0000721748-15-000203.txt : 20150401 0000721748-15-000203.hdr.sgml : 20150401 20150401162808 ACCESSION NUMBER: 0000721748-15-000203 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20141231 FILED AS OF DATE: 20150401 DATE AS OF CHANGE: 20150401 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SITESTAR CORP CENTRAL INDEX KEY: 0001096934 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER PROCESSING & DATA PREPARATION [7374] IRS NUMBER: 880397234 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-27763 FILM NUMBER: 15743658 BUSINESS ADDRESS: STREET 1: 7109 TIMBERLAKE ROAD STREET 2: SUITE 201 CITY: LYNCHBURG STATE: VA ZIP: 24502 BUSINESS PHONE: 4342372657 MAIL ADDRESS: STREET 1: 7109 TIMBERLAKE ROAD STREET 2: SUITE 201 CITY: LYNCHBURG STATE: VA ZIP: 24502 10-K 1 site10k033115.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Fiscal Year Ended December 31, 2014

SITESTAR CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

Commission file number 000-27763

Nevada		88-0397234
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

7109 Timberlake Rd., Suite 201, Lynchburg, VA		24502
(Address of Principal Executive Offices)		(Zip Code)

(434) 239-4272

(Issuer’s telephone number, including area code)

Securities registered under Section 12(b) of the Exchange Act: None

Securities registered under Section 12(g) of the Exchange Act: Common Stock, $0.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. [ ] Yes [X] No

Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section 15(d) of the Act. [ ] Yes [X] No

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K (§ 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[ ]	Accelerated filer	[ ]

Non-accelerated filer	[ ]	Smaller reporting company	[X]

Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). [ ] Yes [X] No

The aggregate value of the voting common equity held by non-affiliates as of December 31, 2014, the last business day of the registrant’s most recently completed fourth fiscal quarter, was approximately $2,090,571 based on the price at which the common stock last sold on such day. This price reflects inter-dealer prices without retail mark up, mark down, or commissions, and may not represent actual transactions.

The number of shares outstanding of Common Stock, $0.001 par value as of March 31, 2015 as approximately 74,085,705.

DOCUMENTS INCORPORATED BY REFERENCE

None.

PART I

This Annual Report on Form 10-K contains forward-looking statements within the meaning of the federal securities law. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Readers are cautioned that, although the Company believes that its expectations are based on reasonable assumptions, forward-looking statements involve risks and uncertainties which may affect our actual results to be materially different than those expressed in our forward-looking statements. These risks and uncertainties include: the Company’s businesses and prospects, including changes in economic and market conditions, acceptance of the Company’s products, maintenance of strategic alliances, real estate appreciation or depreciation in our target markets and the supply of single-family homes in our target markets, our ability to contain renovation, maintenance, marketing, and other operating costs for our properties, our ability to lease or re-lease our rental homes to qualified residents to attractive terms or at all, and other factors discussed elsewhere in this Form 10-K. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements, We do not undertake to update our forward-looking statements.

ITEM 1. BUSINESS

Overview

Internet

Sitestar is an Internet Service Provider (ISP) that offers consumer and business-grade Internet access, wholesale managed modem services for downstream ISPs and Web hosting. Sitestar also delivers value-added services including spam, virus and spyware protection, pop-up ad blocking and web acceleration. The Company maintains multiple sites of operation and provides services to customers throughout the U.S. and Canada.

The products and services that the Company provides include:

•		Internet access services;
•		Web acceleration services;
•		Web hosting services;

The Company’s Internet division markets and sells narrow-band (dial-up and ISDN) and broadband services (DSL, fiber-optic and wireless), and supports these products utilizing its own infrastructure and affiliations. Value-added services include web acceleration, spam and virus filtering, as well as, spyware protection. Additionally, the Company markets and sells web hosting and related services to consumers and businesses.

Real Estate

Sitestar acquires distressed real estate primarily from foreclosure auctions at a substantial discount from the market value. The acquired properties are initially evaluated for their condition of repair, location and refurbish costs for resale and or rental.

When the intended use has been determined and the nature and quality of the refurbishing is determined, the work is scheduled as soon as possible. For example, if a property is intended for rental use the quality of the refurbishing would be less than if it were to be showcased for resale because a tenant would more than likely diminish the value of the higher quality work as opposed to a resale that would need to show well. Other work for a rental unit might involve adding rooms in a basement or dividing the property into multi-family units that would bring in more rental income but not be as desirable from a single home owner’s perspective.

Table of Contents

After the property has been refurbished for its intended use, it is placed in the applicable market. Rental units are listed in local media as available for rent and are shown to those responding who are financially qualified. If a mutual decision is made to proceed, a lease is drafted and signed and the tenants will put the required deposit down and move in. The deposit is recorded as a liability on the books and rental income is recognized as collected. If the property is to be sold, it is placed in local media for sale and is shown to prospective home owners. After a purchase contract has been accepted, the closing is scheduled and the ownership of the property changes hands. The sale of the property is then recorded in accordance with the closing statement and the related costs are expensed.

Pursuant to the continued approval of the board of directors, the Company’s management believes that it is in the best interests of the Corporation to continue the program to purchase (“Purchase Program”), as investments, real estate with the Company’s surplus cash flows.

Management believes that there is sustainable cash flow potential for the near future in real estate and is actively pursuing the program. As of the balance sheet date, December 31, 2014, the Company has investments of approximately $3,460,000 in real estate investments and is continuing the investing process. Management has determined that the Purchase Program will not impair the Company’s capital, cash flows or operations.

Sitestar’s Business Strategy

SiteStar’s mission is to increase stockholder value by increasing revenues, minimizing operational costs and increasing profits, while maintaining superior products and customer service.

(1)

The Company’s Internet growth strategy is to expand by increasing its customer base, services and coverage area. The Company uses partnerships to accomplish this.

(2)

The Company plans to increase the real estate holdings of distressed and foreclosed properties and refurbish as needed for marketability. These properties will then be presented to the market at or below conventional market value and sold for profit, providing a revenue stream for the future.

Key elements of Sitestar’s ISP strategy includes:

Increasing the Broadband Customer Base. The Company offers broadband within its regional and national footprint. The Company anticipates that it will enter into additional partnerships to continue to expand its market footprint. The Company markets Broadband Internet Access through traditional sales channels.

Increasing the Economies of Scale. As the Company evolves from primarily an Internet Service Provider to a real estate company, it is committed to managing costs and maximizing efficiencies. To optimize its operations, the Company has acquired and leverages the services of wholesale managed modem providers to reduce costs and consolidate its network infrastructure. Similarly, the Company has integrated its offices by deploying VoIP services to better utilize its human resources and provide more efficient customer service.

The Company’s primary competitors include large companies that have substantially greater market presence, brand-name recognition and financial resources than the Company presently enjoys. Secondary competitors include local or regional ISPs that may benefit from relationships within a particular community.

Table of Contents

The residential broadband Internet access market is dominated by cable companies, telecommunications companies and CLECs who respectively offer Internet connectivity through the use of cable modems or Digital Subscriber Line (DSL) programs that provide high speed Internet access using the existing copper wire telephone infrastructure. Other alternative service companies provide Internet connectivity via wireless terrestrial and satellite-based service technologies. These competitors enjoy the advantage of being able to leverage their existing relationships with customers to promote high-speed Internet services. In addition, they provide incentives for customers to purchase Internet access by offering discounts for bundled service offerings (i.e., phone, television, Internet). While the Company is a reseller of broadband services including DSL and fiber services, its profit margin is influenced by the aforementioned threats. Thus, should the Company be unable to provide technologically competitive service in the marketplace or compete with companies bundling Internet service with their products, its revenues and profit margins may decline.

Key elements of SiteStar’s real estate strategy includes:

Increasing real estate holdings. The Company plans to increase the real estate holdings of distressed and foreclosed properties and refurbish as needed for marketability. These properties will then be presented to the market at or below conventional market value and sold for a profit. When pursuing home acquisitions, Sitestar focuses on markets that it believes presents the greatest opportunities for home price appreciation,or that have strong rental demand where we can attain property operating efficiencies as a result of geographic concentration of assets in its portfolio. We identify and pursue individual home acquisition opportunities through a number of sources, including wholesale deals, tax and foreclosure auctions and short sales. We believe that favorable prevailing home prices provide us with a substantial market opportunity to acquire residential assets that generate attractive risk-adjusted returns as the housing market continues to recover.

Historically, the single-family home rental market has been extremely fragmented, comprised primarily of private and individual property investors in local markets. Until recently, there have been no large-scale, operators due primarily to the challenge of efficiently scaling the acquisition and management of many individual homes. With an opportunity to continue acquiring homes at attractive prices, we intend to continue to leverage our expertise and experience in rapidly building an institutional-quality, professionally managed business. We believe that being one of the first in our industry to do so on a large scale has provided us the “early-mover” advantage to continue aggregating a portfolio of high quality properties at prices that provide attractive potential yields and capital appreciation.

We are focused on acquiring homes with a number of key property characteristics, including: three or more bedrooms, two or more bathrooms, a range of $70,000 estimated minimum valuation to $400,000 maximum bid price and estimated renovation costs not in excess of 25% of estimated value. We target areas with above average median household incomes, well-regarded school districts and access to desirable lifestyle amenities. We believe that homes in these areas will attract tenants and buyers with strong credit profiles, produce high occupancy and rental rates and generate long-term property appreciation. Not all of the homes we acquire meet all of these criteria. To date, the Company has primarily acquired properties at tax and foreclosure auctions.

ISP Regulations:

There is currently only a small body of laws and regulations directly applicable to access or commerce on the Internet. However, it is possible that a number of laws and regulations may be repealed, modified or adopted at the international, federal, state and local levels with respect to the Internet, covering issues such as user privacy, freedom of expression, pricing, characteristics and quality of products and services, taxation, advertising, intellectual property rights, information security and the convergence of traditional telecommunications services with Internet communications which do, or could affect the Company.

Table of Contents

Real Estate Regulations:

State and municipal laws and regulations govern the real estate industry and do not vary significantly from on community to another. State laws in addition to local ordinances govern rental properties and also do not vary significantly throughout our real estate holding areas. Sitestar management has experience in operating under these authorities and does not see this as a hindrance to achieving its goals and objectives.

Employees:

As of March 31, 2015, the Company employed seven full-time individuals. Of these, the Company has four in management and three technicians. The Company employed no part-time individuals. The Company’s employees are not unionized and it considers its relations with its employees to be favorable.

Available Information

Sitestar Corporation files annual, quarterly, and current reports and other documents with the Securities and Exchange Commission (SEC) under the Securities Exchange Act. The public may read and copy any materials that the Company files with the SEC at the SEC’s Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. Also, the SEC maintains an Internet web site that contains reports, proxy and information statements, and other information regarding issuers, including the Company, that file electronically with the SEC. The public can obtain any documents that the Company files with the SEC at http://www.sec.gov. The Company also has available though EDGAR and XBRL its Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act as soon as reasonably practicable after the Company electronically files such material with, or furnishes it to, the SEC.

ITEM 1A. RISK FACTORS

Not required for smaller reporting companies.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None

ITEM 2. PROPERTIES

Corporate:

The Company owns a 12,000 square foot office building in Martinsville, Virginia located at 29 West Main Street, Martinsville, VA 24112, which was acquired along with the acquisition of Neocom. This facility was closed in 2010. The Company now out-sources the services to provide service for the customers in this area and the Company’s other offices provide technical and billing support for those customers previously provided at this location. The Company leases a 7,200 square feet office facility in Lynchburg, Virginia which serves as its corporate office.

Here the Company handles the executive, marketing, corporate accounting functions, customer service, technical support, and billing and houses Internet equipment. In addition, the Company markets local Internet service under the Lynchburg.net and SurfWithUs.net brands. This facility has an annual rent of $48,000 . The facility is located at 7109 Timberlake Road, Lynchburg, VA 24502, is leased from Frank Erhartic, Jr., a Company Director and Officer. In addition, the Company rents a house used for storage of appliances and supplies which is located in Salem VA. This property is also leased from the same Company director and officer at an annual rent of $6,000.

Table of Contents

The Company leases a 2,000 square foot office facility in Chatham, Ontario where it sells Internet services under the name of NetRover. The Company also houses Internet equipment there to serve its customers in Canada. This facility has an annual rent of $18,000 Canadian Dollars (CAD) or approximately $15,520 in United States Dollars (USD). The facility is located at 48 Fifth Street, Chatham, Ontario N7M 4V8 and is leased from Duff Enterprises and this lease expires in November 2015 .

Real Estate Investments:

SiteStar currently owns approximately forty-five residential properties in the Lynchburg-Roanoke, Virginia area which SiteStar holds for lease or resale at a cost of $3,459,554.

ITEM 3. LEGAL PROCEEDINGS

Litigation

associated with Plaintiff’s failure to turnover certain customer lists. Plaintiff seeks monetary damages in the amount of $900,615. Litigation is currently in the discovery phase of litigation. The parties have exchanged documents but have not yet taken depositions. SiteStar is currently contesting the Litigation. A mediation hearing in the matter took place on April 25, 2014, as required by the Maine Rules of Civil Procedure, however, no ruling has yet been issued. The estimate of the upper limit of a potential loss is $900,615 which has been accrued. Management is vigorously defending this claim.

ITEM 4. SUBMISSION OR MATTERS TO A VOTE OF SECURITY HOLDERS

Reserved and omitted.

PART II

ITEM 5. MARKET FOR COMPANY’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

MARKET FOR COMMON EQUITY

Set forth below are the high and low closing bid prices for the Company’s common stock on the Over-the-Counter Bulletin Board for each quarterly period commencing January 1, 2013.

	High		Low
2013
For the quarter ended March 31, 2013	$	0.02	$	0.01
For the quarter ended June 30, 2013	$	0.03	$	0.02
For the quarter ended September 30, 2013	$	0.04	$	0.03
For the quarter ended December 31, 2013	$	0.03	$	0.03

2014
For the quarter ended March 31, 2014	$	0.02	$	0.01
For the quarter ended June 30, 2014	$	0.03	$	0.02
For the quarter ended September 30, 2014	$	0.04	$	0.03
For the quarter ended December 31, 2014	$	0.03	$	0.03

Such quotations reflect inter-dealer prices, without retail mark-up, markdown or commissions and may not necessarily represent actual transactions.

Table of Contents

RECORD HOLDERS

The closing bid price for the Company’s common stock was $0.03 on March 31, 2015. As of March 31, 2015 the Company had approximately 109 shareholders of record. Additional holders of the Company’s Common Stock hold such stock in street name with various brokerage firms.

EQUITY COMPENSATION PLANS

The Company does not have any plans under which options, warrants or other rights to subscribe for or acquire shares of the Company’s common stock may be granted and there are no outstanding options, warrants or other rights to subscribe for or acquire shares of Company common stock. From time to time, the Board of Directors may grant shares of the Company’s common stock to its officers, employees and contractors in lieu of salary, fees or as a bonus. The Board of Directors made no grants during fiscal years 2013 and 2014.

DIVIDENDS

The Company has never declared or paid any cash dividends on its common stock. The Company currently intends to retain all available funds for use in its business and therefore does not anticipate paying any cash dividends in the foreseeable future. Any future determination relating to dividend policy will be made at the discretion of the Board of Directors and will depend on a number of factors, including the future earnings, capital requirements, financial condition and future prospects and such other factors, as the Board of Directors may deem relevant.

RECENT SALES OF UNREGISTERED SECURITIES

None.

ITEM 6. SELECT FINANCIAL DATA

GENERAL

The following discussion and analysis should be read in conjunction with the Company’s consolidated financial statements and related footnotes for the years ended December 31, 2014 and December 31, 2013 included in this Annual Report on Form 10-K. The discussion of results, causes and trends should not be construed to imply any conclusion that such results or trends will necessarily continue in the future.

Overview

ISP:

The products and services that the Company provides include:

•

Internet access services;

•

Web acceleration services;

•

Web hosting services;

The Company’s Internet division markets and sells narrow-band (dial-up and ISDN) and broadband services (DSL, fiber-optic, satellite, cable and wireless), and supports these products utilizing its own infrastructure and affiliations. Value-added services include web acceleration, spam and virus filtering, as well as, spyware protection.

Table of Contents

Additionally, the Company markets and sells web hosting and related services to consumers and businesses.

Real Estate

SiteStar is also a real estate investment entity that acquires distressed real estate primarily from foreclosure auctions at a substantial discount from market value. The acquired properties are initially evaluated to determine if they will be held for lease or resale and for their condition of repair, location and refurbish costs.

RESULTS OF OPERATIONS

The following tables show financial data for the years ended December 31, 2014 and 2013 . Operating results for any period are not necessarily indicative of results for any future period.

	For the year ended December 31, 2014
	Corporate			Real Estate		Internet			Total
Revenue	$	—		$	461,251	$	1,922,445		$	2,383,696
Cost of revenue		—			426,722		679,361			1,106,083
Gross profit		—			34,529		1,243,084			1,277,613
Operating expenses		137,099			—		680,304			817,403
Income (loss) from operations		(137,099	)		34,529		562,780			460,210
Other income (expense)					—		(1,752	)		(1,752	)
Income (loss) before income taxes		(137,099	)		34,529		561,028			458,458
Income taxes expense		—			4,453		69,822			74,275
Net income (loss)	$	(137,099	)	$	30,076	$	491,206		$	384,183

	For the year ended December 31, 2013
	Corporate			Real Estate			Internet			Total
Revenue	$	—		$	156,192		$	2,397,557		$	2,553,749
Cost of revenue		—			193,795			1,146,535			1,340,330
Gross profit		—			(37,603	)		1,251,022			1,213,419
Operating expenses		115,490			—			835,621			951,111
Income (loss) from operations		(115,490	)		(37,603	)		415,401			262,308
Other income (expense)					—			(2,793	)		(2,793	)
Income (loss) before income taxes		(115,490			(37,603	)		412,608			259,515
Income taxes expense		—			—			163,272,			163,272
Net income (loss)		(115,490			(37,603	)	$	249,336		$	96,243

Table of Contents

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) consists of revenue less cost of revenue and cash operating expense. EBITDA is provided because it is a measure commonly used by investors to analyze and compare companies on the basis of operating performance. EBITDA is presented to enhance an understanding of the Company’s operating results and is not intended to represent cash flows or results of operations in accordance with Generally Accepted Accounting Principals (GAAP) for the periods indicated. EBITDA is not a measurement under GAAP and is not necessarily comparable with similarly titled measures for other companies. See the Liquidity and Capital Resource section for further discussion of cash generated from operations.

The following tables show a reconciliation of EBITDA to the GAAP presentation of net income for the years ended December 31, 2014 and 2013.

	Corporate			Real Estate			Internet	Total
EBITDA	$	(137,099	)	$	55,111		$562,256	$	480,268
Interest expense		—					(2,405)		(2,405	)
Taxes		—			(4,453	)	(69,822)		(74,275	)
Depreciation		—			(19,405	)			(19,405	)
Amortization		—
Net income (loss)	$	(137,099	)	$	31,253		$490,029	$	384,183

	For the year ended December 31, 2013
	Corporate		Real Estate			Internet			Total
EBITDA	$	(115,490)	$	(14,674	)	$	548,147		$	417,983
Interest expense		—					(4,848	)		(4,848	)
Taxes		—					(163,272	))		(163,272	)
Depreciation		—		(22,929	)		(2,643	)		(2,643	)
Amortization		—					(128,048	)		(128,048	)
Net income (loss)	$	(115,490)	$	(37,603	)	$	174,815		$	96,243

ITEM 7. MANAGEMENT'S DISCUSSIONS AND ANALYSIS OR PLAN OF OPERATIONS

GENERAL

YEAR ENDED DECEMBER 31, 2014 COMPARED TO DECEMBER 31, 2013

REVENUE. Revenue for the year ended December 31, 2014 decreased by $170,053 or 6.7% from $2,553,749 for the year ended December 31, 2013 to $2,383,696 for the same period in 2014. Internet sales decreased $475,112 or 19.8.6% from $2,397,557 for the year ended December 31, 2013 to $1,922,445 for the same period in 2014. The decrease in Internet sales is attributed to the lack of acquisitions of Internet access and web hosting customers of ISPs. Although the Company continues to sign up new customers, competition from ubiquitous nationwide telecommunications and cable providers threatens significant and sustainable organic growth.

Table of Contents

Real estate sales in 2014 were $341,563, an increase of $248,563 over the 2013 amount of $93,000, due to more houses sold at higher prices. Rental income in 2014 was $119,688, an increase of $56,496 over the 2013 amount of $63,192, due to more united being rented. During 2013 and 2014, Sitestar has concentrated its real estate resources in the rental use of properties as opposed to resale. Rental use of properties generates a larger return on investment and revenue stream over time than a sale but does not generate large current revenue compared to a sale of the properties. There is a strong demand for rental property in the geographic locations where the Company’s properties are located and given the current inventory of single family houses, rental income with the higher return on investment will provide a superior revenue stream for the future years.

COST OF REVENUE. Total costs of revenue for the year ended December 31, 2014 decreased by $234,247 or 17.5% from $1,340,330 for the year ended December 31, 2013 to $1,106,083 for the same period in 2014. Total cost of revenue as a percentage of sales decreased 6.1% from 52.5% for the year ended December 31, 2013 to 46.4% for the same period in 2014. Internet cost of revenue decreased 12.5% as a percentage of revenue resulting primarily from restructuring the internet backbone providers to scale expenses with revenue. The Company is continuing to attempt to negotiate more favorable contracts with telecommunication vendors and making the network capacity more efficient. The Company expects to continue creating these efficiencies through wholesale business partners. Real estate costs increased $232,927 or 120.2% from $193,795 to $426,722 for the same period in 2014. Theses costs contain a fair value adjustment of $43,452 which continues to reflect the economic conditions of the Lynchburg-Roanoke housing martket. These costs also include the cost of properties sold as well as rental expenses and is a reflection of the concentration of resources being applied to refurbishing properties for rental use and not for resale. Costs of revenue for rental properties are minimal compared to recognition of costs of revenue of properties sold.

OPERATING EXPENSES. Selling, general and administrative expenses decreased $133,708 or 14.1% from $951,111 for the year ended December 31, 2013 to $817,403 for the same period in 2014. This is due primarily to recognition of impairment to goodwill only in 2013, decrease in wages and bad debt expenses. The impairment of goodwill is the result of declining revenue in the Internet Service Provider division. Discounted cash flows of this division have eroded the basis of the goodwill resulting in impairment to the valuation. Professional fees increased while bad debts and wages decreased all contributing to a relatively flat change in operating expenses for the year.

INTEREST EXPENSE. Interest expense for the year ended December 31, 2013 decreased by $2,443 or 50.4% from $4,848 for the year ended December 31, 2013 to $2,405 for the same period in 2014.

INCOME TAXES. For the years ended December 31, 2014 and 2013 corporate income tax expense of $74,275 and $163,272 were incurred . While the Company does not anticipate a tax liability resulting from the consolidated corporate tax return, the deferred tax asset associated with the timing differences of book and tax income provides a recognition of income tax expense that will evolve over the life of the timing differences.

BALANCE SHEET. Net accounts receivable decreased $13,318 or 37.9% from $35,129 on December 31, 2013 to $21,811 on the same date in 2014. Real estate holdings increased $156,857 or 4.8% from $3,243,606 on December 31, 2013 to $3,400,463 on December 31, 2014. This increase is the result of investing in real estate to employ idle cash. Real estate held for resale decreased $419,380 for the year ended December 31, 2014 while real estate held for investment increased $576,237 in the same time period reflecting the Company’s focus on increasing rental properties over sales. Deferred tax assets decreased $74,276 from $74,276 on December 31, 2013 to $0 on December 31, 2014. This is due to the recognition of tax benefits of timing differences of certain tax deductions. Accounts payable increased by $2,842 or 23.4% from 12,121 on December 31, 2013 to $14,963 on December 31, 2014. Accrued expenses increased by $15,186 or 79.4% from $19,129 on December 31, 2013 to $34,315 on December 31, 2014. Deferred revenue decreased by $39,458 or 12.6% from $312,898 on December 31, 2013 to $273,440 on December 31, 2014 representing corresponding reduced revenue from which customers have prepaid services on December 31, 2014.

Table of Contents

LIQUIDITY AND CAPITAL RESOURCES

Cash and cash equivalents totaled $369,694 and $118,469 at December 31, 2014 and 2013. EBITDA was $480,268 for the year ended December 31, 2014 as compared to $492,167 for the year ended December 31, 2013 .

	2014			2013
EBITDA for the year ended December 31,	$	480,268		$	395,054
Interest expense		(2,405	)		(4,848	)
Tax expense		(74,275	)		(163,272	)
Depreciation		(19,405	)		(2,643	)
Amortization		—			(128,048	)
Net income for the year ended December 31,	$	384,183		$	96,243

Sales of Internet services which are not automatically processed via credit card or bank account drafts have been the Company’s highest exposure to collection risk. To help offset this exposure, the Company has added a late payment fee to encourage timely payment by customers. Another effort to improve customer collections was the implementation of a uniform manual invoice processing fee, which has also helped to accelerate collections procedures. These steps and more aggressive collection efforts have shifted accounts receivable to a more current status which is easier to collect. The accounts receivable balance in the Current category decreased from 11.0% of total accounts receivable from December 31, 2013 to 65.0% on December 31, 2014. The balance in the 30+ day category decreased from 21.0% to 26.0% of total accounts receivable from December 31, 2013 to December 31, 2014. The balance in the 60+ day category increased from 68% to 9% of total accounts receivable from December 31, 2013 to December 31, 2014.

Investments in real estate are funded primarily from the cash flows generated from the Internet Service Provider division and have not and do not anticipate this to change in the near future. This course of action does not impair the cash flows of the Company. SiteStar does not commit to purchase real estate beyond the ability of the cash flows and has not borrowed money for this purpose. Management evaluates property as it becomes available with respect to the market value versus the acquisition cost, in addition to other conditions that could affect the resale value. Renovations are made as needed to maximize the market appeal and value prior to listing for sale.

The aging of accounts receivable as of December 31, 2014 and 2013 is as shown:

	2014				2013
Current	$	14,185	65	%	$	4,021	11	%
30+		5,577	26	%		7,273	21	%
60+		2,049	9	%		23,835	68	%
90+		—	—	%		—	—	%
Total	$	21,811	100	%	$	35,129	0	%

The Company is currently involved in litigation with USAT, a company that sold us their dial-up customer base in November 2007. SiteStar has counter filed and believes strongly that it will prevail in the arbitration. The liability has been carried on the balance sheet only because the plaintiff has refused to acknowledge the financial assistance given to prevent the loss of customers during the time period they refused to hand over the data base of the customer list that was purchased. In addition, they continued to bill and collect revenue from the customers they no longer owned. Management does not anticipate any significant financial detriment to result from this litigation. Should the litigation result in a liability, the Company has ample resources to draw from to satisfy the liability.

ITEM 7A. QUANTATITIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

None

Table of Contents

ITEM 8. FINANCIAL STATEMENTS

INDEX

		Page
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM		12

FINANCIAL STATEMENTS

Consolidated Balance Sheets as of December 31, 2014 and 2013		13

Consolidated Statements of Income for the Years Ended December 31, 2014 and 2013		14

Consolidated Statements of Stockholders' Equity for the Years Ended December 31, 2014 and 2013		15

Consolidated Statements of Cash Flows for the Years Ended December 31, 2014 and 2013		16

Notes to Consolidated Financial Statements		17-24

Table of Contents

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and
Stockholders of SiteStar Corporation

Lynchburg, VA 24502-2334

We have audited the accompanying balance sheets of SiteStar Corporation as of December 31, 2014 and 2013, and the related statements of income, stockholders’ equity, and cash flows for each of the years in the two-year period ended December 31, 2014. SiteStar Corporation’s management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of SiteStar Corporation as of December 31, 2014 and 2013, and the results of its operations and its cash flows for each of the years in the two-year period ended December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

/s/Ciro E. Adams, CPA, LLC

Wilmington, DE 19806-1004

April 1, 2015

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2014 and 2013

	2014			2013
ASSETS
Real estate – held-for-resale	$	2,293,061		$	2,712,441
Real estate – held-for-investment, net		1,107,402			531,165
Cash and cash equivalents		369,694			118,469
Accounts receivable, net		21,811			35,129
Prepaid expenses		1,340			1,394
Property and equipment, net		146,314			146,314
Goodwill, net		1,166,494			1,166,494
Deferred tax assets, net		—			74,276
Other assets		200,056			217,563

TOTAL ASSETS	$	5,306,172		$	5,003,245

LIABILITIES
Accounts payable	$	14,963		$	12,121
Accrued expenses		34,315			19,129
Deferred revenue		273,440			312,898
Notes payable		900,615			900,615
Notes payable - stockholder		—			59,826

TOTAL LIABILITIES		1,223,333			1,304,589

STOCKHOLDERS' EQUITY
Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding		—			—
Common Stock, $0.001 par value, 300,000,000 shares authorized and 91,326,463 shares issued in 2014 and 2013, and 74,085,705 shares outstanding in 2014 and 2013.		91,326			91,326
Additional paid-in capital		13,880,947			13,880,947
Treasury Stock, at cost, 17,240,758 common shares		(789,518	)		(789,518	)
Accumulated deficit		(9,099,916	)		(9,484,099	)
Total stockholders' equity		4,082,839			3,698,656

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	5,306,172		$	5,003,245

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

	2014			2013
REVENUE
Internet	$	1,922,445		$	2,397,557
Real estate		461,251			156,192
		2,383,696			2, 553,749
COST OF REVENUE
Internet		679,361			1,146,535
Real estate		426,722			193,795
		1,106,083			1,340,330
GROSS PROFIT		1,277,613			1,213,419

OPERATING EXPENSES
Selling, general and administrative expenses		817,403			829,046
Goodwill impairment		—			122,065
TOTAL OPERATING EXPENSES		817,403			951,111

INCOME (LOSS) FROM OPERATIONS		460,210			262,308

OTHER INCOME (EXPENSES)
Other income		653			2,055
Interest expense		(2,405	)		(4,848	)
TOTAL OTHER INCOME (EXPENSES)		(1,752	)		(2,793	)

INCOME (LOSS) BEFORE INCOME TAXES		458,458			259,515

INCOME TAX EXPENSE		74,275			163,272

NET INCOME (LOSS)	$	384,183		$	96,243

BASIC AND DILUTED INCOME PER SHARE	$	0.01		$	0.00

WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED		74,085,705			74,085,705

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

					Additional
	Common Stock				Paid-in		Treasury			Accumulated
	Shares		Amount		Capital		Stock			Deficit			Total
Balance at December 31, 2012		74,085,705	$	91,326	$	13,880,947	$	(789,518	)	$	(9,580,342	)	$	3,602,413
Net income		—		—		—		—			96,243			96,243
Balance at December 31, 2013		74,085,705		91,326		13,880,947		(789,518	)		(9,484,099	)		3,698,656
Net income											384,183			384,183
Balance at December 31, 2014		74,085,705	$	91,326	$	13,880,947	$	(789,518	)	$	(9,099,916	)	$	4,082,839

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

	2014			2013

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	384,183		$	96,243
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation, amortization and impairment		19,405			153,620
Allowance for doubtful accounts		(2,624	)		2,133
Inventory obsolescence		17,509			—
(Increase) decrease in accounts receivable		15,942			(6,774	)
(Increase) decrease in prepaid expenses		54			49,017
(Increase) decrease in real estate held-for-resale		(271,787	)		(136,075	)
(Increase) decrease in real estate held-for-investment		—			(151,973	)
Fair value adjustment to real estate held-for-resale		43,452			—
(Increase) decrease in deferred income taxes		74,275			135,423
(Increase) decrease in deferred taxes valuation allowance		61,619			—
Increase (decrease) in accounts payable		2,842			(20,758	)
Increase (decrease) in accrued expenses		5,639			(25,945	)
Increase (decrease) in deferred revenue		(39,458	)		(74,359	)
Net cash provided by (used in) operating activities		311,051			(40,204	)

CASH FLOWS FROM INVESTING ACTIVITIES:
Sale of assets held for resale		—			5
Purchase of customer list		—			534
Net cash provided by investing activities		—			539

CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from notes payable – stockholders		—			—
Purchase of treasury stock		—			—
Repayment of notes payable – stockholders		(59,826	)		9,544
Net cash (used in) financing activities		(59,826	)		9,544

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		251,225			(30,121	)
Cash and cash equivalents - beginning of year		118,469			148,590
CASH AND CASH EQUIVALENTS - END OF YEAR	$	369,694		$	118,469

The accompanying notes are an integral part of these consolidated financial statements.

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:

For 2014 and 2013, the Company paid $0 and $0 of income taxes and paid interest expense of $2,405 and $4,849.

SUPPLEMENTAL SCHEDULE OF NON-CASH OPERATING ACTIVITIES:

For 2014, Sitestar reclassified $592,642 from real estate held-for-resale to real estate held-for-investment.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

Organization and Lines of Business

Sitestar Corporation (formerly White Dove Systems, Inc., Interfoods Consolidated, Inc., was known as Holland American International Specialties (HAIS)), (the Company), began operations on June 1, 1997, under a partnership agreement and was incorporated in Nevada on November 4, 1997. On July 26, 1999 the Company restated its Articles of Incorporation to change the name of the Company to “Sitestar Corporation.” The Company was in the International specialty foods distribution business. In 1999, through the acquisition of two Internet Service Providers, the Company changed from a food distribution company to an Internet holding company. The Company services customers throughout the U.S. and Canada with multiple sites of operation. Effective October 15, 2008 pursuant to the approval of the board of directors, the Company’s management implemented a program to purchase real estate with the Company’s surplus cash flows. Sitestar is headquartered in Lynchburg, Virginia.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including: Sitestar.net, Inc. (formerly know as Neocom Microspecialists, Inc.), FRE Enterprises, Inc., Advanced Internet Services, Inc. and NetRover Inc. All intercompany accounts and transactions have been eliminated.

Reclassifications

Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the results of operations or stockholders’ equity.

Use of Estimates

In accordance with Generally Accepted Accounting Principles (GAAP), the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in the notes to the consolidated financial statements.

Fair Value of Financial Instruments

For certain of the Company's assets and liabilities, including cash, accounts receivable, accounts payable, accrued expenses and deferred revenue, the carrying amounts approximate fair value due to their short maturities. The amounts shown for notes payable also approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.

Real Estate

The acquired properties are initially evaluated for their condition of repair, location and refurbish costs for resale and or rental. If, at acquisition, a property needs to be renovated before it is ready for its intended use, we commence the necessary development activities. During this development period, we capitalize all direct and indirect costs incurred in renovating the property. Real estate under development in the accompanying consolidated balance sheets represents aggregate carrying amount of properties that are being prepared for their intended use. When the intended use has been determined:

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

Real Estate – Held-for-Resale

Real estate is carried at cost. All costs directly related to the improvement and carrying of real estate are capitalized, including renovations and property taxes, to the extent the capitalized costs of the property do not exceed the estimated fair value of the property. If the cost of the real estate exceeds the estimated fair value, the excess is charged to expense. Fair value is estimated based on comparable sales in the geographic area the real estate is located, and is evaluated annually, or when events or changes in circumstances indicate the carrying value of the real estate may not be recoverable.

Real Estate – Held-for-Investment

Real estate is carried at cost, net of accumulated depreciation of $42,334. Once a property is ready for rental use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred, and we capitalize expenditures that improve or extend the life of a home. Building depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The Company generally uses a 27.5-year estimated life with no salvage value.

Building depreciation was $19,405 and $22,929 in 2014 and 2013.

Cash and Cash Equivalents

For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid instruments purchased with a maturity of three months or less.

Concentration of Credit Risk

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and accounts receivable. The Company places its cash with high quality financial institutions and, at times, may exceed the FDIC insurance limit. The Company extends credit based on an evaluation of the customers’ financial condition, generally without collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. The Company monitors its exposure for credit losses and maintains allowances for anticipated losses.

Accounts Receivable

The Company grants credit in the form of unsecured accounts receivable to its customers. The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on management’s assessment of current economic conditions and historical collection experience with each customer. Specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible.

For 2014 and 2013, bad debt expense was $20,213 and $58,596. As of December 31, 2014 and 2013, accounts receivable consists of the following:

	2014			2013
Gross accounts receivable	$	22,934		$	38,876
Less allowance for doubtful accounts		(1,123	)		(3,747	)
	$	21,811		$	35,129

Sales of Internet services, which are not automatically processed via credit card or bank account drafts, have been the Company’s highest exposure to collection risk. To help offset this exposure, the Company has added a late payment fee to encourage timely payments by customers. Another effort to improve customer collections was the implementation of a uniform manual invoice processing fee, which has also helped to accelerate the collections process. Accounts over ninety days past due are no longer included in accounts receivable and are turned over to a collection agency.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

Property and Equipment

Property and equipment are stated at cost. Depreciation is computed using the declining balance method based on estimated useful lives from three to seven years for equipment and thirty nine years for buildings. Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains and losses on disposals are included in the results of operations.

Impairment of Long-Lived Assets

In accordance with GAAP, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.

The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment. If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable. In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value. Long-lived assets to be disposed are reported at the lower of carrying amount or fair value of the asset less cost to sell.

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company conducted its annual goodwill impairment test as of December 31, 2014 and 2013 and determined no impairment charge was necessary in 2014, however, at December 31, 2013, the Company determined that the carrying value of Goodwill exceeded its fair value and recorded a goodwill impairment charge of $122,065 in 2013.

Deferred Revenue

Deferred revenue represents collections from customers in advance for services not yet performed and are recognized as revenue in the period service is provided.

Revenue Recognition

In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured. The Company’s arrangements generally do not include a provision for cancellation, termination, or refunds that would significantly impact revenue recognition.

Internet

The Company sells Internet services under annual and monthly contracts. Under the annual contracts, the subscriber pays a one-time annual fee, which is recognized as revenue ratably over the life of the contract. Under the monthly contracts, the subscriber is billed monthly and revenue is recognized for the period to which the service relates. Sales of computer hardware are recognized as revenue upon delivery and acceptance of the product by the customer. Sales are adjusted for any returns or allowances.

Real estate – held-for-resale

Revenue from real estate – held for resale is recognized upon closing of the sale, as all conditions for full revenue recognition have been met at that time. All costs associated with the property sold are removed from the consolidated balance sheets and charged to cost of revenue at that time.

Revenue from real estate sales was $341,563 and $93,000 in 2014 and 2013.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

Real estate – held-for-investment

Rental revenue from real estate – held-for-investment attributable to residential leases is recorded when due from residents, which approximates the amount that would result from straight-lining rents over the lease term. The initial term of our residential leases is generally one year, with renewals upon consent of both parties on an annual or monthly basis.

Rental revenue was $119,588 and $63,192 in 2014 and 2013.

Advertising and Marketing Costs

The Company expenses costs of advertising and marketing as they are incurred. These expenses for the years ended December 31, 2014 and 2013 were approximately $9,000 and $15,000, respectively.

Income Taxes

Deferred taxes are provided on the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Income Per Share

The basic income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding. Diluted income per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company has no potentially dilutive securities. The following table represents the calculations of basic and diluted income per share:

	2014		2013
Net income available to common shareholders	$	384,183	$	96,243
Weighted average number of common shares		74,085,705		74,085,705
Basic and diluted income per share	$	.01	$	.00

Comprehensive Income

As of and for the years ended December 31, 2014 and 2013, the Company had no items that represent other comprehensive income and therefore, has not included a schedule of comprehensive income in the consolidated financial statements.

Recently Issued Accounting Pronouncements

No new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on the consolidated financial statements.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

NOTE 2 - PROPERTY AND EQUIPMENT

The cost of property and equipment at December 31, 2014 and December 31, 2013 consisted of the following:

	2014			2013
Land	$	10,000		$	10,000
Building		213,366			213,366
Automobile		11,500			11,500
Computer equipment		1,164,061			1,164,061
Furniture and fixtures		59,862			59,862
		1,458,789			1,458,789
Less accumulated depreciation		(1,312,475	)		(1,312,475	)
	$	146,314		$	146,314

Depreciation expense was $0 and $2,643 for 2014 and 2013.

NOTE 3 NOTES PAYABLE

This USA Telephone note payable is due and is currently in litigation. At December 31, 2014 and 2013, the balance consist of the following:

		2014				2013
Non-interest bearing amount due on acquisition of USA Telephone payable in thirty six monthly installments starting January 2008.		$	900,615			$	900,615

Litigation

United Systems Access, Inc., et al. v. SiteStar Corporation, Civil Action, Docket No. CV-13-161, (York County Superior Court). This is a breach of contract claim, whereby Plaintiff has alleged that SiteStar has failed to pay the amounts owed on a Promissory Note. SiteStar has filed a counterclaim for damages associated with Plaintiff’s failure to turnover certain customer lists. Plaintiff seeks monetary damages in the amount of $900,615. Litigation is currently in the discovery phase of litigation. The parties have exchanged documents but have not yet taken depositions. SiteStar is currently contesting the Litigation. A mediation hearing in the matter took place on April 25, 2014, as required by the Maine Rules of Civil Procedure, however, no ruling has yet been issued. The estimate of the upper limit of a potential loss is $900,615 which has been accrued. Management is vigorously defending this claim.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

NOTE 4 NOTES PAYABLE - STOCKHOLDERS

Notes payable - stockholders at December 31, 2014 and 2013 consist of the following:

	2014		2013
Note payable to stockholder. The note is payable on January 1, 2020 and bears interest at an annual rate of 10.0%.	$	—	$	59,826
		—		59,826
Less current portion		—		—

Long-term portion	$	—	$	59,826

This note was paid during 2014.

NOTE 5 COMMITMENTS AND CONTINGENCIES

Leases

The Company leases certain facilities for its corporate offices and retail stores under non-cancelable operating leases. Total rent expense for the years ended December 31, 2014 and 2013 was $109,653 and $71,690, respectively. Related party rent expense for each year is $54,000. Future minimum lease payments under operating leases with initial or remaining terms of one year or more are as follows:

Year ended December 31,
	2015	$	55,200
	2016		48,000
	2017		16,000
	Total	$	119,200

NOTE 6 STOCKHOLDERS' EQUITY

Classes of Shares

The Company's Articles of Incorporation authorize 310,000,000 shares, consisting of 10,000,000 shares of preferred stock, which have a par value of $0.001 per share and 300,000,000 shares of common stock, which have a par value of $0.001.

Preferred Stock

Preferred stock, any series, shall have the powers, preferences, rights, qualifications, limitations and restrictions as fixed by the Company's Board of Directors in its sole discretion. As of December 31, 2014, the Company's Board of Directors has not issued any Preferred Stock.

Common Stock

None.

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

NOTE 7 INCOME TAXES

The provision for federal and state income taxes for the years ended December 31, 2014 and 2013 included the following:

	2014		2013
Current provision:
Federal	$	—	$	—
State		—		—
Deferred provision:
Federal		114,529		137,465
State		21,815		25,807
Valuation allowance		(61,619)		—
Total income tax provision	$	74,276	$	163,272

Deferred tax assets and liabilities reflect the net effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Significant components of the Company's deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows:

	2014			2013
Accounts receivable	$	1,123		$	2,256
Amortization of Intangible assets		2,359,505			2,494,267
Less valuation allowance		(2,360,628	)		(2,422,247	)
Deferred tax asset	$	—		$	74,276

NOTE 8 RELATED PARTY TRANSACTIONS

The Company leases its office building in Lynchburg, Virginia from its Director and CEO on a five-year lease expiring April 30, 2017. For the years ended December 31, 2014 and 2013, the Company paid $48,000 and $48,000 for rent on this office building. In addition, the Company rents a house used for storage of appliances and supplies which is located in Salem VA. This property is also leased from the same Company director and CEO at an annual rent of $6,000.

NOTE 9 - SEGMENT INFORMATION

The Company has three business units with separate management and reporting infrastructures that offer different products and services. The business units have been aggregated into three reportable segments: Corporate, Real estate and Internet. The Corporate group is the holding company which oversees the operating of the Internet group and arranges financing. The real estate group invests in, refurbishes and markets real estate for resale. The Internet group provides Internet access to customers throughout the U.S. and Canada. The Company evaluates the performance of its operating segments based on income from operations, before income taxes, accounting changes, non-recurring items, and interest income and expense.

Summarized financial information concerning the Company's reportable segments is shown in the following table for the years ended December 31, 2014 and 2013:

Table of Contents

SITESTAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013

	December 31, 2014
	Corporate			Real Estate		Internet			Consolidated
Revenue	$	—		$	461,251	$	1,922,445		$	2,383,696
Operating income (loss)	$	(135,922	)	$	34,529	$	561,603		$	460,210
Depreciation and amortization	$	—		$	19,405	$	—		$	19,405
Interest expense	$	—				$	(2,405	)	$	(2,405	)
Goodwill	$	—				$	1,166,494		$	1,166,494
Identifiable assets	$	—		$	3,400,463	$	1,905,709		$	5,306,172

	December 31, 2013
	Corporate			Real Estate			Internet			Consolidated
Revenue	$	—		$	156,192		$	2,397,557		$	2,553,749
Operating income (loss)	$	(115,490	)	$	(37,603	)	$	415,401		$	262,308
Depreciation and amortization	$	—		$	22,929		$	130,691		$	153,620
Interest expense	$	—					$	(4,848	)	$	(4,848	)
Goodwill	$	—					$	1,166,494		$	1,166,494
Identifiable assets	$	—		$	3,243,606		$	1,759,639		$	5,003,245

NOTE 13 - SUBSEQUENT EVENTS

None.

Table of Contents

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of December 31, 2014, management, with the participation of our Chief Executive Officer and Chief Financial Officer, performed an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act. Disclosure controls and procedures are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures. Because of inherent limitations, any controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance of achieving the desired control objective. Based on material weaknesses in our internal control, as described below, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were not effective as of December 31, 2014.

Management’s Report on Internal Control over Financial Reporting

The management of Sitestar is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) of the Exchange Act. Internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of our consolidated financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the consolidated financial statements. Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on criteria established in the Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. Management’s assessment included evaluation of such elements as the design and operating effectiveness of key financial reporting controls, process documentation, accounting policies, and our overall control environment. Based on this evaluation, our management concluded that, as of December 31, 2014, our internal control over financial reporting was not effective based on such criteria. We have reviewed the results of management’s assessment with our Board of Directors. In addition, we will evaluate any changes to our internal control on a quarterly basis to determine if a material change occurred.

Material Weaknesses in Internal Controls

As defined by the Public Company Accounting Oversight Board’s Auditing Standard No. 5, a material weakness is a significant control deficiency, or a combination of significant control deficiencies, that results in there being more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.

As a result of our evaluation, we identified the following material weaknesses in our internal control over financial reporting as of December 31, 2014:

We did not maintain proper segregation of duties for the preparation of our financial statements. Due to the size of our administrative staff, all accounting and reporting functions are handled by a single individual, our Chief Financial Officer, with little or no oversight and review.

Table of Contents

We did not maintain appropriate controls over changes to the list of key individuals, and changes to the list tracking the number of shares held by key individuals, in the shareholder database. The Company, during this next quarter, will have an appropriate individual periodically review the list of key individuals and the complete and accurate reporting of their records in the proper periods.

Changes in Our Internal Control

Except as noted above, no change in the Company’s internal control over financial reporting occurred during the fiscal quarter ended December 31, 2014, that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Limitations on the Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls or our internal controls will prevent or detect all errors and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the control system’s objectives will be met. Further, the design of a control system must reflect that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Sitestar have been detected. These inherent limitations include the realities that judgments and decision making can be faulty, and that breakdowns can occur because of simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or my management override of the controls. The design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with associated policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

ITEM 9B. OTHER INFORMATION

None.

Table of Contents

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

The following table sets forth the name, age and position with the Company of each officer and director as of the date of this Report.

Our current directors, executive officers and key employees are as follows:

Name	Age	Position	Director since
Frank R. Erhartic, Jr.	46	President, CEO, Director	2001
Daniel Judd	58	CFO, Director	2004
Jeff Moore		Director	2013

Frank Erhartic, Jr., 46, Mr. Erhartic guides Sitestar’s long-term market strategies and investments, oversees all product research and development and leads the company’s day-to-day operations. An entrepreneur, Mr. Erhartic founded Computers by Design, a Sitestar subsidiary, in 1985 as a software development and computer services company while pursuing his high school diploma and later created a toner remanufacturing division called CBD Toner Recharge. In 1996, Mr. Erhartic started Lynchburg.net an Internet Service Provider which was acquired by Sitestar in 2000. He was named President and CEO in 2002, and has led the growth of the Company’s customer base through a series of acquisitions. Mr. Erhartic has MCSE, Novell Netware and A+ certifications and is a graduate of Virginia Tech with degrees in both Management and Finance.

Table of Contents

Dan Judd, 57, Mr. Judd has over thirty five years of experience in accounting and management, he oversees financial reporting, planning, mergers and acquisitions, and finance support for all business operations. Before joining Sitestar in 2003, Mr. Judd ran his own accounting firm, Judd Enterprises, Inc., specializing in both taxes and accounting. He also held management positions in manufacturing and wholesale companies. Mr. Judd is a Certified Public Accountant and holds a Bachelor of Science degree in Commerce from the University of Virginia.

Jeffrey Moore, a landlord and value investor focused on real estate and common stocks. He is a founder and Presiding Partner M & M Investments, a family investment partnership that invests in value micro-cap securities. Previously, Mr. Moore served multiple terms on the board of a 209 unit homeowner's association. He presently serves on the board and as the secretary of a neighborhood association in Lexington, KY. Mr. Moore has earned a B.A. of General Studies at Eastern Kentucky University.

TERM OF DIRECTORS:

Director

Expiration of term

Frank R. Erhartic, Jr.

December 31, 2014

Dan Judd

Jeff Moore

December 31, 2014

Next shareholder meeting

Section 16(a) Beneficial Ownership Reporting Compliance Pursuant to Section 16 (a) of the Securities Exchange Act of 1934, and the rules issued there under, our directors and executive officers are required to file with the Securities and Exchange Commission and the National Association of Securities Dealers, Inc. ownership and changes in ownership of common stock and other equity securities of the Company. Copies of such reports are required to be furnished to us. Based solely on a review of the copies of such reports furnished to us, or written representations that no other reports were required, we believe that, during our fiscal year ended December 31, 2013 all of our executive officers and directors complied with the requirements of Section 16 (a).

The Company has adopted a code of ethics and it is available on the Company’s website www.sitestar.com under Investor Relations.

ITEM 11. EXECUTIVE COMPENSATION

The following table sets forth the annual compensation paid to our executive officers for the two fiscal years ended December 31st.

SUMMARY COMPENSATION TABLE

Name and Principal Position	Year	Salary ($)	Bonus ($)	Stock Awards ($)	Option Awards ($)	Non- Equity Incentive Plan Compen- sation ($)	Change in Pension Value and Non-qualified Deferred Compensation Earnings ($)	All Other Compensation ($)	Total ($)
Frank R, Erhartic, Jr.	2014	48,577							48,577
Principal Executive Officer (PEO)	2013	48,577							48,577
Daniel Judd,	2014	48,200							48,200
Principal Financial Officer (PFO)	2013	48,200							48,200

Frank R. Erhartic, Jr., President, CEO and Director, earned a salary of $48,577 and $48,577 for the years ended December 31, 2014 and 2013, respectively. He received no other compensation. Daniel Judd, CFO and Director earned a salary of $48,200 and $48,200 for the years ended December 31, 2014 and 2013, respectively. He received no other compensation.

Table of Contents

GRANTS OF PLAN-BASED AWARDS

		Estimated Future Payouts Under Non-Equity Incentive Plan Award			Estimated Future Payouts Under Equity Incentive Plan Award			All Other Stock Awards: Number of Shares	All Other Options Awards: Number of Securities Under-	Exercise of Base Price of Option
Name	Grant Date	Threshold ($)	Target ($)	Maximum ($)	Threshold ($)	Target ($)	Maximum ($)	Of Stocks or Units (#)	Laying Options (#)	Awards ($/Sh)
PEO	N/A
PEO	N/A

There were no Equity Incentive Plans, Non-Equity Incentive Plans or Stock Awards for the years ended December 31, 2014 and 2013.

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

	Option Awards					Stock Awards
Name	Number of securities Underlying Unexercised Options (#) Unexercisable	Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)	Otion Exercise Price ($)	Option Expiration Date	Number of Shares of Units of Stock that have not vested (#)	Market Value of Shares or Units of Stock that have not vested ($)	Equity Incentive Plan Awards: Number of Unearned Shares, United or other rights that have not vested(#)	Equity Incentive Plan Awards Market or Payout Value of Unearned Shares, Units of Other Rights that have not vested($)
PEO	N/A
PEO	N/A

There were no Equity Incentive Plans, Non-Equity Incentive Plans or Stock Awards for the years ended December 31, 2014 and 2013.

DIRECTOR COMPENSATION

Name

Fees Earned or Paid in Cash ($)

Stock Awards ($)

Option Awards ($)

Non-Equity Incentive Plan Compensation ($)

Change in Pension Value and Nonqualified Deferred Compensation Earnings ($)

All Other Compensation ($)

Total ($)

Frank R, Erhartic, Jr., Director

$0.00

Daniel Judd, Director

$0.00

Jeff Moore, Director

$0.00

There were no Director compensation other than salary for the years ended December 31, 2014 and 2013.

Table of Contents

ITEM 12. SECURITIES OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDERS MATTERS

The following table sets forth certain information as of March 30, 2015 regarding the record and beneficial ownership of our common stock by: (i) any individual or group (as that term is defined in the federal securities laws) of affiliated individuals or entities who is known by us to be the beneficial owner of more than five percent of the outstanding shares of our common stock; (ii) each of our executive officers and directors; and (iii) our executive officers and directors as a group.

Name and Address of Beneficial Owner	Number of Shares Beneficially Owned (1)		Percent Of Class (2)
Frank and Julie Erhartic 7109 Timberlake Road Lynchburg, VA 24502		24,883,980		33.6	%
Daniel A. Judd 7109 Timberlake Road Lynchburg, VA 24502		133,865		00.18	%
Jeff Moore 7109 Timberlake Road Lynchburg, VA 24502		5,423,373		7.3	%
All directors and officers as a group (3 person)		30,441,218		41.1	%

(1) Except as otherwise indicated, we believe that the beneficial owners of our common stock listed above, based on information furnished by such owners, have sole investment and voting power with respect to such shares, subject to community property laws where applicable.

(2) Percent of class is based on 74,085,705 shares of common stock outstanding as of March 30, 2015.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

Fees to Independent Registered Public Accountants for Fiscal 2014 and 2013:

Fees paid to Ciro E. Adams, CPA, LLC:

	2014		2013
Audit fees	$	57,500	$	42,500
Audit related fees		5,000		—
Tax		2,500		—
Other		—		—
	$	65,000	$	42,500

Table of Contents

AUDIT COMMITTEE

The Company does not have an audit committee.

Table of Contents

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES.

(1) The following exhibits are filed as part of this Annual Report on Form 10-K or are incorporated herein by reference:

Exhibit			Description	Filed
	3.1	(i)	Articles of Incorporation of the Registrant (December 17, 1992)		a
	3.1	(ii)	Amended Articles of Incorporation (July 29, 1998)		a
	3.1	(iii)	Amended Articles of Incorporation (October 26, 1998)		a
	3.1	(iv)	Amended Articles of Incorporation (July 14, 1999)		a
	3.1	(v)	Amended Articles of Incorporation (July 28, 1999)		a
	3.2	(i)	By-laws of the Registrant (December 17, 1992)		a
	4.2		Convertible Debenture Purchase Agreement dated as of May 11, 2000 between the investors named therein and the Registrant		c
	4.3		12% Convertible Debenture due May 11, 2001 made by the Registrant in favor of New Millenium Capital Partners II, L.L.C.		c
	4.4		12% Convertible Debenture due May 11, 2001 made by the Registrant in favor of AJW Partners, L.L.C.		c
	4.5		Stock Purchase Warrant dated as of May 11, 2000 issued by Registrant to New Millenium Capital Partners, L.L.C.		c
	4.6		Stock Purchase Warrant dated as of May 11, 2000 issued by Registrant to AJW Partners, L.L.C		c
	4.7		Registration Rights Agreement dated as of May 11, 2000 by and between the Registrant and the investors named therein.		c
	10.1		Lease for Corporate Office		b
	10.13		Statement of changes in beneficial ownership of securities.		k
	10.14		Definitive Purchase Agreement to acquire certain assets of Idacomm, Inc, effective September 16, 2005.		l
	10.15		Definitive Purchase Agreement to acquire Inc, effective January 1, 2006		m
	10.16		Amendment to report audited financial statements for Definitive Purchase Agreement to acquire Inc.		n
	10.17		Definitive Purchase Agreement to acquire certain assets of First USA, Inc, effective July 1, 2006.		o
	10.18		Definitive Purchase Agreement to acquire certain assets of OW Holdings, Inc, effective February 28, 2007.		p
			SCHEDULE 21, LIST OF SUBSIDIARIES
			Sitestar.net FRE Enterpises, Inc. Advanced Internet Services, Inc. NetRover Inc.
	31.1		Certification of Chief Executive Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
	31.2		Certification of Chief Financial Officer Pursuant to the Securities Exchange Act of 1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.		q
	32		Certification Pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002		q

Table of Contents

Filed as an exhibit to the Registrant's Form-10SB, as amended, initially filed with the Securities and Exchange Commission on October 22, 1999 and incorporated herein by reference.

Filed as an exhibit to the Registrant's Form-10SB filed with the Securities and Exchange Commission on October 28, 2006 and incorporated herein by reference.

Filed as an exhibit to the Registrant's SB-2 Registration Statement, File No. 333-39660, filed on June 20, 2000 and incorporated herein by reference.

Filed as an exhibit to Registrant’s Form SC 13G/A filed with the Securities and Exchange Commission on February 9, 2005

Filed as an exhibit to Registrant’s Form 8-K filed with the Securities and Exchange Commission on September 16, 2005

Filed as an exhibit to Registrant’s Form 8-K filed with the Securities and Exchange Commission on January 1, 2006

Filed as an exhibit to Registrant’s Form 8-K/A filed with the Securities and Exchange Commission on March 22, 2006

Filed as an exhibit to Registrant’s Form 8-K filed with the Securities and Exchange Commission on July 6, 2006

Filed as an exhibit to Registrant’s Form 8-K filed with the Securities and Exchange Commission on March 2, 2007

Filed herewith

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this Report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date

/s/ Frank Erhartic, Jr.	President, Chief Executive	04/1/15
Frank Erhartic, Jr.	Officer, Director (Principal Executive Officer)

/s/ Daniel A. Judd		Chief Financial Officer		04/1/15
Daniel A. Judd		(Principal Financial Officer, Principal Accounting Officer)

Table of Contents

EX-31.1 2 site10k033115ex31_1.htm I, FRANK R. ERHARTIC, JR., CERTIFY THAT:

EXHIBIT 31.1

I, Frank R. Erhartic, Jr., certify that:

I have reviewed this Annual Report on Form 10-K of SiteStar Corporation (the “registrant”);

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluations; and

Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the registrant’s Board of Directors (or persons performing the equivalent functions):

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 1, 2015

/s/ Frank R. Erhartic, Jr.

Frank R. Erhartic, Jr.

President and Chief Executive Officer

EX-31.2 3 site10k033115ex31_2.htm I, DANIEL JUDD, CERTIFY THAT:

EXHIBIT 31.2

I, Daniel Judd, certify that:

I have reviewed this Annual Report on Form 10-K of SiteStar Corporation (the “registrant”);

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: April 1, 2015

/s/ Daniel Judd

Daniel Judd

Chief Financial Officer

EX-32 4 site10k033115ex32_2.htm CERTIFICATION PURSUANT TO

EXHIBIT 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

In connection with the Annual Report of SiteStar Corporation, (the “registrant”) on Form 10-K for the period ended December 31, 2014, as filed with the Securities and Exchange Commission on the date hereof (the “report”), we, Frank Erhartic, Jr., President and Chief Executive Officer, and Daniel Judd, Chief Financial Officer, respectively, of the registrant, certify pursuant to 18 U.S.C. §1350, that to our knowledge:

The report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

The information contained in the report fairly presents, in all material respects, the financial condition and results of operations of the registrant.

/s/ Frank Erhartic, Jr.		/s/ Daniel Judd
Frank Erhartic, Jr.		Daniel Judd
President and Chief Executive Officer		Chief Financial Officer
April 1, 2015		April 1, 2015

EX-101.INS 5 syte-20141231.xml XBRL INSTANCE FILE 0001096934 2014-01-01 2014-12-31 0001096934 2014-12-31 0001096934 2015-03-31 0001096934 2013-12-31 0001096934 2013-01-01 2013-12-31 0001096934 us-gaap:CommonStockMember 2013-01-01 2013-12-31 0001096934 us-gaap:CommonStockMember 2014-01-01 2014-12-31 0001096934 us-gaap:CommonStockMember 2012-12-31 0001096934 us-gaap:CommonStockMember 2013-12-31 0001096934 us-gaap:CommonStockMember 2014-12-31 0001096934 us-gaap:AdditionalPaidInCapitalMember 2013-01-01 2013-12-31 0001096934 us-gaap:AdditionalPaidInCapitalMember 2012-12-31 0001096934 us-gaap:AdditionalPaidInCapitalMember 2013-12-31 0001096934 us-gaap:AdditionalPaidInCapitalMember 2014-12-31 0001096934 us-gaap:TreasuryStockMember 2013-01-01 2013-12-31 0001096934 us-gaap:TreasuryStockMember 2014-01-01 2014-12-31 0001096934 us-gaap:TreasuryStockMember 2012-12-31 0001096934 us-gaap:TreasuryStockMember 2013-12-31 0001096934 us-gaap:TreasuryStockMember 2014-12-31 0001096934 us-gaap:RetainedEarningsMember 2013-01-01 2013-12-31 0001096934 us-gaap:RetainedEarningsMember 2014-01-01 2014-12-31 0001096934 us-gaap:RetainedEarningsMember 2012-12-31 0001096934 us-gaap:RetainedEarningsMember 2013-12-31 0001096934 us-gaap:RetainedEarningsMember 2014-12-31 0001096934 2012-12-31 0001096934 us-gaap:CustomerListsMember 2014-01-01 2014-12-31 0001096934 us-gaap:CustomerListsMember 2013-01-01 2013-12-31 0001096934 SYTE:NonCompetitionAgreementsMember 2014-01-01 2014-12-31 0001096934 SYTE:NonCompetitionAgreementsMember 2013-01-01 2013-12-31 0001096934 us-gaap:LandMember 2014-12-31 0001096934 us-gaap:LandMember 2013-12-31 0001096934 us-gaap:BuildingMember 2014-12-31 0001096934 us-gaap:BuildingMember 2013-12-31 0001096934 us-gaap:AutomobilesMember 2014-12-31 0001096934 us-gaap:AutomobilesMember 2013-12-31 0001096934 us-gaap:ComputerEquipmentMember 2014-12-31 0001096934 us-gaap:ComputerEquipmentMember 2013-12-31 0001096934 us-gaap:FurnitureAndFixturesMember 2014-12-31 0001096934 us-gaap:FurnitureAndFixturesMember 2013-12-31 0001096934 us-gaap:DeferredIncomeTaxChargesMember 2014-12-31 0001096934 us-gaap:DeferredIncomeTaxChargesMember 2013-12-31 0001096934 SYTE:RelatedPartyMember 2014-01-01 2014-12-31 0001096934 SYTE:RelatedPartyMember 2013-01-01 2013-12-31 0001096934 SYTE:RelatedPartyMember 2014-12-31 0001096934 us-gaap:CorporateMember 2014-01-01 2014-12-31 0001096934 us-gaap:CorporateMember 2013-01-01 2013-12-31 0001096934 us-gaap:RealEstateMember 2014-01-01 2014-12-31 0001096934 us-gaap:RealEstateMember 2013-01-01 2013-12-31 0001096934 SYTE:InternetMember 2014-01-01 2014-12-31 0001096934 SYTE:InternetMember 2013-01-01 2013-12-31 0001096934 SYTE:ConsolidatedMember 2014-01-01 2014-12-31 0001096934 SYTE:ConsolidatedMember 2013-01-01 2013-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares SITESTAR CORP 0001096934 10-K 2014-12-31 false --12-31 No No Yes Smaller Reporting Company FY 2014 1933637 74085705

1107402

531165

369694

118469

148590

21811

35129

1340

1394

1166494

200056

217563

5306172

5003245

14963

12121

34315

19129

273440

312898

900615

59826

1223333

1304589

13880947

789518

-9099916

-9484099

4082839

3698656

91326

13880947

-789518

-9580342

-9484099

-9099916

3602413

5306172

5003245

2293061

2712441

146314

74276

91326

0.001

10000000

0.001

300000000

91326463

74085705

17240758

2383696

2553749

1106083

1340330

1922445

2397557

461251

156192

679361

1146535

426722

193795

1277613

1213419

817403

829046

653

2055

2405

4848

-2405

-4848

-2405

-4848

74085705

122065

817403

951111

460210

262308

-1752

-2793

458458

259515

74275

163272

384183

96243

384183

0.01

0.00

74085705

2624 -2133

15942

-6774

-54

-49017

5639

-25945

311051

-40204

251225

-30121

19405

153620

-271787 -136075 -151973

74275

135423

61619

2842

-20758

-39458

-74359

534

539

-50280

9544

-50280

9544

2405

4849

NOTE 1 - ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES   Organization and Lines of Business Sitestar Corporation (formerly White Dove Systems, Inc., Interfoods Consolidated, Inc., was known as Holland American International Specialties (HAIS)), (the Company), began operations on June 1, 1997, under a partnership agreement and was incorporated in Nevada on November 4, 1997.  On July 26, 1999 the Company restated its Articles of Incorporation to change the name of the Company to Sitestar Corporation. The Company was in the International specialty foods distribution business.  In 1999, through the acquisition of two Internet Service Providers, the Company changed from a food distribution company to an Internet holding company.  The Company services customers throughout the U.S. and Canada with multiple sites of operation. Effective October 15, 2008 pursuant to the approval of the board of directors, the Companys management implemented a program to purchase real estate with the Companys surplus cash flows. Sitestar is headquartered in Lynchburg, Virginia.    Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including:  Sitestar.net, Inc. (formerly know as Neocom Microspecialists, Inc.), FRE Enterprises, Inc., Advanced Internet Services, Inc. and NetRover Inc.  All intercompany accounts and transactions have been eliminated.   Reclassifications Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the results of operations or stockholders equity.   Use of Estimates In accordance with Generally Accepted Accounting Principles (GAAP), the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of the Companys financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in the notes to the consolidated financial statements.   Fair Value of Financial Instruments For certain of the Company's assets and liabilities, including cash, accounts receivable, accounts payable, accrued expenses and deferred revenue, the carrying amounts approximate fair value due to their short maturities.  The amounts shown for notes payable also approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.   Real Estate The acquired properties are initially evaluated for their condition of repair, location and refurbish costs for resale and or rental. If, at acquisition, a property needs to be renovated before it is ready for its intended use, we commence the necessary development activities. During this development period, we capitalize all direct and indirect costs incurred in renovating the property. Real estate under development in the accompanying consolidated balance sheets represents aggregate carrying amount of properties that are being prepared for their intended use. When the intended use has been determined:   Real Estate Held-for-Resale Real estate is carried at cost. All costs directly related to the improvement and carrying of real estate are capitalized, including renovations and property taxes, to the extent the capitalized costs of the property do not exceed the estimated fair value of the property. If the cost of the real estate exceeds the estimated fair value, the excess is charged to expense. Fair value is estimated based on comparable sales in the geographic area the real estate is located, and is evaluated annually, or when events or changes in circumstances indicate the carrying value of the real estate may not be recoverable.   Real Estate Held-for-Investment Real estate is carried at cost, net of accumulated depreciation of $42,334. Once a property is ready for rental use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred, and we capitalize expenditures that improve or extend the life of a home. Building depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The Company generally uses a 27.5-year estimated life with no salvage value.   Building depreciation was $19,405 and $22,929 in 2014 and 2013.   Cash and Cash Equivalents For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid instruments purchased with a maturity of three months or less. 	 Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and accounts receivable.  The Company places its cash with high quality financial institutions and, at times, may exceed the FDIC insurance limit.  The Company extends credit based on an evaluation of the customers financial condition, generally without collateral.  Exposure to losses on receivables is principally dependent on each customer's financial condition.  The Company monitors its exposure for credit losses and maintains allowances for anticipated losses.   Accounts Receivable The Company grants credit in the form of unsecured accounts receivable to its customers.  The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on managements assessment of current economic conditions and historical collection experience with each customer. Specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible.   For 2014 and 2013, bad debt expense was $20,213 and $58,596. As of December 31, 2014 and 2013, accounts receivable consists of the following:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Gross accounts receivable</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">22,934</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">38,876</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Less allowance for doubtful accounts</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,123</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,747</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,811</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35,129</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   Sales of Internet services, which are not automatically processed via credit card or bank account drafts, have been the Companys highest exposure to collection risk.  To help offset this exposure, the Company has added a late payment fee to encourage timely payments by customers. Another effort to improve customer collections was the implementation of a uniform manual invoice processing fee, which has also helped to accelerate the collections process. Accounts over ninety days past due are no longer included in accounts receivable and are turned over to a collection agency.   Property and Equipment Property and equipment are stated at cost.  Depreciation is computed using the declining balance method based on estimated useful lives from three to seven years for equipment and thirty nine years for buildings.  Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains and losses on disposals are included in the results of operations.   Impairment of Long-Lived Assets In accordance with GAAP, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.   The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment.  If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable.  In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value.  Long-lived assets to be disposed are reported at the lower of carrying amount or fair value of the asset less cost to sell.   Intangible Assets The Company continually monitors its intangible assets to determine whether any impairment has occurred.  In making such determination with respect to these assets, the Company evaluates the performance, on a discounted cash flow basis, of the intangible assets or group of assets. Should impairment be identified, a loss would be reported to the extent that the carrying value of the related intangible asset exceeds its fair value using the discounted cash flow method.      The Company's customer lists are being amortized over three years.  Amortization expense for the customer lists was $0 and $5,983 for 2014 and 2013. Customer lists are now fully-amortized. Non-competition agreements are amortized over the contract period, usually one-to-three years. Amortization expense for non-competition agreements was $0 and $528 for 2014 and 2013.  Non-competition agreements are now fully-amortized.   Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company conducted its annual goodwill impairment test as of December 31, 2014 and 2013 and determined no impairment charge was necessary in 2014, however, at December 31, 2013, the Company determined that the carrying value of Goodwill exceeded its fair value and recorded a goodwill impairment charge of $122,065 in 2013.   Deferred Revenue Deferred revenue represents collections from customers in advance for services not yet performed and are recognized as revenue in the period service is provided.   Revenue Recognition In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured. The Companys arrangements generally do not include a provision for cancellation, termination, or refunds that would significantly impact revenue recognition.   Internet   The Company sells Internet services under annual and monthly contracts.  Under the annual contracts, the subscriber pays a one-time annual fee, which is recognized as revenue ratably over the life of the contract. Under the monthly contracts, the subscriber is billed monthly and revenue is recognized for the period to which the service relates.  Sales of computer hardware are recognized as revenue upon delivery and acceptance of the product by the customer. Sales are adjusted for any returns or allowances.   Real estate held-for-resale Revenue from real estate held for resale is recognized upon closing of the sale, as all conditions for full revenue recognition have been met at that time. All costs associated with the property sold are removed from the consolidated balance sheets and charged to cost of revenue at that time.   Revenue from real estate sales was $311,563 and $93,000 in 2014 and 2013.   Real estate held-for-investment Rental revenue from real estate held-for-investment attributable to residential leases is recorded when due from residents, which approximates the amount that would result from straight-lining rents over the lease term. The initial term of our residential leases is generally one year, with renewals upon consent of both parties on an annual or monthly basis.   Rental revenue was $119,588 and $63,192 in 2014 and 2013.   Advertising and Marketing Costs The Company expenses costs of advertising and marketing as they are incurred.  These expenses for the years ended December 31, 2014 and 2013 were approximately $9,000 and $15,000, respectively.   Income Taxes Deferred taxes are provided on the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.   Income Per Share The basic income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding.  Diluted income per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company has no potentially dilutive securities.  The following table represents the calculations of basic and diluted income per share:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Net income available to common shareholders</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">384,183</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">96,243</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Weighted average number of common shares</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted income per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>     Comprehensive Income As of and for the years ended December 31, 2014 and 2013, the Company had no items that represent other comprehensive income and therefore, has not included a schedule of comprehensive income in the consolidated financial statements.   Recently Issued Accounting Pronouncements   No new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on the consolidated financial statements.

Organization and Lines of Business Sitestar Corporation (formerly White Dove Systems, Inc., Interfoods Consolidated, Inc., was known as Holland American International Specialties (HAIS)), (the Company), began operations on June 1, 1997, under a partnership agreement and was incorporated in Nevada on November 4, 1997.  On July 26, 1999 the Company restated its Articles of Incorporation to change the name of the Company to Sitestar Corporation. The Company was in the International specialty foods distribution business.  In 1999, through the acquisition of two Internet Service Providers, the Company changed from a food distribution company to an Internet holding company.  The Company services customers throughout the U.S. and Canada with multiple sites of operation. Effective October 15, 2008 pursuant to the approval of the board of directors, the Companys management implemented a program to purchase real estate with the Companys surplus cash flows. Sitestar is headquartered in Lynchburg, Virginia.

Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries including:  Sitestar.net, Inc. (formerly know as Neocom Microspecialists, Inc.), FRE Enterprises, Inc., Advanced Internet Services, Inc. and NetRover Inc.  All intercompany accounts and transactions have been eliminated.

Reclassifications Certain reclassifications have been made to amounts in prior period financial statements to conform to current period presentation. These reclassifications have not changed the results of operations or stockholders equity.

Use of Estimates In accordance with Generally Accepted Accounting Principles (GAAP), the preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. On an ongoing basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions and conditions. The most significant accounting estimates inherent in the preparation of the Companys financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. These accounting policies are described at relevant sections in the notes to the consolidated financial statements.

Fair Value of Financial Instruments For certain of the Company's assets and liabilities, including cash, accounts receivable, accounts payable, accrued expenses and deferred revenue, the carrying amounts approximate fair value due to their short maturities.  The amounts shown for notes payable also approximate fair value because current interest rates and terms offered to the Company for similar debt are substantially the same.

Real Estate The acquired properties are initially evaluated for their condition of repair, location and refurbish costs for resale and or rental. If, at acquisition, a property needs to be renovated before it is ready for its intended use, we commence the necessary development activities. During this development period, we capitalize all direct and indirect costs incurred in renovating the property. Real estate under development in the accompanying consolidated balance sheets represents aggregate carrying amount of properties that are being prepared for their intended use. When the intended use has been determined:   Real Estate Held-for-Resale Real estate is carried at cost. All costs directly related to the improvement and carrying of real estate are capitalized, including renovations and property taxes, to the extent the capitalized costs of the property do not exceed the estimated fair value of the property. If the cost of the real estate exceeds the estimated fair value, the excess is charged to expense. Fair value is estimated based on comparable sales in the geographic area the real estate is located, and is evaluated annually, or when events or changes in circumstances indicate the carrying value of the real estate may not be recoverable.   Real Estate Held-for-Investment Real estate is carried at cost, net of accumulated depreciation of $42,334. Once a property is ready for rental use, expenditures for ordinary maintenance and repairs thereafter are expensed to operations as incurred, and we capitalize expenditures that improve or extend the life of a home. Building depreciation is computed on the straight-line basis over the estimated useful lives of the assets. The Company generally uses a 27.5-year estimated life with no salvage value.   Building depreciation was $19,405 and $22,929 in 2014 and 2013.

Cash and Cash Equivalents For purposes of the statements of cash flows, the Company defines cash equivalents as all highly liquid instruments purchased with a maturity of three months or less.

Concentration of Credit Risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist of cash and accounts receivable.  The Company places its cash with high quality financial institutions and, at times, may exceed the FDIC insurance limit.  The Company extends credit based on an evaluation of the customers financial condition, generally without collateral.  Exposure to losses on receivables is principally dependent on each customer's financial condition.  The Company monitors its exposure for credit losses and maintains allowances for anticipated losses.

Accounts Receivable The Company grants credit in the form of unsecured accounts receivable to its customers.  The estimate of the allowance for doubtful accounts, which is charged off to bad debt expense, is based on managements assessment of current economic conditions and historical collection experience with each customer. Specific customer receivables are considered past due when they are outstanding beyond their contractual terms and are charged off to the allowance for doubtful accounts when determined uncollectible.   For 2014 and 2013, bad debt expense was $20,213 and $58,596. As of December 31, 2014 and 2013, accounts receivable consists of the following:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Gross accounts receivable</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">22,934</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">38,876</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Less allowance for doubtful accounts</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,123</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,747</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,811</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35,129</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   Sales of Internet services, which are not automatically processed via credit card or bank account drafts, have been the Companys highest exposure to collection risk.  To help offset this exposure, the Company has added a late payment fee to encourage timely payments by customers. Another effort to improve customer collections was the implementation of a uniform manual invoice processing fee, which has also helped to accelerate the collections process. Accounts over ninety days past due are no longer included in accounts receivable and are turned over to a collection agency.

Property and Equipment Property and equipment are stated at cost.  Depreciation is computed using the declining balance method based on estimated useful lives from three to seven years for equipment and thirty nine years for buildings.  Expenditures for maintenance and repairs are charged to operations as incurred while renewals and betterments are capitalized. Gains and losses on disposals are included in the results of operations.

Impairment of Long-Lived Assets In accordance with GAAP, long-lived assets to be held and used are analyzed for impairment whenever events or changes in circumstances indicate that the related carrying amounts may not be recoverable.   The Company evaluates at each balance sheet date whether events and circumstances have occurred that indicate possible impairment.  If there are indications of impairment, the Company uses future undiscounted cash flows of the related asset or asset grouping over the remaining life in measuring whether the assets are recoverable.  In the event such cash flows are not expected to be sufficient to recover the recorded asset values, the assets are written down to their estimated fair value.  Long-lived assets to be disposed are reported at the lower of carrying amount or fair value of the asset less cost to sell.

Intangible Assets The Company continually monitors its intangible assets to determine whether any impairment has occurred.  In making such determination with respect to these assets, the Company evaluates the performance, on a discounted cash flow basis, of the intangible assets or group of assets. Should impairment be identified, a loss would be reported to the extent that the carrying value of the related intangible asset exceeds its fair value using the discounted cash flow method.      The Company's customer lists are being amortized over three years.  Amortization expense for the customer lists was $0 and $5,983 for 2014 and 2013. Customer lists are now fully-amortized. Non-competition agreements are amortized over the contract period, usually one-to-three years. Amortization expense for non-competition agreements was $0 and $528 for 2014 and 2013.  Non-competition agreements are now fully-amortized.

Goodwill Goodwill represents the excess of the purchase price over the fair value of the net tangible and intangible assets acquired in a business combination. Goodwill is not amortized, but is tested for impairment on an annual basis and more frequently if impairment indicators are present. Goodwill is considered impaired if the carrying value of the reporting unit exceeds its fair value. An impairment charge is recognized for the excess of the carrying value of goodwill over its implied fair value. The Company conducted its annual goodwill impairment test as of December 31, 2014 and 2013 and determined no impairment charge was necessary in 2014, however, at December 31, 2013, the Company determined that the carrying value of Goodwill exceeded its fair value and recorded a goodwill impairment charge of $122,065 in 2013.

Deferred Revenue Deferred revenue represents collections from customers in advance for services not yet performed and are recognized as revenue in the period service is provided.

Revenue Recognition In all cases, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured. The Companys arrangements generally do not include a provision for cancellation, termination, or refunds that would significantly impact revenue recognition.   Internet   The Company sells Internet services under annual and monthly contracts.  Under the annual contracts, the subscriber pays a one-time annual fee, which is recognized as revenue ratably over the life of the contract. Under the monthly contracts, the subscriber is billed monthly and revenue is recognized for the period to which the service relates.  Sales of computer hardware are recognized as revenue upon delivery and acceptance of the product by the customer. Sales are adjusted for any returns or allowances.   Real estate held-for-resale Revenue from real estate held for resale is recognized upon closing of the sale, as all conditions for full revenue recognition have been met at that time. All costs associated with the property sold are removed from the consolidated balance sheets and charged to cost of revenue at that time.   Revenue from real estate sales was $311,563 and $93,000 in 2014 and 2013.   Real estate held-for-investment Rental revenue from real estate held-for-investment attributable to residential leases is recorded when due from residents, which approximates the amount that would result from straight-lining rents over the lease term. The initial term of our residential leases is generally one year, with renewals upon consent of both parties on an annual or monthly basis.   Rental revenue was $119,588 and $63,192 in 2014 and 2013.

Advertising and Marketing Costs The Company expenses costs of advertising and marketing as they are incurred.  These expenses for the years ended December 31, 2014 and 2013 were approximately $9,000 and $15,000, respectively.

Income Taxes Deferred taxes are provided on the liability method, whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.  Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Income Per Share The basic income per common share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding.  Diluted income per common share is computed similar to basic income per common share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. The Company has no potentially dilutive securities.  The following table represents the calculations of basic and diluted income per share:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Net income available to common shareholders</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">384,183</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">96,243</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Weighted average number of common shares</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted income per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

Comprehensive Income As of and for the years ended December 31, 2014 and 2013, the Company had no items that represent other comprehensive income and therefore, has not included a schedule of comprehensive income in the consolidated financial statements.

Recently Issued Accounting Pronouncements   No new accounting pronouncement issued or effective during the fiscal year has had or is expected to have a material impact on the consolidated financial statements.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Gross accounts receivable</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">22,934</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">38,876</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Less allowance for doubtful accounts</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(1,123</td><td style="padding-bottom: 2.5pt; text-align: left">)</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: right">(3,747</td><td style="padding-bottom: 2.5pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">21,811</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">35,129</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: justify">Net income available to common shareholders</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">384,183</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">96,243</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 1pt">Weighted average number of common shares</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">74,085,705</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 2.5pt">Basic and diluted income per share</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">.00</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

42334

19405

22929

20213

58596

5983

528

122065

311563

93000

119588

63192

9000

15000

22934

38876

-1123

-3747

21811

35129

1123

2256

384183

96243

74085705

NOTE 2 - PROPERTY AND EQUIPMENT   The cost of property and equipment at December 31, 2014 and December 31, 2013 consisted of the following: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Land</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,366</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,366</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Automobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,500</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer equipment </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,164,061</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,164,061</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">59,862</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">59,862</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,458,789</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,458,789</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,312,475</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,312,475</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">146,314</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">146,314</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>  Depreciation expense was $0 and $2,643 for 2014 and 2013.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Land</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">10,000</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Building</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,366</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">213,366</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Automobile</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,500</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,500</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Computer equipment </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,164,061</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,164,061</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Furniture and fixtures </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">59,862</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">59,862</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,458,789</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">1,458,789</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less accumulated depreciation</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,312,475</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(1,312,475</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">146,314</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">146,314</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

2643

1458789

10000

213366

11500

1164061

59862

-1312475

NOTE 3 NOTES PAYABLE   This USA Telephone note payable is due and is currently in litigation. At December 31, 2013 and 2012, the balance consist of the following: <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2012</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-bottom: 2.5pt">Non-interest bearing amount due on acquisition of USA Telephone payable in thirty six monthly installments starting January 2008.</td><td style="width: 8%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">900,615</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 8%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">900,615</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table>   Litigation United Systems Access, Inc., et al. v. SiteStar Corporation, Civil Action, Docket No. CV-13-161, (York County Superior Court). This is a breach of contract claim, whereby Plaintiff has alleged that SiteStar has failed to pay the amounts owed on a Promissory Note. SiteStar has filed a counterclaim for damages associated with Plaintiffs failure to turnover certain customer lists. Plaintiff seeks monetary damages in the amount of $900,615. Litigation is currently in the discovery phase of litigation. The parties have exchanged documents but have not yet taken depositions. SiteStar is currently contesting the Litigation. A mediation hearing in the matter took place on April 25, 2014, as required by the Maine Rules of Civil Procedure, however, no ruling has yet been issued. The estimate of the upper limit of a potential loss is $900,615 which has been accrued. Management is vigorously defending this claim.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2012</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left; padding-bottom: 2.5pt">Non-interest bearing amount due on acquisition of USA Telephone payable in thirty six monthly installments starting January 2008.</td><td style="width: 8%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">900,615</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td><td style="width: 8%; padding-bottom: 2.5pt"> </td> <td style="width: 1%; border-bottom: Black 2.5pt double; text-align: left">$</td><td style="width: 12%; border-bottom: Black 2.5pt double; text-align: right">900,615</td><td style="width: 1%; padding-bottom: 2.5pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> </table>

900615

NOTE 4 NOTES PAYABLE - STOCKHOLDERS   Notes payable - stockholders at December 31, 2014 and 2013 consist of the following:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; font-weight: bold"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 72%; text-align: left; padding-bottom: 1pt">Note payable to stockholder. The note is payable on January 1, 2020  and bears interest at an annual rate of 10.0%.</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">  </td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">59,826</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,826</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,826</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   This note was paid during 2014.

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom; font-weight: bold"> <td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 72%; text-align: left; padding-bottom: 1pt">Note payable to stockholder. The note is payable on January 1, 2020  and bears interest at an annual rate of 10.0%.</td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">  </td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td> <td style="width: 1%; border-bottom: Black 1pt solid; text-align: left">$</td><td style="width: 10%; border-bottom: Black 1pt solid; text-align: right">59,826</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">59,826</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less current portion</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 2.5pt">Long-term portion</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">59,826</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

59826

NOTE 5 COMMITMENTS AND CONTINGENCIES   Leases   The Company leases certain facilities for its corporate offices and retail stores under non-cancelable operating leases. Total rent expense for the years ended December 31, 2014 and 2013 was $109,653 and $71,690, respectively.  Related party rent expense for each year is $54,000.  Future minimum lease payments under operating leases with initial or remaining terms of one year or more are as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3">Year ended December 31,</td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td style="width: 63%; text-align: left; vertical-align: top">2015</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 23%; text-align: right">55,200</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td style="text-align: left; vertical-align: top">2016</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: left; vertical-align: top">2017</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: left; vertical-align: top">Total</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,200</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td colspan="3">Year ended December 31,</td><td> </td> <td colspan="3"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 1%; text-align: left"> </td><td style="width: 63%; text-align: left; vertical-align: top">2015</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 23%; text-align: right">55,200</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left"> </td><td style="text-align: left; vertical-align: top">2016</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">0</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt; text-align: left; vertical-align: top">2017</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">0</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt; text-align: left; vertical-align: top">Total</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">55,200</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

109653

71690

48000

54000

55200

NOTE 6 STOCKHOLDERS' EQUITY   Classes of Shares The Company's Articles of Incorporation authorize 310,000,000 shares, consisting of 10,000,000 shares of preferred stock, which have a par value of $0.001 per share and 300,000,000 shares of common stock, which have a par value of $0.001.   Preferred Stock Preferred stock, any series, shall have the powers, preferences, rights, qualifications, limitations and restrictions as fixed by the Company's Board of Directors in its sole discretion.  As of December 31, 2014, the Company's Board of Directors has not issued any Preferred Stock.   Common Stock None

NOTE 7 INCOME TAXES   The provision for federal and state income taxes for the years ended December 31, 2014 and 2013 included the following:  <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Federal</td><td style="color: red"> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td><td style="color: red"> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>State</td><td style="color: red"> </td> <td style="color: red; text-align: left"> </td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td><td style="color: red"> </td> <td style="color: red; text-align: left"> </td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Federal</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">62,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">137,465</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">25,807</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="color: #FF6600; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; color: #FF6600; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; color: #FF6600; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total income tax provision</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,276</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">163,272</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>   Deferred tax assets and liabilities reflect the net effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes.  Significant components of the Company's deferred tax assets and liabilities at December 31, 2014 and 2013 are as follows:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accounts receivable</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,123</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,256</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Amortization of Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,359,505</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,494,267</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,360,628</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,422,247</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,276</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Current provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>Federal</td><td style="color: red"> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td><td style="color: red"> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>State</td><td style="color: red"> </td> <td style="color: red; text-align: left"> </td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td><td style="color: red"> </td> <td style="color: red; text-align: left"> </td><td style="text-align: right">  </td><td style="color: red; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Deferred provision:</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%">Federal</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">62,536</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left"> </td><td style="width: 12%; text-align: right">137,465</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td>State</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">11,740</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">25,807</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Valuation allowance</td><td style="color: #FF6600; padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; color: #FF6600; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; color: #FF6600; text-align: left"> </td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Total income tax provision</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,276</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">163,272</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2014</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">2013</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 56%; text-align: left">Accounts receivable</td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">1,123</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 12%; text-align: right">2,256</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Amortization of Intangible assets</td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,359,505</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right">2,494,267</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left; padding-bottom: 1pt">Less valuation allowance</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,360,628</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td> <td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(2,422,247</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left; padding-bottom: 2.5pt">Deferred tax asset</td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td> <td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">74,276</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr> </table>

62536

137465

11740

25807

2359505

2494267

-2360628

-2422247

74276

NOTE 8 RELATED PARTY TRANSACTIONS   The Company leases its office building in Lynchburg, Virginia from its Director and CEO on a five-year lease expiring April 30, 2017.  For the years ended December 31, 2014 and 2013, the Company paid $48,000 and $48,000 for rent on this office building. In addition, the Company rents a house used for storage of appliances and supplies which is located in Salem VA. This property is also leased from the same Company director and CEO at an annual rent of $6,000.

6000

NOTE 9 - SEGMENT INFORMATION   The Company has three business units with separate management and reporting infrastructures that offer different products and services.  The business units have been aggregated into three reportable segments: Corporate, Real estate and Internet.  The Corporate group is the holding company which oversees the operating of the Internet group and arranges financing. The real estate group invests in, refurbishes and markets real estate for resale.  The Internet group provides Internet access to customers throughout the U.S. and Canada. The Company evaluates the performance of its operating segments based on income from operations, before income taxes, accounting changes, non-recurring items, and interest income and expense.   Summarized financial information concerning the Company's reportable segments is shown in the following table for the years ended December 31, 2014 and 2013:   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="15" style="text-align: center">December 31, 2014</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Corporate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Real Estate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Internet</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Consolidated</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">461,251</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,922,445</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,383,696</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating income (loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(135,922</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,529</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">561,603</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">460,210</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,405</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,405</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,405</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Identifiable assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,400,463</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,905,709</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,306,172</td><td style="text-align: left"> </td></tr> </table>   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="15" style="text-align: center">December 31, 2013</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Corporate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Real Estate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Internet</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Consolidated</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">156,192</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,397,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,553,749</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating income (loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(115,490</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(37,603</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">415,401</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">262,308</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,929</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">130,691</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">153,620</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,848</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,848</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Identifiable assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,243,606</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,759,639</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,003,245</td><td style="text-align: left"> </td></tr> </table>

<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="15" style="text-align: center">December 31, 2014</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Corporate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Real Estate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Internet</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Consolidated</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">461,251</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">1,922,445</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,383,696</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating income (loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(135,922</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">34,529</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">561,603</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">460,210</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,405</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">19,405</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,405</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(2,405</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Identifiable assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,400,463</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,905,709</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,306,172</td><td style="text-align: left"> </td></tr> </table>   <table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"> <tr style="vertical-align: bottom"> <td> </td><td> </td> <td colspan="15" style="text-align: center">December 31, 2013</td></tr> <tr style="vertical-align: bottom"> <td> </td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Corporate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Real Estate</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Internet</td><td style="padding-bottom: 1pt"> </td> <td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Consolidated</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="width: 40%">Revenue</td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">156,192</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,397,557</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td> <td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,553,749</td><td style="width: 1%; text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Operating income (loss)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(115,490</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(37,603</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">415,401</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">262,308</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td style="text-align: left">Depreciation and amortization</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">22,929</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">130,691</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">153,620</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Interest expense</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,848</td><td style="text-align: left">)</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">(4,848</td><td style="text-align: left">)</td></tr> <tr style="vertical-align: bottom; background-color: rgb(204,238,255)"> <td>Goodwill</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,166,494</td><td style="text-align: left"> </td></tr> <tr style="vertical-align: bottom; background-color: White"> <td style="text-align: left">Identifiable assets</td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">  </td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">3,243,606</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">1,759,639</td><td style="text-align: left"> </td><td> </td> <td style="text-align: left">$</td><td style="text-align: right">5,003,245</td><td style="text-align: left"> </td></tr> </table>

461251

156192

1922445

2397557

2383696

2553749

-135922

-115490

34529

-37603

561603

415401

460210

262308

19405

22929

130691

19405

153620

1166494

3400463

3243606

1905709

1759639

5306172

5003245

17509

43452

EX-101.SCH 6 syte-20141231.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Balance Sheets link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Balance Sheets (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Statements of Operations link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Shareholders Equity link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Statements of Cash Flows link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - 2. PROPERTY AND EQUIPMENT link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - 3. NOTES PAYABLE link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - 4 NOTES PAYABLE - STOCKHOLDERS link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - 5. COMMITMENTS AND CONTINGENCIES link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - 6. STOCKHOLDERS' EQUITY link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - 7. INCOME TAXES link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - 8. RELATED PARTY TRANSACTIONS link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - 9. SEGMENT INFORMATION link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - 2. PROPERTY AND EQUIPMENT (Tables) link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - 3. NOTES PAYABLE (Tables) link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - 4 NOTES PAYABLE - STOCKHOLDERS (Tables) link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - 5. COMMITMENTS AND CONTINGENCIES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - 7. INCOME TAXES (Tables) link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - 9. SEGMENT INFORMATION (Tables) link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES - Income Per Share (Details) link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - 2. PROPERTY AND EQUIPMENT - Property and Equipment (Details) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - 2. PROPERTY AND EQUIPMENT (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - 3. NOTES PAYABLE - Notes Payable (Details) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - 3. NOTES PAYABLE (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - 4 NOTES PAYABLE - STOCKHOLDERS - Notes Payable - Stockholders (Details) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - 5. COMMITMENTS AND CONTINGENCIES - Commitments and Contingencies (Details) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - 5. COMMITMENTS AND CONTINGENCIES (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - 6. STOCKHOLDERS' EQUITY (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - 7. INCOME TAXES - Provision for Income Taxes (Details) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - 7. INCOME TAXES - Significant Components of Deferred Tax Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - 8. RELATED PARTY TRANSACTIONS (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - 9. SEGMENT INFORMATION - Segment Information (Details) link:presentationLink link:calculationLink link:definitionLink EX-101.CAL 7 syte-20141231_cal.xml XBRL CALCULATION FILE EX-101.DEF 8 syte-20141231_def.xml XBRL DEFINITION FILE EX-101.LAB 9 syte-20141231_lab.xml XBRL LABEL FILE Common Stock Equity Components [Axis] Additional Paid-In Capital Treasury Stock Accumulated Deficit Customer Lists Indefinite-lived Intangible Assets [Axis] Non Competition Agreements Land Property, Plant and Equipment, Type [Axis] Building Automobile Computer Equipment Furniture and Fixtures Deferred Income Tax Charge [Member] Tax Credit Carryforward [Axis] Related Party [Member] Related Party Transaction [Axis] Corporate [Member] Subsegments [Axis] Real Estate [Member] Internet [Member] Consolidated [Member] Document And Entity Information Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Statement of Financial Position [Abstract] ASSETS Real estate - held for resale Real estate - held for investment, net Cash and cash equivalents Accounts receivable, net Prepaid expenses Property and equipment, net Goodwill, net Deferred tax assets, net Other assets TOTAL ASSETS LIABILITIES AND STOCKHOLDERS EQUITY LIABILITIES Accounts payable Accrued expenses Deferred revenue Notes payable Notes payable - stockholder TOTAL LIABILITIES STOCKHOLDERS' EQUITY Preferred Stock, $0.001 par value, 10,000,000 shares authorized, 0 shares issued and outstanding Common Stock, $0.001 par value, 300,000,000 shares authorized and 91,326,463 shares issued in 2014 and 2013, and 74,085,705 shares outstanding in 2014 and 2013. Additional paid-in capital Treasury Stock, at cost, 17,240,758 common shares Accumulated deficit Total stockholders' equity TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY Preferred Stock Par Value Preferred Stock Shares Authorized Preferred Stock Shares Issued Preferred Stock Shares Outstanding Common Stock Par Value Common Stock Shares Authorized Common Stock Shares Issued Common Stock Shares Outstanding Common Shares Treasury Stock Income Statement [Abstract] REVENUE Internet Real estate Revenue COST OF REVENUE Internet Real estate Cost of Revenue GROSS PROFIT OPERATING EXPENSES Selling, general and administrative expenses Goodwill impairment TOTAL OPERATING EXPENSES INCOME (LOSS) FROM OPERATIONS OTHER INCOME (EXPENSES) Other income Interest expense TOTAL OTHER INCOME (EXPENSES) INCOME (LOSS) BEFORE INCOME TAXES INCOME TAX EXPENSE NET INCOME (LOSS) BASIC AND DILUTED INCOME PER SHARE WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED Statement [Table] Statement [Line Items] Beginning Balance, Shares Beginning Balance, Value Repurchase of shares Net income Ending Balance, Shares Ending Balance, Value Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation, amortization and impairment Allowance for doubtful accounts Inventory Obsolescence (Increase) decrease in accounts receivable (Increase) decrease in prepaid expenses (Increase) decrease in real estate held for resale (Increase) decrease in real estate held for investment Fair value adjustment to real estate held-for-resale (Increase) decrease in deferred income taxes (Increase) decrease in deferred taxes valuation allowance Increase (decrease) in accounts payable Increase (decrease) in accrued expenses Increase (decrease) in deferred revenue Net cash provided by (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Sale of assets held for resale Purchase of customer list Net cash provided by investing activities CASH FLOWS FROM FINANCING ACTIVITIES: Net proceeds from notes payable - stockholders Purchase of treasury stock Repayment of notes payable - stockholders Net cash (used in) financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS - BEGINNING OF YEAR CASH AND CASH EQUIVALENTS - END OF YEAR Supplemental Disclosures of Cash Flow Information Income Taxes Paid Interest Expense Paid Accounting Policies [Abstract] 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES Property, Plant and Equipment [Abstract] 2. PROPERTY AND EQUIPMENT Debt Disclosure [Abstract] 3. NOTES PAYABLE Payables and Accruals [Abstract] 4. NOTES PAYABLE - STOCKHOLDERS Commitments and Contingencies Disclosure [Abstract] 5. COMMITMENTS AND CONTINGENCIES Equity [Abstract] 6. STOCKHOLDERS' EQUITY Income Tax Disclosure [Abstract] 7. INCOME TAXES Related Party Transactions [Abstract] 8. RELATED PARTY TRANSACTIONS Segment Reporting [Abstract] 9. SEGMENT INFORMATION Organization and Lines of Business Principles of Consolidation Reclassifications Use of Estimates Fair Value of Financial Instruments Real Estate Cash and Cash Equivalents Concentration of Credit Risk Accounts Receivable Property and Equipment Impairment of Long-Lived Assets Intangible Assets Goodwill Deferred Revenue Revenue Recognition Advertising and Marketing Costs Income Taxes Income Per Share Comprehensive Income Recently Issued Accounting Pronouncements Accounts Receivable Income Per Share Property and Equipment Notes Payable Notes Payable - Stockholders Commitments and Contingencies Provision for Income Taxes Significant Components of Deferred Tax Assets Segment Information Gross accounts receivable Less allowance for doubtful accounts Net accounts receivable Net income available to common shareholders Weighted average number of common shares Basic and diluted income per share Accumulated Depreciation Building Depreciation Bad Debt Expense EX-101.PRE 10 syte-20141231_pre.xml XBRL PRESENTATION FILE ZIP 11 0000721748-15-000203-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0000721748-15-000203-xbrl.zip M4$L#!!0````(`(N#@4954H(`8T<``-V8`P`1`!P`R7*8B$)$PH0@.0MC6_?B\`4B0E2B(IRE;; M>W!Q<''Q_OBWYXFG/6+&"?4_'1DG^I&&?8>ZQ!]].OKUOM&[/^_W MC[2_??[/_]#@Y^-_-1K:%<&>>Z9=4*?1]X?T@W:-)OA,^XI]S%!`V0?M-^2% MX@F](AYFVCF=3#T<8'BA-)UI]HF-M$:C@-C?L.]2]NM=?RYV'`33L]/3IZ>G M$Y\^HB?*_N0G#BTF[IZ&S,%S6;IE&493N^\_7&J&_O/)\Q#@7Z``7IFZT?QO M\T*WQ3_&@ZF?&=TS6R^H)D!!R!,USQU=_:C//SX/F$?.Q+\:E(#/SYXY^724 MRMF3=4+9Z-34=>/T?W_Y=N^,\00UB,\#Y#OX*/[*(_Z?>=\9W6[W5+Z-DRZE M%,IC'=:I>#U`/)$L`*Y)OX0$WKK!_(-TXN:I>IE)2G*3ME12$B=U\4(ZCIV3 M$7T\A1>0WK`;NM&PC#@YP\.5D%NG\#9.2#BU3:.]+G\J1?Q!R!LCA*;S#X:( M#V3BZ(4`T\R"@3>,>ICG?B/?Y'SD4]\/)_FXW("=!K,I/H5$#4B%&7'B[^[_ M>+BBW4P6LB MZN^1=AJ+4NQUJ!_@YT`C[J>C*T8G<7GH1D#E[X;92/3//\-^0(+9_.G\.7'% MFR$!AR%1XHP5XH(_[_]\]!GJD:%W6UW+_GBZ^'&B[C177Z1M"M:C[C(*8#4+ MA`/XG&0GEI2\6_H,G%3RDV53XCR#%2 M_*96(T'5LKYK(T49V*F1K.^=2=8NF12Y-2OEUKY/@V7KD1!X' MZNP5=?8VF#(/=-D/NJ1:=?,%XL-#"[-_Y;[3:"[;>3J4^QZ5^T[[@P6BRY[K MD@",B+Q;1-R^?XZF)$#>N^+#6AL## M_O+AM4.0!X81#]GL_06B.3D_A!ME![D.]-D7^GPW`UT'RNQ'Y_]' MV;]&%'HH^_TH^]>...]P@(B/W4O$?.*/^+NB0G[F#W%GV;CS0*+](M%W$WT> MB//JQ'GE&/3`@'UBP&M$H@<&[!,#7F)1KOE=+I]\*4=99#%;R`,ZP>P;X<$; MJ2]]W\5#XI,`?R./V.W[8-$1&7BXQSD.^)?9+^B?E)U[B"^N8%BVQ2'V*KVP M]D"HO274=]4C=*3Q_G%-?='BX4#.\O5&#,NV\+U22VS&.EMODX//*NJS#A3[ M'BFV?UYL17?D&_+=M\&A6T;!,L'LUH/@M.>[HB3;K[ZR>'\K]]PR=8,3'DZM`)?D#/YV/$1F^%$R(_ MD#D2G"/&9D/*GA!SLTQ8;X!WYAT.;-A7-KS$F5]K9CCOL(<"[-XB<+!O@PSI M'#TPY'/DR%FD9'II.<^'6DR@MOS5E_9!V;4@;V M>!NE?Q\.(@%+9Q!E\GEH4\H?BWD@RJ$5*;1/"WF7/'C[3%G,Z,&GE-\7>J#* MP:L4Z0GW(3'S\1N945GBB8Q+LWD\>).2O=X#10Y>9(,7.:<^IQYQ1??O+=-D M.9\';U+2FQRH\HZ]2N@3Q9-?[R^6BGTB3W;!GZ.+F\X@32PL?I55(:2MD'\_ M1@SSE2HB(\A$E74`OML5>ESR"'Q;MJWX]EK<^R1N65NF6PD;+&+,DYI2>H%] M.B'^)K6;[;*H-T]P_#YCA3R#NIB<74I.W^$1X0%#?B!N7],B\MR)JZW674PE M;GV[?^C=:>RZEVJBEE8?KH56"DMK:X';UV1XLI#H\)JALCC6&G( M"$A+/@\9$X\)=Y#W!T:L;%X:Z8RLDK9,@-^QY_WLTR?_'NA-?>SV.0_!OQ=5 M>TW3!%@A;5GM;]0+??"],WFO(J^H;D%*#KV5'>[PE+*`^*-[>9EA86U_B-J_ M2=JR5HGF',P]HJQXE;J?($_<,3D7+V^;1/XL#2$C.J\BJ")7!+Z"9\4S>_5' MMA(L25JM3C"LG#+Q>YZZN:1EJ]Z&`X@6KCR*@HR:A8OD-.%8Y0O1MFHN=@@8 MEG\ZTL&?="VK9;73!DU)S:%/;E:Q'1BK M`)BF91BM9A4LYXB/>[XK_B<6BCTB3X:C:FD(&%+>8EK51E8+6CP[@55(66T( MBQC.,#IVJ_M:",TB".U.LZMOB;#G.#04R7SWF@:8WV$'PZ<##U_CRL[!-#J& MD0!;JV-K0$4*TVH:9K=5?9:MEI1$64U06PF!>H`:!TKU%RZCO; M,RV;)*(E#OJV:Z:>DMHYUJ4I6XXDH*-96Z;IEV M"0CF6QK"LBVC MF4&1+W\K((7,T5UL*XH!B1?&WN%'[(?;\L)L6W:ZJUG8[>M=LIOYFO8`L-0G,73D)9S\'=BRFEJG9H=/5NMVNTTF,/FW35 M@ZZ(I1I=NV,#P&W02:N.J>=BQM6IKE5M9>L=LV.EP"R+KJ:\4#/?ZG9:Z2Y% M7 MFHMU0TNNF[9AE5&>ZMY`3ZZ^B&9IQ&Z3HCJ`51KE*PLLF4'[._;<*\HN\"/V MJ#Q(00A`'A;+MXA+$*ML/M/L"@/FS=L5T%H[Y$+#PFW#M.VZ(*\\JV*+:2G# M;EE&9OICM8YM\13JK&Z!)QZ+>T#/\XF(G8PZE5=4J*-JF^V4DURO9&E6-8F. MM^JI+\3-BV*KJ"TTV%A.;78M'"B\N'EM M?]/JB%6DZ?ZF$EY&:&V6ZWTL/L*?DE59MJAD.;Z\):U8L?LZG9K6[QRW7/TKAZGU%Q< M51U++ZVZ=..E-YL%=P1G/,*93F6J M4_X%<>*`J[X@7A@LC)L47C*E-/;Y/-U[34#$_%`1E@I#JC@,5@:DE))11E#=)M&D9Z#^=& M%.H\>&$EH1$\!"0.(7WT(7B,>KJTNFGH:5^R26L].$O'4RW3TCO;X)0QV#7U M:6QX):+&J*MAM)OF0M"W4N'V\,J:L&%"'[TJO,WV_H*'E.'Y+0:87\`O/"!. M+31M=NQFJ>)?"6?'.2L_``J>H;G#G$&2J$R_0'>LIAZ[6&ZR!'I)TQ:`2K5,PI*:R_=R+1,>Y?*BZ^GW[CW;AOMI19\ M[Q1)@47*.]5?845MK1Q9?Q9V:6RE:D\L-Y[)W[H#LWY=02IVVZ"Y!J`;*_ZZ M!1"5@6Z:-R^S_ZAPMVG=-'K!B?S]`51FWU$M@'J.@ST1&6!7)KO#TY`Y8\3Q M+:,CAB8]]Y^A.I6HCN8MQ:T2FFL&7;95W%?0%7>G[45VUH_(?G?9V;*-W[\, MK2N?E\V0/&D7WCX2<23O%65WV`WEM40WPPL:#H)AZ,5'I-0R]P'QSI]_$:UU(2U?WZ$6 M-;?#"CTB<1ZA=!W.6YJYNZ M70?N_#,@UVNJ5G#C[;!OL%GC*0+4<\Q?J1 MB3AW^-_RSWJ6/&8F=]=HVQ)8^65]5LO42R&++D=9]"5+NT7O,$?U1`,-LVVT M.^TH="FLNC[`I9EI6"U=#%CO%G!R`G#-\[7U`"AOM:;1;5O%K9:HW]S$+EU[ M74^+M3PQL5EO;6#+KP%OVJ:U)5JQFTFY!\^C3\AWY+9[(#!F4!J[:ZE:1BN] M;K(*C%UEI4`Y;%Z8M:K;D'HNS@^O5UH+RM*V;-M6[@9ILX*-G:T2*B\TK)V M23GL]/..?HXAI-4D5O::M8Z:,L-FDLV.%2 M370='<4"\YI;`"AOK.[&[EZ.ZG5<7WD.[FZJUB9U-31J,8ED@!L/W-X,SRD8 M!KH5H#B[\7S'M6<;:`W1'0&Z&-93UPNB>;G92W;A5NK;!5'X%HFV71[2B M+ET1'^*SV@><%NU67'N]N+>S;774J3A?+&VI>TU,4285-,=UR2&[8"/G1:$^R10#^$.LXH-Z"F^10@]6CD!,?IQH.9AS\=31`;$;\1T.F9 MIG_0HC\'-`CH1#X1(AO((R/_3!-3@60X._IA%'RXOGFXU`RMH=WU=]_^O M]]"_N=9ZUQ?:??_K=?^J?]Z[?M!ZY^_.M?]Z_O!<0 M3J="C'RL_JD%U@]H,OWP%Z.E?]BA#I`2BE_2Y:DAW]6^B2+3Z%"+2T^""../ M=@/GGH"W#Q#3XKU+`LV/0\HFF'DS[?PCM71/NY^*@4U/NN`? M_][KW__TT['V(]2#^'*YGXXE@@$&JVDT64X.,C\E40R.&L1P)$Q`$+@(.*-JLY<(?VC5^1"X2TJXAL_+F6%M)/-$2 M6MP(9=Y,(C%;\GU72X'41"56(B'L[T'\XGBJ3/MS?<+``=4@SO%'6'[LBQLT M(4U:$*2(U-KMW$(ZB5]W%!T>4A^K#$IY62OSR,HS396:*W9ADD$H00TBVJ4S MW/=E'H]!%J/A:"QE(M'IX'+1I83]1+5XEY=BB=I1K45-'N/'F:RIG+O:$-P, ME)-`D@7B)#:8\P0'FC@W4AU-(E^G8:8SSZ/]W!**VE(E+FZ,,D##0(+Y]>3^ M1)+A'/FBX)](,-8F(1!P"@$6%P87>9L3[211=CD<8MG7TFZ<@`JF&,UCS=3U MC@;Q*P\1T`R@2TM-IV`#Y$DL40D/*&*ND.U"QPT$+)@G+M;6!P[5V$?H-#G)"-< M&V/D_BN$"@2MDJP>WV:^,QZ$;'2L_4:$;R'HY$7\\$MZY%L&7D&4ORSZ3!O[ M$J[X05:MB-W1&3QSGZH-5;PH*K$H8AFL2^5$7I"%HYH9+4A9\":"Z,(C/4$= M\F8-<,D@DXBSKR$(KX4UPESY*AV8HR@P@XP]C7L$7D!,G9?AL*[)^X==CS$ M.1E"PRIS^Q)T/8?N.0+7P!:5ITP]08*8X,8GBI:0'!A`F:9N()=H\H@M&TCJ M"Z[)7Z/C4-57("*)=$\TJ#;2^^6B\&DP;V]$A8`OP<=G7;LB#(#BJ=.)$X^I M87E0\5OA"O0^1>XOX=4$S/TB5($H0E1.YHK:KAJGZ#0(\"-B%>%4>+BD>Z*E M//&/7WN]VRCX$R4X%>N,HC!*>3G(4"Z'&)9CHYEF%,@T07]BT4ZJ[$L7`\0) M)U-%FV",($J437S$&''+L6AU)XEW`<5(#>V*S[W4RB"DOA(^.W;"N>"D?UH6 M+[YA\8E:(@V.=YVZ(1.6@6\D`C:_?%E5BA/M1O0B((`=4?%T(#J%Q^FL0X`K M)M2$KP?]60/\,W1'$M=QTA"`*BHKEKRD15@N`B;J&AWY,OY3Y8+42J4YV.,X MSR`EJ6;'4I4C-[&-L.\0')LO(*.H,O^2X(4"2X)FR00$:#.`!UHGMCM4=YVO%J1LVQ M"E\&`%T"E08"2R1=H@RB5>8XA5`0\Q.)H^<$(3`N!CI!,X@W@=5,?:&J36)8 ME5N50G:34C4B*C6URXI+AZM-*`\@2@86"(5(YGT;#*E*,*\=> M!J)J!U&5]:`.@BR.HY@D,HDO1ESCC&P,^MY*0W2%"--^B\E_-<]IWX>N8*CB MVQ=HFZZ@FL;4R/+QKWP%5U).4G4RH1=UG,3>;+Z4./5PJ@;4Y9.,KY3"W6B& M(W:QQUD7$8=/DN3/DOO@RL!\"<'=$$<,@L=\#&T#V""`-D,`7NPJQ_(@W9,O M'96B8`120QZG*Y2!EW10*%9:1#$9B88N%<7G7AH>3H1_',H>9,3MN#LB-'(( MPCWH;;IXH-R;Z(Z`CPV(C`I$^9VJ%GFQX MQ5\0H7LG6G]X+(*BU)C1L1K`D)N-D#@)[/9\^I>95265!#(2%B!P M1>QLVQBILK(RL_)W1D\$SCU5M?/[8XX."93'G&Y\N@CF#"ZLL0&$:!K/*#2G M4[KU29P"_R4)SMH89R,Q#"\-LYP:%U*7@C>KW^&J%'\CKR+V_^)0`+J$OX;; MTJ'XA>_>Y[,4R%,B-B%TM72CI\8WQ3\CKEME:7$5E-K_W/GI!:1!)X^,D:`1 MEA" MF"&O8VWOQY7TW`!EC]#O%?_0/,NH+WY=&C0K$OR"2)#RV87G,'WR!,[CA*>= M$C3^=J6%2II^0B3DD]Y"]'UJ#&G$.U(Z)_O@134+I$GB3]'9F;G94THD(9*M M0*W=4_8:JR:'9!ZI=J9B8HZ10E/>([`-,N8>!68*+*?D=E1`4$,QL)O0FOE3""2?OC"$CMF%1!H?^`)W'/K$9MB MP6:.X'*OQ,E9*O3^N=DTT,^*YF8V@15D>%98(._]#UW'['2ZZ%A`>G1_>-(PYSH%,0Z\:C+'@%W,)$-P%@(& M4<)\7G;+F2$](("9G$!6?[P)]P6]MXC$"Y-'Y9^#RHI&(`=BAD MR71&/1DBSFW8L12[NIT$<-L)*Y\\TWF!`KB8+`)8ZHFEDH@;$MQVEEKP0^H" M6Y`=8#C]4_?DA8%2G!V"VB&=1DA&KXG)!OTD: M(\RJAF4_L'(0!-Q*^8'H<28:@0/HR_AD>B19H'-.`JB)*'K@IXNK<_S^(J;+"4.#\S(P^#V2R*V1=L9O M2W*]"ZU*<6RFV0=*-"F#,K6T3>4JP*VABWB$Z3)S_%"%YO([,"K<<8CR($J( M9T,%@<+EFF"4#0,H]$H0KFBZH2T(0'IPJ!*NOR6KP"G;/O"C3]YS\LE+2/"> M%P@1$`'""0RZ].$_$@6B@H>^CDX>!`XO2_[,L8CRM"%$UDY@5]Z>5*L`0IZG M-"KL!`JD`E$N0+L")4J0[0H.1,(B-I.46R0&J9FDBHT\6CK9L>A0D3*W%".* MX1--)N3O\<;D^TOC-B&JD/"]U.C)8E=J9``UJ20A(Q.EB?!"@DT11E/>A%$$ M*DC(9/$AXBCN>#>4,!'=/L@4N72A4YZ/-L$7BH]4+C/$=+($LYO0P>:!;$,/ M[+-PE[S0-R)EGM(]>XFX#LI];"`J>82&.TI)(`J/5P%1%;#,U\T<,7#.' M;V6AAI+3^\R4=J3!P%5&QS(=NY-F?WQPSTQWT#LUAG0?7<#Q45I?QS:+[UO% M".+*2I6B281G@`DR6U1$?)+3\/NIZX<5,3SGX+(@F'ECI#7,+Z;?DYDWDK\+ MT.[!)&/Q"=TNLX1]-.1/_P!.&,\?$6SK1[BE*F[AAPP>!"66ZU#M!G"=/%!^ MSMFW,;.9GABOV*3XD/XL7RCVEA*,/9NOPH]X-+\$;A)P$?[[#YT4$P'\8 M`CERB5]`Z_@3%S+("TO+(>$<`(R=`HP_S^-:!P7KP'L?8N"*,1)+%'\TXH?[ MGQRK:SJ=,]-QW;^O.DSY5D%+;N_'/%\';,)10H-55O%=*7+%*\]^K([2_)-V M&2P?UJUI.X5'8_0"<%R#:=HIIXAU2U<@_';N&VC@K-]K?M]-$"KEK+]&G460 M_F$4.=`N;?WR/Z.F:_V]\*^G8MZNL>4HM.N%P`;GRPCFV>V78C!_L>T==Q0:P, MMHN^(H/\3`KTH5I'MUY:8"12Z),TA3Z?TN8MX%T>28#@!:,Y&)$4GH`GWY,> M@Q%5I\0@%<(_Y0UGC&-O@L9\EME=DK>'#CF6S#/W$/D&4\,;O8$YCT)D/+)@ MAJ9NPJ1CT<^\2_G"(4PY``J@"AATCAFB:-F8,%H(#/IH@=-VR->'FQ1%S<;] MB^K1&(8\D8]-)I@GA2X/$2R27Q+A'PEW0@8FI4'(,IS4S^=AE2?Y5\`X6I#S M\2G"ZB>!833^`3YY&K0'3*_"??,PL)>V417!YG19`D.\Y]1(G4L429/X'?M9&$(4/+);YDI26LLK$%4X'8[Z(T6G`0UD`CP("MZ8Q6["'/,.<)R--V?PQ4G(52@*A(NTXYJR:8)J!@;%.<@ES)V`&*7G* M?,H/PU!K^CWC7D0,DX)7/!]W+@LWD]LNR[]8'5XF6(!9`TI(8\_`K?22>S9' M_QH/;^536$Z-?W(_=SA6W/)C/P$I1H]3UEW&C*65*`?NJDMI/QOLA?O[#.+H MY+./:?9#BH/O@@E6U9P,AU]-$HXG`4'#H_(B^_`1Y[?C"2[DK8C'YH5>\/*7 MR)#SLVVAQY6AP*R7+^/)HA*>=[&4X9OER?!\VJ/)E`80C)6JVR>\.P3P9SCM&X, M"#9[PDRSVR3PE*LQ6:"PP31./Z%[E9J+OBK13H7V M0BV`R!21+F0\1JOR.GCD&,B`<_FHSLH"`Z,R-3WC-%PE6=W`]R@B%E5ER=L%^A9U543< M\CTB>0@%/=RM,ZK?BT2A$U]UF9DS241YG]C,(IZB:#'Q`O>,5>PM2^L$867[ MD_0+]$H/+.YKQ+1]K_A&\J_69V! MY+:K;E*-WXM2HM*U5V_8.5NQW>Q+ZS:S"@%'(M7EG-Q="'.YEEI5HF2NR]1X MV6UD%J./(Z9_7TWEJ%D]S%RF["`B\`:@5*\3A2T#EOJKT274P$B:CP$<> M$"7]@S^)/TS2W+@RV2RKMK$UV))$EMK1,%2AX18K3[NFPFMICBP?CUQ5$>WP MEP<)-AT77`75++";8[]1$4?(X&]]#4*;(AX-)Y7)5BDF1C(T*+,,.(SU+?@ABJPH-<\>! M5'Q7[EZ`CV%QJ>&R<^CX5EO*2=$59J\[[C8C7&)17R;LX'LOYRG[6 MW[*6#C6.>(-$I]0W@R5E'O6*2)&>$W!1B-FPLOR07S?85<'_+K6P.%/]J;(: M3@MTE@0;\Y/NEJ%I/ M&).)MFG'B!?JF4"FBB))%\T?1`%&:##G[Y]>T;8IX*OV68+G%/6^+$6-T#JN>R,`` M82$?4()E>8F0R6=.]MZ6KP56D1FL\H-L+;5V(LD%P86<[^$=QU694F M6ZK2?)15FO$.ZZWY45),+"X'2VVKD.,%@@4)P1@%42)JK'G+#.HQPJNOE%QX M?!$:R:LN`;5?&S"_)SU,/A9(9J7?<+U%&!L4)5NI:IW6A291('6J:?0D&WPN M];0I-#&@VS:+R05TU3,'%=DSP*$0*N\AZTGG=T42DFXBQ?>$C#>TBS)[$I>N)&M MQ;^YD/7BX-T:$.!15C\>1^?-J@;+T`L0L31FA2Y+&)*$:R?54T0R&/J%8 M]"(N@3G36",1DC>EMUU$R;E``EX7<5_`.!<3V(K9YT'QS!F#<7IQRY)?YL!) MND`[O(C9'ICNV1GGYE['M`?.T58Q#\>47TJ7$>[MBQ?_RH[R:0\&C7O8J0>)VL8('RYWW,A>#K*=&S=E M>(`+I2XS9_EDF;Q7ZF^@`?J.(!'QE9-716/H'7G2F]:]$,+A^>1)F5>O(>`[SI%SGI`_]/1OW@X.9` M/PE=?0F2$[G2\7DR5J0&O.KHR&^;MI^1.5MJWMO2,REC%D\L9S.1!YYZQ7(S M+LL`HL/VGCD">5L\07FR-2P+P0:EK)0CX?)=<'91I'P%<7O[B+'0'=TOJ*J, M:'K$E.Q^:CT')YL\TLV1Y4SR`#_R)L@=O&'0L2*>\YX\/Y#EUO(%2O-I:;,_ M,]3FD%>!&>&"+ACN,4B73=1*XQQ=^T$*2@60TYZ,5)[]VCXQ9C)3,A%` M6XS(+QF1$\47HPS)HA..S=1>S/:`V?QB,$5^.XIZF]FF:C6U+UP(-+A^\Q$Q3$8)HUP[#/E%@VKJ>6O!55Z>.[5Z MV,BL@T*@=>0%HT60):'Q$Z`;A!^C>AH$\/I*Y"T*C@,O.UY5"_@*`MI=[JM+ MDC\.=[5+F-_<&G%K';AK&!TZ+65U]\@IF)&/+*3$ M)^X6V84SA'?50F&YSA=.BQ8Z;N7+NGDZ*$X6Y:9_:AF+B2NCW!ZEALX]DS&- M"C"%@9[F46'*9C)Z9.-%@-XVD;"RXC7"&?ENQJY@9T+*"KOBOI'V8#MX`>$NP@2*V9DH%,NTNJD]@V6#HK0Y]+DZ87OV"%2NE;]CQV.B4B/7L9#T[6<]. MUK.3CV!V%_TH4I2R'J6L1RD?_BCE[/+)WRW% MFP=']='0XIM).C='F5C,59M]74AZI+(>J5QKI')&]97H>EE3]P(^]K`EQJ:> MLJRG+.LIRWK*\KQ08:BG+.LIRWK*\F'&;RMSLIZRK*#(;$HS3C?F@8_QI;R2@ M9R_KV&T9JQ:Y^G/DAT/P6].D!S7I`LQ[0W/H!S9DC;R/O7-'%)P<*?PV\<`ZO2*<9 MMR20HTXJRG..LI MSH4ISHK\7R>[B\)>SGD%;;[XK/S3?H6^'O*LASSK(<\'/N0Y$U"5Y.58$CDX;D\"2L^`7CL#6LV,7W.*ZX^])7XB/1I:CX;6/7@K5:;IT=!Z M-+3TQ>G1T(=#YRD#Z]'0>C3T/@E1CX;6HZ'U:&@]&KI2Z?4:>[%H8"J#F6D2 MJOSHC."67/^R\%1'(MQYWUO"9WHV=%Z=K2>'5UA=K0:(UO-PD56 MO_1BU`62KRRF&A\1YXP?*J*D(]VGF+,+:UF%F/=C[J M$F<]VED/)B[?M![MK$<[Z]'.>K3S@>&NO/@YL^_7V.W+;1>5L;? MUQ.,=S[!6&WT5XTXBD0%UILR638W.+A5Q*7''1_2N..Z5%6DREO!+S<368M/ MI>]4!#\,QY_D**VL_'TS`CUP#XGV@KPC+XANZ78D_@[=TDVW=-,MW71+-]W2 M3;=T:Q!]^VWIENG^;]#=R\V`HJN$_(#P-A$^OWNW)H`.DFKS0`=)C]]HT$%2 M'>+30=+V8%`'20]#*]9!TA;CKIXY4>::MZI&PS"YF2B&`C6` MH3_\>GOQ`S9T]:=>D*!E\!]=I]/IKIJH6++.*X"%XY)GSD5#E"&EZ]],Y"1( MM*>NLCG"R:9[L`==RUVYAS>#M.OM=BILUW$&SF`WVQU*[^>G*$8+&+[^&=.N M/T=)\HUW@'R!MWFPV'UA0Z\8KJ]NSG+LCE(U5`N`YL'O*.!7.1OWS!WT&@-? MZ8QV,RFV\:F([3_$V_Z0+=\^8W>1+Y14\.I6+&4;KP+R=K!78'ECL-W!66=W MD*]"..]C\,33`(W(0$[MNWV%!)>6F0C*.JB9]"Q+*L&$+RXF&?N`.&(!N?A M0Q,8L>V!>W:FWGBKUWH+3'7QT^O8`Z<^2&EY,=[5647LI6AYV0"R!KES>WV] MMT-7F^O<-X`G'?*9ZYWG$FRH-H(>I:J^)6]_`Q!5$-(Y.^OWZ@.AZ!47(B:] M_.BFB#FQ;:=$!RM?K#D0JZ#MI-/O]M\,XM(WT/.\*3799[;]VD'"NS<&H!(E MN;9J%C0+0%&9E.7&:8WO.37(J:(;%(AK&WAJ`DS'<5_ERQ5@PD=\(53OAS)R M<1>=DS/X5BF_Y2ZN)I2%LZZMZKLU0=C"#FHK&CVGV]P&I$M^R#WRU^20OYF0 MPR6YR>I[-SP`_AYU!U?7GW[XCW[7.G/[J@^B%AR-;^+U,]C-)DIGV.Q_#/OU MS=VEX1@GQM=O-U\OO]W];@RO+XS+__[UZNN7R^L[FQG'!-D\8KCK@^\*P$G7EPU)D'/+L36\4<5A#=MJCWTKM+ M'MC6OK>:/$"13.%F7P*]+G8W/<^R3,6.V>F5IW#77>V8=K,KJ80?#7'2:G3O MKRA]V"]*L<7G*PQW6/31Z&;V4J1`WSV7#9@S/:YMB#;M7M>T>N4YT`=&.`WO MIWTY-U(9_+2(0QJFRLN0_>]\L.IVE,I69EVY`_.LY]39L,Y9VR7VMJZJM5@* M==TSLW]67AIQ:%*UV?VT5ZKR^L$L(<<8*QDY[T@Z_&2;'=LQN_TF,EJKEPQJ MQ&V]6+!VYOS[KA"TNSTXT.J^.IW0NP?\E2?U;B\:D$ODE>-/^7Q3WIG?,7O= M57-<"AP%T&&#EDSH,H,,`A^0X/Z[=Z##`@PX# MZ#!`&]SFQ[:?]CJL=!A`AP':C3T=!M!A@$.3JCH,H,,`[46<#@,\N+_O72CAT;EO\HI92O->E8MVS=FAVGIY;LO+9R*8K>5+EI@^X`JD.% MDUA9/5D?J$JEK;L&JEB3AZ[L*O5W5JX$=T>H:SF415Q*EVV50D&[T^GU]H?0 M%H-:Q&KFZ:Q6*.KNDU!;#>Q2"^7;P%_'"^[#Q]';BSCFHZ?\T,`A\`]TXJ<$ MT'"^HMY79!UU%)[X MN%$&''#//)I1YE$S1>(U,*N]$%!)^C*E)U7]YX<*+7X`5K;/3TK--4W5>`W_##)[F?3YJDL_&_I^! M99D]N]P9JNR@85>:1O;6D?U^(WPU'VQ_B*_Q#>TC-7N+JF(@9H-^3I4R6FS+ MPS]_!3."C8W;EX3&Q(*AP!+0FJ["T:EIL+GA!:?&TZEQ"]^ZA:O(.(_B6103 M>'P`[;G_Y`?P''UB7(#V#T]=1Z?&^6\G:*WT0(_\Z?A?OQQ;A=@&WA M1_BJ13S_^ZE!"BS\SS/N8^:-'OG`A'`>X^#.4>#Y4]-XQH&T]R\&6"1P\?J3 M"8X`I?7AIF0/./L3!]RF8.*`T(GG!WPH*-RWI*7R*SHQHF?L7@.7-$Y;G?I) M$L'%BG-]3@MOH!=X!C7[8C'!P@>_>5/O@0D`X'&TI^";S_[\,0-14$VW]P\. M"V;2`#!@;(?8Z1=TI7@.7S5&HJ4MJ./)/#E5]I@P]F>">@&;X]4O5I6C=?EN M"`;`V`3I$$[0LL M/^.>'_P7P"@SOBT"1M.5.$%#CH$B`"4FSDN.%P&NBN>/N[IG+!3C M:3ER$'(<+RM,'UI\,9O1^4U]LH@\8P;$!&?H!4:`+AG8OCP?(&4?:!Q?3Z_V M1J.8WOW%"^%TQ31M$(UL;?(=IH5T=!O:;&)G=?6FJ"IE MJNDWEK#X:>,>VL!$P$,9D$LO7EHY"A_N6#RE::-B`XTMON+=FZY?J:?O!NL7 MSV[IX.`T;T#]CI6/,MWWG-L:>PU(=8U?+ZX_'9[V#$G M.KE4ISF!]V6-F-5^LD:NEZS:/E::K=6"1[O`R@%9*_R])\_4D!D_#,95D]/U M--WC+V;O%XNF7Z](N%:CQ?-(96;N\:!PLI_Q.]@WTC0A]G:L#-7$Z&@?H9M* MF$L@$#PPCT)X)#!BX3JQK5/KQ[56C;-"J]PDA7^=FKTNFW^]CFW5?/62EN3: MZHXJFR*K].XW%:*](\QCA9I37B/>+(;?O5U3E\`/R]990TM'5;XF7/G&#%/& MWE75VH:DK"N%6XK5=R^4CT<`;]W9M&TA7.Y01H?)"2C3T]H2]^"K^QH2#;IH MLI:VLI_6B56=)=+OL^3PX=;Z9EZP]3G69`9C&\:9YX^-\8)"@.B96!F,;]:! M61[#QZ#_59C,8YZ:NW[:B>,VO>E?5_:]W4XF->^+^W[TKXO[?LZ!"^- MQJKV?;7:571T&]*^KQ8X:;3OZPA]7ZL2%OO%3G//"2 MQ)_X;"P\1S5R!;\G_L?0#T!$Q`OV@_%SPZN69`ANONIU%(YVN,G7EZN2_^@. M@-ZR=$'<-P?`YP`(FR<)1S&NXUW=$USF^^?+FZ^W)Y?7=K M#*\OX/?KNZOK?UY>GU]='GB^([Z%%V7&/*5G'&$I968$/I"/C0&[QFGJ:0$PG(Z M*8U%LJV!V7-YJY(/?=OL#2P3WIS,V&CN/['@Y=3(T"E8CHH<7Y;7IPI4!("* M]MPN#AE1'_^TP&Y)!,W4#_WI8LIWA!Y"7K_#]U_<,"\.A2>H*A`6BMD4$$UE M?:#=4%TB%@K1TO#G:82-U_&_1"3()CH]=O-B/M79C7_^'=&QA(Y150HVJ5K.@JNU;=M>JN57>MNK=$W&C57:ONVPR);JH8+_4QP>^`BOX-'O6"2^'H;V#6 MDFT->JXR]FCE0AM#4W<$4]_N#:QM`;,"-7_PII5_*/'+EPH#)+IGN3$^6\?9 M#L"\_?WN\J/Z?OQ6@W3F=@F6UY99"A:K[)%C),E#%PM6/T\@#Y;KJ"BJL^1& MX%Z%=\_1[Q07W!#BNM!F*VX*\&/,V*Y!3M?<".A=4L.24T3I(80#1^8OF"C1 MDNR&7JYYT]^,R__^]>KN]\PS=(C1?WP+)3%0&@_OC'O[Z,6[R6]0<@_^EAA# MU.I$=]ZK<)0UF3:\Q?PQBOV_F$@`L#`@C_\9"<%JRHY2&$FGVIK"%_##6)\8-NOU8N/)"Q94F_/!.K4LV\!^OO0\)15TK/2M!$;VYE$T MG0*4%5][V@J*>7.=Y4HJ^IKBF#AY%S3TM7BLF,B2`.BX!3BC(.!G(=LTSZ)G M$"ZF(`<6CO![I`7#O_^[@!4F8%M0[VJ3=W/FOX@DEV0>^R/Q`38'_YXUF,XH M^9?(B\=XXA=^S$;SB(K!#'_.FX6#5<@[<,>,-[S.CFU(]+34.TONM;YQ=7U^ M\^72N!O^SZ$GZ5'G^CAZ\A.\-S"7:\+@@+R`V#>98]::3_BG1>?>=Y[<5IIR MMJ)[(3P?+,8T;B#7M_#8TZ=VX:G3)=-[KGRC[TJ[,.6DCRWSW>OBG;T7=GWB MCMMSCV6CA3`;VYJ[A=[?U70DM_.@6[_!MH+Z)DV_)>6A\["$: MMA*D"VF"Z:OT8#>TO_$T/U2Y:--Q)(WGT=3(XBEVW,F.H^>8;J=2CY$WPM!6 M!-B=OMGM;2&7:NLJWNJK=K_<;=MFO]M4ZLZ^-^.XYIE5GD#3;C&UG)=19E7_ MY@4+X4&/N?<]TT\IH./ADIS[(N/Z6^S\<,?KL7@?P5YSC>%1U M'DVOD5J"R'$8:Y_SD&*0M7X%TW82L-&<`@LAFQML,L%?HPD/5K`I1L1Q"+`_ MD;%+XY[-GW&&+#XS\N+X11E*B6-H5Z]$D1$_A*O8IP)\ZJL##\X6\2Q*1$F_ M')6\2-B8(,"G5+DAOJQ&,&]AXQ1!I;0B`#BD>G@QY2D+88XKH&/5$"F"(PW% MZ-IX'=QI,8S[#NZ\-NB6GI,-JD$"C)C_1/)U]V9VM>&E)3>1:3OE,X];[5UX MR[8=./LM.%7VYR@=3O$&^LN3DY.OPKD7/O@H4_GMT#;3W>RX`].UROTZ!^:* M,+L#$"J]X_=&4`?7IQHNB>,SAG\"ZNU99L\Y:\#P_?O[0ES7`=G;;:+JK8BX MUCD*EDV6]V/A-N0OTHZ#W?M=VM(?XK4\S_)N$.>IT7PS2=\@BGQ^82&;^//W MVP9"6ZE':*7J%,3CW)!.03S(O*_#W+I.06S7>6A\M,"XTRF(1[(AG8*XUD&O M4Q!U"J).0=0IB#H%4:<@MC-XH%,0=0JB3D%L"GU[3D%07 M+UBBH>:/[L0!\PNLKVQ?E:!J;"L-GM")`P81V$-OW,H2!/30S?R1Q?QTUX_4 MV'`W556=32!K$,_]+NC-R_?<.JB*NU&GG-S%7IAXO.EZ2UIFGQG?+C\/[RXO MC*_#;W>_&W??AM>WP_.[JYOK(VB@+;HT@`F#LSNP;[T1328^\.C]P@_0\,%V M]I]?PM'C_2)^,(W??'R][_$F$7`$](QL3D]]'/S8^=,]H(`1^3?Z,_2R( M)R+LG^$O;?/4N`*0P=1#VLLUX:?'$MC.8[2`36"'#'I;`OOU'GAS<>R^,9N! M8D!].JC_^`)_AU_XC`A8$`@8Z1SQ>>L%;&K\-CPU[A"461S-&%`_?@N8*^+H M@E40O0A)XDTS<,9%7'MST2D#/@D7U..#-P3YT,.M*\,`,F:MP71+TF?![B+E M>=AD!4FXV62F7FXP4_G*2]%5]H!S9[[)9B:TR!4!1AH-L@] M8R%GEX>'F#T(CIQ'`FP.!L7-$TY#R4?8'9]/PTSC&P/^8GRX`"Y]A;'7D,V+ M2Z>/&.@,G2%G(R/C#`G. MT?Y(9&\?%&&X)[/WD48@J.^4\FAI6H3W)QF8"< M*NZL``IE\XSA;>GGWFB$.`>4\.C7T]M3+KZ`",8>!_Q< MP0GCP1"!#L`&P#,EU1$00I=4BB%Y3,8]R4P0[R+7B*2G^!Y->+EG\!:FI")A MKH+'P\UT*&30)?Q2":/P!.0LB!>BR3F;XI=#(A:&LV'D>_`SQNWC(QB[LITW MWRZF\&7_+[S3TDY4P.=XJ-)D&P'U(*KSO:,R?A320QPV\%/R&#WC8>=G>O-^5C=3:H!)/#E2&T9SFTL?:QD^NCT;#MY^?QNWS8'CF-WN%FJVVKYUQ^R<= MX*C2!F]2TT18"#\%49(LIR35/8A&BO5_LCLNTENEQU[)I]H+\)VNZ3J#>J!O M.[NQ[AY<$',]JSP]^"`VT>U9IF,W51>Y[[Q,H>S/P-SW10(F[XB,0OG_L3WMET^=\QL M7=M@!GEOF=W>@9N;MCFP7+-O';KI;W:LGFF_TLB@J:*2D@ACU6B=##[N+IRY MO3!T]4!IH&.D@AK?$"-]:WL!'2/5,5(=(]4Q4ATC7:D(N:`_#,KUAZ/=N&-V M!GW3= M`G(05I[3`V%EE7[8YF]P8&SM@T7<<]I4]J#CH+J M^,I^U(RN>=:M>@!97X0 MV[#-OCLP>YT#MP1FG!T`(4T*%WLN8O+&C_284[-I2V)#Q[)-G28\Z#9 M6A=['O(V=+&G+O8\]ABI+O;4,5(=(]4Q4ATCU<6>S08*=;%GXUO7,=*2&*DN M]MP+[+K84\=&M1=GF:)TL6=+-J&+/34+Z_@*J1FZV',7US)^I*.@FDM;$CX\ MDFWH*.A!L[4N]CSD;>RNV%,IR=RLOG*I3-,+6"(\Z==L7K'\\@_Q^!]I9&CU ME.OOB?\Q]`/8?[Q@/Q@_;[!Z1UF]L_/57]L[!IMXK*G"B.]NSW9<6SF^_-H- M(Z86:+;;LP=.DZ"MPIJ8C"[#7E7@&CA.M^MN&V?U`7,Z@[[K]G>$,34`5PFX MLTYOT-L1UNH"Y[J=?G=0&;C4IWY%+O7/49(T+*%RX)W8'1>(+@-OQ?H;@O@& M,58`T7:[`VL;(#8FZSI=UQGL&HFU(#SI]'M69U=(K"]A0")O";YF)&`7B-"R M=XR_FK*FV[,<>RN,TJ`\[#D=ZZP6C.=1,K^9H`,EN8V"L1K'&(;CH1+%V+$N M]S;`MJCF;0]C]=2L0==2E)GJ4.T.T;7VXS@#5ST*\.T=20?[&8:E#7MV%"#LF:+&TI53_[< MWF5,!7AV*EO>B)^:!K1E=7N=U\ZY`,[6\5D/?J?;Z5F]7WO=YCH8N.B?_[>?::S<*]&9(^[>?O]_'@?\1_Q]^_?]02P,$%`````@` MBX.!1F5(&#HO"@``RV<``!4`'`!S>71E+3(P,30Q,C,Q7V-A;"YX;6Q55`D` M`^54'%7E5!Q5=7@+``$$)0X```0Y`0``S5UM<^(X$OY^5?P'`X9D M9I*=W!9+2-:U"7#`;.WSYD!J/N?KH? M2=V2',V7GU\W-GA&U,7$N6GI[6X+(,="QH$P?= MM!S2^OG??_\;8'^^_$/3P!U&MG4-;HFI&H3^!WZ&] MXT_(';81!4.RV=K(0^R+O>%K<-&^@$#3%-3^CAR+T*\SXUWMVO.VUYW.R\M+ MVR'/\(70[V[;)&KJYF1'3?2NJ]OOZ_HEF!N+$="[O[5?EPS^+?385[VN?OG/ MWFWW@O_0%[WNM7YU?=%5-.-!;^<>S+Q^[N[_[,6_V-CY?LU_/$$7`<:)XUZ_ MNOBF%7'NI=\F=-7I=;MZYX_'A[FY1ANH88=S8Z)6*,6UI,GI5U=7'?_;L&FB MY>L3M4,;_4X(YUTS^Q;GM(\@M-PWCQO3+_3>WM0/*K+>VY8-$1?S'MX"G8+H?H$VC^!\C9#G MRN"D-B[1_A12YNP:>=B$=B$PJ9*G(>,#"/'@NY/E9,LG%A9T:8CRI4Y$M&9> MKHEML3EL]+\=ZPY2-)D2Y<5F"-WUG4U>"H4F(70:G@E=00?_WP\V&RMSO'+P MDG4%-G),D^S8T'%64V)C$R,IS&-TG89^2@GK*=X;'^6,I"V/D0QEGLQI:,;$ M0VP\O<$G+IV/(JUM>=:UN4?,[T'W+0(E5?`T7*R"V&#/[[TLY$/B=P-6MRAT M*`714T?CP5O%>2%3XC0D!BOD-F@!7^5126EZFNT9LMG\8K%,X+TM*'1<:"K- MV#*Y$[E!*\Y\@9R?+7&^.;**N;+<.;.(Y06?$TKU1=18_NROAE@N6=Y)MKX7R>!H;'D/(EW+.T$BY#=_EY1$M[J,C: ML?K*]Z(H%T5TE)B7HA\48ZPJ7Q[*HK%4D:THMVN9WQP3W:,T5U81:#G?*7I7 MCO;*/"S:T8Y05?:JN2AD=0VE56Q\`G[&_`3CCM#(<\4^4UQ3><@C*9$?QQ!G MOQ-XBY:(4F2Q1@/71=XQKARINIK]AJ*]J*B>LJMN+?E(D8)C=.6A-Z%M[FQ? MZH%]%B30JX<<"UFA'N[,D8V[XA/-^J77UX`CLA^#QG_MA%6JVX1.R?7M_!@W"[SOU00R+P:D-]]TB MK`C'R,L&GB\5=R?2"P;4!(2RC'#3TD/UD)H"]\GSQJ!%Q]UM@H&$&=FA_)*2 M36I8@Q"2`M"C46=66^`%X=7:\]'6R%)BJF9@Q\0Q=Y1&#C:2/,GDU)CJU<.4 MFM.-XVKBK1$-`"M0E-%7&QA2-^RB2JH1HW`BWH(/"HDC2.6GY+SQ1#[B\_BSPPU7QYY0U83 MOK'ED?]N3S:ABN)J1%[60V2A$#2.P'#KEGG@;SD(X7C066'6;=Y+([;BMW?\ M-=%[0JP7;-O9_*A)J]'UN1ZZB@2@<>P=TJ_A/"-WOZWG%U4JY4=21HVIJ[IK MC2QG&\?/`X9/V,9>Y'6,)"%"HP8DT6"_7CHY9[6O>]6>$O2,W)GN:>-Z$8-+ M=\B*^*7"399(W4MU)7KR_6T<0^$.PXRM?IR=?.ADM:][L2[G)M_3QA&3]N)L MD@ZQ5=T+;CD)V:\#-S3TD;.7PVCV5R[R?:VB>NI>9A>C3STRC2,X^^7F)(EI M;>M=ANZG,1^79'LGM7'=14[.F^6)Y6B6JXWK4?S=!.*H<))L67=9HTQ(EI.- M8V-@69C[#>TIQ);A#.$6>S!G-R!3H.ZR1ID;BJ! M:-S`BA1Q_!BK0*4CEZR[=%#U+<9F6EVK1%N-&PQ%_)/]KEZ6FU\Z<2\?V.=* MWUY*_RULX56F?NZK3."#H.+'"EZWDOR"M@#V(@;V(`O($D2DZYS4_?V.G&W< M0XLZ"P)DKAUBD]7;'-%G;/)S01]63EV0+5+W3!4/>KPHD#G;N+1R.,((D.8> M3Z>WKGMZE9"2YV+C^!@2UYLLI4,DUJQ1XYMCRYF5,@7J'MNIH9<.<,';QG:G MV`B0=ZR$0-V#7(4=B;>-8^>>$M>=4K+,6X`)C>H>(RF($[-M;#)N9$4N]R.] MO^4O[<]3>.=<[2/4L)?Q&C8B!^)+OTJJ[.1=/P+`C[E%-A<&@73I*(^ZZD<` M_XG_R@AV39NX.XK8![T-)K/[P=CX[V!A3,9@,+X%<^-^;-P9P\%X`0;#X>3K M>&&,[\%T\F`,C=&\`L=R;P<2'/@<=Z#7!M/99#J:+;[YX$?_^6I,'T?C104P M4\\+!7A7<7C]-AA/%J,YF`Z^#7YY&%6,*OTFH2A$O1N'>"$BY%UZ,1G^]NOD MX78TJX)ME0N&!,AZ'/)E&PPGCX_&@A,]]WD?3OQ>.AI7U$5SMC4$K+TXUH]M M(9[_\GOHXEL%$-.N*!*P]>/8/K6!,6:1'('%X(]*PB:]K4@`>!$'^+D-9J.' MP6)TR[HG'^*+V6`\'PSY7%4)R]F7&0E`+^-`KQC+HWO>'5E$[R:S1W\ZK3D' MY.8"_6,)N0!\"&U4L?=UPA5'@J=E9#WP86^A"C\5+D82_%%/@E6BSKD\24`K MS8GG`IEWE5(4<:]@BJP2O_HE2X('A3-FE3YD7\@D8$YDSEAVJA*B])(F`6DB MCZ;/_E4"+OE&)L&]1!8^9KK40&@5',R"#X'AVD.2?VV3$(Y$KC\N''N+@)G< MKVD;$XO,BQN$*)13+02VP+NQBN+O)ZJ,9%UT_N@?=^V4X%>B M]I!43W&6^);:P52EI)5T)Y7@?J*,D99>&HC8\F<0P5I=$5#KQ8E:2%YIGJ57 M%[CL2O`G4?QD[-^[6`%;]AF>)KKK3GE7$AEN!J MHD))NAJQ`PZ&^+Y]:(H[#O;&*O6^\"U:@JN)VB1WG^Q<(^Z8Z[4$MQ*%2<:Z MBA&Y5QR]ZBI.5W"LQ7_P_Q6%/?D+4$L#!!0````(`(N#@48/G-#U5PX``/&T M```5`!P`&UL550)``/E5!Q5Y50<575X"P`! M!"4.```$.0$``.U=6W/B.!9^WZK]#UJFMK;GP5QRZ>YD)CM%$Y*EAD`6Z*[I M?4DI6"2>-A8CV[GLKU_)%["Q=3'86#V;?DB#T9&^HT_7+QN>IT9WV!H,&<#WHF-#&#KIH.+CQRS__^A=`__W\ M-\,`5Q:RS7-PB>?&P%G@G\`(+M$YN$8.(M##Y"?P!=H^>X*O+!L1T,/+E8T\ M1'\("SX')\T3"`Q#(=LOR#$Q^3P9K+-]]+S5>:OU_/S<=/`3?,;DF]N<8[7L MIM@G<[3.JWU\W.F<@NE@U@>=]J_-EP6%?PD]^M-1NW/Z]Z/+]@G[TYD=M<\[ M9^7*=L[.S5O!KG#23\N6>V'$9QZT8 MSCIG^JOIK062B4];X8_)I)8@ZP1HUSIW`TV&>`Z]H!5*$0%N"O;-B),9[)'1 M.3*..\T7UVS$/`653;"-)F@!V/^T-:U+G7Z=]5OL88MRZ"^1XW4=L^]XEO?* M""7+`"0%'N3R2-#BHN&^>JRPSDGG*"SJ!Q59[W5%>Y-KL<[0`*V"Z#Y!F]7@ M]!$ASY7!R4U<8OFWD%!E'Y%GS:%="$RNY'[(6%]#K/+=\6*\8F,0K71I%8FE M]D3T2+5\Q+9)A[O^'SYM#E(T7(GRZJ8'W<*^OEE*05JR,9 M2I',?FA&V$.T/[W">R8M1I&7MKS2C:F'Y]^BYEL$2J[@?KCH8F-I>4'KI57> MPT$SH$L:WD)-VO[`FRZ?ABTIG` M>YT1Z+APKC1BR^3VY`8],.8+S/E\B<.-D56,E>6.F45*GK$QH51=TCF6/_JK M(99+EC<6JR'B2U0T*Q2')1"O;(900ZF<06ECM!HNKD#9(Z,:')G90X+R6_*-:QJGQY*(O6I8IL17.[P?UEE]K= M*>?*5@2&X#=%[]=<%+)Z#J6MV-@`_&0Q9\<5)HGGBFVF M>$[E(4],BDGFL0%[B)!B.YR9V(#&7S6F`\9%F0>;^/3),BR)S`W-*5%"RAM:Y M6([7HDE;49I6;@;5XUX79IAX":V"H+/2!T`D8)PTZ+58X6V70QA M(%`]+@=[W:+08IF#MDFT@+[M[=PH8_$T9OK8]8B`^\2V7Q8_EX)2[7%-:3+:P;68`7("E=.DJ^*S:%\'0;84(.1((1 MM!BN<"NO=!%_5=XP'"58L=2FDAVW/C)VRB/S7:G>C, MPP_1X[LU,EH-:$`_KNO9AO?(#LJ^BQ+GI6UI`'V6]%8*8$?IMB%OFD*7Q."C M(4YQ'@G'U?,YW>/0QM.W@]+HV!RNG6)D"X*7TOJ,Z@X+-4A6,`72`)C0UG31 MZ+0W6&SL(O.BX1$_1^4Z6`J;^F8YWWVQ5-I:OEBI'.:N"&6^ M6HG:PGH9K3-Y!'&2ETI,=M4K8T58X5A%`1XY1^WOGIV[3HX.91$4KP#W'0OW M93!0DD?B<;TD,I,8=@(KTTVT->(1F$EZ5SIWZ3T:AQ=Q+\%RS'H.=EW3#.H- MVK?0,@=.#ZXL#]HR5H1B%72OTBF2*\#EJU["9@1!UR>O2ITG)_%=WOBM&3D\ MV-PIJ5Y*)LP0Z""S#XEC.0^NC)7\]'=Y8[)FQ`B0:>KD)-IGNP'7]S3XV M9Y&=2'7WOAX>U#=!VV#UG%GX)S'S-CG;:?5G(1\R=XBJ=Y:?SY'-+$#(#%K/ M!*U\,G^$+KHE^('`9=?\W7>]Y,(T9\Y7ST1[]HKJPAW=:J5UA+S063C$KL"$ MD$JF/359M+S*/TG8,ELYQLP*K;'9*(^4J?.]T!C+A$$D7;8Q=J<8CQ3V#\Q9 M8+G,;N831+]TFF`\N>Z.!O_IS@;C$>B.+L%T<#T:7`UZW=$,='N]\>?1;#"Z M!K?CX:`WZ$_+UTL8%9+"_W$;_U$3W$[&M_W)[&N`O?_OSX/;F_YH5C[*W*B1 M%+JS;73'33`:S_I3<-O]VOTT[%<+*C]^)(FPT]Y&>)(&R)KS;-S[]5_CX65_ M4@'5*E$E*<2=;<2G3=`;W]P,9HSE:4!Z;QRTT/ZHFN8I"#M)03W:AOJ^F:K- M?P2M<_:U?(1Y42DI:,?;T#XTP6!$Z[$/9MW?JJ@T:7Q*"M_)-KZ/33#I#[NS M_B5MFJQSSR;=T;3;8X-4%13SHU=2.$^W<9Y1BOO7K"G2^KP:3VZ"8;3>H5\X M!73>ES`%@'=Q&14X1O>(:$DI6L9"",HK"9)."C@A-CA?#5XVE2"A2>)RM4@1]ZDX*!=5'#=-2*.SDG51F:&WZTVPA(!+3(\ M"J-+57"/YZ8JH9PU0E066!?VX]L1H++*I& M>(C_T^L-_!V3G@U=R:&@PAGI?4QHQWK1S>,A46.C!+OR2G9P9:?,ZCETM"M] MA1J!J/:T.Z14=TO0^8!3;:U%ZP-1ONO1Q2`96JXG/3^0D_CNI!ZOSCZ=%BLI MQ77^[#K6YT1[T67RW0@[[`P$\L(*>R`H=-APR6!28J&Z7&TED**H'(^<]W4? MR(%VWV4K#[J[\9=^8&:^1"N"YE;*G>FN?]430,><_4.@PGLCLF! MWZ-;Q5>Z7>TNV;YUO/CD6S:[C969P@;+%<%/83-5XGCO4KZGYE".LGJNO;NV MC9]9<-85)D,,F9%CB*`;'"*8H#G5@+Q2Q2#5^U[4-HKEHSW[.ZC#75+7R^\2 M$R\R8(T7VU.:@$^AG/[\R>%S5[2U\G6-L?ELV38;0=*HZ8`"+2(^:J8BK3UW MRDIPE[CUFA2AC=SQ8C-_"*R*VTFUYR8?,8^(TYH71;3UV*&W@*[)<1C*ZSR( M%CCY$MK3(@3.W6S4RLX-)-\0P\B65R:=3SW+I=_Z+RODN((^(Y;3GBD%^#R^ M/ASVV.;.M[VEW%V9DR+\HQ4&B',/[UJ(\T_X]S1P%&4(?O-QO?FX2F`I;ONW M-@QO*XF;_Z?7&2U;[-=2$M;;EU5`?]WVT%SH#+C,2Z$D7(]_J@@EBF1F:T0[ M'U35;.KL8ZJ4<9W]2$.ZXI"YCS9I:@JE+]*KL`"ZGJ-H;#R5T9!.5U=8]NY< MY.#GCH0UVX9]#R_QO46W_-)[#;:3UN58W9V7?!5*=Z.6=A'(RO<06:NGF6]L$_2#L67N?OXO5$FT87'VD=-5_77 M1!@U+):[Z]1T787R)EH%OYY><(Z7EGZV472`.^D7XBHJF.9**D'_5E"NIGJN M.+F@1TC0!D12^O,J1Z_@QZ[+_*P685$DFB\GCJ+:H#G1*SU26LC#_`P09`:B MW*H,@U%ZYT<2_G$FZ"\;I7CPNM_MA1\IM3*A@))8QFV.V)46FZ*JI*RDEX&D MM,]$%4H#(0V0*"MPZZ1*JZD"U)IP)C11'O9YB"9=X!TC*74RL8B<*Q0.H\4. M[QU):9.))=P.<`V\B6&V8(%)'#48Y%QELROC+20I33,!@UE-$^6`34'LRIRX M**8W"`M[^N5/__.Y4VMY[M-U;7G!&EPX`SY"88B>J0$1OUZE45]TV7KF` M54*ZI(+U.$KE!"@0]AV$YU7%F\XNT9*YU=D)&B\6UDN8WB,D#W);M5BN)F>I M:A_#!571+'$B;,JTDSJL`?5#@O[>G< M424%^V0-7'^!MA_>$A-'#C&KPP2YB#PA-WH!%I]>)7'M&577@CL#ZC4!!OC' MWB,B8;OL^80('42J.6A/92%%N(U)2=)7-277A/YML53&_VE/\G M>PJG;XDM*D(AO6TJ"OKJMMSD0);MS25B]5A45*I?B3#-+2I5<*:S-:5D7JNQ MIG!NNDDB$=YNDTU8DPU$K4]@&7(]A[O@/H9@>\%B7Z5QH[G)ZSJEK+QDX*/F MD5*S"=%',YQH1192V#-Q9;2G1P)=H>,PCH0\ZSJ[6&RPNPU?O*XL53"FC8R_#ZP'1R60:OG<+6Y0$G^ MTMMTRKH"7E4IR,7+';!*OHQV0#LV<1`_&I*E2B>J;8\AJT\.5*ZOI>2J[&'' MQ;9ELJV-L#JS"6M[5:9*E7+@\JJUYM#1X+ZU"7I"CB\^T;&54/M[L/+PZFG2 M&,>7J:F\,C8GL?94\##K.7/VL.N-%^R.2'>*[51PXE9,HFA1HYJ']N055(4[ M$=?\V@7NZ.H&8*YH39FB]1^/_`V3Z3);7C*F?Q'=!6 M1!/NBDPS0M?CO.SN9ZGH=TA@G@8\XD[EYOGH.?MS3_.G3_X'4$L#!!0````( M`(N#@4;&@\U`8RL``(A:`@`5`!P`&UL550) M``/E5!Q5Y50<575X"P`!!"4.```$.0$``-U];7/;N)+N]ZVZ_P&;W:V9J;(= M.\F\)'MF3\FRG-$=1=)*2N;DGMI*T2)D\PQ%:D'*L?;77P!\$4F\DK;!SDZ= MDRA2-_@T^;#1`!J-O_SU81NB>TR2((Y^?7%Q=OX"X6@=^T%T^^N+C\O3P7(X M'K]`2>I%OA?&$?[U112_^.M__)]_0O2_O_SSZ2FZ#G#HOT-7\?IT'&WB?T=3 M;XO?H?A;%]][7F/R9G*UCN^:6\9ZL<=G6^>O7%Q<_ MHN5X-4(7Y[^?/6PH_"LOI3^].K_X\=]>79V_87]5E4B_= M)\?+//QRGOV7J?\E#*(_W[$_;KP$(_I,HN3=0Q+\^J)BW-?79S&Y??GJ_/SB MY=\^3);K.[SU3H.(/9LU?E%HL59D>A=OW[Y]R7\M1`7)AQL2%M=X_;*`4[9, M?PTT\A4D2?`NX?`F\=I+.;6,ET%*"?:OTT+LE'UU>O'J]/7%V4/BORAN/K^# M)`[Q`F\0-_-=>MA1NB8!8]N+_+L[@C=R,"$A+YG^RPC?T@?NLPN]91>Z^(E= MZ%_RKR?>#0Y?("9)2:BTZVVMK5SII6NPJ%GP7 MT%E;&@?'+\7];MYVV7J\KK4;,F<9$^D=X4UNO.2&M[M/3F\];_>2]4DO<9@F MQ3>G[)O3\XO<._Y+_O47VN5NXVB9QNL_/^#M#2XOPBW\]85&[F43-=,8D`*Z M1]8&^W.)E^N8=@Z[]#3,[G2FOB'Q5GOY_`;%&J$OX4W97G8GZ245P&MB!">\ M^V_U(*OH37E":#AR!16&O0<],*Y%_CC:.CM`MK-:7V20<L!5TL@EP?!&"T]P.>OU?KL/6TP[VY0B#FY" M/$@2G":7AP_>/V(R#+U$%WNW;L4EQSJ:6.5?RR;`<+,;[B9OCZV&"?BV@ M,ZI9B/=.*WN,30I1)5310DL"KAT7B*PJE\Z_MH[-Y20FE1@ M`C`>^IS$.TS2PYSB2P>1S^8J=HR4EX<5O;:FO[/2=$F3%J94^6.A!H98]EB; MC"LT3Q#7192`J-0^04P;U*S4Y3X(V8JWUB$UA5RR30ZP2JRZ!!@.26$UZ5(( MP2##8$_'#/%-$&+]4$XBYW0J4@6S-OW8%`)##!4R8&"?]*Y& MI^"226;@53*II<'PR0BQ2:E2@<>0_#.X_<&JAE M4G))+SL#JA33:X"AF17,)M4*)91I(:J&,CWT]TP12/3,[*$X@W3H$7+8Q.2K M1WS-6$XC[W35S02[MO:F$@;#,1-"81V.T8DKH*K&\TXL+C!?O9E[='"HGDR4 M23F;0%1#+"<-19'>6:#'U7SVN2#BDL"\2=6(%?&BQ%OS:4^U/]%JN%V5-4*O M+\TJQ7OGDSU&/;.DM3D.$0Q MM_V0'&2]\ZG+@.&'`IC8S7@ARN2>S'TH@M9QE&(28?E,GU3"6;`JAU8&JO6? M>W_$:DQB`D0F]-R/=AA'21P&/HM8U(]7)N7L$:LAEH]9%('QJ)6XQ$C@*/C< MC_PJ7N]9O\(6-*,T2`]LFR;9\EV*@YLD)31:E1ECI^>,%FW,*(EBHP2#.BV0 M"O-FN2H:L%5GKHPJVD\91R1X?78;W[_T<"6,`)FR0R2AQE.5;M/NCQ9!RE7@AR_E[^!T? ME,8)C=2NQJ_.Z*#5)8!0MJ/X)X^C)$0IY1(8.84!_/>K@GA&$, MDK47?L8>43L#M:@K!IC`%F10R8'@A0&_LE44:&+ M,N6_]D>J3W&XCU*/''C!KN82B$;.+8D4,.OD:0@!(HT& M"[R+21I$MUF!,_7P2R'N>`RK!=T8RDIE`;%'"U!)HN\25&KD5>E0WE*/;.)L M'M)^]#8FZAF0AI1;[D@AUBE3$P'$%!DNQH%(9%=KH[X4^D!S'K,*,@89-(:=;GZ4`:_N>:Q)@2"2%):Q$+)>CU1(& M%8[)F+_AD/;.Y`K?XS#>Y:DY2R_$+%,W\`-/&+=W;*.?1-D6YLFS:"T:`$/# M+JBE^;T';2)":)0/2A;]8]FCJ-["I5GD\_2.XNL;5&A'UJJ@,LY MV)0&2#@%1$MV!:7V"8HPD-W\0R^YHV\-^XO5&;BG_&=[&[)]F'1$RX_\4-P8 M2UVGVX[:F%/;C&2C"(:2;=`*"\%4B>__7[,/^*@.@Y"#]3K>,V,B?QJG.%G@ M-:8(;T(\QHTVB2`8'NG0B778N"S"F3`0_Z2L*Z=V3WH5$'7_ M%,Y))P^(4T:0JA)_O!_$Q]I^8+Q3L_0N-64V-J9=1-NN!86$+L$TV%C\#XE]1OF?E/93F3.F3UG:3)J4^JC'I#9!58Y)K M@.&9%4QE-:;4>T`>5P-$-CZ6SHTQ<4PAZY):6KA51DD%P1!)AZ[)'RZ;$P<& M9S+@VIGJ/J;UU=/Y3I][6CE]47.'5,6U9JO!!$&:R9\$WDT0!FF`V0B4IU_< MQ:&/29(=&&98[K%7=UJKO:51M4KNEKI@O$U+P$(5^/'@E+WSSY)JD%EE32`81"EFQ^;>@@ M5,)]S&S*`# MJL+(NXI(H,G!5>E1_!T,*"2CQ="PJ`JM#JJ*N5%T]ND2^<&B8VVG;2%]< MLC=0Q39S"R#Y:`U;RUATBI+C^`\&?RM]N'FHT=LPS3`\@S7%)`*3SS.!&YFU MGEZ",J'4;@KI&Y@T:CU-5)T6^@[4O-"5=)QJHH+:2#1IBH$A MCAJ;),DDCZOS37W_>GYV?GY!^RJ"[IG>";HX/SD_Y_]'2;;CS]NG=S$)_@?[ M)ZC\,F!E+WR>41`_SX[`1YW[5>QXU"9T"F*.3_J2@FP<\563`<,X!3#)H5Z5 M#:0BUUZ?:\C&N?7VXN3UJY].WOSTND&\($)LGQ\7HA]>G_!//[\Y.?_EQY.? MSW\LQ"OD%'3.8-!UX/M\C\9().3W12`JT=Y21(N>'-VXPW M$;YE(T!=W*]$*(3_N6#A#;T4K>,DI1WNSR>OWIR?_/SC+_0+[B\SUP6#4`N< M>D&$_9%'(NI#D\%ZO=_N^<#X"F^"=:`:)M@HNMVH8VM(?<..20N,([.&*IFH M+P21GTG"X)XX(+(>.?4]%+4;@L*:PE#B$UP9:ZDZJY5\Q].*TR`:IEK8&7N(ZT%D95;;:5".O:UNB*C4'PM5!JC9U]0`RCH% M3!/;\F)=1SVXK.,%=-LPKE#HFVUUX":F9=*@65:#:,FP3`EV=/*1)O@SD(-#!?ML>J6-*#%=$*E M3V-`I]7HB7,VH9Q&'"+'+(.X&K>`1G""5=KP32G=*[?4@9M"%"ZGM"&;C$^0 MXK46-:/M5'IEE2%,`UTMN@5(&Y*!B\YJJW33/3NS=K;)P+*R>C9K>S*MWA9, MU28H5T]%%3"LL\.I(EY&N?KR*@S6C:-UO,5E25E#7J52VFWQ$BWD>KT2J2@8 M5NGQB:>8,VETK/\+K=)OOFW&M,]6%'.[R"X'65]2K\N`(8P"F%#O:>=F0EVK1M3"8-AC@FAZ&Q23,`4 MI#E6?,U1JVN[R47[J;&+!IRFNBX4MF1>TN!$^^EW=/T-K.2' M!BKQL0/:]CJ,DW2VR2$9X@^%K-N1N09N?4@N$03C)'3HA+'0;+E"LVL$/#9A M)JD@T5D:WA=!N@_?HX`L M\SX-46@$TL,$'Z[4O*B-I^VQKS+V4;!"&!DT<9(NX48DWB@W M+]0D7/)!`JW*ALK/L+@@`A/*_BYFRR6:+V;7XQ4,&LQVF'CL;.4)]A(V9(_2 MO%*[(<:U471:HM7:D%J]5J,6F%#8&JI0R74^6@Q6X^E[-/K;?#1=@BFZ@,.0 M5U0DHA)UVH%K`M;Y4*@F&:%IX MJIKZ*"BE8?"G]-SYBZ&BCD2NEQZT"5/:819"8+BB0B;?.@6U4\R68!G+K^G# M&<81M6A/C6P4W2^BVQ@BKJ?KM,#PS1JJ,+\T'FXK^%F:42_:9U`"PT!;I,*`8/7;:($* M&A;^[P<8U./G3I@ZRKJ,\Y-`M!UD50`,562HY"=^!)Q(,+C`9^)QDNJ'@H*4 MXX.N9!`;9UI51:`5;Y'#DRZ*4*EB:`:#()RR2C>H>Q!,3G,FMO`><7-$/21JL.\>1FA9A1?1&T]N%^LKFP+#\ M\3;H!P>7H^O98E2\"ZO!WV`-4ZE!^0M]B2.L7DE22KNGKQ*R2$U!%!CM5/@4 ME*+L*>8Z8'`H.RXS?W]40YRZC-/!HPQ>;:!8%0###1DJH3;[:(5JC@8&(8JB M;<7NXTLO"=:#R+\*PGVJW%YIU'))&DL3JC0RJ(`AEAW.)M4N!\OQD!>GNAI/ M/JY&5P7QYC3&6_XV6`!Q1G_@X/:.FC&XISWW+:YMP*KLY+.C9-?&7#+U<097 M"=RM)3"\?A3\)MW_&(W?_\98/O@T6@S>CS**+]'LXVJYHF\!6W`X1<)+`>,= M*/=]K31G^S2%W):8E`&LEY>L2H#AF!26L#!^W';'Q8#LN2MA38((C^E'5:PF M$^R%'0)0*4-**7@L:4+3,(6)(BX+A2[F@AC]5<$PE;[HK=[%#I,@]NES):EN MKM:BWL4EO@TB%JBA2X_^L,8G^>YP'3V>]:WL6!;X%<@'H,9I\2``E4D:K-Q8*#9:I;BZ^#V?BQ:V?L-@L(H%K@'=?C=+T#`#U@F4@/=L,O>3N.HR_FFJ+Z%5Z&>]HP$M'/A)Y M,#V9!4CU:(CV7$P)<2UPQ6NHQV?H:(]\'_C8OSQ\3+`_CLJ\U<$Z#>ZSDP`, M678=&G*\E[-!BNQI_XR0_O M8+#[&&$FJWB!&4V"$-=BH57\-/Q_GDNY/3KN^6Y6_=RYI[\.F+?L&8T33[PK M+X72&)'B8B@JHWCT?4@O^`/[F7VY9OW0+K\PNCF@[_<)/['Q!U2F1"&OO#Z0 ME_@*[ZAM`4]=8=NZMC%)@__A_U0\!*V&RU?*`GKUS="(@R&X&6.3IU6-$^15 M%/@NNZ?;&)4<4LQ(].;B54ZAY>?5Z`M_TQ)ZN>N8++"_7[-+SS97\?XFW>S# MP7H=[R.A^DD[51>DZF(,8U<;/2AYP!TP"^XQI`$W&]RA34R0GRM1]Y9IP?!M MX^B>$C\FAS](D.*K^*O*I"Z+934);3=:8 MWATH=%FS:KKX"F=_CZ/B):"A!@[N-4OD=JJ.4TI=.G<9?/%3Y>Y0<,5C:J648Y"\XXH;ERWIEPR^#'&5@G=I1TP M_'X$^+9TYSSGOCN?'"^N"(/[ZIF,N7?H-/%4ZL&8=6J883?EE"N!X:LM4LDI M2QDCOR^X^4-MLFF7:0.F(MEC?Q)X-T'(%R_;W!]!M7="*HPQ1[ M7`8?&+JVABQ+ZV^9^P.:P]G^0YZ8.UO^]#PC;BL<3J^YQ9ISJAICUG!+/UHP:]TQ* M<.AGB;3)P'EEM^1ZGZ3Q%A,4!@F0DO/V/O[1G034WOMQO388@K:&;!61!H7Z MMQ*'7@>1%ZV?(`[5-@2`R1:&6C!:TPIT9INAF^+0Z_%T,!V"CT.G<8H-$_IJ M\;YB3QEH5=19E07#.@-`F??T[R>32^C=L0&MDWTT=' MC,\PB$QMRPV=;2R\I5K<[3'L>M#U8]GELF"(9@`HJ2*3B3-&P7>4]A'(HT,8 MJ+'EXV)*,#QM#5DY2CK.U6\*97!C)&;J(/+97ZSVRKT7LC>T54Y4NR:%X8J[]LVTHPJPX*LFO#H_7@Z994E+RP*,XVC34RV6%*NW!H&PE*W[N M!:IBQ()4+V?2U"%*SZ+)1,!02HY+DL;%]A5P,<3DH%"C=N8=7W%6VBD3[?&( MP1I8S3F#7`X0793@E$<-YK*`>),G>-.N?1Z'P=JB5)E&P7%-9`/P1@EDA308 M/ADA"C5J2@54:("K$#DCMUZ4%VP:QE%"G&& M9HOW@^GX__%CT?DP:3E^/QU?CX>#Z0H-AL/9QRG/-9S/)N/A&,K!B'/"4GS3 MPYR:DU+3V;APQT)G0T=AH>=XR=?.C,;:KUX)#*5MD0H+9KG>">*:O*A>J0NN M.U%:>1S#F7J'=DV`8*C&."NR2O3A\U8-NDGA5V=HOF!UA%>?N5=E\T[S#Z/I M"@9GK_!-Q1B#TU0)NZT[J@-<+SDJDP3#+2T\L=#H35J9"@+G^NK&F+R<4KH_ M(FE]ET(4*)5,'NGU&9K.5J,EF@\^#RXG0`X$S1,=DBQ\)7LO-(WUM1J.4Z-, MT!M94"IQ,(PR8Q1"M5R#QVB%#C@_U:@8(.[4I@;SN;+*5\-%PW.D7+U6SX^V^SR=5H`61(/HRW MVR`KWL\6:V,^$8&C=J[70=WM87TNS M]$="*I3!,+`MXB8Y?SJK!9+?\6G*U6<8%"U37ZS#1ZU&+PE'=J&A1AP,U3//HS0:O`W*('7`H?LW(JY M1]+#BGA1XO'CGDSSFV8UM]OL[(RH;[?3ZX!AFB50D*6ZB#YZN]H_SE#"U&D\%J=(7F`[8VO5H,IDM6OV$V!>(VE_B6 MC,>.58QN37L>E.).QQT&T+5AAD(6#,T,`(5]"YDX*N7!><&F02V&N3:: M?1+-=FAK5@-+/WOO]I8.9T?OV6P<#0>O9XL//*L1!@?E*9N2W$X3);LTY)*A MW0VM$K9]*V#XVQEZD\[5C&"^<#)A[;+M8,4E8%"[EJW,4X\/YD41G8K;)1`S M^/J"AUH>#`4M0(HYMT&T#G9AOM^PV@`,EBWP.O22)-@$:XY*52Q$(N=V6**` M61]\-(3`,$>%3!P#-^1@D.0CJ\\T2M)@2P=**H8TA5S20PZPRHVZ!!AB2&$U M6?$Q*W)5BL$@17D(W6R35ZKQPG%$1RA[O@"<^4>%V9:Z+BG4RIPJLZP4P1"N M#5KIF8%3==G(&V/7.3B$,AFHFA&+G1[F4*<"@ MD:*ND5TH;J<+H#:517!NHPB&=FW0"CEUK"`(3Z9C'RKJ0`C)'G*4$AX;+H+D MSR'!?I"R3^HABUK#\8#0!+TQ'E2)PR&:$:.8LEG1X`-"KH&8"@R&36(O2GBM MS!7Q?%RD6=-Q"::O`MN28#_+V[$MEZQ\E+E5OG9J"`R3'X->4:HB04=M&-16 M;C^UZ]#MU4%L)+;HUFUUP="T)6#5_O?ZQG<8Y!QO=W1PQ?#,"'W7=G'BA;/- M)(YN)\$]]K/37.R(VJTII_E5CS"VEG?5H1TP9'X$>"$EL&R*Q12LB5/>!LH: M`<+P**68677W#-5U$`4IYCBU4T46>H[KF=F9T2ANIE>"PTI+I)*R9[D>*-*] MCV/_:Q"&M+-H6E;\I"5?"WV7)&QM5I6,ULI@2-D6<9.V`QBCEM,2#G8FU&HRZ%7`T,T. MIS"_<]3B`^D/'OD3\_Q4W@@,XI6;72R'S$KQ7K8=V0Q]%;)@R&4`J"NU#8-" M(X]$E-7L&)/EG4GQIM>V0'5O MSND[0`!>$^Q?ZJ'?=;MM8/[SN9 M+.=\JZ;@\KV+&=]&;*U,&>B<[@$MT:-;B@=84EHC_I:R.\2>I2ALFE<$KM4V M;>ESNS39;\#1WGA]Q&'?'IBP^PF,$([0Y2>6Y\U`XSTKJE[9)F+/;K5B/QPV M&2)GJDH+(!\-4+6L8Q64*[7SH)'P>I_N"?X01,%VOYVPTZ@I;F[E=4R&WBY( MO9!_W=8%=V^X'Q(_]D;(2=ZU58`OP2--:56J&=I;PF8CXXAAG6W*59S\-,M+ M'.%-D+9\/3JTV,][T=ET^0O1NCF`;T)7&R3A^7V0L&TOFY@@>,M]U0XPR^"A MX+(<,QJ2=8_.6[;65U#3P615I-.B*8!\[X)?*-T5W$:\A$.4HN/[PW*SR^PP M5KX54J+L\08TZT153D:_/.0_VM._96O]T+^3R7+ZMVH*(/V[X%=5KJOHPB!Y M,=0^SL:_)W&BJF>BE.[C!"$%9-E10`U1,"33XQ-RMMEOR"L64`BP!91!&,9? M/?KXZ'C@*M[?I)M]*!JHNA.6RDZ)ULJ@&N^L-.'0L`W<)BLGF)&R:(&'LG[> M1LE5(`053)IB5;%7A6R_?JX"5^_EJ"`<:]H`Z4Q M6O-64,)6@4'-!/^!@]N[%/N#>TR\6SS=;V\PH3$O`YK,]FF2>I%/@UX=I5NV MX9+0GGSEPA7>TYP_X&%EQ M7RST^JE19S!#7JM.H03&F=@BE63Z%=*H*@Z.>SR]0&;8T"/DP(XEV+*(=+:Y MW`SY(IE/.++1OI:S;(WD#5K)"Y!3"\[@1; M#$E8)W"3HGR=%`AIMVQ*/SOW@*WEU@MIJ.Z'0.>F!HV0*LJN(.JI0F&]*QV"T0 M7[CT0IS,-L%P!!(A4Q5OX09CRI5P!%O``9C%NQX MH3";-9W&$=MKX+$%!P3C%K!#]'.+\]+[J&$9Y&]1+[4_4O.,\AR>]*8W4B"=I&\R; M\<0&R9-Y*A/WON5$8Q]>3I$.HY.'M\9GA=;6U5$=&([.8A&OO_4ZT](596?WV%R9;OC,PW1BKLE(NZ/0!%#;9^OHDH!X8N&G#B=M7H-(A2 M3"&DZ`9[A`?M?($*^>QTC:/T+CS0;Q,ZY@RSC7[T8W9N^__UHKU'#H@:\\L9$(Y2\VZS