10. Unrestricted Net Assets

3 Months Ended

Mar. 31, 2014

Unrestricted Net Assets

Note 10. Unrestricted Net Assets

EZ Link Corp. has retained earnings of approximately $18,857 as of March 31, 2014. Distributions and other payments to EZ Link Holdings, Ltd. from its subsidiary, EZ Link Corp. may not permitted by the Taiwan government. Condensed financial information of the United States operations is as follows:

	March 31,			March 31,
Balance Sheets	2014			2013
Assets
Cash and cash equivalents	$	440,237		$	911,146
Accounts receivable, net		5,913,302			6,295,989
Other current assets		(2,157	)		–
Total current assets		6,351,382			7,207,135
Investment in EZ Link Holdings, Ltd.		857,143			857,143
Deposits		12,432			12,433
Deferred tax assets		264,315			183,679
Total assets	$	7,485,272		$	8,260,390
Liabilities
Accounts payable	$	5,178,110		$	5,987,570
Accrued liabilities		91,528			63,190
Notes payable to related party		80,000			80,000
Total current liabilities		5,349,638			6,130,760
Total liabilities		5,349,638			6,130,760
Stockholders' equity
Common stock		4,961			4,961
Preferred stock		138			138
Additional paid-in capital		2,202,877			2,202,877
Retained earnings		(72,342	)		(78,346	)
Total stockholders' equity		2,135,634			2,129,630
Total liabilities and stockholders' equity	$	7,485,272		$	8,260,390

	Three Months			Three Months
	March 31,			March 31,
Statement of Operations	2014			2013
Net sales	$	7,958,031		$	8,655,176
Cost of goods sold		(7,680,836	)		(8,337,294	)
Operating expenses		(370,805	)		(323,177	)
Loss from operations		(93,610	)		(5,295	)
Other income and (expense)
Interest income (expense)		(299	)		181
Total other income (expense)		(299	)		181
Net Income	$	(93,909	)	$	(5,114	)

	Three Months			Three Months
	March 31,			March 31,
Statements of Cash Flows	2014			2013
Net cash used in operating activities:	$	(409,446	)	$	(204,836	)
Cash flow from investing activities
Net cash provided by investing activities		–			–
Cash flow from financing activities:
Net cash provided by financing activities		–			–
Net increase in cash		(409,446	)		(204,836	)
Cash, beginning of period		849,683			1,115,982
Cash, end of period	$	440,237		$	911,146