MONTHLY FINANCIAL STATEMENTS FOR THE FIRST YEAR OF OPERATIONS
Air Lounge Balance Sheet for the year 2007
   
    1/31/2007 2/28/2007 3/31/2007 4/30/2007 5/31/2007 6/30/2007 7/31/2006 8/31/2007 9/30/2007 10/31/2007 11/30/2007 12/31/2007
ASSETS
Current Assets:
Cash $178,232.00 $153,343.91 $157,912.15 $144,157.18 $159,487.05 $194,779.60 $211,463.38 $263,174.74 $283,023.85 $241,894.63 $233,978.07 $235,555.16
Merchandise Inventory 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00 5,000.00
Prepaid Expenses 5,960.39 5,418.53 4,876.68 4,334.83 3,792.97 3,251.12 2,709.27 2,167.41 1,625.56 1,083.71 541.85 0
Total Current Assets 189,192.38 163,762.44 167,788.83 153,492.00 168,280.02 203,030.72 219,172.64 270,342.15 289,649.41 247,978.34 239,519.92 240,555.16
 
Fixed Assets, net of depreciation:
Furniture and Fixtures 145,839.05 144,613.52 143,387.98 142,162.44 140,936.90 139,711.36 138,485.83 137,260.29 136,034.75 134,809.21 133,583.67 132,358.13
Equipment 28,826.86 28,502.65 28,178.45 27,854.24 27,530.03 27,205.83 26,881.62 26,557.41 26,233.21 25,909.00 25,584.79 25,260.59
Leasehold Improvements 26,943.23 26,792.71 26,642.19 26,491.67 26,341.15 26,190.63 26,040.10 25,889.58 25,739.06 25,588.54 25,438.02 25,287.50
Total Fixed Assets 201,609.14 199,908.88 198,208.61 196,508.35 194,808.08 193,107.82 191,407.55 189,707.28 188,007.02 186,306.75 184,606.49 182,906.22
Total Assets 390,801.53 363,671.32 365,997.44 350,000.35 363,088.10 396,138.54 410,580.19 460,049.44 477,656.43 434,285.09 424,126.41 423,461.38
LIABILITIES AND CAPITAL
Current Liabilities:
Accounts Payable 32,406.61 31,719.36 31,023.96 30,320.29 29,608.27 28,887.80 28,158.77 27,421.08 26,674.63 25,919.32 25,155.04 24,381.68
Sales Taxes Payable 9,890.04 18,365.54 29,117.36 11,585.98 23,169.44 36,295.58 14,492.94 28,887.89 40,820.59 10,374.95 20,161.98 30,682.65
Total Current Liabilities 42,296.65 50,084.90 60,141.32 41,906.27 52,777.71 65,183.37 42,651.71 56,308.97 67,495.22 36,294.27 45,317.01 55,064.33
Long-Term Liabilities:
Long-Term Notes Payable 245,000.00 242,828.12 240,630.44 238,406.67 236,156.48 233,879.58 231,575.64 229,244.34 226,885.36 224,498.36 222,083.02 219,639.00
Total Long-Term Liabilities 245,000.00 242,828.12 240,630.44 238,406.67 236,156.48 233,879.58 231,575.64 229,244.34 226,885.36 224,498.36 222,083.02 219,639.00
Total Liabilities 287,296.65 292,913.02 300,771.76 280,312.93 288,934.20 299,062.96 274,227.35 285,553.31 294,380.58 260,792.63 267,400.04 274,703.33
Capital:
Owner's Equity 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00 120,000.00
Net Profit -16,495.12 -49,241.70 -54,774.32 -50,312.59 -45,846.09 -22,924.42 16,352.84 54,496.13 63,275.85 53,492.45 36,726.37 28,758.05
Total Capital 103,504.88 70,758.30 65,225.68 69,687.41 74,153.91 97,075.58 136,352.84 174,496.13 183,275.85 173,492.45 156,726.37 148,758.05
Total Liabilities and Capital $390,801.53 $363,671.32 $365,997.44 $350,000.35 $363,088.10 $396,138.54 $410,580.19 $460,049.44 $477,656.43 $434,285.09 $424,126.41 $423,461.38
Air Lounge Income Statement for the year 2007
    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Revenue:
Gross Sales $118,090.00 $101,200.00 $128,380.00 $138,340.00 $138,310.00 $156,730.00 $173,050.00 $171,880.00 $142,480.00 $123,880.00 $116,860.00 $125,620.00
Expenses:
Advertising  42,570.79 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80
Bank Charges 100 100 100 100 100 100 100 100 100 100 100 100
Depreciation 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27 1,700.27
Insurance 500 500 500 500 500 500 500 500 500 500 500 500
Interest 3,255.54 3,221.99 3,188.04 3,153.68 3,118.92 3,083.74 3,048.15 3,012.13 2,975.69 2,938.81 2,901.50 2,863.74
Miscellaneous 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85 3,041.85
Rent 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67
Telephone 150 150 150 150 150 150 150 150 150 150 150 150
Utilities 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00 1,000.00
Wages 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
Total Expenses 134,585.12 133,946.58 133,912.62 133,878.27 133,843.50 133,808.33 133,772.73 133,736.72 133,700.27 133,663.40 133,626.08 133,588.32
  NET INCOME (LOSS) ($16,495.12) ($32,746.58) ($5,532.62) $4,461.73 $4,466.50 $22,921.67 $39,277.27 $38,143.28 $8,779.73 ($9,783.40) ($16,766.08) ($7,968.32)
Air Lounge Cash Flow Statement for the year 2007
    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Beginning Cash Balance $0.00 $178,232.00 $153,343.91 $157,912.15 $144,157.18 $159,487.05 $194,779.60 $211,463.38 $263,174.74 $283,023.85 $241,894.63 $233,978.07
Cash Inflows (Income):
Loan Proceeds 245,000.00 0 0 0 0 0 0 0 0 0 0 0
Sales 118,090.00 101,200.00 128,380.00 138,340.00 138,310.00 156,730.00 173,050.00 171,880.00 142,480.00 123,880.00 116,860.00 125,620.00
Sales Tax Receipt 9,890.04 8,475.50 10,751.83 11,585.98 11,583.46 13,126.14 14,492.94 14,394.95 11,932.70 10,374.95 9,787.03 10,520.68
Other: Capital 120,000.00 0 0 0 0 0 0 0 0 0 0 0
   Total Cash Inflows 492,980.04 109,675.50 139,131.83 149,925.98 149,893.46 169,856.14 187,542.94 186,274.95 154,412.70 134,254.95 126,647.03 136,140.68
Cash Outflows (Expenses):
Advertising 42,570.79 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80 41,965.80
Inventory Purchases 5,000.00 0 0 0 0 0 0 0 0 0 0 0
Equipment 147,064.59 0 0 0 0 0 0 0 0 0 0 0
Leasehold improvements 27,093.75 0 0 0 0 0 0 0 0 0 0 0
Credit Card Payment 0 653.69 661.45 669.31 677.26 685.3 693.44 701.67 710 718.44 726.97 735.6
Delivery 0 0 0 0 0 0 0 0 0 0 0 0
Health Insurance 0 0 0 0 0 0 0 0 0 0 0 0
Insurance 6,000.00 0 0 0 0 0 0 0 0 0 0 0
Interest 0 3,255.54 3,221.99 3,188.04 3,153.68 3,118.92 3,083.74 3,048.15 3,012.13 2,975.69 2,938.81 2,901.50
Payroll 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00 15,600.00
Sales Tax 0 0 0 29,117.36 0 0 36,295.58 0 0 40,820.59 0 0
Professional Fees 0 0 0 0 0 0 0 0 0 0 0 0
Miscellaneous 3,502.24 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00 3,000.00
Rent or Lease 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67 66,666.67
Taxes & Licenses 0 0 0 0 0 0 0 0 0 0 0 0
Utilities & Telephone 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00 1,150.00
Bank Service Charges 100 100 100 100 100 100 100 100 100 100 100 100
   Subtotal 314,748.04 132,391.70 132,365.91 161,457.18 132,313.41 132,286.68 168,555.22 132,232.29 132,204.60 172,997.18 132,148.24 132,119.56
Other Cash Out Flows:
Loan Principal 0 2,171.89 2,197.68 2,223.77 2,250.18 2,276.90 2,303.94 2,331.30 2,358.98 2,387.00 2,415.34 2,444.02
Owner's Draw 0 0 0 0 0 0 0 0 0 0 0 0
   Subtotal 0 2,171.89 2,197.68 2,223.77 2,250.18 2,276.90 2,303.94 2,331.30 2,358.98 2,387.00 2,415.34 2,444.02
   Total Cash Outflows 314,748.04 134,563.59 134,563.59 163,680.95 134,563.59 134,563.59 170,859.16 134,563.59 134,563.59 175,384.17 134,563.59 134,563.59
NET INCREASE (DECREASE) 178,232.00 -24,888.09 4,568.24 -13,754.97 15,329.88 35,292.55 16,683.78 51,711.36 19,849.11 -41,129.22 -7,916.56 1,577.09
Ending Cash Balance $178,232.00 $153,343.91 $157,912.15 $144,157.18 $159,487.05 $194,779.60 $211,463.38 $263,174.74 $283,023.85 $241,894.63 $233,978.07 $235,555.16
ANNUAL FINANCIAL STATEMENTS
Air Lounge Balance Sheets for the Years ended December 31st
Assets
Current Assets:
Cash 235,555.16 347,868.87 581,326.50
Merchandise Inventory 5,000.00 5,000.00 5,000.00
Total Current Assets  240,555.16   352,868.87   586,326.50
Furniture and Fixtures 132,358.13 117,651.67 102,945.22
Equipment 25,260.59 21,370.11 17,479.63
Leasehold Imporvements 25,287.50 25,287.50 25,287.50
Total Fixed Assets 182,906.22   164,309.29   145,712.35
$423,461.38   $517,178.15   $732,038.85
LIABILITIES AND CAPITAL
Current Liabilities
Accounts Payable 24,381.68 14,352.94 2,797.96
Sales Taxes Payable 30,682.65 33,999.15 38,079.45
Total Current Liabilities 55,064.33   48,352.09   40,877.41
Long Term Liabilities
Long Term Nptes Payable 219,639.00 187,945.37 151,428.44
Total Long Term Liabilities 219,639.00   187,945.37   151,428.44
Total Liabilities 274,703.33 236,297.46 192,305.85
Capital
Owners Equity 120,000.00 120,000.00 120,000.00
Net Profit 28,758.05 160,880.69 419,733.00
Total Capital 148,758.05   280,880.69   539,733.00
Total Liabilities and Capital $423,461.38   $517,178.15   $732,038.85
AirLounge Inc.
Income Statement
For the Years Ended  December 31,
     
    2007   2008   2009
Revenue:
Gross Sales $1,634,820.00 $1,813,470.00 $2,031,120.00
Expenses:
Advertising 504,194.59 559,922.00 627,078.90
Bank Charges 1,200.00 1,260.00 1,323.00
Depreciation 20,403.19 18,596.94 18,596.94
Insurance 6,000.00 6,300.00 6,615.00
Miscellaneous 36,502.24 38,327.35 40,243.72
Rent 800,000.00 824,000.00 848,720.00
Telephone 1,800.00 1,890.00 1,984.50
Utilities 12,000.00 12,600.00 13,230.00
Wages 187,200.00 187,200.00 187,200.00
Interest 36,761.94 31,251.07 27,275.63
Total Expenses 1,606,061.95   1,681,347.36   1,772,267.69
NET INCOME (LOSS) $28,758.05   $132,122.64   $258,852.31
AirLounge Inc.
Cash Flow Budget
For the Years ended December 31,
    2007   2008   2009
Beginning Cash Balance $0.00 $235,555.16 $347,868.87
Cash Inflows (Income):
Loan Proceeds 245,000.00 0 0
Sales 1,634,820.00 1,813,470.00 2,031,120.00
Sales Tax Receipt 136,916.18 151,878.11 170,106.30
Other: Capital 120,000.00 0 0
   Total Cash Inflows 2,136,736.18 1,965,348.11 2,201,226.30
0 0
Cash Outflows (Expenses):
Advertising 504,194.59 559,922.00 627,078.90
Bank Service Charges 1,200.00 1,260.00 1,323.00
Credit Card Payment 7,633.12 9,539.11 10,990.82
Insurance 6,000.00 6,300.00 6,615.00
Interest 33,898.20 31,740.71 27,839.79
Inventory Purchases 5,000.00 0 0
Miscellaneous 36,502.24 38,327.35 40,243.72
Payroll 187,200.00 187,200.00 187,200.00
Sales Tax 106,233.53 148,561.61 166,026.00
Rent or Lease 800,000.00 824,000.00 848,720.00
Equipment 147,064.59 0 0
Leasehold improvements 27,093.75 0 0
Utilities & Telephone 13,800.00 14,490.00 15,214.50
Other 1,875,820.02   1,821,340.78   1,931,251.73
Other Cash Out Flows:
Loan Principal 25,361.00 31,693.63 36,516.93
Owner's Draw 0 0 0
   Subtotal 25,361.00   31,693.63   36,516.93
   Total Cash Outflows 1,901,181.02 1,853,034.40 1,967,768.66
NET INCREASE (DECREASE) 235,555.16 112,313.71 233,457.64
Ending Cash Balance $235,555.16   $347,868.87   $581,326.50