Exhibit 99.1

B2 Digital dba Hotel Movie Network

Balance Sheet

As of March 31, 2008

	March 31, 2008
ASSETS
Current Assets
Checking/Savings
American Express			–3,561.70
Bank Non-Cash Deposit Correction			–15.09
Checking at Bank of America			11,068.87
Office Petty Cash Account			43.97
Total Checking/Savings			7,536.05
Accounts Receivable
Accounts Receivable			276,303.87
Total Accounts Receivable			276,303.87
Other Current Assets
Bad Debt Allowance			–218,655.35
Inventory Asset			2,327,272.82
Inventory Asset Valuation Allow			–2,041,403.65
Loan			14,238.00
Total Other Current Assets			81,451.82
Total Current Assets			365,291.74
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		14,891.12
Office Equipment – Other		6,691.74
Total Office Equipment			22,831.63
Office Furniture			1,367.00
Total Fixed Assets			–470,163.30
Other Assets
Hotel Movie Express Equipment			470,163 30
Total Other Assets			470,163.30
TOTAL ASSETS			365,291.74

B2 Digital dba Hotel Movie Network

Balance Sheet

As of March 31, 2008

	March 31, 2008
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable		35,114.54
Total Accounts Payable		35,114.54
Credit Cards
American Express Business Gold		–623.85
Total Credit Cards		–623.85
Other Current Liabilities
Emerst McKay		50,000.00
Paul LaBarre		50,000.00
Retainers		1,125.77
Total Other Current Liabilities		101,125.77
Total Current Liabilities		135,616.46
Long Term Liabilities
Free To Guest Deposit Account		7,588.70
Total Long Term Liabilities		7,588.70
Total Liabilities		143,205.16
Equity
Common Stock		25,000.00
Inventory Allowance		–220.62
Paid in capital		1,873,072.00
Retained Earnings		–1,687,680.88
Net Income		11,916.08
Total Equity		222,086.58
TOTAL LIABILITIES & EQUITY		365,291.74

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
Ordinary Income/Expense
Income
Billable Field Service				262.50
Equipment Sales				250.00
Reimbursed Charges				1,615.20
Sales
Free To Guest
Directv Commissions		7,346.42
FTG Adjustment		–2,224.80
Free To Guest – Other		204,259.62
Total Free To Guest			209,381.24
PPV Programing
PPV Adjustments		–1,341.32
PPV Hotel Commission Adjustment		–12,740.87
PPV Programing – Other		10,522.30
Total PPV Programing			–3,559.89
Sales – Other			0.00
Total Sales				205,821.35
Uncategorized Income				694.98
Total Income				208,644.03
Cost of Goods Sold
*Cost of Goods Sold/inventory				815.71
Cost of Goods Sold				–25,229.09
Progrming Fees
FTG Fees			112,228.05
Royalties
20th Century Fox Royalty		1,087.54
Hollywood Adult Video		230.43
Total Royalties			1,317.97
Progrming Fees – Other			4,638.98
Total Progrming Fees				118,185.00
Sales Adjustments				467.19
VHS Duplication Cost
VHS Blank Tapes			312.50
VHS Duplication Cost – Other			6,875.50
Total VHS Duplication Cost				7,188.00
Total COGS				101,426.81

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
Gross Profit				107,217.22
Expense
Advertising				30,560.25
alarm monitoring services				180.00
Automobile Expense				59.20
Batteries				86.44
Dish Residential				–293.05
Fees				–564.13
Fees Ex.				263.42
Field Service				2,459.35
Interest Expense
Finance Charge			3.70
Total Interest Expense				3.70
INTERNET SERVICES				486.00
Late Fee				45.00
LATE FEE				30.00
Lease Payment				1,551.46
Licenses and Permits				100.00
Miscellaneous				0.54
Office and Storage Expences
Rent			17,600.00
Security System			50.00
Storage Units			2464.35
Office and Storage Expences – Other			1454.35
Total Office and Storage Expences				21,568.70
Office Supplies				1,054.14
Parts
Computer Programming/Software		175.00
Total Computer			175.00
Digital PPV Rack			5,024.71
Electronics			647.43
Tools			523.47
Parts – Other			691.87
Total Parts				7,062.48
Permits				10.00
Postage and Delivery
Federal Express			367.44

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
Freight Charges			720.70
Pitney Bowes Postage Machine			400.50
Postage Refill			857.01
UPS
Return Service		5.76
Service Charges		94.00
Shipping Charge Corrections		57.15
UPS – Other		4382.56
Total UPS			4,539.47
Postage and Delivery – Other			95.41
Total Postage and Delivery				6,980.53
Professional Fees
Maintenance Agreement			802.64
Total Professional Fees				802.64
Repairs
Building Repairs			928.44
Total Repairs				928.44
Salary
Administrative			3,500.00
Total Salary				3,500.00
Service Charges
American Express			68.13
Merchant Fees
Amex		50.65
EPS		383.85
Legacy		26.85
Northern Leasing		1,470.40
Visa/MC		40.19
Merchant Fees – Other		376.69
Total Merchant Fees			2,348.63
Service Charges – Other			203.75
Total Service Charges				2620.51
Shipping Supplies				2110.39
Taxes
Payroll Taxes			2762.70
Taxes – Other			134.87

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
Total Taxes				2897.57
Telephone
Cellular Phone			306.11
Telephone – Other			5190.20
Total Telephone				5496.31
Travel & Ent
Meals			289.02
Travel			250.00
Total Travel & Ent				539.02
Utilities
Electric			3941.46
Water, Gas & Trash			1,495.14
Total Utilities				5,436.60
Vehicles
Vehicle Maintenance
Chevy-Brian		85.50
Vehicle Maintenance – Other		103.76
Total Vehicle Maintenance			189.26
Vehicles – Other			368.29
Total Vehicles				557.55
voided check				0.00
Work Expense
Gas			812.89
Meals			272.07
Misc.			64.93
Work Expense – Other			2,223.18
Total Work Expense				3,373.07
Total Expense				99,906.13
Net Ordinary Income				7,311.09
Other Income/Expense
Other Income
Other Income				4,900.11
Refund				17.38
Total Other Income				4917.49
Other Expense
Other Expenses				312.50

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
Total Other Expense		312.50
Net Other Income		4604.99
Net Income		11,916.08

B2 Digital dba Hotel Movie Network

Statement of Cash Flows

April 2007 through March 2008

	Twelve Months Ended March 31, 2008
OPERATING ACTIVITIES
Net Income		11,916.08
Adjustments to reconcile Net Income to net cash provided by operations:
Accounts Receivable		–13,889.30
Inventory Asset		345.91
Inventory Asset Valuation Allow		35.71
Loan		–14,238.00
Accounts Payable		18,844.32
American Express Business Gold		–623.85
Net cash provided by Operating Activities		2,390.87
FINANCING ACTIVITIES
Inventory Allowance		–220.62
Net cash provided by Financing Activities		–220.62
Net cash increase for period		2,170.25
Cash at beginning of period		5,365.80
Cash at end of period		7,536.05