EX-99.2 3 v028107_ex99-2.txt Exhibit 99.2 CSI BUSINESS FINANCE, INC. BALANCE SHEET JUNE 30, 2005 UNAUDITED -------------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash $ 19,413 Prepaid expense 2,188 Minimum lease payments receivable 152,854 -------- Total current assets 174,455 -------- NONCURRENT ASSETS Minimum lease payments receivable 215,783 Fixed assets, net 833 Intangible assets, net 27,647 -------- Total noncurrent assets 244,263 -------- TOTAL ASSETS $418,718 ======== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable $ 3,934 Accrued liabilities 1,383 Unearned income 65,783 Advances from parent 101,612 -------- Total current liabilities 172,712 -------- NONCURRENT LIABILITIES, Unearned income 41,005 -------- COMMITMENTS AND CONTINGENCIES -- SHAREHOLDERS' EQUITY Preferred stock, 1,000 shares authorized, $0.01 par value: Series A cumulative preferred stock, par value $0.01, 500 shares authorized, 200 shares issued and outstanding, dividend of $10.00 per share per month, aggregated liquidation and redemption value of $240,000 2 Common stock, par value $0.01, 9,000 shares authorized, 1,000 shares issued and outstanding 10 Additional paid-in-capital 200,988 Retained earnings 4,001 -------- Total shareholders' equity 205,001 -------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $418,718 ======== The accompanying note is an integral part of these financial statements. CSI BUSINESS FINANCE, INC. STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30, 2005 UNAUDITED -------------------------------------------------------------------------------- REVENUE Lease income $41,311 Fee income 47,113 ------- 88,424 OPERATING EXPENSES Salaries and benefits 32,106 Commissions 3,828 Business development, travel and entertainment 634 Depreciation and amortization 5,887 Rent 5,114 Professional fees 10,797 Other 8,151 ------- Total expenses 66,517 ------- Income before provision for income taxes 21,907 ------- INCOME TAX PROVISION Current income tax expense 4,010 Deferred income tax expense -- ------- Total income tax expense 4,010 ------- NET INCOME 17,897 Preferred dividends paid 12,000 ------- INCOME APPLICABLE TO COMMON SHARES $ 5,897 ======= Net Loss Per Share-Basic and Diluted: $ 5.90 ======= Weighted average number of shares outstanding during the year--basic and diluted 1,000 ======= The accompanying note is an integral part of these financial statements. CSI BUSINESS FINANCE, INC. STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2005 UNAUDITED -------------------------------------------------------------------------------- CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 17,897 Adjustment to reconcile net income to net cash used in operating activities: Depreciation and amortization 5,887 (increase) decrease in assets: Accounts receivable, other 23,180 Prepaid expense (2,188) Minimum lease payments receivable 64,573 Increase (decrease) in liabilities Accounts payable 3,934 Accrued liabilities 1,383 Unearned income (41,310) Advances from parent (27,906) -------- Net cash provided by operating activities 45,450 -------- CASH FLOWS FROM INVESTING ACTIVITIES Purchases of fixed assets (1,000) Purchases of minimum lease payments receivable (25,037) -------- Net cash used in investing activities (26,037) -------- NET CHANGE IN CASH 19,413 CASH, BEGINNING OF PERIOD -- -------- CASH, END OF YEAR $ 19,413 ======== SUPPLEMENTAL INFORMATION Interest paid $ -- Taxes paid $ -- Preferred dividends paid by charge to parent intercompany account $ 12,000 The accompanying note is an integral part of these financial statements. CSI BUSINESS FINANCE, INC. -------------------------------------------------------------------------------- NOTES TO THE UNAUDITED FINANCIAL STATEMENTS JUNE 30, 2005 NOTE 1 - BASIS OF PRESENTATION The accompanying unaudited financial statements of CSI Business Finance, Inc. have been prepared in accordance with the accounting principles generally accepted in the United States of America for interim financial reporting. They do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation, have been included in the accompanying unaudited financial statements. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the full year. These financial statements should be read in conjunction with the financial statements and footnotes for the year ended December 31, 2004 which are filed in the Form 8K/A.