EXHIBIT 99.2
FINANCIAL STATEMENTS
TEMPLE SUMMIT
FINANCIAL PROJECTS, INC.
June 30, 2000
Clyde Bailey, P.C.
Certified Public Accountant
10924 Vance Jackson #404
San Antonio, Texas 78230
CLYDE BAILEY P.C.
------------------------------------------------------------------------------
Certified Public Accountant
10924 Vance Jackson #404
San Antonio, Texas 78230
(210) 699-1287(ofc.)
(888) 699-1287 (210) 691-2911 (fax)
Member:
American Institute of CPA's
Texas Society of CPA's
Board of Directors
Temple Summit Financial Projects, Inc.
REPORT OF INDEPENDENT PUBLIC ACCOUNTANT
I have audited the accompanying balance sheet of Temple Summit Financial
Projects, Inc. (Company) as of June 30, 2000 and the related statement of
operations, statement of stockholders' equity, and the statement of cash flows
for the years ended June 30, 2000 and 1999. These financial statements are the
responsibility of the Company's management. My responsibility is to express an
opinion on these statements based on my audit.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
I believe that my audit provides a reasonable basis for my opinion.
On April 12, 2000, the Company sold all of its assets and liabilities to Nevada
Mining & Metals Corporation, a Nevada Corporation for a total of $30,000. The
Company has no other assets or liabilities as of June 30, 2000. This is further
explained in Note 6.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company has no viable operations
and little or no tangible assets. This is further explained in the Note 4.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the Company as of June 30, 2000 and
the results of its operations for the year then ended in conformity with
generally accepted accounting principles.
Clyde Bailey P.C.
San Antonio, Texas
July 05, 2000
1
TEMPLE SUMMIT FINANCIAL PROJECTS
Balance Sheet
As of June 30, 2000
<TABLE>
<S> <C> <C>
Total Assets $
978
==================
L I A B I L I T I E S
$
Current Liabilities: -
Total Current Liabilities
-
Total Liabilities
-
------------------
STOCKHOLDERS' EQUITY
Common Stock 138,097
200,000,000 authorized shares, $.001 par value
138,096,863 shares issued and outstanding
Additional Paid-in-Capital 2,353,503
Accumulated Deficit (2,490,622)
------------------
Total Stockholders' Equity
978
Total Liabilities and
$
Stockholders' Equity 978
==================
</TABLE>
Temple Summit Financial Projects, Inc.
Statement of Cash Flows
<TABLE>
<CAPTION>
For the Twelve Month
Period Ended June 30
<S> <C> <C>
2000 1999
-------------------- --------------------
Cash Flows from Operating Activities:
$ $
Net (Loss) (876,832) (41,199)
Changes in operating assets and liabilities:
Note Receivable
(1,200) 1,500
Employee Advances
(27,781) (72,875)
-
-------------------- --------------------
Total Adjustments (28,981) (71,375)
-------------------- --------------------
Net Cash used in Operating Activities (905,813) (112,574)
Cash Flows from Investing Activities:
Asset Sold
1,542,318 -
-------------------- --------------------
Net Cash used in Investing Activities 1,542,318 -
Cash Flows from Financing Activities:
Short-Term Liabilities
(13,000) (34,147)
Liabilities Sold
(698,331)
Shareholder Loans
Common Stock
39,223 128,075
-------------------- --------------------
Net Cash provided for Financing Activities (635,748) 93,928
Net Increase (Decrease) in Cash 757 (18,646)
Cash Balance, Begin Period 221 18,867
-------------------- --------------------
$ $
Cash Balance, End Period 978 221
==================== ====================
</TABLE>
TEMPLE SUMMIT FINANCIAL PROJECTS
Statement of Operations
<TABLE>
<CAPTION>
For the Twelve Month Period Ended June 30
<S> ....................................... <C> <C>
Revenues: ................................. 2000 1999
---- ----
Revenues ............................ $ -- $ --
Total Revenues ................. -- --
Expenses:
Consulting Expenses ................. 5,000 3,500
Office Rents ........................ 8,730 9,690
Insurance ........................... 2,475 4,563
Legal & Professional ................ 25,250 4,500
Other Expenses ...................... 21,389 18,946
---- ----
Total Expenses ................. 62,844 41,199
---- ----
Net Loss from Operations ....... (62,844) (41,199)
Provision for Income Taxes:
Income Tax Benefit .................. -- --
Net (Loss) before Discontinued
Operations ..................... (62,844) (41,199)
Discontinued Operations:
Discontinued Operations ............. (813,988) --
---- ----
Net (Loss) ..................... $ (876,832) $ (41,199)
==== ====
Basic and Diluted Earnings per Common Share Nil Nil
Weighted Average number of Common Shares .. 84,374,345 65,639,531
==== ====
used in per share calculations
</TABLE>
Temple Summit Financial Projects, Inc.
Statement of Stockholders' Equity
As of June 30, 2000
<TABLE>
<S> ................................ <C> <C> <C> <C> <C>
$ .001 Paid-In Accumulated Stockholders'
Shares Par Value Capital Deficit Equity
------------ ------------ ------------ ------------ ------------
Balance July 1, 1998 ............... 53,139,531 53,140 $ 1,922,112 $ (1,572,591) $ 402,661
Stock issued for Cash .............. 5,034,999 5,035 216,090 221,125
Stock issued for Debt .............. 20,000,000 20,000 180,000 200,000
Net (Loss)
(41,199) (41,199)
------------ ------------ ------------ ------------ ------------
Balance, June 30, 1999 ............. 78,174,530 78,175 2,318,202 (1,613,790) 782,587
Stock Issues for Cash .............. 3,922,333 3,922 35,301 39,223
Stock issued for
Services ........................... 56,000,000 56,000 56,000
Net (Loss) ......................... (876,832) (876,832)
------------ ------------ ------------ ------------ ------------
Balance June 30, 2000 .............. 138,096,863 $ 138,097 $ 2,353,503 $ (2,490,622) $ 978
------------ ------------ ------------ ------------ ------------
------------ ------------ ------------ ------------ ------------
</TABLE>
Temple Summit Financial Projects, Inc.
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies
Organization
Temple Summit Financial Projects, Inc. ("the Company") was incorporated under
the laws of the State of Texas on April 22, 1992, to conduct any lawful business
for which corporations may be incorporated under the Texas Business Corporations
Act. In November of 1993, this corporation became the successor to a former Utal
corporation named Midvale Packing Company. This succession occurred immediately
following the recession of a previous merger between Midvale and a Nevada
corporation named New Dawn Development Company. The net effect was that Midvale
Packing Company was reincorporated in Nevada as Temple Summit Financial
Projects, Inc. The company has a total of 200,000,000 authorized shares with a
par value of $.001 and with 138,096,863 shares issued and outstanding as of June
30, 2000.
Fixed Assets
The Company has no fixed assets at this time.
Federal Income Tax
The Company has adopted the provisions of Financial Accounting Standards Board
Statement No. 109, Accounting for Income Taxes. The Company accounts for income
taxes pursuant to the provisions of the Financial Accounting Standards Board
Statement No. 109, "Accounting for Income Taxes", which requires an asset and
liability approach to calculating deferred income taxes. The asset and liability
approach requires the recognition of deferred tax liabilities and assets for the
expected future tax consequences of temporary differences between the carrying
amounts and the tax basis of assets and liabilities.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure on
contingent assets and liabilities at the date of the financial statements, and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Accounting Method
The Company's financial statements are prepared using the
accrual method of accounting. Revenues are recognized when earned and expenses
when incurred. Fixed assets are stated at cost. Depreciation and amortization
using the straight-line method for financial reporting purposes and accelerated
methods for income tax purposes.
6
Temple Summit Financial Projects, Inc.
Notes to Financial Statements
Note 1 - Summary of Significant Accounting Policies (con't)
Earnings per Common Share
The Company adopted Financial Accounting Standards (SFAS) No. 128, "Earnings Per
Share," which simplifies the computation of earnings per share requiring the
restatement of all prior periods.
Basic earnings per share are computed on the basis of the weighted average
number of common shares outstanding during each year.
Diluted earnings per share are computed on the basis of the weighted average
number of common shares and dilutive securities outstanding. Dilutive securities
having an anti-dilutive effect on diluted earnings per share are excluded from
the calculation.
Comprehensive Income
Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting
Comprehensive Income," establishes standards for reporting and display of
comprehensive income, its components and accumulated balances. Comprehensive
income is defined to include all changes in equity except those resulting from
investments by owners and distributions to owners. Among other disclosures, SFAS
No.130 requires that all items that are required to be recognized under current
accounting standards as components of comprehensive income be reported in a
financial statement that is displayed with the same prominence as other
financial statements. The Company does not have any assets requiring disclosure
of comprehensive income.
Segments of an Enterprise and Related Information
Statement of Financial Accounting Standards (SFAS) No. 131, Disclosures about
Segments of an Enterprise and Related Information, supersedes SFAS No. 14,
"Financial Reporting for Segments of a Business Enterprise." SFAS 131
establishes standards for the way that public companies report information about
operating segments in annual financial statements and requires reporting of
selected information about operating segments in interim financial statements
issued to the public. It also establishes standards for disclosures regarding
products and services, geographic areas and major customers. SFAS 131 defines
operating segments as components of a company about which separate financial
information is available that is evaluated regularly by the chief operating
decision maker in deciding how to allocate resources and in assessing
performance. The Company has evaluated this SFAS and does not believe it is
applicable at this time.
7
Temple Summit Financial Projects, Inc.
Notes to Financial Statements
Note 2 - Common Stock
A total of 5,034,999 shares of common stock was sold in 1999 for
$221,125, and in 2000 a total of 3,922,333 shares of common stock was sold for $
39,223. In 1999, 20,000,000 shares of common stock was issued to settle $200,000
to the former directors and officers, and in 2000 a total of 56,000,000 shares
of common stock was issued to the former directors and officers for services
that had been accrued in prior years.
Note 3 - Related Parties
The Organization has no significant related party transactions and/or
relationships any individuals or entities.
Note 4 - Going Concern
The Company has had no operations to date, has little or no tangible assets or
financial resources, and incurred losses since inception. These losses and lack
of operations raise substantial doubt about the Company's ability to continue as
a going concern.
Note 5 - Income Taxes
Deferred income taxes arise from temporary differences resulting from the
Company's subsidiary utilizing the cash basis of accounting for tax purposes and
the accrual basis for financial reporting purposes. Deferred taxes are
classified as current or non-current, depending on the classification of the
assets and liabilities to which they relate. Deferred taxes arising from timing
differences that are not related to an asset or liability are classified as
current or non-current depending on the periods in which the timing differences
are expected to reverse. The Company's previous principal temporary differences
relate to revenue and expenses accrued for financial purposes, which are not
taxable for financial reporting purposes. The Company's material temporary
differences consist of bad debt expense recorded in the financial statements
that is not deductible for tax purposes and differences in the depreciation
expense calculated for financial statement purposes and tax purposes.
The net deferred tax asset or liability is composed of the following:
<TABLE>
<S> <C> <C>
2000 1999
Total Deferred Tax Assets ......... $ 9,427 $6,180
Less: Valuation Allowance ......... ( 9,427 ) (6,180 )
Net Deferred Tax Asset ... -- --
Total Deferred Tax Liabilities -- --
Net Deferred Tax Liability -- --
Less Current Portion ..... -- --
Long-Term Portion ........ $ -- $ --
</TABLE>
8
Temple Summit Financial Projects, Inc.
Notes to Financial Statements
Note 6 - Sale of Assets and Loss from Discontinued Operations
On April 12, 2000, the Company sold all of its assets and liabilities to Nevada
Mining & Metals Corporation, a Nevada Corporation for a total of $30,000. The
Company has no other assets or liabilities as of June 30, 2000.
Note 7 - Subsequent Events
There were no other material subsequent events that have occurred since the
balance sheet date that warrants disclosure in these financial statements.
