CHEQUEMATE INTERNATIONAL, INC.
(dba C3-D Digital)
Consolidated Statements of Operations
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------------------- ------------------------------------
1999 1998 1999 1998
------------------- ----------------- ----------------- -----------------
REVENUES $ 1,035,292 $ 275,937 $ 2,644,478 $ 443,313
COST OF SALES 2,071,819 144,330 2,653,873 250,575
------------------- ----------------- ----------------- -----------------
GROSS PROFIT (LOSS) (1,036,527) 131,607 (9,395) 192,738
------------------- ----------------- ----------------- -----------------
EXPENSES
Selling expenses 1,235,549 84,448 2,576,079 299,957
Research and development cost 339,158 - 339,158 -
General and administrative 393,233 606,811 3,794,521 1,599,581
------------------- ----------------- ----------------- -----------------
Total Expenses 1,967,940 691,259 6,709,758 1,899,538
------------------- ----------------- ----------------- -----------------
OTHER INCOME (EXPENSE)
Loss on sale of assets - - - (165,167)
Interest income 3,149 782 11,735 782
Interest expense (177,778) (9,258) (283,269) (9,383)
------------------- ----------------- ----------------- -----------------
Net Other Expense (174,629) (8,476) (271,534) (174,550)
------------------- ----------------- ----------------- -----------------
NET (LOSS) BEFORE INCOME TAXES (3,179,096) (568,128) (6,990,687) (1,881,350)
INCOME TAX PROVISION - - - -
------------------- ----------------- ----------------- -----------------
NET (LOSS) $ (3,179,096) $ (568,128) $ (6,990,687) $ (1,881,350)
=================== ================= ================= =================
BASIC (LOSS) PER SHARE $ (0.14) $ (0.03) $ (0.30) $ (0.12)
=================== ================= ================= =================
AVERAGE NUMBER OF SHARES
OUTSTANDING 23,276,928 16,333,630 23,167,071 16,333,630
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5
CHEQUEMATE INTERNATIONAL, INC.
(dba C3-D Digital)
Consolidated Statements of Cash Flows
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------------------- ------------------------------------
1999 1998 1999 1998
------------------- ----------------- ----------------- -----------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) $ (3,179,096) $ (568,128) $ (6,990,687) $ (1,887,826)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Depreciation and amortization 128,135 54,732 390,469 209,296
Bad debts 50,146 - 50,146 -
(Increase) decrease in accounts
receivable and other assets (596,003) (159,132) (776,081) (258,774)
(Increase) decrease in inventory 1,152,362 608,928 999,232 372,252
(Increase) decrease in prepaid expense 840 (41,753) (72,439) (41,302)
(Increase) decrease in deposits 15,704 (282,651) 15,704 (282,651)
Increase (decrease) in accounts payable (336,103) (405,902) 88,932 (260,930)
Increase (decrease) short-term debt - (57,724) - -
Increase (decrease) in accrued expenses 118,554 879 228,886 43,100
Increase (decrease) in customer deposits - (54,724) - (54,724)
Increase (decrease) in accrued interest 153,792 - 114,001 -
------------------- ----------------- ----------------- -----------------
Net Cash (Used) by Operating
Activities (2,491,669) (2,007,883) (5,951,837) (2,906,063)
------------------- ----------------- ----------------- -----------------
CASH FLOWS FROM INVESTING
ACTIVITIES
Investment in Hotel Express (150,000) - (150,000) -
Purchase of movie rights (624,100) - (624,100) -
Equipment purchase - (315,898) (138,437) (315,898)
------------------- ----------------- ----------------- -----------------
Net Cash (Used) by Investing
Activities (774,100) (315,898) (912,537) (315,898)
------------------- ----------------- ----------------- -----------------
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from common stock 2,175,253 1,818,104 3,674,657 2,578,926
Proceeds from debt 1,359,970 1,190,000 1,859,970 1,190,000
Payments of capital leases - (5,604) (15,289) (7,054)
Payments of long-term debt - (19,778) (59,745) (20,850)
------------------- ----------------- ----------------- -----------------
Net Cash Provided by Financing
Activities $ 3,535,223 $ 2,982,722 $ 5,459,593 $ 3,741,022
------------------- ----------------- ----------------- -----------------
6
CHEQUEMATE INTERNATIONAL, INC.
(dba C3-D Digital)
Consolidated Statements of Cash Flows (Continued)
(Unaudited)
For the For the
Three Months Ended Nine Months Ended
December 31, December 31,
-------------------------------------- ------------------------------------
1999 1998 1999 1998
------------------- ----------------- ----------------- -----------------
NET INCREASE (DECREASE) IN CASH $ 269,454 $ 658,941 $ (1,404,781) $ (519,061)
CASH AT BEGINNING PERIOD 57,964 80,960 1,732,199 220,840
------------------- ----------------- ----------------- -----------------
CASH AT END OF PERIOD $ 327,418 $ 739,901 $ 327,418 $ 739,901
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