OPTIMIZERx INC. FINANCIAL STATEMENTS

Transcription

1 OPTIMIZERx INC. FINANCIAL STATEMENTS THREE MONTHS ENDED March 31,

2 HIESTAND AND COMPANY P.C. Certified Public Accountants 4305 South Division Grand Rapids, Michigan (616) May 19, 2008 Board of Directors Optimizer Inc. Grand Rapids Michigan ACCOUNTANT S COMPILATION REPORT We have compiled the accompanying balance sheet of Optimizer Inc. (a development stage company) as of March 31, 2008 and the related statements of operations, partnership sharing and cash flows for the three months then ended, in accordance with statements on Standards for Accounting and Review services issued by the American Institute of Certified Public Accountants. A compilation is limited to presenting in the form of financial statements or other schedules relating there to information that is the representation of management. We have not audited or reviewed the accompanying financial statements, financial highlights or other additional information and, accordingly, do not express an opinion or any other form of assurance on them. Hiestand and Company PC 2

3 MARCH 31, 2007 ASSETS CURRENT: Cash and Equivalents $ Accounts receivable 5,000 TOTAL CURRENT ASSETS 315,608 PROPERTY AND EQUIPMENT: Website development costs 630,759 Less allowances for depreciation and amortization -0- NET PROPERTY AND EQUIPMENT 630,759 TOTAL ASSETS $ 946,367 See accompanying notes and accountant s compilation report 3

4 (A Development Stage Compamy) LIABILITIES AND STOCKHOLDERS EQUITY MARCH 31, 2008 CURRENT LIABILITIES Payments due Optimizer LLC Members $ 253,850 Note Payable Stockholders 250,000 TOTAL CURRENT LIABILITIES 403,850 STOCKHOLDERS EQUITY COMMON STOCK (Authorized 40,000,000, issued And outstanding 10,500,000) 859,975 RETAINED DEFECIT (267,458) TOTAL STOCKHOLDERS EQUITY 442,517 TOTAL LIABILITIES AND STOCKHOLDERS EQUITY $ 946,367 See accompanying accountant s compilation report and notes to financial statements 4

5 STATEMENT OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2008 REVENUES $ 51,627 EXPENSES: Advertising 55,022 Rent payments 6,000 Depreciation -0- Consulting 114,315 Legal and professional 3,800 Travel and other office expense 30,595 Supplies 400 Telephone 1,256 Utilities 1,139 TOTAL EXPENSES 212,527 EXPENSES IN EXCESS OF REVENUES $ (160,900) See accompanying accountant s compilation report and notes to financial statements 5

6 STATEMENT OF STOCKHOLDER EQUITY THREE MONTHS ENDED MARCH 31, 2008 BALANCE, January 1, 2008 $ (106,558) ADD (DEDUCT): Net loss for the period (160,900) BALANCE, March 31, 2008 $ (267,458) See accompanying accountant s compilation report and notes to financial statements 6

7 STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2008 CASH FLOWS FROM OPERATING ACTIVIT5IES: Net Income (loss) ( 160,900) Depreciation -0- Increase in Accounts receivable ( 5,000) Increase Notes payable 35,000 NET CASH FROM OPERATING ACTIVITIES ( 130,900) CASH FLOWS FOR INVESTING ACTIVITIES: Purchase of Website Development -0- CASH FLOWS FOR FINANCING ACTIVITIES: Issuance of Common Stock 314,250 Net Increase in Cash 183,350 CASH AND EQUIVALENTS, beginning of period 127,258 CASH AND EQUIVALENTS, end of period $ 310,608 ========= See accompanying accountant s compilation report and notes to financial statements 7

8 NOTES TO FINANCIAL STATEMENTS NOTES 1 ACCOUNTING POLICIES BUSINESS ACTIVITY The Corporation is a development stage company formed in Michigan in October 2007 with the purpose of developing medical information software on a consumer health website. The company started as a Michigan LLC thru the development of the software. The LLC interest was merged into this Michigan Corporation to complete the software development and to develop markets to advertise in the web site. The marketing efforts began in October. The company is continuing to raise new capital while it markets its web page. It is attempting to raise $1,200,000 in its initial fundraising. An additional $2,000,000 is to be raised in a second phase after the company goes public. CASH Included in cash at December 31, 2007 is $310,608. At times during the period the balance exceeded the amount which is covered by federal insurance. INVENTORY The company does not carry and inventory. PROPERTY AND EQUIPMENT Property and equipment (including Software and Web Development costs) are stated at cost. Depreciation is computed using accelerated methods as permitted for tax purposes. Expenditures for renewals and improvements are capitalized; maintenance and repairs that do not extend the useful lives of the assets are expenses as incurred. No depreciation was recorded in the year as the development of the software was just completed USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. While management believes it has consistently applied its best judgment in those areas requiring estimates, actual results could differ from those estimates. See accompanying accountant s compilation report 8

9 NOTES TO FINANCIAL STATEMENTS (continued) NOTE1 SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) ADVERTISING Advertising costs are expensed as incurred. Expense for the three months ended March 31, 2007 was $136,336 NOTE 2 ORGANIZATION AND SHAREHOLDER AGREEMENT The Corporation was formed in October 2007, for the purpose of selling advertising and development of a medical website. The corporate offices are located in Rochester Hills, Michigan. Advertising is done nationally. The capital raised during the year was $314,250 net of commissions of $37,250. NOTE 3 NOTES PAYABLE The company has an unsecured note payable investors for $253,850 which was repaid during the April of The company has two $50,000 notes to Stockholders. Under the terms of the agreements, the notes will note be repaid upon completion of the $1,000,000 raised. The company has a $150,000 notes to Stockholders. Under the terms of the agreements, the notes will note be repaid upon completion of the $1,200,000 raised. See accompanying accountant s compilation report 9

10 NOTES TO FINANCIAL STATEMENTS (continued) NOTE 4 COMMITMENTS AND CONTINGENCIES LEASE COMMITMENT The corporation leases space on a six month lease expiring April 30, 2008 at $2000 per month with a six month option at $2,500 per month under a triple net operating lease agreement, NOTE 5 TRANSFERABILITY OF SHAREHOLDERS STOCK The company stock is traded on Pink list. All of the stock issued thru December 31, 2007 was restricted. NOTE 6 RELATED PARTY TRANSACTIONS The company has engaged officers of the company in the amount of $56,707 in consulting services in finding advertising for the web site and other duties preformed for the Corporation. Existing shareholders were paid a sum of $253,850 in cash and stock for their interest in Optimizer LLC, of which all assets except cash were transferred to this corporation. The company has two $50,000 notes to shareholders that will be repaid only if $1,000,000 is raised and $150,000 note that will be repaid only if $1,200,000 in additional capital is raised. See accompanying accountant s compilation report 10