Exhibit 99.1

Fireline Restoration, Inc.
Balance Sheet
June 30, 2006 (Unaudited)


Assets

Current assets:
Cash	$	252,266
Accounts receivable, net of reserve of $4,400,000	24,246,466
Costs in excess of billings	3,402,400
Other current assets	58,774
Total current assets	27,959,906

Property and equipment, net	1,578,269

Other assets	75,331

	$	29,613,506


Liabilities and stockholder's equity

Current liabilities:
Accounts payable	$	4,159,604
Accrued expenses	1,723,318
Accounts payable and accrued expenses - affiliates	568,381
Line of credit	7,911,878
Notes payable	5,000,000
Billing sin excess of costs	1,678,803
Current portion of long-term debt	415,500
Total current liabilities	21,457,484

Long-term debt	442,711

Stockholder's (deficit):
Common stock, $1.00 par value,
1,000 shares authorized,
issued and outstanding	1,000
Paid in capital	2,616,847
Retained earnings	5,095,464
Total stockholder's equity	7,713,311

	$	29,613,506

Fireline Restoration, Inc.
Statements of Operations
Six Months Ended June 30, (Unaudited)

	2006		2005
Revenue:	18,659,090		22,912,004

Total revenue	18,659,090		22,912,004

Cost of revenue	9,070,662		15,175,683

Gross margin	9,588,428		7,736,321

Operating expenses:
Selling, general and administrative expenses	5,994,103		2,739,924
Total operating expenses	5,994,103		2,739,924

Income from operations	3,594,325		4,996,397

Other (income) expense:
Interest ioncome	(2,054)		(50)
Interest expense	635,780		46,159
Total other (income) expense	633,726		46,109

Net Income	$	2,960,599	$	4,950,288

Per share information - basic and fully diluted:
Weighted average shares outstanding	1,000		1,000

Net income per share	$	2,960.60	$	4,950.29

Fireline Restoration, Inc.
Statements of Cash Flows
Six Months Ended June 30,
(Unaudited)
	2006		2005

Cash flows from operating activities:
Net Income	$	2,960,599	$	4,950,288
Adjustments to reconcile net income to net cash provided
by (used in) operating activities:
Depreciation and amortization	155,754		63,000
Reserve for bad debts	500,000		-
Non-cash capital contribution by shareholder	-		-
(Increase) decrease in accounts receivable	(23,349,771)		(4,056,759)
(Increase) in other receivables	-		-
(Increase) decrease in receivables from affiliates	-		-
(Increase) decrease in other current assets	4,555		(97,582)
(Increase) in costs in excess of billings	17,486,146		(2,718,933)
(Increase) decrease in other assets	(21,378)		1,227
Increase (decrease) in accounts payable	(283,258)		482,148
Increase (decrease) in accrued expenses	1,187,564		(84,051)
Increase (decrease) in billings in excess of costs	(3,461,326)		299,928
Increase (decrease) in accounts payable and accrued expenses - affiliates	23,112		(209,942)
Total of adjustments	(7,758,602)		(6,320,964)
Net cash provided by (used in) operating activities	(4,798,003)		(1,370,676)

Cash flows from investing activities:
Purchase of property and equipment	(326,561)		(71,163)
Net cash (used in) investing activities	(326,561)		(71,163)

Cash flows from financing activities:
Net proceeds (repayments) from line of credit	(323,335)		2,880,184
Distributions to shareholders	(2,079,946)		(1,256,763)
Paid-In Capital	1,900,000		-
Proceeds from debt	5,000,000		15,600
Payments on debt	(187,688)		(158,308)
Net cash provided by financing activities	4,309,031		1,480,713

Net increase (decrease) in cash	(815,533)		38,874

Beginning - cash balance	1,067,799		450,993

Ending - cash balance	$	252,266	$	489,867


Supplemental cash flow information:
Cash paid for income taxes	$	-	$	-
Cash paid for interest	$	-	$	-

Non cash investing and financing activities:
Acquisition of property and equipment with debt	$	15,600	$	-

FIRELINE RESTORATION, INC.
NOTES TO FINANCIAL STATEMENTS
June 30, 2006
(Unaudited)

NOTE 1 - BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accompanying unaudited condensed balance sheet as at June 30, 2006, and statements of operations and cash flows for the periods ended June 30, 2005 and 2006, include the accounts of the Company. In the opinion of management, these condensed consolidated financial statements reflect all adjustments (consisting of normal recurring adjustments) that are necessary for a fair presentation of the results for and as of the periods shown. The accompanying condensed financial statements have been prepared in conformity with accounting principles generally accepted in the United States. However, certain information or footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission. The results of operations for such periods are not necessarily indicative of the results expected for 2006 or for any future period. These financial statements should be read in conjunction with the financial statements and related notes for the fiscal year ended December 31, 2005.

Fireline Restoration, Inc. ("we," "us," "Fireline," or the "Company"), a Florida corporation, was incorporated on November 22, 1996. The Company is a provider of recovery, restoration and rebuilding/remodeling services to commercial and residential areas that are prone to flooding, hurricanes, tornados, fires or other naturally occurring and repetitive weather related emergencies.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of the contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates made by management include, among others, the realizability of accounts and note receivable, inventories, recoverability of long-lived assets and valuation of deferred tax assets. Actual results could differ from these estimates.

Financial instruments which potentially subject the Company to concentrations of credit risk consist of cash and receivables. The Company places its cash with high quality financial institutions and at times may exceed the Federal Deposit Insurance Corporation ("FDIC") $100,000 insurance limit. At June 30, 2006 the Company had approximately $593,366 in accounts in excess of the FDIC insurance limits.

The Company offers its services primarily in the states of Florida and Louisiana, and it extends credit based on an evaluation of a customer's financial condition, generally without collateral. Exposure to losses on accounts receivable is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses, if required. Although the Company expects to collect amounts due, actual collections may differ from the estimated amounts. In most cases the Company has the ability to file liens up to its actual costs to protect its interests.

Two customers accounted for approximately 44% and 15% of total sales for the six months June 30, 2006. These customers accounted for approximately 34% and 9% of accounts receivable as of June 30, 2006.

Two customers accounted for approximately 35% and 19% of total sales for the six months ended June 30, 2005. These customers accounted for approximately 38% and 9% of accounts receivable as of June 30, 2005.

Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers net of estimated allowances for uncollectible accounts. In determining collectability, historical trends are evaluated and specific customer issues are reviewed to arrive at appropriate allowances.

The Company's standard credit terms are net 30 days. In conjunction with billings to insurance companies terms may extend 90 days.

the Company has elected to be treated as an "S" Corporation under the provisions of the Internal Revenue Code and state statutes. Under these provisions no income taxes are incurred on a corporate level. Instead, shareholders of the Company include their pro-rata share of income or loss on their individual income tax returns.

The accompanying statements of operations disclose unaudited pro forma information as if the Company had been taxed as a C corporation.

Basic earnings per share ("BEPS") is computed by dividing income available to common stockholders by the weighted average number of outstanding common shares during the period of computation. Diluted earnings per share ("DEPS") give effect to all potential dilutive common shares outstanding during the period of computation. The computation of DEPS does not assume conversion, exercise or contingent exercise of securities that would have an anti-dilutive effect on earnings.

The Company recognizes revenue in accordance with Staff Accounting Bulletin ("SAB") No. 101, "Revenue Recognition in Financial Statements", as revised by SAB 104. As such, the Company recognizes revenue when persuasive evidence of an arrangement exists, title transfer has occurred, the price is fixed or readily determinable and collectibility is probable. Sales are recorded net of sales discounts.

Fireline recognizes revenue from its jobs using the percentage of completion method for financial reporting purposes. Under the percentage of completion method, revenues with respect to individual contracts are recognized in the proportion that costs incurred to date bear to total estimated costs. Revenue and costs estimates are subject to revision during the terms of the contracts and any required adjustments are made in the periods in which the revisions become known. General and administrative costs are not allocated to contract costs and are charged to expense as incurred.

Depreciation and amortization expense for property and equipment for the six months ended June 30, 2006 and 2005 was $155,754 and $63,000 respectively.

During September 2004, the Company entered into a line of credit agreement with a financial institution. No amounts were advanced under this line of credit through December 31, 2004. During March 2005 the line of credit was amended and the available credit was increased to $3,500,000. In July 2005 the line of credit was amended and the available credit was increased to $5,000,000. Further in December 2005 the line of credit was amended and the available credit was increased to $10,000,000 The revolving line of credit is guaranteed by the stockholder of the Company and secured by all of the Company's accounts receivable, an assignment of a life insurance policy on the stockholder of not less than $6,000,000, and contains a provision that requires the Company to maintain certain financial and other covenants. The Company believes that it is in compliance with the covenants and to date has not been notified by the financial institution of any instances of default. The line of credit bears interest at the rate of prime plus 1/2% (8.5% at June 30, 2006) and is due on demand.

The Company may borrow the lesser of $10,000,000 or the collateral value. The loan collateral value is defined as 70% of eligible accounts receivable which are not more than 120 days outstanding from the original invoice date. As of June 30, 2006,, the balance outstanding under the line of credit was $8,667,162.

The Company is involved in various related party transactions. These transactions are summarized as follows:

The Company leases an aircraft from an entity controlled by its stockholder pursuant to a 1 year operating lease entered into during December 2005. The lease requires monthly payments of $37,500.

The Company leases a Building from an entity controlled by its stockholder. The lease requires monthly payments of $5,600.

Amounts paid to related parties for various services were as follows during the six months ended June 30:

On July 1, 2006, the Company entered into a lease for a building from an entity controlled by its stockholder. The lease requires monthly payments of $5,600 and is for a term of five years ending in June, 2001.

The Company amended its lease of an aircraft from an entity controlled by its stockholder during July 2006 extending the lease to June 2007. The amended lease requires monthly payments of $70,000.

Subsequent to June 30, 2006, the Company entered into various operating leases for terms through January, 2009 at monthly rentals aggregating approximately $5,667 or $204,000 in the aggregate.

On July 31, 2006, Home Solutions of America, Inc. agreed to purchase of the issued and outstanding shares of the Company from its sole shareholder in exchange for $11,450,000 in cash, an unsecured note in the amount of $21,650,000 (subject to a reduction if certain of the Company's accounts receivable are not collected on or before June 30, 2007) and 4,000,000 shares of Home Solutions of America, Inc. common stock. In addition, the Company's shareholder was paid $50,000 in exchange for his agreement not to compete with Home Solutions of America, Inc.

The nature and scope of the Company's business operations bring it into regular contact with the general public, a variety of businesses and government agencies. These activities inherently subject the Company to potential litigation, which are defended in the normal course of business. At December 31, 2005, there were various claims and disputes incidental to the business. The Company believes that the disposition of all such claims and disputes, individually or in the aggregate, should not have a material adverse affect upon the Company's financial position, results of operations or cash flows.


	2006	2005
Completed contracts	$ 289,076	$ 616,200
Contracts in progress	28,857,390	6,242,364
Reserve for bad debts	(4,900,000)	(500,000)
	$ 24,246,466	$6,358,564

Machinery and equipment	$ 1,102,440
Vehicles and trucks	753,040
Furniture and office equipment	262,670
	2,118,150
Accumulated depreciation	(539,881)
	$ 1,578,269 =======

Ling-term debt consists of the following at June 30, 2006:

Term loan with a financial institution with interest at prime plus .5%,
(7.75% at June 30, 2006) Monthly payments of $12,507, due in September 2007,
Secured by accounts receivable and equipment	$ 177,863

Term loan with a financial institution with interest at prime plus 1%,
(7.75% at December 3, 2005) Monthly payments of interest only, due in November 2006,
Secured by accounts receivable	$ 5,000,000

Term loan with a financial institution with interest at 7.75%,
Monthly payments of $2,325, due in September 2009,
Secured by equipment	79,664

Term loan with a financial institution with interest at 7.75%,
Monthly payments of $706, due in September 2009,
Secured by equipment	24,684

Term loan with a financial institution with interest at 7.5%,
Monthly payments of $485, due in December 2007,
Secured by automotive equipment	8,215

Term loan with a financial institution with interest at 9.25%,
Monthly payments of $4,797, due in July 2008,
Secured by automotive equipment	104,549

Term loan with a financial institution with interest at 8.75%,
Monthly payments of $706, due in October 2008,
Secured by equipment	422,734

Tem loan for automotive equipment with interest at 7.85%
due July 2009, secured by automotive equipment	20,770
	858,211
Less: current portion	(415,500)
	$ 442,711 =======

BSR Electrical	$ 43,502
MIG, Inc.	358,300
Total Remediation, Inc.	166,579
	$ 568,381 ======

	2006	2005
BSR Electrical	$ 694,665	$ 831,296
MTM Enterprises	442,100	360,657
MIG, Inc.	314,700	542,380
Marshall Aviation	209,975	-
Total Remediation, Inc.	213,000	129,600
	$ 1,874,440 ======	$1,863,933 ======