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)
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(Zip/Postal
Code)
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1
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1
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1
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2
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3
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8
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8
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9
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10
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10
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11
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11
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12
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12
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12
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12
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12
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12
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12
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12
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13
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Exhibit
31.1 - Certifications
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14
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Exhibit
32.1- Certification Pursuant to 18 U.S.C. Section 1350
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15
|
As
of June 30, 2007
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and Cash Equivalents
|
$ |
50,141
|
||
Accounts
Receivable
|
58,041
|
|||
Other
Current Assets
|
7,400
|
|||
Loan
to Shareholder
|
31,595
|
|||
TOTAL
CURRENT ASSETS
|
147,177
|
|||
TOTAL
ASSETS
|
$ |
147,177
|
||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||
LIABILITIES
|
||||
Current
Liabilities:
|
||||
Line
of Credit
|
$ |
100,979
|
||
Shareholder
Loan Payable
|
25,350
|
|||
Interest
Payable
|
12,714
|
|||
Taxes
Payable
|
13,629
|
|||
Payroll
Taxes Payable
|
46,606
|
|||
Accounts
Payable
|
407,097
|
|||
TOTAL
LIABILITIES
|
606,375
|
|||
STOCKHOLDERS'
DEFICIT
|
||||
Convertible
Preferred Stock ($.001 par value, 5,000,000 authorized:29,704 issued
and
outstanding)
|
30
|
|||
Common
Stock ($.001 par value, 100,000,000 shares authorized: 23,824,210
shares
issued and outstanding)
|
23,824
|
|||
Additional
Paid-in-Capital
|
23,630,397
|
|||
Accumulated
Deficit
|
(24,113,449 | ) | ||
TOTAL
STOCKHOLDERS' DEFICIT
|
(459,198 | ) | ||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$ |
147,177
|
For
the period ended June 30,
|
Three
Months Ended June 30,
|
Six
Months Ended June 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
SALES
AND COST OF SALES:
|
||||||||||||||||
Sales
|
$ |
600,601
|
$ |
397,887
|
$ |
1,166,619
|
$ |
792,327
|
||||||||
Cost
of sales
|
334,432
|
134,387
|
614,247
|
207,800
|
||||||||||||
Gross
Profit
|
266,169
|
263,500
|
552,372
|
584,527
|
||||||||||||
EXPENSES:
|
||||||||||||||||
Selling,
general and administrative
|
39,399
|
30,707
|
99,825
|
69,976
|
||||||||||||
Payroll
Expense
|
140,947
|
264,531
|
260,092
|
467,805
|
||||||||||||
Employee
Benefit Expense
|
29,800
|
18,657
|
70,695
|
39,709
|
||||||||||||
Consulting
Expense
|
6,050
|
19,343
|
11,204
|
34,785
|
||||||||||||
Bad
Debt Expense
|
-
|
-
|
-
|
525,000
|
||||||||||||
Depreciation
Expense
|
-
|
7,054
|
-
|
49,111
|
||||||||||||
Professional
Fees
|
21,989
|
51,230
|
44,562
|
65,672
|
||||||||||||
Interest
Expense
|
8,738
|
3,547
|
13,344
|
8,991
|
||||||||||||
246,922
|
395,069
|
499,722
|
1,261,050
|
|||||||||||||
NET
INCOME/(LOSS)
|
$ |
19,246
|
$ | (131,568 | ) | $ |
52,650
|
$ | (676,523 | ) | ||||||
Basic
and diluted income (loss) per share
|
$ |
0.001
|
$ | <(0.01 | ) | $ |
0.002
|
$ | <(0.01 | ) | ||||||
Weighted
Average Shares Outstanding
|
23,774,880
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21,595,070
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23,616,972
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21,581,490
|
For
the six months ended June 30, 2007 and 2006
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||
Net
Income/(loss)
|
$ |
52,650
|
$ | (676,523 | ) | |||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
|
-
|
48,904
|
||||||
Common
Shares issued for employee compensation, net
|
4,243
|
-
|
||||||
Changes
in Assets and Liabilities:
|
||||||||
Decrease
in Accounts Receivable Written Off as Bad Debt
|
-
|
525,000
|
||||||
(Increase)/Decrease
in Accounts Receivable
|
2,606
|
(511 | ) | |||||
(Increase)/Decrease
in Other Assets
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12,513
|
2,120
|
||||||
Increase/(Decrease)
In Interest Payable
|
7,743
|
-
|
||||||
Increase/(Decrease)
In Taxes Payable
|
(173 | ) | (141,417 | ) | ||||
Increase/(Decrease)
in Accounts Payable
|
(794 | ) | (3,004 | ) | ||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
78,788
|
(245,431 | ) | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from issuance of common stock
|
2,000
|
308,128
|
||||||
(Increase)/Decrease
Shareholder's Loan Receivable
|
(55,952 | ) | (16,213 | ) | ||||
Increase/(Decrease)
in borrowings on Notes Payable
|
-
|
(109,540 | ) | |||||
Increase/(Decrease)
in borrowings on Line of Credit
|
-
|
57,259
|
||||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(53,952 | ) |
239,634
|
|||||
NET
INCREASE IN CASH AND CASH EQUIVALENTS
|
24,836
|
(5,797 | ) | |||||
CASH
AND CASH EQUIVALENTS:
|
||||||||
Beginning
of Period
|
25,305
|
49,857
|
||||||
End
of Period
|
$ |
50,141
|
$ |
44,060
|
||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
CASH
PAID DURING THE YEAR FOR:
|
||||||||
Interest
|
$ |
13,344
|
$ |
8,991
|
||||
NON-CASH
OPERATING ACTIVITIES:
|
||||||||
Value
of Common Stock and Warrants issued in exchange for
services
|
$ |
4,243
|
$ |
-
|
Month/Description
of transaction
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Number
of shares
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Price
per share
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Total
Value
|
|||||||||
January--stock
issued for consultant services
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50,000
|
$ |
0.005
|
$ |
250
|
|||||||
February--stock
issued for consultant services
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50,000
|
0.0050
|
250
|
|||||||||
February--stock
issued for employee services
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75,000
|
0.0100
|
750
|
|||||||||
March--stock
issued for employee services
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54,000
|
0.0500
|
2,700
|
|||||||||
April--stock
issued for consultant services
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50,000
|
0.0100
|
500
|
|||||||||
April--stock
issued for employee services
|
26,000
|
0.0500
|
1,300
|
|||||||||
April--stock
issued for employee services
|
75,000
|
0.0100
|
750
|
|||||||||
May--stock
issued for employee services
|
4,000
|
0.3000
|
1,200
|
|||||||||
May--stock
issued for employee services
|
25,000
|
0.0100
|
250
|
|||||||||
May--stock
issued for consultant services
|
50,000
|
0.0100
|
500
|
|||||||||
June--stock
issued for consultant services
|
50,000
|
0.0100
|
500
|
|||||||||
June--stock
issued for employee services
|
15,000
|
0.0500
|
750
|
|||||||||
524,000
|
$ |
9,700.00
|
Weighted
|
Weighted
|
|||||||||||||||
average
|
average
|
|||||||||||||||
price
per
|
price
per
|
|||||||||||||||
Options
|
share
|
Warrants
|
share
|
|||||||||||||
Outstanding
at December 31, 2003
|
1,232,000
|
$ |
0.29
|
4,036,650
|
$ |
0.66
|
||||||||||
Year
ended December 31, 2004
|
||||||||||||||||
Granted
|
2,350,000
|
0.13
|
9,000,000
|
0.05
|
||||||||||||
Exercised
|
-
|
-
|
(9,000,000 | ) |
0.05
|
|||||||||||
Expired
|
-
|
-
|
(886,650 | ) |
2.45
|
|||||||||||
Outstanding
at December 31, 2004
|
3,582,000
|
0.19
|
3,150,000
|
0.16
|
||||||||||||
Year
ended December 31, 2005
|
||||||||||||||||
Granted
|
-
|
-
|
-
|
|||||||||||||
Exercised
|
-
|
-
|
-
|
|||||||||||||
Expired
|
(87,000 | ) |
0.19
|
-
|
-
|
|||||||||||
Outstanding
at December 31, 2005
|
3,495,000
|
0.19
|
3,150,000
|
0.16
|
||||||||||||
Year
ended December 31, 2006
|
||||||||||||||||
Granted
|
1,876,300
|
0.30
|
-
|
|||||||||||||
Exercised
|
(1,872,300 | ) |
0.30
|
-
|
||||||||||||
Expired
|
(145,000 | ) |
0.29
|
(3,150,000 | ) |
0.16
|
||||||||||
Options
cancelled and replaced by new option plan
|
(3,350,000 | )* |
0.18
|
-
|
-
|
|||||||||||
Outstanding
at December 31, 2006
|
4,000
|
0.30
|
-
|
-
|
*
|
These
options were issued under the plan from 2004, the options have
been
cancelled and superseded by the 2006
plan.
|
Weighted
|
Weighted
|
|||||||||||||||
average
|
average
|
|||||||||||||||
price
per
|
price
per
|
|||||||||||||||
Options
|
share
|
Warrants
|
share
|
|||||||||||||
Outstanding
at December 31, 2005
|
3,495,000
|
0.19
|
||||||||||||||
Year
ended December 31, 2006
|
||||||||||||||||
Granted
|
1,876,300
|
0.30
|
-
|
|||||||||||||
Exercised
|
(1,872,300 | ) |
0.30
|
-
|
||||||||||||
Options
cancelled and replaced by new option plan
|
(3,495,000 | )* |
0.19
|
-
|
-
|
|||||||||||
Outstanding
at December 31, 2006
|
4,000
|
0.19
|
-
|
-
|
||||||||||||
For
the six months ended June 30, 2007
|
||||||||||||||||
Granted
|
520,000
|
0.02
|
-
|
|||||||||||||
Exercised
from 2006
|
(4,000 | ) |
0.30
|
|||||||||||||
Exercised
from 2007
|
(520,000 | ) |
0.02
|
-
|
||||||||||||
Expired
|
-
|
0.19
|
-
|
-
|
||||||||||||
Outstanding
at June 30, 2007
|
-
|
0.19
|
-
|
-
|
*
|
These
options were issued under the plan from 2004, the options have
been
cancelled and superseded by the 2006 Plan. The remaining authorized
to be
granted is 603,700.
|
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
|
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
|