 2003
Year Ending Year Ending (Inception) to
September 30, September 30, September 30,
2005 2004 2005
------------ ------------ -----------------
Cash flows from operating activities:
Net income (loss) $ (3,408) $ (1,592) $ (5,000)
Stock issued for
organizational
costs 530 530
------------ ------------ -----------------
Net cash provided
by operating
activities (3,408) (1,062) (4,470)
Cash flows from financing activities:
Issuances of
common stock 10,000 2,000 12,000
Proceeds from
subscriptions
receivable - 2,470 2,470
------------ ------------ -----------------
Net cash provided
by financing
activities 4,470 14,470
------------ ------------ -----------------
Net increase
in cash 10,000 3,408 10,000
Cash and equivalents-
beginning 3,408 - -
------------ ------------ -----------------
Cash and equivalents-
ending 10,000 3,408 10,000
============ ============ =================
Supplemental disclosures:
Interest paid $ - $ - $ -
============ ============ =================
Income taxes paid$ - $ - $ -
============ ============ =================
The accompanying notes are an integral part of these statements
F-5
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
NOTE 1. GENERAL ORGANIZATION AND BUSINESS
My Quote Zone, Inc., Inc. (formerly Cornerstone Data Processing, Inc.)(the
Company) was incorporated under the laws of the state of Nevada on December 26,
2003.
On September 26, 2005 the Company filed a Certificate of Amendment with the
Nevada Secretary of State changing its name to My Quote Zone, Inc.
The Company has minimal operations and in accordance with SFAS #7, the
Company is considered a development stage company.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES
The Company has cash assets of $10,000 and no debt as of September 30, 2005.
The relevant accounting policies are listed below.
Basis of Accounting
- -------------------
The basis is United States generally accepted accounting principles.
Earnings per Share
- ------------------
The basic earnings (loss) per share is calculated by dividing the Company's
net income (loss) available to common shareholders by the weighted average
number of common shares during the year. The diluted earnings (loss) per share
is calculated by dividing the Company's net income (loss) available to common
shareholders by the diluted weighted average number of shares outstanding
during the year. The diluted weighted average number of shares outstanding is
the basic weighted number of shares adjusted as of the first of the year for
any potentially dilutive debt or equity.
The Company has not issued any options or warrants or similar securities since
inception.
Dividends
- ---------
The Company has not yet adopted any policy regarding payment of dividends. No
Dividends have been paid during the period shown.
Income Taxes
- ------------
The provision for income taxes is the total of the current taxes payable and
the net of the change in the deferred income taxes. Provision is made for the
deferred income taxes where differences exist between the period in which
transactions affect current taxable income and the period in which they enter
into the determination of net income in the financial statements.
Year-end
- --------
The Company has selected September 30 as its year-end.
F-6
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES-CONTINUED
Advertising
- -----------
Advertising is expensed when incurred. There has been no advertising
during the period.
Use of Estimates
- ----------------
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America 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 revenue and expenses during the reporting period. Actual results could
differ from those estimates.
NOTE 3. GOING CONCERN
The accompanying financial statements have been prepared assuming that
the Company will continue as a going concern, which contemplates the
realization of assets and the liquidation of liabilities in the normal course
of business. However the Company has no current source of revenue, or
operations. Without realization of additional capital, it would be unlikely
for the Company to continue as a going concern. It is management's plan to
complete and execute a business plan in order to supply the needed cash flow.
NOTE 4. STOCKHOLDERS'EQUITY
Common Stock
- ------------
On December 26, 2003 (inception), the Company issued 30,000,000 shares of its
$0.001 par value common stock to its sole shareholder for cash.
On May 30, 2005, the Company issued 6,000,000 shares of its $0.001 par value
common stock pursuant to a regulation 504 offering.
On September 30, 2005, the Company effected a 6-for-1 forward split of its
$0.001 par value common stock. All references to common stock are
retroactively restated to reflect the forward split.
There have been no other issuances of preferred or common stock.
F-7
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
NOTE 5. RELATED PARTY TRANSACTIONS
The Company does not lease or rent any property. Office services are provided
without charge by a director. Such costs are immaterial to the financial
statements and, accordingly, have not been reflected therein. The officers and
directors of the Company are involved in other business activities and may, in
the future, become involved in other business opportunities. If a specific
business opportunity becomes available, such persons may face a conflict in
selecting between the Company and their other business interests. The Company
has not formulated a policy for the resolution of such conflicts.
NOTE 6. PROVISION FOR INCOME TAXES
The Company accounts for income taxes under Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" ("SFAS No. 109"), which
requires use of the liability method. SFAS No. 109 provides that deferred
tax assets and liabilities are recorded based on the differences between the
tax bases of assets and liabilities and their carrying amounts for financial
reporting purposes, referred to as temporary differences. Deferred tax assets
and liabilities at the end of each period are determined using the currently
enacted tax rates applied to taxable income in the periods in which the
deferred tax assets and liabilities are expected to be settled or realized.
The provision for income taxes differs from the amount computed by applying the
statutory federal income tax rate to income before provision for income taxes.
The sources and tax effects of the differences are as follows:
U.S federal statutory rate (34.0%)
Valuation reserve 34.0%
------
Total -%
NOTE 7. OPERATING LEASES AND OTHER COMMITMENTS:
The Company also has no assets or lease obligations.
F-8
MY QUOTE ZONE, INC., INC.
(Formerly Cornerstone Data Processing, Inc.)
(a development stage company)
NOTES TO FINANCIAL STATEMENTS
September 30, 2005
NOTE 8. RECENT PRONOUNCEMENTS
In November 2004, the FASB issued SFAS No. 151, Inventory Costs, an amendment
of ARB No. 43, Chapter 4. SFAS No. 151 amends the guidance in ARB No. 43,
Chapter 4, Inventory Pricing, to clarify the accounting for abnormal amounts
of idle facility expense, freight, handing costs, and spoilage. This statement
requires that those items be recognized as current period charges regardless
of whether they meet the criterion of "so abnormal" which was the criterion
specified in ARB No. 43. In addition, this Statement requires that allocation
of fixed production overheads to the cost of production be based on normal
capacity of the production facilities. This pronouncement is effective for
the Company beginning October 1, 2005. The Company does not believe adopting
this new standard will have a significant impact to its financial statements.
In December 2004, the FASB issued SFAS No. 123 (revised 2004). Share-Based
Payment, which is a revision of SFAS No. 123, Accounting for Stock-Based
Compensation. SFAS No. 123(R) supersedes APB Opinion No. 25, Accounting for
Stock Issued to Employees and amends SFAS No. 95, Statement of Cash Flows.
Generally, the approach in SFAS No. 123(R) is similar to the approach
described in SFAS No. 123. However, SFAS No. 123(R) requires all share-based
payments to employees, including grants of employee stock options, to be
recognized in the income statement based on their fair values. Pro forma
disclosure is no longer an alternative. The new standard will be effective
for the Company in the first interim or annual reporting period beginning
after December 15, 2005. The Company expects the adoption of this standard
will have a material impact on its financial statements assuming employee
stock options are granted in the future.
F-9