NEVADA
|
000-27243
|
03
- 7392107
|
||
(State
or other jurisdiction of incorporation)
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(Commission
File Number)
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(IRS
Employer Identification Number)
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ITEM
9.01:
|
Financial
Statements and Exhibits
|
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
2
|
|
Consolidated
Balance Sheets
|
3
|
|
Consolidated
Statements of Operations
|
4
|
|
Consolidated
Statements of Shareholder’s Equity (Deficit)
|
4
|
|
Consolidated
Statements of Cash Flows
|
5
|
|
Notes
to Consolidated Financial Statements
|
6
|
A Professional
Corporation
|
|
CERTIFIED PUBLIC ACCOUNTANTS
|
Registered
with the Public Company
|
5 Triad Center, Suite 750
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Accounting
Oversight Board
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Salt Lake City, UT 84180-1128
|
|
Phone:
(801) 532-2200
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|
Fax:
(801) 532-7944
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www.hbmcpas.com
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HANSEN,
BARNETT & MAXWELL
|
December
31,
|
|
December
31,
|
|
||||
|
|
2004
|
|
2003
|
|||
ASSETS
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
36,373
|
$
|
51,366
|
|||
Accounts
receivable
|
100,465
|
214,854
|
|||||
Other
receivables
|
4,422
|
9
,757
|
|||||
Receivable
from shareholder
|
-
|
47,550
|
|||||
Prepaid
expenses
|
20,556
|
20,556
|
|||||
Total
Current Assets
|
$
|
161,816
|
$
|
323,527
|
|||
Software,
internally developed, net of
|
|||||||
accumulated
amortizatio of $593,035 and $414,810
|
$
|
217,332
|
$
|
251,607
|
|||
Property
& equipment, net of
|
|||||||
accumulated
depreciation of $51,341 and $51,134
|
-
|
207
|
|||||
Deposits
|
3,610
|
3,610
|
|||||
Total
Assets
|
$
|
382,758
|
$
|
578,951
|
|||
LIABILITIES
AND SHAREHOLDERS EQUITY (DEFECIT)
|
|||||||
Current
Liabilities
|
|||||||
Accrued
liabilites
|
$
|
267,344
|
$
|
238,305
|
|||
Advances
from shareholder
|
9,482
|
-
|
|||||
Deferred
tax liability - current
|
19,426
|
100,371
|
|||||
Total
Current Liabilities
|
$
|
296,252
|
$
|
338,676
|
|||
Deferred
Tax Liability
|
88,201
|
$
|
102,111
|
||||
Shareholder's
Equity (Deficiency)
|
|||||||
Common
stock, $1.00 par value 100,000 shares
|
|||||||
authorized;
1,000 shares issued
|
1,000
|
1,000
|
|||||
Additional
paid-in capital
|
-
|
-
|
|||||
Retained
Earnings
|
(2,695
|
)
|
137,164
|
||||
Total
Shareholder's Equity (Deficiency)
|
(1,695
|
)
|
137,164
|
||||
Total
Liabilities & Shareholder's Equity
(Deficiency)
|
$
|
382,758
|
$
|
578,951
|
For
the Years Ended December 31
|
2004
|
2003
|
|||||
Revenues
|
$
|
2
,045,825
|
$
|
2
,405,097
|
|||
Expenses
|
|||||||
Cost
of revenues
|
1
,819,726
|
2
,056,502
|
|||||
General
and administrative
|
455,662
|
532,302
|
|||||
Total
Expenses
|
2,275,388
|
2
,588,804
|
|||||
Net
Income Before Income Tax
|
(
229,563
|
)
|
(
183,707
|
)
|
|||
Provision
for income tax
|
89,704
|
(
1,875
|
)
|
||||
Net
Income (Loss)
|
$
|
(
139,859
|
)
|
$
|
(
185,582
|
)
|
|
Basic
Net Income (Loss) Per Share
|
$
|
(
140
|
)
|
$
|
(
186
|
)
|
|
Weighted
Average number of
|
|||||||
Common
Shares Outstanding
|
1
,000
|
1
,000
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
Total
|
|
||||
|
|
Common
Shares
|
|
Retained
|
|
Shareholder's
|
|
||||||
|
|
Shares
|
|
Amount
|
|
Earnings
|
|
Equity
|
|||||
Balance
- December 31, 2002
|
1
,000
|
$
|
1
,000
|
$
|
3
22,746
|
$
|
3
23,746
|
||||||
Net
loss for year
|
-
|
-
|
(
185,582
|
)
|
(
185,582
|
)
|
|||||||
Balance
- December 31, 2003
|
1
,000
|
1
,000
|
137,164
|
138,164
|
|||||||||
Net
loss for year
|
-
|
-
|
(
139,859
|
)
|
(
139,859
|
)
|
|||||||
Balance
- December 31, 2004
|
1
,000
|
$
|
1
,000
|
$
|
(2,695
|
)
|
$
|
(1,695
|
)
|
For
the years ended December 31,
|
|
2004
|
|
2003
|
|||
Cash
flows from operating activities:
|
|||||||
Net
Loss
|
(139,859
|
)
|
(185,582
|
)
|
|||
Adjustments
to reconcile net loss to netcash from operating
activities:
|
|||||||
Depreciation
|
207
|
1,927
|
|||||
Amortization
of Software development costs
|
168,225
|
140,391
|
|||||
Provision
of Income Taxes
|
(89,704
|
)
|
1,875
|
||||
Changes
in assets and liabilities:
|
|||||||
Accounts
receivable
|
114,389
|
319,732
|
|||||
Other
receivables
|
5,336
|
(3,236
|
)
|
||||
Prepaid
expenses
|
(20,556
|
)
|
-
|
||||
Accrued
liabilities
|
29,039
|
(36,057
|
)
|
||||
Deferred
Income Tax Liability
|
(5,151
|
)
|
(34,843
|
)
|
|||
Net
cash from operating activities
|
61,926
|
204,207
|
|||||
Cash
flows from investing activities:
|
|||||||
Software
Development Costs
|
(133,951
|
)
|
(212,632
|
)
|
|||
Net
cash from in investing activities
|
(133,951
|
)
|
(212,632
|
)
|
|||
Cash
flows from financing activities:
|
|||||||
Advances
from shareholder
|
9,482
|
-
|
|||||
Receivables
from shareholder
|
47,550
|
(24,619
|
)
|
||||
Net
cash from financing activities
|
57,032
|
(24,619
|
)
|
||||
Net
Increase (Decrease) in Cash
|
(14,993
|
)
|
(33,044
|
)
|
|||
Cash
- Beginning of Period
|
51,366
|
84,410
|
|||||
Cash
- End of Period
|
36,373
|
51,366
|
|||||
Supplemental
disclosure of cash flow information:
|
|||||||
Cash
paid for interest
|
-
|
-
|
|||||
Cash
paid for income taxes
|
-
|
-
|
|||||
For
the Years Ended December 31,
|
December
31,
|
2004
|
2003
|
|||||
Computer
Equipment
|
5,085
|
5,085
|
|||||
Machinery
and Other Equipment
|
46,256
|
46,256
|
|||||
Total
|
51,341
|
51,341
|
|||||
Less:
Accumulated Depreciation
|
(51,341
|
)
|
(51,134
|
)
|
|||
Net
Property & Equipment
|
-
|
207
|
For
The Years Ended December 31,
|
2004
|
2003
|
|||||
Current
provision
|
$
|
5,151
|
$
|
34,843
|
|||
Deferred
benefit
|
(94,855
|
)
|
(32,968
|
)
|
|||
Total
Income Tax Expense
|
$
|
(89,704
|
)
|
$
|
1,875
|
For
The Years Ended December 31,
|
2004
|
2003
|
|||||
Tax
at Federal statutory rate (34%)
|
$
|
(78,052
|
)
|
$
|
(62,460
|
)
|
|
Non-deductible
expenses
|
7,214
|
88,028
|
|||||
Effect
of decreased federal tax rate
|
(3,753
|
)
|
(11,599
|
)
|
|||
State
taxes, net of Federal benefit
|
(15,113
|
)
|
(12,094
|
)
|
|||
Provision
for Income Taxes
|
$
|
(89,704
|
)
|
$
|
1,875
|
December
31,
|
|||||||
2004
|
2003
|
||||||
Deferred
tax liabilities:
|
|||||||
Internally
developed software
|
$
|
(88,201
|
)
|
$
|
(16,565
|
)
|
|
Cash
basis accruals
|
(7,762
|
)
|
(14,145
|
)
|
|||
Accrued
payroll
|
(11,664
|
)
|
(2,137
|
)
|
|||
Deferred
Income Tax Liability
|
$
|
(107,627
|
)
|
$
|
(32,847
|
Year
Ending December 31
|
||||
2005
|
$
|
4,000
|
||
2006
|
$
|
5,600
|
CYIOS Corporation | ||
|
|
|
Dated this 10th day of April, 2005. | By: | /s/ Timothy Carnahan |
|
||
Timothy Carnahan | ||
President |