March 31,
December 31,
2010
2009
Current assets:
Cash
48,246
$
71,673
$
Accounts receivable
212,927
13,854
Inventory
57,939
80,025
Prepaid expenses
50,000
-
Total current assets
369,112
165,552
Property, plant and equipment, net
7,007
7,434
Other assets:
Security deposit
14,000
14,000
Total other assets
14,000
14,000
Total assets
390,119
$
186,986
$
Current liabilities:
Accounts payable
35,076
$
2,077
$
Accrued expenses
120,000
120,000
Total current liabilities
155,076
122,077
Convertible long term debt
642,427
521,427
Total liabilities
797,503
643,504
Shareholders' deficit:
Common stock, par value $0.0001, 100,000,000 shares
authorized, 82,744,000 and 81,273,953 shares issued and
outstanding as of March 31, 2010 and December 31, 2009,
respectively
8,274
8,127
Additional paid in capital
197,557
104
Retained deficit
(613,215)
(464,749)
Total shareholders' deficit
(407,384)
(456,518)
Total liabilities and shareholders' deficit
390,119
$
186,986
$
Assets
Liabilities and Shareholders' Deficit
HI SCORE CORPORATION
BALANCE SHEETS
(UNAUDITED)
The accompanying notes are an integral part of these financial statements.
1.
2010
2009
Sales
218,133
$
14,909
$
Cost of sales
106,657
7,934
Gross profit
111,476
6,975
Operating expenses:
Salaries and benefits
135,025
-
Professional fees
45,952
23,626
General and administrative
41,597
12,838
Selling expenses
36,941
38,529
Depreciation
427
-
Total operating expenses
259,942
74,993
Net loss
(148,466)
$
(68,018)
$
HI SCORE CORPORATION
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
(UNAUDITED)
The accompanying notes are an integral part of these financial statements.
2.
Deficit
Accumulated
Additional
During
Paid in
Development
Total
Shares
Amount
Capital
Stage
Deficit
Balance at December 31, 2007
-
-
$
-
$
-
$
Issuance of common stock
59,925
6
104
Net loss
-
-
-
(92,952)
Balance at December 31, 2008
59,925
6
104
(92,952)
(92,842)
Debt converted to equity
81,214,028
8,121
Net loss
-
-
-
(371,797)
Balance at December 31, 2009
81,273,953
8,127
$
104
$
(464,749)
$
(456,518)
$
Sale of common stock
1,470,047
147
197,453
Net loss
-
-
-
(148,466)
Balance at March 31, 2010
82,744,000
8,274
$
197,557
$
(613,215)
$
(407,384)
$
Common stock
HI SCORE CORPORATION
STATEMENT OF SHAREHOLDERS' DEFICIT
AS OF MARCH 31, 2010
(UNAUDITED)
The accompanying notes are an integral part of these financial statements.
3.
2010
2009
Cash flow from operating activities:
Net loss
(148,466)
$
(68,018)
$
Adjustments to reconcile net loss to net
cash used in operating activities
Depreciation
427
-
Bad debt expense
7,354
(Increase) in:
Accounts receivable
(206,427)
-
Inventory
22,086
-
Prepaid assets
(50,000)
-
Increase in:
Accounts payable and accrued expenses
32,999
-
Cash used in operating activities
(342,027)
(68,018)
Cash flow from investment activities:
Purchase of property, plant and equipment
-
-
Cash used in investment activities
-
-
Cash flow from financing activities:
Proceeds received from issuance of convertible debt
121,000
67,801
Proceeds received from sale of equity securities
197,600
-
Cash provided by financing activities
318,600
67,801
Net increase in cash
(23,427)
(217)
Cash at beginning of period
71,673
4,918
Cash at end of period
48,246
$
4,701
$
Supplemental schedule of non cash transactions:
Debt converted to equity
-
$
8,121
$
(UNAUDITED)
March 31,
HI SCORE CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009
The accompanying notes are an integral part of these financial statements.
4.