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)
|
(703)
294-9933
|
(Telephone
Number)
|
1
|
|
1
|
|
1
|
|
2
|
|
3
|
|
5
|
|
6
|
|
6
|
|
9
|
|
9
|
|
10
|
|
11
|
|
11
|
|
12
|
|
12
|
|
13
|
|
13
|
|
13
|
|
16
|
|
16
|
|
16
|
|
16
|
|
16
|
|
17
|
|
18
|
|
19
|
Consolidated
Condensed Balance Sheet (Unaudited)
|
||||
As
of September 30, 2007
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and Cash Equivalents
|
$ |
58,987
|
||
Accounts
Receivable
|
38,144
|
|||
Other
Current Assets
|
4,900
|
|||
Loan
to Shareholder
|
33,596
|
|||
TOTAL
CURRENT ASSETS
|
135,627
|
|||
TOTAL
ASSETS
|
$ |
135,627
|
||
LIABILITIES
AND STOCKHOLDERS' DEFICIT
|
||||
LIABILITIES
|
||||
Current
Liabilities:
|
||||
Line
of Credit
|
$ |
99,808
|
||
Interest
Payable
|
18,640
|
|||
Taxes
Payable
|
13,629
|
|||
Payroll
Taxes Payable
|
38,757
|
|||
Accounts
Payable
|
387,413
|
|||
TOTAL
LIABILITIES
|
558,247
|
|||
STOCKHOLDERS'
DEFICIT
|
||||
Convertible
Preferred Stock ($.001 par value, 5,000,000 authorized:
29,713
issued and outstanding)
|
30
|
|||
Common
Stock ($.001 par value, 100,000,000 shares
authorized:
24,104,210 shares issued and outstanding) |
24,104
|
|||
Additional
Paid-in-Capital
|
23,652,621
|
|||
Accumulated
Deficit
|
(24,099,375 | ) | ||
TOTAL
STOCKHOLDERS' DEFICIT
|
(422,620 | ) | ||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$ |
135,627
|
|
||||||||||||||||
Consolidated
Statement of Operations (Unaudited)
|
||||||||||||||||
For
the period ended September 30, 2007 and 2006
|
||||||||||||||||
Three
Months Ended September 30,
|
Nine
Months Ended September 30,
|
|||||||||||||||
2007
|
2006
|
2007
|
2006
|
|||||||||||||
SALES
AND COST OF SALES:
|
||||||||||||||||
Sales
|
$ |
518,943
|
$ |
468,450
|
$ |
1,661,365
|
$ |
1,260,777
|
||||||||
Cost
of sales--stock for direct labor
|
4,500
|
-
|
28,746
|
-
|
||||||||||||
Cost
of sales--direct labor
|
371,421
|
340,467
|
1,050,514
|
839,365
|
||||||||||||
Gross
Profit
|
143,022
|
127,983
|
582,105
|
421,412
|
||||||||||||
EXPENSES:
|
||||||||||||||||
Selling,
general and administrative
|
17,545
|
8,979
|
89,770
|
129,326
|
||||||||||||
Payroll
Expense--indirect labor
|
74,737
|
62,466
|
229,094
|
175,309
|
||||||||||||
Employee
and Fringe Benefit Expense
|
41,175
|
43,986
|
133,747
|
97,188
|
||||||||||||
Consulting
Expense
|
131
|
12,544
|
11,335
|
47,329
|
||||||||||||
Bad
Debt Expense
|
-
|
-
|
-
|
525,000
|
||||||||||||
Depreciation
Expense
|
-
|
-
|
-
|
49,111
|
||||||||||||
Professional
Fees
|
9,538
|
11,772
|
54,100
|
77,445
|
||||||||||||
Interest
Expense
|
12,924
|
6,228
|
19,335
|
15,219
|
||||||||||||
156,050
|
145,975
|
537,381
|
1,115,927
|
|||||||||||||
OTHER
INCOME/EXPENSE
|
||||||||||||||||
Other
Income
|
22,000
|
-
|
22,000
|
-
|
||||||||||||
NET
INCOME/(LOSS)
|
$ |
8,972
|
$ | (17,992 | ) | $ |
66,724
|
$ | (694,515 | ) | ||||||
Basic
and diluted income (loss) per share
|
$ |
0.000
|
(0.001 | ) | $ |
0.003
|
(0.032 | ) | ||||||||
Weighted
Average Shares Outstanding
|
24,083,797
|
22,202,923
|
23,730,774
|
21,951,705
|
Consolidated
Statements of Cash Flows (Unaudited)
|
||||||||
For
the nine months ended September 30, 2007 and 2006
|
||||||||
|
||||||||
2007
|
2006
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|||||||
Net
Income/(loss)
|
$ |
66,724
|
$ | (694,515 | ) | |||
|
||||||||
Adjustments
to reconcile net loss to net cash provided by (used in) operating
activities:
|
||||||||
Depreciation
|
-
|
48,904
|
||||||
Common
Shares issued for direct labor
|
28,746
|
-
|
||||||
Changes
in Assets and Liabilities:
|
||||||||
(Increase)/Decrease
in Accounts Receivable
|
22,503
|
446,952
|
||||||
(Increase)/Decrease
in Other Assets
|
15,013
|
5,395
|
||||||
Increase/(Decrease)
In Interest Payable
|
13,669
|
-
|
||||||
Increase/(Decrease)
In Payroll Taxes Payable
|
(8,022 | ) |
46,588
|
|||||
Increase/(Decrease)
In Taxes Payable
|
1
|
(188,237 | ) | |||||
Increase/(Decrease)
in Accounts Payable
|
(20,478 | ) |
73
|
|||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
|
118,156
|
(334,840 | ) | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Proceeds
from issuance of common stock
|
-
|
420,304
|
||||||
(Increase)/Decrease
Shareholder's Loan Receivable
|
(83,303 | ) | (140,734 | ) | ||||
Increase/(Decrease)
in borrowings on Line of Credit
|
(1,171 | ) |
56,659
|
|||||
NET
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES
|
(84,474 | ) |
336,229
|
|||||
NET
INCREASE IN CASH AND
|
||||||||
CASH
EQUIVALENTS
|
33,682
|
1,389
|
||||||
CASH
AND CASH EQUIVALENTS:
|
||||||||
Beginning
of Period
|
25,305
|
49,857
|
||||||
End
of Period
|
$ |
58,987
|
$ |
51,246
|
||||
SUPPLEMENTAL
DISCLOSURES OF CASH FLOW INFORMATION:
|
||||||||
CASH
PAID DURING THE YEAR FOR:
|
||||||||
Interest
|
$ |
13,344
|
$ |
-
|
||||
|
||||||||
NON-CASH
OPERATING ACTIVITIES:
|
||||||||
Value
of Common Stock and Warrants issued in exchange for
services
|
$ |
28,746
|
$ |
-
|
Month/Description
of transaction
|
Number
of shares
|
Price
per share
|
Total
Value
|
|||||||||
January--stock
issued for consultant services
|
50,000
|
$ |
0.005
|
$ |
250
|
|||||||
February--stock
issued for consultant services
|
50,000
|
0.0100
|
500
|
|||||||||
February--stock
issued for employee services
|
75,000
|
0.0100
|
750
|
|||||||||
March--stock
issued for employee services
|
54,000
|
0.0500
|
2,700
|
|||||||||
April--stock
issued for consultant services
|
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
|
|||||||||
August—stock
issued for consultant services
|
50,000
|
0.0100
|
500
|
|||||||||
Sept—stock
issued for consultant services
|
200,000
|
0.0100
|
2000
|
|||||||||
Sept—stock
issued for employee services
|
30,000
|
0.1500
|
4500
|
|||||||||
804,000
|
$ |
16,950
|
Options
|
Weighted
average
price
per
share
|
Warrants
|
Weighted
average
price
per
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.
|
Options
|
Weighted
average
price
per
share
|
Warrants
|
Weighted
average
price
per
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 nine months ended September 30, 2007
|
||||||||||||||||
Granted
|
800,000
|
0.02
|
-
|
|||||||||||||
Exercised
from 2006
|
(4,000 | ) |
0.30
|
|||||||||||||
Exercised
from 2007
|
(800,000 | ) |
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.
|
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
|
|