Nevada
|
03-7392107
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
1300
PENNSYLVANIA AVE, SUITE 700 WASHINGTON DC
|
20004
|
(Address
of principal executive offices)
|
(Zip/Postal
Code)
|
Item
1.
|
Financial
Statements and Supplementary
Information
|
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and Cash Equivalents
|
$
|
51,246
|
||
Other
Current Assets
|
23,682
|
|||
Accounts
Receivable
|
181,516
|
|||
Loan
to Shareholder
|
16,213
|
|||
TOTAL
CURRENT ASSETS
|
272,657
|
|||
PROPERTY
AND EQUIPMENT
|
||||
Property
and Equipment
|
873,529
|
|||
Accumulated
Depreciation
|
(873,529
|
)
|
||
Net
Property and Equipment
|
-
|
|||
TOTAL
ASSETS
|
$
|
272,657
|
||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||
LIABILITIES
|
||||
Current
Liabilities:
|
||||
Accounts
Payable and Accrued Expenses (NOTE
A)
|
$
|
390,489
|
||
Taxes
Payable (NOTE
A)
|
13,629
|
|||
Payroll
Liabilities (NOTE
A)
|
46,588
|
|||
Interest
Payable
|
18,640
|
|||
Shareholder
Loan Payable
|
61,878
|
|||
Note
Payable
|
96,367
|
|||
TOTAL
LIABILITIES
|
627,591
|
|||
STOCKHOLDERS'
EQUITY
|
||||
Convertible
Preferred Stock ($.001 par value, 5,000,000 authorized: 911,553 issued
and
outstanding)
|
911
|
|||
Common
Stock ($.001 par value, 100,000,000 shares authorized: 22,680,210
shares
issued and outstanding)
|
22,680
|
|||
Additional
Paid-in-Capital
|
23,592,721
|
|||
Retained
Deficit
|
(23,971,246
|
)
|
||
TOTAL
STOCKHOLDERS' EQUITY
|
(354,934
|
)
|
||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
272,657
|
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
SALES
AND COST OF SALES:
|
|||||||||||||
Sales
|
$
|
468,450
|
$
|
611,796
|
$
|
1,260,777
|
$
|
1,565,827
|
|||||
Cost
of sales (NOTE
B)
|
85,763
|
108,397
|
293,563
|
145,693
|
|||||||||
Gross
Profit
|
382,687
|
503,399
|
967,214
|
1,420,134
|
|||||||||
EXPENSES:
|
|||||||||||||
Selling,
general and administrative
|
394,451
|
611,827
|
1,121,510
|
1,791,050
|
|||||||||
Bad
Debt
|
-
|
-
|
525,000
|
-
|
|||||||||
Interest
Expense
|
6,228
|
-
|
15,219
|
5,800
|
|||||||||
400,679
|
611,827
|
1,661,729
|
1,796,850
|
||||||||||
NET
LOSS
|
$
|
(17,992
|
)
|
$
|
(108,428
|
)
|
$
|
(694,515
|
)
|
$
|
(376,716
|
)
|
|
Basic
and diluted income (loss) per share
|
$
|
<(0.01
|
)
|
$
|
<(0.01
|
)
|
$
|
<(0.01
|
)
|
$
|
<(0.01
|
)
|
|
Weighted
Average Shares Outstanding
|
22,202,923
|
21,567,910
|
21,951,705
|
21,567,910
|
2006
|
2005
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
loss
|
$
|
(694,515
|
)
|
$
|
(376,716
|
)
|
|
Adjustments
to reconcile net loss to net cash (used in) operating
activities:
|
|||||||
Depreciation
|
48,904
|
8,666
|
|||||
Other
Assets
|
5,395
|
(41,697
|
)
|
||||
Shareholder
Loan Payable
|
(124,521
|
)
|
-
|
||||
Taxes
Payable
|
(188,237
|
)
|
-
|
||||
Payroll
Liabilities
|
46,588
|
-
|
|||||
Accounts
receivable
|
446,952
|
(39,217
|
)
|
||||
Loan
to Shareholder
|
(16,213
|
)
|
-
|
||||
Accounts
payable and accrued expenses
|
73
|
152,863
|
|||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
(475,574
|
)
|
(296,101
|
)
|
|||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchases
|
-
|
85,269
|
|||||
NET
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES
|
-
|
85,269
|
|||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from sales of stock and warrants
|
420,304
|
283,540
|
|||||
Bank
Loan Payable
|
56,659
|
(169,558
|
)
|
||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
476,963
|
113,982
|
|||||
NET
INCREASE (DECREASE) IN CASH AND
|
|||||||
CASH
EQUIVALENTS
|
1,389
|
(96,850
|
)
|
||||
CASH
AND CASH EQUIVALENTS:
|
|||||||
Beginning
of period
|
49,857
|
-
|
|||||
End
of period
|
$
|
51,246
|
$
|
-
|
Item
2.
|
MANAGEMENT'S
DISCUSSION AND
ANALYSIS
|
518112
|
WEB
SEARCH PORTALS
|
518210
|
DATA
PROCESSING, HOSTING AND RELATED
SERVICES
|
519100
|
OTHER
INFORMATION SERVICES
|
519190
|
ALL
OTHER INFORMATION SERVICES
|
541510
|
COMPUTER
SYSTEMS DESIGN AND RELATED
SERVICES
|
541511
|
CUSTOM
COMPUTER PROGRAMMING
SERVICES
|
541512
|
COMPUTER
SYSTEMS DESIGN SERVICES
|
541513
|
COMPUTER
FACILITIES MANAGEMENT
SERVICES
|
541519
|
OTHER
COMPUTER RELATED SERVICES
|
541611
|
ADMIN.
MANAGEMENT AND GENERAL MGMT CONSULTING SERVICES
|
541618
|
OTHER
MANAGEMENT CONSULTING
SERVICES
|
541690
|
OTHER
SCIENTIFIC AND TECHNICAL CONSULTING
SERVICES
|
Item
3.
|
Quantitative
and Qualitative Disclosures about Market
Risk.
|
Item
4.
|
Controls
and Procedures.
|
Item
1.
|
Legal
Proceedings.
|
Item
1A.
|
Risk
Factors.
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of
Proceeds.
|
Item
3.
|
Defaults
Upon Senior Securities.
|
Item
4.
|
Submission
of Matters to a Vote of Security
Holders.
|
Item
5.
|
Other
Information.
|
Item
6.
|
Exhibits.
|
CYIOS
Corporation.
|
|||
/s/
Timothy Carnahan
|
|||
Timothy
Carnahan
|
|||
Chief
Executive Officer, President, Treasurer, and Chairman of the
Board
|
/s/
Timothy Carnahan
|
|||
Timothy
Carnahan
|
|||
Chief
Executive Officer, President, Treasurer, and Chairman of the
Board
|