x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES
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¨
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES
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Nevada
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03-7392107
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification Number)
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1300
PENNSYLVANIA AVE, SUITE 700 WASHINGTON DC
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20004
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(Address
of principal executive offices)
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(Zip/Postal
Code)
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Item
1.
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Financial
Statements and Supplementary
Information
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ASSETS
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||||
CURRENT
ASSETS
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||||
Cash
and Cash Equivalents
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$
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19,201
|
||
Other
Current Assets
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21,107
|
|||
Accounts
Receivable
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102,165
|
|||
Loan
to Shareholder
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13,265
|
|||
TOTAL
CURRENT ASSETS
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155,738
|
|||
PROPERTY
AND EQUIPMENT
|
||||
Property
and Equipment
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873,529
|
|||
Accumulated
Depreciation
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(866,474
|
)
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||
Net
Property and Equipment
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7,055
|
|||
TOTAL
ASSETS
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$
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162,793
|
||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current
Liabilities:
|
||||
Accounts
Payable and Accrued Expenses
|
$
|
381,122
|
||
Taxes
Payable
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63,582
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|||
Interest
Payable
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18,640
|
|||
Notes
Payable
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125,496
|
|||
Bank
Loan
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105,050
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|||
TOTAL
LIABILITIES
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693,890
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|||
STOCKHOLDERS'
EQUITY
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||||
Convertible
Preferred Stock ($.001 par value, 5,000,000 authorized: 911,553
issued and
outstanding)
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911
|
|||
Common
Stock ($.001 par value, 100,000,000 shares authorized: 21,567,910
shares
issued and outstanding)
|
21,568
|
|||
Additional
Paid-in-Capital
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23,268,110
|
|||
Retained
Deficit
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(23,821,686
|
)
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||
TOTAL
STOCKHOLDERS' EQUITY
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(531,097
|
)
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||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
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$
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162,793
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2006
|
|
2005
|
|||||
SALES
AND COST OF SALES:
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|||||||
Sales
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$
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416,332
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$
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52,375
|
|||
Cost
of sales
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95,306
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11,332
|
|||||
Gross
Profit
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321,026
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41,043
|
|||||
EXPENSES:
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|||||||
General
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335,537
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80,410
|
|||||
Bad
Debt
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525,000
|
-
|
|||||
Interest
Expense
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5,444
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-
|
|||||
865,981
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80,410
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||||||
NET
LOSS
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$
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(544,955
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)
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$
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(39,367
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)
|
|
Basic
and diluted income (loss) per share
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$
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<(0.01
|
)
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$
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<(0.01
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)
|
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Weighted
Average Shares Outstanding
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21,567,910
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40,706,190
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2006
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2005
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||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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|||||||
Net
loss
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$
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(544,955
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)
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$
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(39,367
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)
|
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Adjustments
to reconcile net loss to net cash (used in) operating
activites:
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|||||||
Depreciation
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41,849
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3,240
|
|||||
Other
Assets
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7,970
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(5,740
|
)
|
||||
Notes
Payable
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(60,903
|
)
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-
|
||||
Tax
Liabilities
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(138,284
|
)
|
-
|
||||
Accounts
receivable
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526,303
|
554
|
|||||
Loan
to Shareholder
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(13,265
|
)
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-
|
||||
Accounts
payable and accrued expenses
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(9,294
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)
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(27,687
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)
|
|||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
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(190,579
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)
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(69,000
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)
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|||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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|||||||
Paid
in Capital
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94,581
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-
|
|||||
Bank
Loan
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65,342
|
-
|
|||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
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159,923
|
-
|
|||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
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(30,656
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)
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(69,000
|
)
|
|||
CASH
AND CASH EQUIVALENTS:
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|||||||
Beginning
of period
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49,857
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-
|
|||||
End
of period
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$
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19,201
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$
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-
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ITEM
2.
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MANAGEMENT'S
DISCUSSION AND ANALYSIS
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Item
3.
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Quantitative
and Qualitative Disclosures about Market
Risk.
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Item
4.
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Controls
and Procedures.
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Item
1.
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Legal
Proceediings.
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Item
1A.
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Risk
Factors.
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Item
2.
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Unregistered
Sales of Equity Securities and Use of
Proceeds.
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Item
3.
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Defaults
Upon Senior Securities.
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Item
4.
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Submission
of Matters to a Vote of Security
Holders.
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Item
5.
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Other
Information.
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Item
6.
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Exhibits.
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