Financial Analysis

9:46 AM
09/13/10
Accrual Basis
Squires Turbo Systems, Inc.
Trial Balance
As of June 30, 2010
Trial Balance as of 6/30/2010

Jun 30, 10
Debit
Credit
BALANCE SHEET
1015 Key Bank
1025 Petty Cash
1035 Wells Fargo Savings (4974)
Accounts Receivable Warranty
1200 Accounts Receivable
72,155.85
428.12
3,720.86
278.21
42,915.81
1250 Reserve for Bad Debts

Employee Advances
Loan- Dave South
12100 *Inventory Asset
14,863.49
0.00
0.00
262,116.06
12100 *Inventory Asset:12115 Miscellaneous Inventory
0.00
1310 Undeposited Funds
0.01
1330 Inventory-Deferred Rev COGS
0.00
1335 Inventory-Shipped Incomplete
0.00
1340 Prepaid Insurance
1,770.15
1345 Deferred Insurance Expense
3,377.68
1346 Deferred Fee

1350 Prepaid Inventory
1350 Prepaid Inventory:1351 Prepaid Inv - WaLine
291.66
2,731.82
10,452.12
1350 Prepaid Inventory:1352 Prepaid Inv - Ningbo HaiTian
5,079.51
1350 Prepaid Inventory:1353 Prepaid Inv - Ningbo Jintian
5,116.50
1350 Prepaid Inventory:1356 Prepaid Inv - HIWOWSPORT
4,710.00
1365 Prepaid Other

1420 Prepaid Expense
12200 Computer Equipment:12205 Original Cost
0.00
3,095.07
31,697.76
12200 Computer Equipment:12210 Accum Depreciation

1400 Automobiles:1405 Original Cost
22,113.77
5,867.61
1400 Automobiles:1410 Accum Depreciation

1500 Office Equipment
1600 Production Equipment:1605 Original Cost
5,279.17
0.00
9,496.54
1600 Production Equipment:1610 Accum Depreciation

1700 Shop Equipment
1700 Shop Equipment:1705 Original Cost
9,276.84
0.00
21,238.59
1700 Shop Equipment:1710 Accum Depreciation

1800 Software:1805 Original Cost
18,446.44
5,870.93
1800 Software:1810 Accum Depreciation

1900 Intellectual Propert-GPT
3,751.79
5,000.00
2000 Accounts Payable

2010 Advanta Line Of Credit
106,515.95
0.00
2020 American Express (STS) 1001
33,774.51
2030 Discover
11,202.96
2160 Wells Fargo Line of Credit (959
87,096.10
2003 Accrued Payroll

2100 Contra Accounts Payable Account
2105 Bonuses Payable:Dave South
2105 Bonuses Payable:Enoch Golding
2115 Customer Deposits
2120 Deferred Revenue
6,620.80
0.00
0.00
847.57
60,624.69
3,656.00
Page 1 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
Debit
Credit
2125 Health Benefits Payable
1,156.10
2130 Insurance Installment Note
3,377.68
2135 Payroll Liabilities
4,297.20
2145 Reserve - Warranty Obligation
5,990.61
2150 Sales Tax Payable

2155 Shipping Accrual
2,545.09
0.00
2303 Yearly Portion of AVAYA Lease
1,692.41
2305 Avaya Phone Lease
5,110.16
2315 Rick Squires - Accrued Compensa
225,187.90
2316 Ruff Tech Line of Credit
4,261.55
2320 Rick Squires - Interest Payable
8,943.75
2325 Rick Squires Loan
130,501.52
2330 RuffTech - Accrued Interest
755.95
2340 SB Lending - Accrued Interest
7,093.92
2345 SB Lending - Loan

3000 Opening Bal Equity
3100 Retained Earnings
50,691.32
0.00
2,304,451.00
3110 Common Stock
32,396.00
3115 Preferred Stock
500.00
3300 Additional Paid in Capital
1,771,254.80
INCOME STATEMENT
4000 INCOME
4000 INCOME:4010 Discounts
12,667.92
93,471.17
4000 INCOME:4020 Product Sales
858,299.71
4000 INCOME:4025 Sales Returns
229.41
4000 INCOME:4030 Service Labor
28,610.77
4000 INCOME:4040 Shipping and Handling
28,326.85
4000 INCOME:4050 Warranty Replacements

5000 COGS
5000 COGS:5010 Automotive Products
0.00
6,968.82
226,213.48
5000 COGS:5020 Freight In
10,425.20
5000 COGS:5030 Inventory Adjustment
17,741.06
5000 COGS:5050 Prod/Fulfillment Payroll
27,888.82
5000 COGS:5060 Labor Payroll Taxes

5000 COGS:5070 Scrapped Inventory
2,731.02
40.12
5000 COGS:5080 Shipping
22,329.21
5000 COGS:5090 Warranty
432.30
5500 Shop:5510 shop consumables
591.94
5500 Shop:7165 Shop Repairs
334.60
6000 R&D
28.00
6000 R&D:6010 Fuel
1,778.50
6000 R&D:6020 R&D Labor
7,213.98
66000 Payroll Expenses
3,648.52
66900 Reconciliation Discrepancies

7000 G&A
2.57
0.00
7000 G&A:5037 Consumables
3,037.23
7000 G&A:7015 Bad Debt
3,484.29
7000 G&A:7020 Bank Service Charges
892.98
Page 2 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
Debit
7000 G&A:7025 Charitable Contributions

7000 G&A:7030 Cleaning
Credit
500.00
75.66
7000 G&A:7035 Computers & IT

7000 G&A:7040 Depreciation Expense
7000 G&A:7055 Health Benefits
125.64
2,822.27
12,536.00
7000 G&A:7060 Insurance
4,405.58
7000 G&A:7061 Sales Tax
77.82
7000 G&A:7065 Interest Expense

7000 G&A:7065 Interest Expense:Finance Charges
7000 G&A:7070 Late Payment Fees
7000 G&A:7075 Licenses and Permits
7000 G&A:7085 Merchant Fee
7000 G&A:7090 Miscellaneous
19,089.12
3,663.88
103.40
165.00
13,289.55
164.75
7000 G&A:7100 Office Supplies
3,348.38
7000 G&A:7105 Officers Salary
72,358.00
7000 G&A:7115 Payroll Service Fee

7000 G&A:7120 Payroll Taxes
7000 G&A:7126 Postage
7000 G&A:7130 Professional Fees
7000 G&A:7130 Professional Fees:7135 Accounting
7000 G&A:7130 Professional Fees:7140 Auditing
627.75
4,157.77
131.56
190.00
8,511.25
57,186.29
7000 G&A:7130 Professional Fees:7145 Consulting
4,777.00
7000 G&A:7130 Professional Fees:7147 Legal Expenses (PPM and IPO)
4,041.50
7000 G&A:7130 Professional Fees:7150 Patent Fees

7000 G&A:7155 Rent
7000 G&A:7160 Repairs:7170 Equipment Repairs
7000 G&A:7175 Software Subscription
7000 G&A:7180 Taxes
7000 G&A:7180 Taxes:7195 State
7000 G&A:7180 Taxes:7200 Use Tax
7000 G&A:7205 Telephone
7000 G&A:7210 Travel & Ent
7000 G&A:7210 Travel & Ent:7215 Travel
7000 G&A:7210 Travel & Ent:7220 Meals & Ent
7000 G&A:7225 Utilities
7000 G&A:7230 Wages (Administrative)
7151 Miscellaneous Expense
7174 Service Charge
8000 SALES
8000 SALES:Payroll Taxes
8000 SALES:8010 Commissions
8000 SALES:8030 Wages
7,327.10
21,420.00
17.14
69.99
408.54
1,598.20
184.80
6,804.33
25.00
421.41
593.76
4,240.07
38,653.00
3,575.50
218.65
37.88
5,228.50
5,223.87
26,063.11
8000 SALES:8100 Marketing:8115 Other Advertising
218.05
8000 SALES:8100 Marketing:8125 Print Advertising
186.02
8000 SALES:8100 Marketing:8135 Show Expenses
631.25
8000 SALES:8100 Marketing:8145 Sponsorship

8000 SALES:8100 Marketing:8165 Web Advertising
9200 Interest Income
9210 Other Income
133.34
2,074.70
0.93
600.00
Page 3 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
Debit
TOTAL
3,568,689.84
Credit
3,568,689.84
Page 4 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010

Jun 30, 10
BALANCE SHEET
1015 Key Bank
1025 Petty Cash
Cash
Cash
Cash
AR
AR
AR
Employee Advances
Loan- Dave South
1346 Deferred Fee
1365 Prepaid Other
1700 Shop Equipment
2030 Discover
Inventory
Inventory
Cash
Inventory
Inventory
Prepaid
Other Current Asset
Prepaid
Prepaid
Prepaid
Prepaid
Prepaid
Prepaid
Prepaid
Prepaid
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
Intangible Asset
AP
Line of Credit
AP
AP
Line of Credit
Accrued Expenses
AP
Accrued Expenses
Accrued Expenses
Customer Deposits and Deferred Revenue
Page 5 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE
2125 SHEET
Health Benefits Payable
Accrued Expenses
Other Current Liability
Accrued Expenses
Other Current Liability
Accrued Expenses

Current Capital Lease

LT capital lease
Related party LT debt
Accrued interest related party

3110 Common Stock
RE
CS
PS
APIC
INCOME STATEMENT
4000 INCOME
5000 COGS
6000 R&D
6000 R&D:6010 Fuel
6000 R&D:6020 R&D Labor
7000 G&A
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
G&A
G&A
R&D
R&D
R&D
G&A
G&A
G&A
G&A
G&A
G&A
Page 6 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE
7000 SHEET
G&A:7025 Charitable Contributions
7000 G&A:7155 Rent
7000 G&A:7180 Taxes
7174 Service Charge
8000 SALES
9210 Other Income
G&A
G&A
G&A
Depreciation Expense
G&A
G&A
G&A
Interest Expense
Interest Expense
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Interest and Other Income
Page 7 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE SHEET
TOTAL
Page 8 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010

Jun 30, 10
BALANCE SHEET
1015 Key Bank
1025 Petty Cash
Employee Advances
Loan- Dave South
1346 Deferred Fee
1365 Prepaid Other
1700 Shop Equipment
2030 Discover

Page 9 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE
2125 SHEET
Health Benefits Payable



3110 Common Stock
INCOME STATEMENT
4000 INCOME
5000 COGS
6000 R&D
6000 R&D:6010 Fuel
6000 R&D:6020 R&D Labor
7000 G&A
Page 10 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE
7000 SHEET
G&A:7025 Charitable Contributions
7000 G&A:7155 Rent
7000 G&A:7180 Taxes
7174 Service Charge
8000 SALES
9210 Other Income

Page 11 of 97
9:46 AM
09/13/10
Accrual Basis
Trial Balance
As of June 30, 2010
Jun 30, 10
BALANCE SHEET
TOTAL
Page 12 of 97

Jun 30, 09
Debit
Credit
BALANCE SHEET
Central Bank
Key Bank
PayPal
0.00
8,503.28
0.00
Petty Cash
Wells Fargo Checking (9567)
Wells Fargo Savings (4974)
Zion's Bank
0.00
24,172.39
0.00
Client Trust Account
111,943.50
*Undeposited Funds
16,509.69
Accounts Receivable
23,696.86
Reserve for Bad Debts

Due from Officer/Shareholder
0.00
Inventory-Deferred Rev COGS

0.00
Inventory-Deferred Rev COGS:Kits on Consignment
0.00
Inventory-Deferred Rev COGS:Pipe Labor
0.00
Inventory-shipped incomplete
0.00
49,903.86
Inventory Asset
Inventory Reserve
Prepaid Deposits
0.00
Prepaid Insurance
6,173.13
Prepaid Inventory
34,791.85
Prepaid Legal
0.00
Prepaid Marketing
0.00
Refund account
UGA Reserve
Undeposited Funds
Software:Original Cost
0.00
Automobiles:Original Cost
0.00
3,146.24
3,146.24
0.00
37,269.61
Automobiles:Accum Depreciation
Computer Equipment
Computer Equipment:Original Cost
48,973.32
0.00
29,700.32
Computer Equipment:Accum Depreciation

Production Equipment:Original Cost
17,111.04
9,333.54
Production Equipment:Accum Depreciation

Shop Equipment:Original Cost
8,755.76
20,704.35
Shop Equipment:Accum Depreciation

Prepaid Overture
20,089.00
0.00
Accounts Payable
93,507.59
Legal Fees Payable
0.00
American Express
0.00
American Express (Enoch Person
0.00
American Express (Corporate)
0.00
American Express (Rick) 1027
43,421.80
Bank One Visa
0.00
Capitol One (Enoch)
0.00
Discover
Other Current Asset
1,825.00
Software:Accum Depreciation
Automobiles
Inventory
Inventory
Inventory
Inventory
Inventory
Inventory
174.53 Inventory
15,000.00 Inventory
Prepaid
Prepaid
Prepaid
Prepaid
Prepaid
494.29
Inventory-Deferred Rev COGS:Automotive Parts
Inventory-Deferred Rev COGS:Used Kits
Cash
Cash
Cash
122.81 Cash
Cash
Cash
Cash
Cash
Cash
A/R
9,246.82 A/R
14,105.31
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
PPE
A/P
A/P
A/P
A/P
A/P
A/P
A/P
A/P
A/P
Advanta Line Of Credit
17,849.83
Wells Fargo Line of Credit 9592
77,993.61
Accrued Payroll
22,965.41
Bonus Payable - Dave South
7,670.58
Bonus Payable - Enoch Golding
847.57
Bonuses Payable
0.00
Payroll Liabilities
20,541.73
Sales Tax Payable
1,838.80
Shipping Accrual
228.67
Dealer MDF
33.12
Insurance Installment Note
3,597.17
Reserve - Warranty Obligation
6,949.00
Deferred Revenue
67,978.90
Customer Deposits
205,894.21
Accrued Interest - RuffTech
116.75
Accrued Interest - SB Loan
1,011.01
Interest Payable - Rick
65,874.94
Yearly Portion of AVAYA Lease
1,488.60
Avaya Phone Lease
6,802.57
Rick Squires Loan
42,574.94
Accrued Compensation - Rick
126,815.31
Ruff Tech Line of Credit
4,261.55
SB Lending
50,691.32
Additional Paid in Capital

Opening Bal Equity
11,844.64
0.00
Owner's Equity
Owner's Equity:Distributions
506,995.00
12,200.00
Owner's Equity:Investment
Retained Earnings
Line of Credit
Line of Credit
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Other Current Liabilities
Customer Deposits and
Customer Deposits and
Accrued interest related
LT capital lease
1,288,702.04
R/E
2,211,392.27
INCOME STATEMENT
Discount
241.56
Discount Income
9.96
Early payment discounts
225.18
Sales
3,582.81
Sales:Automotive Parts:Misc parts
3,675.06
Sales:Employee Sales
Sales:Other Sales
3,890.00
0.00
Sales:Retail
Sales:Sales Discounts
Sales:Sales Returns
452,587.33
100.00
3,175.00
Sales:Shipping and Handling
33,296.26
Sales:Turbo Systems:350Z
31,739.00
Sales:Turbo Systems:C5 Corvette
38,105.09
Sales:Turbo Systems:C6 Corvette
121,135.00
Sales:Turbo Systems:Camaro
3,930.57
Sales:Turbo Systems:Dodge RAM
29,790.00
Sales:Turbo Systems:GM SUVs
44,455.00
Sales:Turbo Systems:GTO
11,590.00
Sales:Turbo Systems:Mustang GT
8,590.00
Sales:Turbo Systems:Tacoma
7,690.00
Sales:Turbo Systems:Tundra
6,392.00
Sales:Turbo Systems:Universal Stage 1
6,885.00
Sales:Turbo Systems:Universal Stage 3
15,175.00
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Revenue
Sales Retail
102,055.00
Shipping Income
6.34
Uncategorized Income
Cost of Goods Sold
Cost of Goods Sold:Automotive Parts
Cost of Goods Sold:Automotive Parts:Gauges
Cost of Goods Sold:Automotive Parts:Hose Clamps
Cost of Goods Sold:Automotive Parts:Intercooler Kits (add-on)
Cost of Goods Sold:Automotive Parts:Misc parts
Cost of Goods Sold:Automotive Parts:Pipes
Cost of Goods Sold:Automotive Parts:Silicones
Cost of Goods Sold:Freight In
Cost of Goods Sold:In-house install
Cost of Goods Sold:Labor:Fulfillment
Cost of Goods Sold:Labor:Pipe
Cost of Goods Sold:Manufacturing Overhead
5,330.12
237,430.90
783.15
59.82
118.14
159.17
2,493.84
1.14
194.64
27,001.26
0.00
23,908.95
7,601.84
218.37
Cost of Goods Sold:Manufacturing Overhead:Packing Material
5,885.15
Cost of Goods Sold:Manufacturing Overhead:Shop Supplies
3,670.98
Cost of Goods Sold:Other

Cost of Goods Sold:Shipping and Handling
Cost of Goods Sold:Turbo Systems:350Z
1,757.06
43,189.58
7,696.56
Cost of Goods Sold:Turbo Systems:C5 Corvette
24,044.79
Cost of Goods Sold:Turbo Systems:C6 Corvette
72,257.70
Cost of Goods Sold:Turbo Systems:Camaro

Cost of Goods Sold:Turbo Systems:Dodge RAM
Cost of Goods Sold:Turbo Systems:GM SUVs
946.22
4,187.52
598.74
Cost of Goods Sold:Turbo Systems:GM Trucks
6,771.77
Cost of Goods Sold:Turbo Systems:GTO
2,570.19
Cost of Goods Sold:Turbo Systems:Mustang GT
4,310.25
Cost of Goods Sold:Turbo Systems:Tacoma
2,059.38
Cost of Goods Sold:Turbo Systems:Tundra
1,276.60
Cost of Goods Sold:Turbo Systems:Universal Stage 1
2,261.46
Cost of Goods Sold:Turbo Systems:Universal Stage 3

Inventory Adjustment
4,942.23
192,220.38
Shipping Expense
102.08
7,500.00
G&A:Interest Expense:Finance Charges
9,824.91
G&A:Interest Expense:Interest Expense - Rick
9,529.15
G&A:Interest Expense:Interest Expense - Rufftech/SB
2,222.29
G&A
G&A:Automobile Expense
5,403.46
338.63
G&A:Automobile Expense:Auto Insurance

G&A:Automobile Expense:Automotive Expense - Other
G&A:Automobile Expense:Fuel
G&A:Bad Debt
G&A:Bank Service Charges
2,788.57
10.67
1,065.32
325.00
1,095.06
G&A:Business Development
584.99
G&A:Computers & IT
238.23
G&A:Computers & IT:Computer Equipment & Supplies
251.96
G&A:Computers & IT:Software
975.00
G&A:Executive Bonuses:Bonus - Rick

G&A:Health Benefits
G&A:Insurance
0.00
9,660.79
833.64
G&A:Insurance:Garage Keepers
3,643.25
G&A:Insurance:Product Liability
785.75
Revenue
Revenue
Revenue
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
COGS
Interest Expense
Interest Expense
Interest Expense
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A:Insurance:Property
106.37
G&A:Late Payment Fees
84.66
G&A:Licenses and Permits

G&A:Life and Disability Benefit
G&A:Merchant Fee
G&A:Office Supplies
12.00
735.88
20,158.34
2,969.54
G&A:Payroll Service Fee

G&A:Postage and Delivery
G&A:Professional Fees:Legal Expenses (PPM and IPO)
G&A:Professional Fees:Patent Fees
68.22
244.34
35,753.90
3,036.59
G&A:Rent
21,420.00
G&A:Shop
890.40
G&A:Shop:Consumables
G&A:Shop:Repairs
3,758.29
177.89
G&A:Shop:Tools & Equipment
1,709.46
G&A:Telephone:Cellular
1,743.04
G&A:Telephone:Phone System
7,285.02
G&A:Utilities:Electric
1,955.58
G&A:Utilities:Gas
2,593.36
G&A:Utilities:Internet
G&A:Utilities:Waste Disposal
G&A:Wages
419.70
466.90
119,951.69
G&A:Workman's Comp
Audit Expenses (Pre-IPO)
Miscellaneous
Payroll Expenses
Reconciliation Discrepancies
Taxes
Taxes:Local
Taxes:Sales Tax
258.27
41,004.90
5,767.65
25,805.86
0.04
117.72
23.96
204.36
Taxes:State
Tooling & Samples ( Out source)
296.32
7,907.63
Travel & Ent:Hotel
920.24
Travel & Ent:Meals & Entertainment
332.72
Travel & Ent:Rental Car
59.39
Scrapped Inventory
9,173.53
Marketing
Marketing:Advertising
2,590.00
Marketing:Print - Marketing Supplies

Marketing:Tradeshow
Marketing:Wages
Marketing:Website
Sales Dept.:Commissions
Sales Dept.:Wages
Research & Development:R&D Labor
241.98
419.85
1,014.17
196.15
6,566.22
27,470.80
4,356.32
16,164.83
Research & Development:R&D Other
836.03
Research & Development:R&D Parts
3,746.08
Voided Check
0.00
Interest Income
TOTAL
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
G&A
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
R&D
R&D
R&D
27.21
3,734,736.44
3,734,736.44
Interest and Other Inco
Other Current Asset
Line of Credit
Line of Credit
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
Accrued Expenses
LT capital lease
Interest Expense
Interest Expense
Interest Expense
Marketing and Sales

Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
Marketing and Sales
STS TURBO, INC. & SUBSIDIARY

Consolidated Balance Sheets
June 30,
2010
2009
ASSETS
Current Assets:
Cash
Accounts receivable, net
Inventory
Prepaid Expenses
Other current assets
Total current assets
Property and Equipment, Net
76,305
28,331
262,116
33,247
3,378
$ 161,006
14,450
34,235
40,965
1,825
403,376
252,481
15,303
2,079
5,000
Other Assets
Intangible Property
Total Assets
$ 423,679
$ 254,560
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current Liabilities
Current portion of capital lease payable
Current portion of related party long term debt
Note payable to shareholder
Lines of credit
Accounts payable
Accrued expenses
Accrued interest - related parties
Customer deposits and deferred revenue
Other current liabilities
1,692
168,377
87,096
151,493
15,467
16,794
64,281
1,489
54,500
95,843
151,035
13,009
67,003
273,873
9,368
10,579
514,569
667,331
5,110
242,265
6,803
169,843
Total long term liabilities
247,375
176,645
Total liabilities
761,944
843,977
Total current liabilities
Long Term Liabilities:

Capital lease payable, net of current portion
Related party long term debt, net of current portion
Shareholders' equity (deficit):

Preferred stock, Series A, par value $0.001, 500,000 shares
outstanding in 2010 and 2009
Common stock, par value $0.001, 32,396,000 shares and
28,646,000 shares outstanding, respectively
Additional paid in capital
Accumulated deficit
Total shareholders' equity (deficit)
Total liabilities and shareholders' equity (deficit)
See accompanying notes to consolidated financial statements
500
500
32,396
28,646
1,771,255
(2,142,415)
1,766,196
(2,384,759)
(338,264)
(589,417)
$ 423,679
$ 254,560

Consolidated Balance Sheets
June 30,
2010
2009
ASSETS
Current Assets:
Cash
Accounts receivable, net
Inventory
Prepaid Expenses
Total current assets
Property and Equipment, Net
76,305
28,331
262,116
33,247
3,378
$ 161,006
14,450
34,235
40,965
1,825
403,377
252,481
15,302
2,079
5,000
Other Assets
Intangible Property
Total Assets
$ 423,679
$ 254,560
LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

Current Liabilities
Current portion of capital lease payable
Current portion of related party long term debt
Note payable to shareholder
Lines of credit
Accounts payable
Accrued expenses
Accrued interest - related parties
1,692
168,377
87,096
151,493
15,467
16,794
64,281
1,489
54,500
95,843
151,035
13,009
67,003
273,873
9,368
10,579
514,568
667,331
5,110
242,265
6,803
169,843
Total long term liabilities
247,375
176,646
Total liabilities
761,943
843,977
Total current liabilities
Long Term Liabilities:

Capital lease payable, net of current portion
Related party long term debt, net of current portion
Shareholders' equity (deficit):

Preferred stock, Series A, par value $0.001, 500,000 shares
outstanding in 2010 and 2009
Common stock, par value $0.001, 32,396,000 shares and
28,646,000 shares outstanding, respectively
Additional paid in capital
Accumulated deficit
Total shareholders' equity (deficit)
Total liabilities and shareholders' equity (deficit)
500
500
32,396
28,646
1,771,255
(2,142,415)
1,766,196
(2,384,759)
(338,264)
(589,417)
$ 423,679
$ 254,560

Consolidated Statements of Operations
Revenue
Cost of Goods Sold (exclusive of depreciation shown separately below)
Gross Profit
Operating Expenses:
General and administrative
Depreciation
Marketing and sales
Research and development
Total operating expenses
Operating Income
Other Income (Expense):

Interest and other income
Interest and other expense
Total other income (expense)
Net Income
Net income per common share
Weighted average shares outstanding
Weighted Average of common shares outstanding:
2010
Days
1/1/2010
1/13/2010
2/1/2010
3/31/2010
Total days
Weighted Average
1/13/2010
2/1/2010
3/31/2010
6/30/2010
Shares
13
19
58
91
181
28,646,000
33,646,000
32,396,000
32,396,000
ARY
ations
Quarter Ended June 30,

2010
2009
384,655
Six Months Ended June 30,

2010
2009
406,834
834,663
927,101
175,454
445,621
314,770
680,516
209,201
(38,786)
519,893
246,586
129,035
1,425
25,903
4,819
193,610
3,000
21,381
9,869
284,066
2,822
39,797
9,020
327,784
7,500
42,372
20,747
161,183
227,860
335,706
398,403
48,019
(266,646)
184,188
(151,817)
20
601
27
(9,760)
(10,562)
(22,753)
(21,576)
(9,759)
(10,542)
(22,152)
(21,549)
38,260
(277,188)
162,036
(173,366)
0.00
(0.01)
0.01
(0.01)
32,396,000
28,779,500
32,257,878
28,125,406
2009
Total
372,398,000
639,274,000
1,878,968,000
2,948,036,000
5,838,676,000
32,257,878
Days
1/1/2009
1/23/2009
2/25/2009
3/31/2009
Total days
1/23/2009
2/25/2009
3/31/2009
6/30/2009
Weighted Ave
23
33
34
91
181
Shares
24,212,500
28,512,500
28,646,000
28,779,500
Total
556,887,500
940,912,500
973,964,000
2,618,934,500
5,090,698,500
28,125,406

Consolidated Statements of Operations
Revenue
Cost of Goods Sold (exclusive of depreciation shown separately below)
Gross Profit
Operating Expenses:
General and administrative
Depreciation
Marketing and sales
Research and development
Total operating expenses
Operating Income
Other Income (Expense):

Interest and other income
Interest and other expense
Total other income (expense)
Net Income
Net income per common share
Weighted average shares outstanding
2010
Days
1/1/2010
1/13/2010
2/1/2010
3/31/2010
Total days
Weighted Average
1/13/2010
2/1/2010
3/31/2010
6/30/2010
Shares
13
19
58
91
181
28,646,000
33,646,000
32,396,000
32,396,000
ARY
ations
Quarter Ended June 30,

2010
2009
384,655

2010
2009
406,834
834,663
927,101
175,454
445,621
314,770
680,516
209,201
(38,787)
519,893
246,585
129,035
1,425
25,903
4,819
193,610
3,000
21,381
9,869
284,066
2,822
39,797
9,020
327,784
7,500
42,372
20,747
161,182
227,860
335,705
398,403
48,019
(266,647)
184,188
(151,818)
20
601
27
(9,760)
(10,562)
(22,753)
(21,576)
(9,759)
(10,542)
(22,152)
(21,549)
38,260
(277,189)
162,036
(173,367)
0.00
(0.01)
0.01
(0.01)
32,396,000
28,779,500
32,257,878
28,125,406
2009
Total
372,398,000
639,274,000
1,878,968,000
2,948,036,000
5,838,676,000
32,257,878
Days
1/1/2009
1/23/2009
2/25/2009
3/31/2009
Total days
1/23/2009
2/25/2009
3/31/2009
6/30/2009
Weighted Ave
23
33
34
91
181
Shares
24,212,500
28,512,500
28,646,000
28,779,500
Total
556,887,500
940,912,500
973,964,000
2,618,934,500
5,090,698,500
28,125,406
Conso
Preferred
Balance as of December 31, 2007
Shares
500,000
Shares issued for compensation
Shares issued for conversion of

debt
Net loss
500,000
Shares issued in private placement
Shares issued for services in conjuntion with

the private placement
Stock offering costs
Gain on exchange of debt for assets with shareholder
Net loss
500,000
Shares issued to Rick Squires for Intellectual Property
Cancellation of stock
Net Income
Balance as of March 31, 2010
500,000
Net Income
Balance as of June 30, 2010
500,000

Consolidated Statement of Shareholders' Equity (Deficit)
Quarter Ended March 31, 2010
Preferred
Common
$
Amount
500
Shares
18,587,500
Amount
18,588
1,875,000
1,875
3,750,000
3,750
500
Additional Paid
In Capital
487,340
(1,500)
746,250
-
24,212,500
24,213
1,232,090
2,633,500
2,633
524,066
1,800,000
1,800
358,200
(360,000)
15,649
500
28,646,000
28,646
5,000,000
5,000
(1,250,000)
(1,250)
1,250
1,770,005
500
32,396,000
32,396
1,771,255
500
32,396,000
32,396
1,771,255
Accumulated
Deficit
$
(1,564,801)
Total
(1,058,373)
375
750,000
(646,591)
(646,591)
(2,211,392)
(954,589)
526,699
360,000
(360,000)
15,649
(93,059)
(93,059)
(2,304,451)
(505,300)
5,000
123,777
(2,180,674)
38,260
(2,142,414)
123,777
(376,524)
38,260
(338,264)

Consolidated Statements of Cash Flows
2010
Cash flows from Operating Activities:
Net Income
Adjustments to reconcile net income
to cash used by operating activities:
Depreciation
Bad debt expense
Stock issued as compensation
Loss on disposal of assets
(Increase) decrease in operating assets:
Accounts receivable
Inventory
Prepaid expenses
Increase (decrease) in operating liabilities:
Accounts payable
Accrued expenses
Accrued interest - related party
$ 162,036
2,822
3,484
(23,750)
(13,294)
(20,311)
(3,378)
15,010
48,025
12,931
(95,546)
1,047
Net cash provided by (used in) operating activities
89,076
Cash Flows from Investing Activities:

Property and equipment purchases
(2,161)
Net cash used in investing activities
(2,161)
Cash Flows from Financing Activities:

Proceeds from related party debt
Payments on related party debt
Net borrowings (repayment) on line-of-credit
Payments on capital lease obligations
Proceeds from the sale of stock
16,000
(6,000)
(25,194)
(768)
-
Net cash provided by (used in) financing activities
(15,962)
Net Increase (Decrease) in Cash
70,954
Cash, Beginning of Year

Cash, End of Quarter
5,351
$
76,305
nths Ended June 30,

2009
$ (173,367)
7,500
325
(14,725)
190,944
(8,471)
1,000
(228,149)
(15,913)
9,529
(105,641)
727
(336,239)
10,812
(23,000)
(22,723)
(455)
526,699
491,333
155,093
5,913
$
161,006

Consolidated Statements of Cash Flows
2010
Cash flows from Operating Activities:
Net Income
Adjustments to reconcile net income
to cash used by operating activities:
Depreciation
Bad debt expense
Stock issued as compensation
(Increase) decrease in operating assets:
Accounts receivable
Inventory
Prepaid expenses
Increase (decrease) in operating liabilities:
Accounts payable
Accrued expenses
Accrued interest - related party
$ 162,036
2,822
3,484
(23,750)
(13,294)
(20,311)
(3,378)
15,010
48,025
12,931
(95,546)
1,047
Net cash provided by (used in) operating activities
89,076
Cash Flows from Investing Activities:

Property and equipment purchases
(2,160)
Net cash used in investing activities
(2,160)
Cash Flows from Financing Activities:

Proceeds from related party debt
Payments on related party debt
Payments on capital lease obligations
Proceeds from the sale of stock
16,000
(6,000)
(25,194)
(768)
-
Net cash provided by (used in) financing activities
(15,962)
Net Decrease in Cash
70,954
Cash, Beginning of Year

Cash, End of Quarter
5,351
$
76,305
nths Ended June 30,

2009
$ (173,367)
7,500
325
(14,725)
190,944
(8,471)
1,000
(228,149)
(15,913)
9,529
(105,641)
727
(336,240)
10,812
(23,000)
(22,723)
(455)
526,699
491,333
155,093
5,913
$
161,006
STS Turbo Systems

CASHFLOW WORKSHEET
June 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES:

NET INCOME
Adjustments to reconcile net loss to
net cash used by operating activities:
DEPRECIATION
STOCK BASED COMPENSATION
BAD DEBT EXPENSE
COMMON STOCK ISSUED FOR SERVICES
Changes in operating assets and liabilities:
ACCOUNTS RECEIVABLE
INVENTORIES
PREPAID
OTHER ASSETS
ACCOUNTS PAYABLE
ACCRUED EXPENSES
ACCRUED INTEREST - RELATED PARTY
CUSTOMER DEPOSITS & DEFERRED REVENUE
OTHER CURRENT LIABILITIES
Net Cash Used by Operating Activities
162,036
2,822
3,484
(23,750)
(13,294)
(20,311)
(3,378)
15,010
48,025
12,931
(95,546)
1,047
- - - - - - - 89,076
CASH FLOWS FROM INVESTING ACTIVITIES:

PURCHASES OF EQUIPMENT
Net Cash Used by Investing Activities
(2,161)
--------------------(2,161)
CASH FLOWS FROM FINANCING ACTIVITIES:

BANK OVERDRAFT
PROCEEDS FROM NOTES PAYABLE
PAYMENTS ON NOTES PAYABLE
PROCEEDS FROM RELATED PARTIES
PAYMENTS ON RELATED PARTY DEBT
PAYMENTS ON CAPITAL LEASE
PROCEEDS FROM SELL OF STOCK
Net Cash Provided by Financing Activities
(25,194)
16,000
(6,000)
(768)
--------------------(15,962)
---------------------
NET INCREASE (DECREASE) IN CASH

NET CASH HELD FOR SALE
BEGINNING CASH
ENDING CASH
NON CASH TRANSACTIONS

Contributed Capital
Common stock issued for debt
Fixed Assets Financed
Accrued interest reclassed to RP
Accrued Interest 12/31/2009

Interest Expense at 6/30/2010
Total
Less Accrued interest transferred to principal
cash paid for interest
70,954
5,351
--------------------76,305
============
--------------------36,388.18
22,753.00
59,141.18
16,793.62
(32,525.00)
9,822.56
Other
Current
Assets
Intangible
Asset
28,331
8,065
262,116
248,822
33,247
12,936
3,378
-
5,000
-
20,266
13,294
20,311
3,378
5,000
76,305
5,351
70,954
Cash
6/30/10
12/31/09
Inventory
Prepaid
& Other
Assets
Accounts
Receivable
PP&E
Net
Line of
Credit
15,303
15,965
(87,096)
(112,290)
(662)
25,194
2,822
3,484
-
(23,750)
(13,294)
(20,311)
(3,378)
(2,161)
(25,194)
(70,954)
(5,000)
---------------- ----------------- ---------------- -------------- ----------------------------- -------------- ---------------(0)

(0)
-
PPE
Comp Original
Marc Laptop
953.89
Comp A/D
Depreciation
835.72
Auto Orig
Auto A/D
Depreciation
65.43
Production Equip
Bench Grinder
163
Production Equip A/D

Depreciation
12.2
Shop Equip
Shop Equip A/D
Depr
Software
284.55
Software A/D
Depr
227.08
1117
1424.98
Accounts
Payable
Deferred
Revenue
Accrued NP due to
Accrued
Liabilities Shareholder Interest - RP
Due to RP
(151,493)
(136,484)
(64,281)
(159,827)
(15,467)
(13,293)
(16,794)
(36,388)
(410,642)
(322,266)
(15,010)
95,546
(2,174)
19,595
(88,376)
Capital
Lease
(6,803)
(7,571)
768
Other
Current Preferred
Liabilities
Stock
(9,368)
(8,321)
(1,047)
15,010
2,174
45,851
12,931
(95,546)
1,047
16,000
(6,000)
(768)
(500)
(500)
-
(32,525)
32,525
------------------------------------------------- -------------- ------------------ ----------------- -------------------------------------------1
(0)
-
Accrued Interest
Rick Accrued
Ruff Tech Accrued
SB Lending
Due to RP
5411.86
Accrued Compensation
33000
106.53
Ruff Tech
1013.82
Rick Loan
-18316
6532.21
SB Lending
0
14684.04
Common
Stock
Accumulated
Deficit
APIC
(32,396)
(28,646)
(1,771,255)
(1,770,004)
(3,750)
(1,251)
2,142,415
2,304,451
(162,036)
162,036
(1,250)
1,250
(1)
5,000
----------------------------------- ------------------(1)
-
STS Turbo Systems

CASHFLOW WORKSHEET
June 30, 2009

NET LOSS
DEPRECIATION
BAD DEBT EXPENSE
ACCOUNTS RECEIVABLE
INVENTORIES
PREPAID
OTHER ASSETS
ACCOUNTS PAYABLE
ACCRUED EXPENSES

(173,367)
7,500
325
(14,725)
190,944
(8,471)
1,000
(228,149)
(15,913)
9,529
(105,641)
727
- - - - - - - (336,240)

----------------------

BANK OVERDRAFT
(22,723)
10,812
(23,000)
(455)
526,699
---------------------491,334

BEGINNING CASH
ENDING CASH

Contributed Capital
---------------------155,093
5,913
---------------------161,006
=============
11,845
(11,845)
---------------------(11,845)

Total
68,374.00
21,576.35
89,950.35
67,002.70
22,947.65
Cash
6/30/09
12/31/08
Accounts
Receivable
Inventory
Prepaid
& Other
Assets
Other
Current
Assets
Intangible
Asset
PP&E
Net
Line of
Credit
161,006
5,913
14,450
50
34,235
225,179
40,965
32,494
1,825
2,825
2,079
39,534
(95,843)
(118,566)
155,093
14,400
(190,944)
8,471
(1,000)
(37,455)
22,723
7,500
325
-
(14,725)
190,944
(8,471)
1,000
(22,723)
(155,093)
29,955
------------------- -------------- ----------------- -------------- ----------------------------- ----------------- ---------------(0.3)
0.1
-
Auto Original
Sell of Toyota
Sell of wrecked 2001 Corvette
xtransfer of Tacoma and Vette
-12900
-8000
-60000
-10554
-91454
A/D
Depreciation
Depreciation
53055
8443.64
-1500
-1500
58498.64
Accounts
Payable
Deferred
Revenue
Accrued
Liabilities
NP due to
Accrued
Shareholder Interest - RP
Due to RP
(151,035)
(379,184)
(273,873)
(379,514)
(13,009)
(38,922)
(17,000)
(67,003)
(68,374)
(224,343)
(240,426)
228,149
105,641
25,913
17,000
1,371
16,083
Capital
Lease
(8,291)
(8,746)
455
Other
Current
Liabilities
(10,579)
(9,852)
(727)
(228,149)
(25,913)
10,000
9,529
(105,641)
727
(17,000)
10,817
(6,000)
(455)
(10,900)
(30,900)
--------------------------------------------------- ------------------ ------------------ ----------------- -------------------------------------------0
0
-
10237.95
Rick Loan
120815.3 126815.3
63236.99 42574.94
March
Software
Software
Auto Original
Auto A/D
Comp Orig
Comp A/D
Production Orig
June
128723.6 37269.61
107472 48973.32
21251.65
-11703.7
Preferred
Stock
(500)
(500)
-
Common
Stock
Accumulated
Deficit
APIC
(28,646)
(24,213)
(1,766,196)
(1,232,090)
2,384,759
2,211,392
(4,433)
(534,106)
173,367
(173,367)
(5)
2,633
1800
524,066
358,200
(360,000)
(0)
(0)
11,845
--------------- --------------------------------------- ------------------(0)

-
-6000
20662.05
14662.05
58498.64
-32955.36
Related Party Transactions

Note payable (Rick Squires Loan)
42,575
Line of credit (SB Lending)
50,691
revloving credit limit (Ruff Tech Line of Credit)
4,262
Unpaid Compensation
126,815
Total
224,343
STS Turbo
Future Maturities of LTD
Current
To be paid from
06/30/09 06/30/10
Dave Ruff Loan (SB Lending)
RuffTech Loan (Eric Ruff)
Rick Squires Loan
11,925
Long Term
To be paid from
06/30/10 06/30/11
To be paid from
06/30/11 06/30/12
25,326
13,440
625
1,347
25,950
14,788
42,575
Rick Squires Comp
Totals Related Party Debt Maturities
Total LT
54,500
169,843
Beyond
Total
-
50,691
2,290
4,262
42,575
126,815
126,815
129,105
224,343
Related Party Transactions

Note payable (Rick Squires Loan)
Line of credit (SB Lending)
revloving credit limit (Ruff Tech Line of Credit)
130,502
50,691
4,262
Unpaid Compensation
225,188
Total
410,642
STS Turbo
Future Maturities of LTD
Current
To be paid from
06/30/10 06/30/11
Dave Ruff Loan (SB Lending)
RuffTech Loan (Eric Ruff)
Rick Squires Loan
Long Term
To be paid from
06/30/11 06/30/12
To be paid from
06/30/12 06/30/13
37,251
13,440
625
1,347
1,488
14,788
1,488
130,502
Rick Squires Comp
Totals Related Party Debt Maturities
Total LT
168,377
242,265
Beyond
Total
-
802
50,691
4,262 COMPLETED
130,502 All Current Still
225,188
225,188 ? Rick said might start paying this in near future??
225,989
410,642
Avaya Lease Pmnt Schedule

Pmnt
Princple
238.23 109.43
238.23 110.68
238.23 111.93
238.23 113.18
238.23 114.43
238.23 115.68
238.23 116.93
238.23 118.18
238.23 119.43
238.23 120.68
238.23 121.98
238.23 123.29
238.23 124.62
238.23 125.96
238.23 127.31
238.23 128.68
238.23 130.07
238.22 131.47
238.22 132.88
238.23 134.31
238.23 135.76
238.23 137.22
238.23 138.69
238.23 140.19
238.23 141.69
238.23 143.22
238.23 144.76
238.23 146.32
238.23 147.89
238.23 149.48
238.23 151.09
238.23 152.71
238.23 154.36
238.23 156.02
238.23 157.70
238.23 159.39
238.23 161.11
238.23 162.84
238.23 164.59
238.23 166.36
238.23 168.15
238.23 169.96
238.23 171.79
Interest Sales Tax Insurance

96.64
12.97
19.19
95.39
12.97
19.19
94.14
12.97
19.19
92.89
12.97
19.19
91.64
12.97
19.19
90.39
12.97
19.19
89.14
12.97
19.19
87.89
12.97
19.19
86.64
12.97
19.19
85.39
12.97
19.19
84.09
12.97
19.19
82.78
12.97
19.19
81.45
12.97
19.19
80.11
12.97
19.19
78.76
12.97
19.19
77.39
12.97
19.19
76.00
12.97
19.19
74.59
12.97
19.19
73.18
12.97
19.19
71.76
12.97
19.19
70.31
12.97
19.19
68.85
12.97
19.19
67.38
12.97
19.19
65.88
12.97
19.19
64.38
12.97
19.19
62.85
12.97
19.19
61.31
12.97
19.19
59.75
12.97
19.19
58.18
12.97
19.19
56.59
12.97
19.19
54.98
12.97
19.19
53.36
12.97
19.19
51.71
12.97
19.19
50.05
12.97
19.19
48.37
12.97
19.19
46.68
12.97
19.19
44.96
12.97
19.19
43.23
12.97
19.19
41.48
12.97
19.19
39.71
12.97
19.19
37.92
12.97
19.19
36.11
12.97
19.19
34.28
12.97
19.19
Date
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
2010
2011
2012
2013
Total
less Interest
PV
Current portion
LT portion
Paid in January
Paid in January
Paid in March
Paid in March
Paid in March
Paid in May
Paid in May
Paid in July
Paid in July
Paid in August
Paid in October
1,804.63
rent expense
Warranty
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
173.64
175.55
177.40
179.30
181.23
183.18
185.15
187.15
189.16
191.19
193.25
195.33
197.43
199.56
201.70
203.87
7,570.68
32.43
30.52
28.67
26.77
24.84
22.89
20.92
18.92
16.91
14.88
12.82
10.74
8.64
6.51
4.37
2.20
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12 2,051.92
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13 2,126.97
1,236.41
2,472.84
2,472.84
2,266.77
8,448.86
(1,646.29)
6,802.57
1,692.41
5,110
10,710
6,482
Avaya Phone System (Leased)
Date Prior Period Current

Acq
Cost
Cost
Method
10/6/2008
9,075
9,075 SL
Life
DepreciationAccum DeprecDep Expense

Accum Deprec Net Book
FYE 2008 12/31/2008
FY 2009 Deletions 12/31/2009
Value
5
454.00
454.00 1,361.25
1,815.25 7,259.75
Avaya Lease Pmnt Schedule

Pmnt
Princple
238.23
109.43
238.23
110.68
238.23
111.93
238.23
113.18
238.23
114.43
238.23
115.68
238.23
116.93
238.23
118.18
238.23
119.43
238.23
120.68
238.23
121.98
238.23
123.29
238.23
124.62
238.23
125.96
238.23
127.31
238.23
128.68
238.23
130.07
238.23
131.47
238.23
132.88
238.23
134.31
238.23
135.76
238.23
137.22
238.23
138.69
238.23
140.19
238.23
141.69
238.23
143.22
238.23
144.76
238.23
146.32
238.23
147.89
238.23
149.48
238.23
151.09
238.23
152.71
238.23
154.36
238.23
156.02
238.23
157.70
238.23
159.39
238.23
161.11
238.23
162.84
238.23
164.59
238.23
166.36
238.23
168.15
238.23
169.96
238.23
171.79
Interest Sales Tax Insurance

96.64
12.97
19.19
95.39
12.97
19.19
94.14
12.97
19.19
92.89
12.97
19.19
91.64
12.97
19.19
90.39
12.97
19.19
89.14
12.97
19.19
87.89
12.97
19.19
86.64
12.97
19.19
85.39
12.97
19.19
84.09
12.97
19.19
82.78
12.97
19.19
81.45
12.97
19.19
80.11
12.97
19.19
78.76
12.97
19.19
77.39
12.97
19.19
76.00
12.97
19.19
74.60
12.97
19.19
73.19
12.97
19.19
71.76
12.97
19.19
70.31
12.97
19.19
68.85
12.97
19.19
67.38
12.97
19.19
65.88
12.97
19.19
64.38
12.97
19.19
62.85
12.97
19.19
61.31
12.97
19.19
59.75
12.97
19.19
58.18
12.97
19.19
56.59
12.97
19.19
54.98
12.97
19.19
53.36
12.97
19.19
51.71
12.97
19.19
50.05
12.97
19.19
48.37
12.97
19.19
46.68
12.97
19.19
44.96
12.97
19.19
43.23
12.97
19.19
41.48
12.97
19.19
39.71
12.97
19.19
37.92
12.97
19.19
36.11
12.97
19.19
34.28
12.97
19.19
Date
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
Oct-10
Nov-10
Dec-10
Jan-11
Feb-11
Mar-11
Apr-11
May-11
Jun-11
Jul-11
Aug-11
Sep-11
Oct-11
Nov-11
Dec-11 1,804.63
Jan-12
Feb-12
Mar-12
Apr-12
May-12
Jun-12
Jul-12
2009
2010
2011
2012
2013
Total
less Interest
PV
Current portion
LT portion
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
238.23
173.64
175.55
177.40
179.30
181.23
183.18
185.15
187.15
189.16
191.19
193.25
195.33
197.43
199.56
201.70
203.87
7,570.68
32.43
30.52
28.67
26.77
24.84
22.89
20.92
18.92
16.91
14.88
12.82
10.74
8.64
6.51
4.37
2.20
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
12.97
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
19.19
Aug-12
Sep-12
Oct-12
Nov-12
Dec-12 2,051.92
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13 2,126.97
1,236.42
2,472.84
2,472.84
2,472.84
2,266.77
10,921.71
(2,630.54)
8,291.17
1,488.60
6,802.57
Avaya Phone System (Leased)
Date Prior Period Current

Acq
Cost
Cost
Method
10/6/2008
9,075
9,075 SL
Life
DepreciationAccum DeprecDep Expense

Accum Deprec Net Book
FYE 2008 12/31/2008
FY 2009 Deletions 12/31/2009
Value
5
454.00
454.00 1,361.25
1,815.25 7,259.75
STS Turbo Systems

CASHFLOW WORKSHEET
June 30, 2010

NET INCOME
DEPRECIATION
BAD DEBT EXPENSE
ACCOUNTS RECEIVABLE
INVENTORIES
PREPAID
OTHER ASSETS
ACCOUNTS PAYABLE
ACCRUED EXPENSES
38,259
1,425
2,860
(19,604)
(8,999)
1,815
(3,378)
(19,089)
11,781
8,669
(21,522)
2,886
- - - - - - (4,897)

(1,117)
-----------------(1,117)

BANK OVERDRAFT
(8,824)
(390)
-----------------(9,215)
------------------

BEGINNING CASH
ENDING CASH

Contributed Capital
(15,228)
93,670
-----------------78,441
==========
------------------

Total
36,388.18
12,886.61
49,274.79
10,154.88
39,119.91
Other
Current
Assets
Intangible
Asset
28,331
11,587
262,116
253,117
33,247
35,062
3,378
-
5,000
5,000
16,744
8,999
(1,815)
3,378
76,305
93,670
(17,365)
Cash
6/30/10
3/31/10
Inventory
Prepaid
& Other
Assets
Accounts
Receivable
PP&E
Net
15,303
15,612
(308)
Line of
Credit
(87,096)
(95,921)
8,824
1,425
2,860
-
(19,604)
(8,999)
1,815
(3,378)
(1,117)
(8,824)
15,228
---------------- ----------------- --------------- -------------- ----------------------------- -------------- ---------------(2,137)

(0)
-
PPE
Comp Original
Marc Laptop
953.89
Comp A/D
Depreciation
835.72
Auto Orig
Auto A/D
Depreciation
65.43
Production Equip
Bench Grinder
163
Production Equip A/D

Depreciation
12.2
Shop Equip
Shop Equip A/D
Depr
Software
284.55
Software A/D
Depr
227.08
1117
1424.98
Accounts
Payable
Deferred
Revenue
Accrued NP due to
Accrued
Liabilities Shareholder Interest - RP
Due to RP
(151,493)
(170,582)
(64,281)
(85,803)
(15,467)
(18,370)
(16,794)
(10,261)
(410,642)
(395,958)
19,089
21,522
2,903
(6,532)
(14,684)
Capital
Lease
(6,803)
(7,193)
390
Other
Current Preferred
Liabilities
Stock
(9,368)
(6,482)
(2,886)
(19,089)
(2,903)
14,684
8,669
(21,522)
2,886
(390)
(500)
(500)
-
------------------------------------------------ -------------- ------------------ ----------------- -------------------------------------------2,137

(0)
-
Accrued Interest
Rick Accrued
Ruff Tech Accrued
SB Lending
Due to RP
7548.48
33000
106.53
Ruff Tech
1013.82
Rick Loan
-18316
8668.83
SB Lending
0
14684.04
Common
Stock
(32,396)
(32,396)
-
Accumulated
Deficit
APIC
(1,771,255)
(1,771,255)
-
2,142,415
2,180,674
(38,259)
38,259
----------------------------------- -------------------
STS Turbo Systems

CASHFLOW WORKSHEET
June 30, 2009

NET LOSS
DEPRECIATION
BAD DEBT EXPENSE
ACCOUNTS RECEIVABLE
INVENTORIES
PREPAID
OTHER ASSETS
ACCOUNTS PAYABLE
ACCRUED EXPENSES

(277,189)
3,000
325
(6,337)
213,353
9,382
(38,764)
(1,240)
4,489
49,218
695
- - - - - - - (43,069)

----------------------

BANK OVERDRAFT
11,341
10,238
(343)
---------------------21,236

BEGINNING CASH
ENDING CASH

Contributed Capital
---------------------(21,833)
182,838
---------------------161,005
=============
11,845
(11,845)
---------------------(11,845)

Total
68,374.00
11,014.00
79,388.00
73,414.00
5,974.00
Cash
6/30/09
3/31/09
Accounts
Receivable Inventory
Prepaid
& Other
Assets
Other
Current
Assets
PP&E
Net
Line of
Credit
Accounts
Payable
161,006
182,838
14,450
8,438
34,235
247,588
40,965
50,346
1,825
1,825
2,079
35,034
(95,843)
(84,502)
(151,035)
(189,799)
(21,832)
6,012
(213,353)
(9,382)
(32,955)
(11,341)
38,764
3,000
325
-
(6,337)
213,353
9,382
(38,764)
11,341
21,833
29,955
------------------- -------------- ---------------- -------------- -------------- ----------------- ---------------- ----------------------------------1.0

-
Auto Original
Sell of Toyota
-12900
Sell of wrecked 2001 Corvette -8000
xtransfer of Tacoma and Vette-60000
xtransfer of Tacoma and Vette-10554
-91454
A/D
xtransfer of Tacoma and Vette 53055
8443.64
Depreciation
-1500
Depreciation
-1500
58498.64
Deferred
Revenue
Accrued
Liabilities
NP due to
Accrued
Shareholder Interest - RP
Due to RP
(273,873)
(224,655)
(13,009)
(20,249)
(67,003)
(73,414)
(224,343)
(239,005)
(49,218)
7,240
6,411
14,662
(7,240)
Capital
Lease
(8,291)
(8,634)
343
Other
Current Preferred
Liabilities
Stock
(10,579)
(9,885)
(695)
6,000
4,489
49,218
695
10,238
(343)
(500)
(500)
-
(10,900)
(30,900)
--------------------------------- ------------------ ------------------ ----------------- --------------------------------------------
10237.95
Rick Loan
120815.3 126815.3
-6000
63236.99 42574.94 20662.05
14662.05
March
Software
Software
Auto Original
Auto A/D
Comp Orig
Comp A/D
Production Orig
June
128723.6 37269.61
107472 48973.32 58498.64
21251.65
-11703.7
Common
Stock
(28,646)
(28,646)
-
Accumulated
Deficit
APIC
(1,766,196)
(1,754,351)
2,384,759
2,107,571
(0)
0
(11,845)
277,188
(0)
(277,188)
11,845
--------------------------------------- ------------------(0)
-
-32955.36

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9:46 AM

Squires Turbo Systems, Inc.

Trial Balance as of 6/30/2010

1250 Reserve for Bad Debts

12100 *Inventory Asset:12115 Miscellaneous Inventory

1310 Undeposited Funds

1330 Inventory-Deferred Rev COGS

1335 Inventory-Shipped Incomplete

1340 Prepaid Insurance

1345 Deferred Insurance Expense

1346 Deferred Fee

1350 Prepaid Inventory:1352 Prepaid Inv - Ningbo HaiTian

1350 Prepaid Inventory:1353 Prepaid Inv - Ningbo Jintian

1350 Prepaid Inventory:1356 Prepaid Inv - HIWOWSPORT

1365 Prepaid Other

12200 Computer Equipment:12210 Accum Depreciation

1400 Automobiles:1410 Accum Depreciation

1600 Production Equipment:1610 Accum Depreciation

1700 Shop Equipment:1710 Accum Depreciation

1800 Software:1810 Accum Depreciation

2000 Accounts Payable

2020 American Express (STS) 1001

2160 Wells Fargo Line of Credit (959

2003 Accrued Payroll

Squires Turbo Systems, Inc.

2125 Health Benefits Payable

2130 Insurance Installment Note

2135 Payroll Liabilities

2145 Reserve - Warranty Obligation

2150 Sales Tax Payable

2303 Yearly Portion of AVAYA Lease

2305 Avaya Phone Lease

2315 Rick Squires - Accrued Compensa

2316 Ruff Tech Line of Credit

2320 Rick Squires - Interest Payable

2325 Rick Squires Loan

2330 RuffTech - Accrued Interest

2340 SB Lending - Accrued Interest

2345 SB Lending - Loan

3110 Common Stock

3115 Preferred Stock

3300 Additional Paid in Capital

4000 INCOME:4020 Product Sales

4000 INCOME:4025 Sales Returns

4000 INCOME:4030 Service Labor

4000 INCOME:4040 Shipping and Handling

4000 INCOME:4050 Warranty Replacements

5000 COGS:5020 Freight In

5000 COGS:5030 Inventory Adjustment

5000 COGS:5050 Prod/Fulfillment Payroll

5000 COGS:5060 Labor Payroll Taxes

5000 COGS:5080 Shipping

5000 COGS:5090 Warranty

5500 Shop:5510 shop consumables

5500 Shop:7165 Shop Repairs

6000 R&D:6010 Fuel

6000 R&D:6020 R&D Labor

66000 Payroll Expenses

66900 Reconciliation Discrepancies

7000 G&A:5037 Consumables

7000 G&A:7015 Bad Debt

7000 G&A:7020 Bank Service Charges

Squires Turbo Systems, Inc.

7000 G&A:7025 Charitable Contributions