Exhibti 99.1
THE IRUS GROUP, INC. | |||
BALANCE SHEETS | |||
AUGUST 31, 2009 (UNAUDITED) |
ASSETS | ||||
AUGUST 31, | ||||
2009 | ||||
(UNAUDITED) | ||||
Current Assets: | ||||
Cash and cash equivalents | $ | 514,844 | ||
Accounts receivable, net | 898,853 | |||
Other current assets | 26,664 | |||
Total Current Assets | 1,440,361 | |||
Fixed assets, net of depreciation | 37,115 | |||
Other Assets: | ||||
Security deposit | 6,000 | |||
Note receivable | 18,255 | |||
Total Other Assets | 24,255 | |||
TOTAL ASSETS | $ | 1,501,731 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||
LIABILITIES | ||||
Current Liabilities: | ||||
Line of credit | $ | 810,000 | ||
Accounts payable and accrued expenses | 928,965 | |||
Total Current Liabilities | 1,738,965 | |||
Total Liabilities | 1,738,965 | |||
STOCKHOLDERS’ EQUITY (DEFICIT) | ||||
Common stock, $.00001 Par Value; 1,625,000 shares authorized | ||||
and 1,500,000 shares issued and outstanding | 15 | |||
Additional paid-in capital | 80,085 | |||
Retained earnings (deficit) | (317,334 | ) | ||
Total Stockholders’ Equity (Deficit) | (237,234 | ) | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 1,501,731 |
THE IRUS GROUP, INC. | |
STATEMENTS OF OPERATIONS | |
FOR THE EIGHT MONTHS ENDED AUGUST 31, 2009 |
EIGHT MONTHS ENDED | ||||
AUGUST 31, | ||||
2009 | ||||
(UNAUDITED) | ||||
OPERATING REVENUES | ||||
Revenues | $ | 4,973,172 | ||
DIRECT COSTS | ||||
Wages and wage related expenses | 612,207 | |||
Subcontractor fees | 2,911,133 | |||
Other direct costs | 103,644 | |||
Total Direct Costs | 3,626,984 | |||
GROSS PROFIT | 1,346,188 | |||
OPERATING EXPENSES | ||||
Wages and wage related expenses | 439,390 | |||
Rent and utilities | 60,167 | |||
Advertising and promotion | 4,423 | |||
Professional fees | 67,023 | |||
Business development | 17,048 | |||
Other general and administrative expenses | 87,007 | |||
Depreciation | 24,635 | |||
Total Operating Expenses | 699,693 | |||
INCOME (LOSS) BEFORE OTHER EXPENSE | 646,495 | |||
Interest expense, net | 14,112 | |||
Total Other Income (expense) | 14,112 | |||
NET INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES | 632,383 | |||
Provision for Income Taxes | - | |||
NET INCOME (LOSS) APPLICABLE TO COMMON SHARES | $ | 632,383 | ||
NET INCOME (LOSS) PER BASIC AND DILUTED SHARES | $ | 0.42 | ||
WEIGHTED AVERAGE NUMBER OF COMMON | ||||
SHARES OUTSTANDING | 1,500,000 |
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) | |||||||||
FOR THE EIGHT MONTHS ENDED AUGUST 31, 2009 (UNAUDITED) |
Additional | Retained | |||||||||||||||||||
Common Stock | Paid-in | Earnings | ||||||||||||||||||
Shares | Amount | Capital | (Deficit) | Total | ||||||||||||||||
Balance December 31, 2008 | 1,500,000 | 15 | 80,085 | (949,717 | ) | (869,617 | ) | |||||||||||||
Net income for the period | - | - | - | 632,383 | 632,383 | |||||||||||||||
Balance August 31, 2009 | 1,500,000 | $ | 15 | $ | 80,085 | $ | (317,334 | ) | $ | (237,234 | ) |
THE IRUS GROUP, INC. | |||
STATEMENTS OF CASH FLOWS | |||
FOR THE EIGHT MONTHS ENDED AUGUST 31, 2009 |
EIGHT MONTHS ENDED | ||||
AUGUST 31, | ||||
2009 | ||||
(UNAUDITED) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $ | 632,383 | ||
Adjustments to reconcile net income (loss) to net cash | ||||
used in operating activities: | ||||
Depreciation | 24,635 | |||
Changes in assets and liabilities | ||||
(Increase) in accounts receivable | (514,901 | ) | ||
(Increase) in other current assets | (16,675 | ) | ||
Increase in accounts payable and | ||||
and accrued expenses | 382,895 | |||
Total adjustments | (124,046 | ) | ||
Net cash (used in) operating activities | 508,337 | |||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Acquisition of fixed assets | (6,688 | ) | ||
(Increase) in note receivable | (18,255 | ) | ||
Net cash (used in) investing activities | (24,943 | ) | ||
CASH FLOWS FROM FINANCING ACTIVITES | ||||
Proceeds from line of credit, net of repayments | (40,000 | ) | ||
Net cash (used in) financing activities | (40,000 | ) | ||
NET INCREASE IN | ||||
CASH AND CASH EQUIVALENTS | 443,394 | |||
CASH AND CASH EQUIVALENTS - | ||||
BEGINNING OF PERIOD | 71,450 | |||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 514,844 | ||
CASH PAID DURING THE PERIOD FOR: | ||||
Income taxes | $ | - | ||
Interest expense | $ | 14,112 |