EX-99.2 5 file003.htm AUDROMED CORP. UNAUDITED AND RESTATED FIN. STMNTS.

Exhibit 99.2

ADUROMED CORPORATION

UNAUDITED and RESTATED FINANCIAL STATEMENTS

SEPTEMBER 30, 2005




ADUROMED CORPORATION

INDEX TO UNAUDITED FINANCIAL STATEMENTS


    PAGE  
BALANCE SHEET (UNAUDITED) 2
STATEMENT OF OPERATIONS (UNAUDITED) 3
STATEMENT OF CASH FLOWS (UNAUDITED) 4
NOTES TO UNAUDITED FINANCIAL STATEMENTS 5

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ADUROMED CORPORATION

BALANCE SHEET (RESTATED AND UNAUDITED)


  September 30,
2005
ASSETS      
Current assets      
Cash $ 35,427  
Accounts receivable   533,248  
Loans receivable   58,947  
Prepaid costs   60,537  
Costs in excess of billings on uncompleted contracts   36,824  
Inventory   65,599  
Total current assets   790,582  
Property, plant and equipment   17,535  
Other assets      
Security deposits   4,114  
Total other assets   4,114  
Total assets $ 812,231  
LIABILITIES AND STOCKHOLDERS' DEFICIT      
Current liabilities      
Accounts payable and accrued liabilities $ 486,960  
Lines of credit payable   450,000  
Billings in excess of costs on uncompleted contracts   49,118  
Customer advances   341,915  
Total current liabilities   1,327,993  
Other liabilities      
Notes payable   129,300  
Notes payable to related parties   435,245  
Total other liabilities   564,545  
Total liabilities   1,892,538  
Stockholders' deficit      
Common stock: $.01 par value; 20,000,000 shares authorized;
10,585,600 shares issued and outstanding
  105,856  
Additional paid-in capital   639,098  
Accumulated deficit   (1,825,261
Total stockholders' deficit   (1,080,307
Total liabilities and stockholders' deficit $ 812,231  

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ADUROMED CORPORATION

STATEMENT OF OPERATIONS (RESTATED AND UNAUDITED)


  Nine months ended
September 30,
2005
Revenues      
Sales and service revenues $ 1,403,202  
Cost of sales   959,209  
Gross profit   443,993  
Operating expenses      
Operating expenses   786,326  
General and administrative expenses   400,421  
Total operating expenses   1,186,747  
Other income and expenses      
Other income   3  
Interest income   4  
Interest expense   (56,556
Total other income and expenses   (56,549
Net loss before income taxes   (799,303
Income tax expense   (250
Net loss $ (799,553
Basic and diluted net loss per share $ (0.08
Weighted average number of shares outstanding   9,845,291  

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ADUROMED CORPORATION

STATEMENT OF CASH FLOWS (UNAUDITED)


  Nine months ended
September 30,
2005
Cash flows from operating activities:      
Net loss $ (799,553
Adjustments to reconcile net loss to net cash used in operations:      
Depreciation and amortization   3,150  
Changes in operating assets and liabilities:      
Accounts receivable   (336,817
Loans receivable   (31,132
Costs in excess of billings   22,360  
Prepaid expenses   (60,537
Inventories   (3,254
Accounts payable and accrued liabilities   7,698  
Billings in excess of costs   (34,935
Customer advances   311,553  
Net cash used in operations   (921,467
Cash flows from investing activities:      
Purchase of property, plant and equipment   (8,694
Net cash used in investing activities   (8,694
Cash flows from financing activities:      
Advances from short term loans   450,000  
Advances from related party notes   198,776  
Proceeds from sale of stock   304,854  
Net cash provided by financing activities   953,630  
Increase in cash and cash equivalents   23,469  
Cash and cash equivalents, beginning of period   11,958  
Cash and cash equivalents, end of period $ 35,427  
Supplemental disclosures of cash flow information:      
Cash paid for interest $ 56,556  
Cash paid for income taxes $ 250  

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ADUROMED CORPORATION

NOTES TO UNAUDITED FINANCIAL STATEMENTS

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to item 310 of Regulation SB. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The operating results for the nine months ended September 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. For further information, refer to the financial statements and footnotes thereto for the year ended December 31, 2004.

Subsequent to the publication of the financial statements management revised its estimates of certain asset valuations which had a material impact on the results of operations of the Company. Consequently, these financial statements have been restated to reflect those revised estimates. The valuation placed on the deferred tax asset was previously $393,267 at September 30, 2005, but has been restated as $0 because the future profitability of the Company cannot be assured. This revaluation also applies to the income tax benefits previously reported on the statements of operations, causing an increase in net loss of $137,973 for the nine month period ended September 30, 2005. The Company also reevaluated its accounting for goodwill since the business combination. Goodwill previously stated as $391,899 as of September 30, 2005 has been restated as $0 due to a re-evaluation of the facts and circumstances that existed at the time of the business combination.

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