EX-99 2 avalondigitalexh991904.txt Exhibit 99.1 ------------ AVALON DIGITAL MARKETING SYSTEMS Balance Sheet As of September 30, 2004 ASSETS Current Assets: Cash (from Form 2-B, line 5) $ (8,854) Accounts Receivable (from Form 2-E) 17,050 Receivable from Officers, Employees, Affiliates - Inventory - Other Current Assets: Contract, AR - Retainage 37,663 Prepaid and Other 36,650 ------------ Total Current Assets $ 82,509 ------------ Fixed Assets: Land - Building - Equipment, Furniture and Fixtures 1,218,937 ------------ Total Fixed Assets 1,218,937 ------------ Less: Accumulated Depreciation (1,002,771) Net Fixed Assets 216,166 ------------ Other Long Term Assets: License 6,000 Deposit 1,250 ------------ TOTAL ASSETS 305,925 ------------ LIABILITIES Post Petition Liabilities: Accounts Payable (from Form 2-E) 291,445 Notes Payable - Rents and Leases Payable - Taxes Payable (from Form 2-E) 19,919 Accrued interest - Other: Accrued Expense 299,528 ------------ Total Post Petition Liabilities $ 610,892 ------------ Pre-Petition Liabilities: Priority Claims 160,989 Secured Debt 191,259 Unsecured Debt 9,057,060 ------------ Total Pre-Petition Liabilities 9,409,308 ------------ TOTAL LIABILITIES $ 10,020,200 ------------ OWNERS' EQUITY Capital Stock or Owner's Investment $ 8,714 Paid-In Capital 28,051,203 Retained Earnings: Pre Petition (36,880,111) Post Petition (894,081) ------------ TOTAL OWNERS' EQUITY $ 9,714,275 ------------ TOTAL LIABILITIES AND OWNERS' EQUITY $ 305,925 ------------ 1 AVALON DIGITAL MARKETING SYSTEMS Profit and Loss Statement For Period September 1 to September 30, 2004 Gross Operating Revenue $ 117,867 Less: Discounts, Returns and Allowances - ------------ Net Operating Revenue $ 117,867 Cost of Goods Sold 6,280 ------------ Gross Profit 111,587 ------------ Operating Expenses Salaries and Wages 80,063 Rents and Leases 6,843 Payroll Taxes (Employer) 6,884 Other: Health Insurance 8,234 Fees/Licenses 770 G & A 10,802 ------------ Total Operating Expenses 113,596 Operating Income (Loss) (2,009) ------------ Legal and Professional Fees 8,266 Depreciation, Depletion and Amortization 25,788 Interest Expense - ------------ Net Operating Income (Loss) (36,063) ------------ Non-Operating Income and Expenses Other Non-Operating (Expenses) (1,425) Gains (Losses) on Sale of Assets - Interest Income - Other Non-Operating Income - ------------ Net Non-Operating Income or (Expenses) (1,425) ------------ Net Income (Loss) Before Income Taxes (37,488) ------------ Federal and State Income Tax Expense (Benefit) - ------------ NET INCOME (LOSS) $ (37,488) ------------ 2