x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGEACT
OF
1934 FOR FISCAL YEAR ENDED DECEMBER 31,
2006
|
o
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TRANSITION
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT
OF
1934
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Nevada
|
03-7392107
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification
No.)
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3
|
|
3
|
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3
|
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6
|
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6
|
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6
|
|
7
|
|
7
|
|
7
|
|
8
|
|
8
|
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9
|
|
10
|
|
11
|
|
12
|
|
13
|
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13
|
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17
|
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17
|
|
17
|
|
18
|
|
19
|
|
19
|
|
19
|
|
20
|
|
20
|
|
20
|
|
20
|
|
21
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21
|
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21
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22
|
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22
|
|
23
|
|
23
|
|
24
|
|
24
|
|
25
|
|
26
|
|
26
|
|
27
|
|
27
|
|
27
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Quality
Assurance Specialist
|
Senior
Software Developer
|
|
Project
Manager
|
Database
Administrator
|
|
Principal
Engineer
|
Internet
Developer
|
|
Senior
Systems Engineer
|
Software
Developer
|
|
LAN/WAN
Engineer
|
Application
Testing Engineer III
|
|
Computer
Analyst
|
Application
Testing Engineer II
|
|
Systems
Administrator
|
Application
Testing Engineer I
|
|
Business
Analyst III
|
Technical
Writer / Editor
|
|
Business
Analyst II
|
Document
Publisher
|
|
Business
Analyst I
|
CYIOS
Corporation and Subsidiaries
|
||||
Consolidated
Balance Sheet
|
||||
December
31, 2006
|
||||
ASSETS
|
||||
Current
Assets:
|
||||
Cash
|
$
|
25,305
|
||
Accounts
Receivable (Note A)
|
60,647
|
|||
Other
Current Assets
|
19,913
|
|||
Total
Current Assets
|
105,865
|
|||
Property
and Equipment:
|
||||
Property
and Equipment
|
873,528
|
|||
Accumulated
Depreciation
|
(873,528
|
)
|
||
Total
Furniture and Equipment
|
-
|
|||
TOTAL
ASSETS
|
$
|
105,865
|
||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||
Current
Liabilities:
|
||||
Line
of Credit (Note O)
|
$
|
100,979
|
||
Shareholder
Loan Payable (Note M)
|
49,707
|
|||
Interest
Payable (Note M)
|
4,971
|
|||
Taxes
Payable (Note L)
|
13,629
|
|||
Payroll
Taxes Payable (Note L)
|
46,779
|
|||
Accounts
Payable (Note N)
|
407,891
|
|||
Total
Liabilities
|
623,956
|
|||
Stockholders'
Deficit
|
||||
Convertible
Preferred Stock ($.001 par value; 5,000,000 authorized;911,553
issued and outstanding)
|
911
|
|||
Common
Stock ($.001 par value; 100,000,000 authorized; 26,872,741 issued
and outstanding)
|
26,872
|
|||
Paid
in Capital
|
23,620,225
|
|||
Retained
Deficit
|
(24,166,099
|
)
|
||
Total
Stockholders' Deficit
|
(518,091
|
)
|
||
Total
Liabilities and Stockholders' Deficit
|
$
|
105,865
|
CYIOS
Corporation and Subsidiaries
|
|||||||
Consolidated
Statement of Operations
|
|||||||
For
the years ended December 31, 2006 and 2005
|
|||||||
2006
|
2005
|
||||||
SALES
AND COST OF SALES
|
|||||||
Sales
|
$
|
1,709,907
|
$
|
2,298,802
|
|||
Cost
of Sales
|
432,360
|
145,693
|
|||||
Gross
Profit
|
1,277,547
|
2,153,109
|
|||||
EXPENSES
|
|||||||
Selling,
general and administrative
|
252,987
|
536,490
|
|||||
Payroll
Expense
|
1,177,309
|
1,580,320
|
|||||
Professional
Fees
|
124,629
|
74,586
|
|||||
Bad
Debt Expense (Note A)
|
618,756
|
-
|
|||||
Loss
on Worthless Stock
|
5,400
|
-
|
|||||
Interest
|
20,515
|
26,215
|
|||||
Depreciation
and amortization
|
48,904
|
207,071
|
|||||
TOTAL
EXPENSES
|
2,248,490
|
2,424,682
|
|||||
Net
Loss from Operations
|
(970,943
|
)
|
(271,573
|
)
|
|||
OTHER
COMPREHENSIVE INCOME
|
|||||||
Forgiveness
of Debt
|
81,586
|
-
|
|||||
Net
Loss
|
$
|
(889,357
|
)
|
$
|
(271,573
|
)
|
|
Net
(loss) per share--basic and fully diluted
|
(0.04
|
)
|
(0.01
|
)
|
|||
Weighted
average shares outstanding
|
21,792,830
|
21,567,910
|
CYIOS
Corporation and Subsidiaries/
|
|||||||
|
|||||||
Consolidated Statement of Cash Flow | |||||||
2006
|
2005
|
||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net
loss
|
(889,367
|
)
|
(271,573
|
)
|
|||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
|||||||
Depreciation
|
48,903
|
170,529
|
|||||
Amortization
|
-
|
36,542
|
|||||
(Increase)/Decrease
in Accounts Receivable
|
567,822
|
(592,554
|
)
|
||||
(Increase)/Decrease
in Other Assets
|
9,164
|
(28,229
|
)
|
||||
Increase/(Decrease)
in Payroll Taxes Payable
|
(141,458
|
)
|
188,237
|
||||
Increase/(Decrease)
In Taxes Payable
|
-
|
13,629
|
|||||
Increase/(Decrease)
in Interest Payable
|
(13,669
|
)
|
(51,798
|
)
|
|||
Increase/(Decrease)
in Accounts Payable
|
17,474
|
50,698
|
|||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
(401,131
|
)
|
(484,519
|
)
|
|||
CASH
FLOWS FROM INVESTMENT ACTIVITIES:
|
|||||||
Increase
in fixed assets as a result of merger
|
-
|
(71,821
|
)
|
||||
NET
CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES
|
-
|
(71,821
|
)
|
||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Proceeds
from issuance of common stock
|
452,000
|
629,022
|
|||||
Reduction
in Shareholder Receivable
|
-
|
(58,500
|
)
|
||||
Principal
Reductions on Shareholder Loan Payable
|
(137,698
|
)
|
-
|
||||
Increase/(Decrease)
in borrowings on Line of Credit
|
62,277
|
35,675
|
|||||
NET
CASH PROVIDED BY (USED IN) INVESTMENT ACTIVITIES
|
376,579
|
606,197
|
|||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
(24,552
|
)
|
49,857
|
||||
CASH
AND CASH EQUIVALENTS:
|
|||||||
Beginning
of Period
|
49,857
|
-
|
|||||
End
of Period
|
25,305
|
49,857
|
CYIOS
Corporation, Inc. and Subsidiaries
|
|||||||||||||||||||
Consolidated
Statement of Stockholders' Equity
|
|||||||||||||||||||
For
the years ended December 31, 2006 and 2005
|
|||||||||||||||||||
Common
Shares
(000's)
|
Common
Stock
$
|
Preferred
Shares
(000's)
|
Preferred
Stock
$
|
Additional
Paid-in
Capital
|
Retained
Deficit
|
||||||||||||||
Balances,
January 1, 2005
|
1,290,206
|
$
|
1,290
|
911,553
|
911
|
$
|
22,564,785
|
$
|
(23,005,159
|
)
|
|||||||||
Issuance
of shares
|
20,277,704
|
20,278
|
-
|
-
|
608,744
|
-
|
|||||||||||||
Net
Income (loss) for the year
|
-
|
-
|
-
|
-
|
-
|
(271,573
|
)
|
||||||||||||
Balances,
December 31, 2005
|
21,567,910
|
$
|
21,568
|
911,553
|
$
|
911
|
$
|
23,173,529
|
$
|
(23,276,732
|
)
|
||||||||
Issuance
of shares
|
5,304,831
|
5,304
|
-
|
-
|
446,696
|
-
|
|||||||||||||
Net
Income (loss) for the year
|
-
|
-
|
-
|
-
|
-
|
(889,367
|
)
|
||||||||||||
Balances,
December 31, 2006
|
26,872,741
|
$
|
26,872
|
911,553
|
$
|
911
|
$
|
23,620,225
|
$
|
(24,166,099
|
)
|
CKO
|
$
|
525,000
|
||
WTC
|
93,756
|
|||
$
|
618,756
|
2006
|
2005
|
||||||
Income
Tax
|
$
|
-
|
$
|
-
|
|||
Interest
|
$
|
20,515
|
$
|
26,215
|
Total
Deferred Tax Asset
|
$
|
2,664,591
|
||
Valuation
Allowance
|
(2,664,591
|
)
|
||
Net
Deferred Tax Asset
|
$
|
-
|
2006
|
2005
|
||||||
Income
tax computed at the federal statutory rate
|
34
|
%
|
34
|
%
|
|||
State
income tax, net of federal tax benefit
|
4
|
%
|
4
|
%
|
|||
Total
|
38
|
%
|
38
|
%
|
|||
Valuation
allowance
|
-38
|
%
|
-38
|
%
|
|||
Total
deferred tax asset
|
0
|
%
|
0
|
%
|
Amount
|
Expiration
|
||||
$
|
354,164
|
2017 | |||
478,371
|
2018 | ||||
2,028,880
|
2019 | ||||
713,564
|
2020 | ||||
971,296
|
2021 | ||||
432,497
|
2022 | ||||
298,634
|
2023 | ||||
516,946
|
2024 | ||||
271,572
|
2025 | ||||
893,526
|
2026 | ||||
$
|
6,959,450
|
Net
Sales by Segment
|
||||||||||||||||||||||
WTC
|
DTC
|
WTEQ
|
|
CKO
|
|
China
Print
|
CYIOS
|
Totals
|
||||||||||||||
Sales,
net
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,709,907
|
$
|
1,709,907
|
||||||||
Cost
of Sales
|
-
|
-
|
-
|
-
|
-
|
432,360
|
432,360
|
|||||||||||||||
Gross
Profit
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
1,277,547
|
$
|
1,277,547
|
Profit/(Loss)
by Segment
|
||||||||||||||||||||||
WTC
|
DTC
|
WTEQ
|
CKO
|
China
Print
|
CYIOS
|
Totals
|
||||||||||||||||
Net
(Loss)
|
$
|
(75
|
)
|
$
|
-
|
$
|
-
|
$
|
(541,279
|
)
|
$
|
(11,453
|
)
|
$
|
(336,719
|
)
|
$
|
(889,526
|
)
|
WTC
|
$
|
370,348
|
||
WTEQ
|
17,068
|
|||
CYIOS
|
20,475
|
|||
$
|
407,891
|
CKO
|
$
|
45,929
|
||
China
Print
|
55,050
|
|||
$
|
100,979
|
WTC
|
$
|
27,373
|
* | |
DTC
|
2,205
|
* | ||
WTEQ
|
9,368
|
* | ||
CYIOS
|
7,833
|
|||
$
|
46,779
|
Name
|
Age
|
Position
|
Since
|
|||
|
|
|
|
|||
Timothy
W. Carnahan
|
39
|
President,
Treasurer and Chairman of the Board of Directors
|
September
2005
|
|||
|
|
|
|
|||
Jeffrey
Lieberman
|
39
|
Secretary
and Director
|
September
2005
|
|
Annual
Compensation
|
Long
Term Compensation
|
|
||||||||||||||||||||||
Name
and Principal Position
|
Year
|
Salary
($)
|
Bonus
($)
|
Other
Annual Compensation ($)
|
Restricted
Stock
Award(s) ($)
|
Securities
Underlying Options
(#)
|
LTIP
Payouts ($)
|
Other
($)
|
|||||||||||||||||
Timothy
Carnahan
|
2005
|
N/A
|
|||||||||||||||||||||||
CEO,
President,
|
|||||||||||||||||||||||||
Treasurer
and Chairman of the Board
|
142,000
|
N/A
|
|||||||||||||||||||||||
Jeffrey
Lieberman,
|
2005
|
60,000
|
|||||||||||||||||||||||
Secretary
and
|
|||||||||||||||||||||||||
Director
|
N/A
|
TITLE
OF CLASS
|
NAME
AND ADDRESS
|
Number
of
|
%
OF
|
|||
|
|
|
|
|||
Common
|
Timothy
Carnahan
|
15,645,000
|
67%
|
|||
|
1300
Pennsylvania Ave Suite 700 NW
|
|
|
|||
|
Washington
DC 20007
|
|
|
|||
|
|
|
|
|||
Common
|
Jeffrey
Lieberman
|
1,289,000
|
5%
|
|||
|
1300
Pennsylvania Ave Suite 700 NW
|
|
|
|||
|
Washington
DC 20007
|
|
|