10:00 AM 09/03/09 Accrual Basis B2 Digital dba Hotel Movie Network Balance Sheet As of September 3, 2009  

	Sep 3, 09
ASSETS
Current Assets
Checking/Savings
American Express		-2,764.11
Bank Non-Cash Deposit Correctio		-15.09
C3D Bank Account		1,623.00
Checking at Bank of America		552.60
Coast Communications		-172.90
credit card		458.10
eagle west loan		-4,611.35
Loan Payable to EWP		-7,610.17
Office Petty Cash Account		43.97
Paul's Discover		-404.90
Total Checking/Savings		-12,900.85
Accounts Receivable
Accounts Receivable		291,693.83
Total Accounts Receivable		291,693.83
Other Current Assets
Bad Debt Allowance		-218,655.35
Employee Advances		-33.00
Inventory Asset		2,327,272.82
Inventory Asset Valuation Allow		-2,041,028.65
Loan to .....		24,546.55
Total Other Current Assets		92,102.37
Total Current Assets		370,895.35
Fixed Assets
Accum. Deprec. E & M		-918,252.23
Equipment & Machinery		357,282.06
Field Test Equipment
Equipment-Other		1,103.12
FTG		23,939.97
PPV		9,865.69
Field Test Equipment - Other		2,214.00
Total Field Test Equipment		37,122.78
Leasehold Improvements		29,485.46
Office Equipment
Bench Test Equipment		1,248.77
Computer		16,058.54
Office Equipment - Other		6,791.64
Total Office Equipment		24,098.95
Office Furniture		1,367.00
Total Fixed Assets		-468,895.98
Other Assets

10:00 AM 09/03/09 Accrual Basis B2 Digital dba Hotel Movie Network Balance Sheet As of September 3, 2009  

	Sep 3, 09
Hotel Movie Express Equipment	470,163.30
Total Other Assets	470,163.30
TOTAL ASSETS	372,162.67
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable	29,365.29
Total Accounts Payable	29,365.29
Credit Cards
American Express Business Gold	-623.85
Total Credit Cards	-623.85
Other Current Liabilities
Customeer Deposit	629.74
Ernerst McKay	50,000.00
Paul LaBarre	49,350.00
Retainers	1,125.77
Total Other Current Liabilities	101,105.51
Total Current Liabilities	129,846.95
Long Term Liabilities
Free To Guest Deposit Account	7,588.70
Total Long Term Liabilities	7,588.70
Total Liabilities	137,435.65
Equity
Common Stock	25,000.00
Inventory Allowance	-220.62
Paid in capital	1,873,072.00
Retained Earnings	-1,659,688.23
Net Income	-3,436.13
Total Equity	234,727.02
TOTAL LIABILITIES & EQUITY	372,162.67

10:17 AM 09/03/09 Accrual Basis B2 Digital dba Hotel Movie Network Profit & Loss April 2008 through March 2009  

	Apr '08 - Mar 09
Ordinary Income/Expense
Income
Sales
Free To Guest
Directv Commisions		6,520.62
FTG Adjustment		-1,200.00
Free To Guest - Other		113,076.12
Total Free To Guest		118,396.74
Sales - Other		32,876.75
Total Sales		151,273.49
Total Income		151,273.49
Cost of Goods Sold
Cost of Goods Sold		1,409.77
Progrming Fees
FTG Fees		90,005.78
Progrming Fees - Other		1,636.14
Total Progrming Fees		91,641.92
Sales Adjustments		600.00
Total COGS		93,651.69
Gross Profit		57,621.80
Expense
Bankcard Services
Visa/MC		76.00
Total Bankcard Services		76.00
Fees		10.35
Fees Ex.		1,470.24
INTERNET SERVICES		1,307.00
Late Fee		8.00
Licenses and Permits		115.00
Office and Storage Expences
Rent		15,460.32
Storage Units		1,381.94
Office and Storage Expences - Other		344.80
Total Office and Storage Expences		17,187.06
Office Supplies		274.76
Parts
Computer		855.00
Parts - Other		47.85
Total Parts		902.85

Payroll Expenses	3,850.00
Postage and Delivery

10:17 AM 09/03/09 Accrual Basis B2 Digital dba Hotel Movie Network Profit & Loss April 2008 through March 2009  

	Apr '08 - Mar 09
Pitney Bowes Postage Machine		321.40
Postage Refil		675.49
UPS
Service Charges		284.34
Shipping Charge Corrections		81.64
UPS - Other		1,386.84
Total UPS		1,752.82
Total Postage and Delivery		2,749.71
Professional Fees
Legal Fees		775.78
Professional Fees - Other		2,618.00
Total Professional Fees		3,393.78
Service Charges
American Express		87.33
Merchant Fees
EPS		92.04
Northern Leasing		1,289.42
Total Merchant Fees		1,381.46
Service Charges - Other		62.75
Total Service Charges		1,531.54
Taxes		36.26
Telephone		664.57
Travel & Ent
Travel		250.00
Total Travel & Ent		250.00
UNKNOWN		-1,000.00
Utilities
Water, Gas & Trash		549.26
Total Utilities		549.26
Vehicles
Vehicle Maintenance		101.61
Total Vehicles		101.61
Work Expense
Gas		60.90
Work Expense - Other		8,006.34
Total Work Expense		8,067.24
Total Expense		41,545.23
Net Ordinary Income		16,076.57
Net Income		16,076.57