Jpak Group Inc. (fka JPAK)

[10 bagger]

JPAK.. $0.30 Earnings..

JPAK GROUP, INC.
PART I – FINANCIAL INFORMATION
Consolidated Balance Sheets
September 30, June 30,
2010 2010
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 2,829,020 $ 6,221,273
Restricted cash 3,855,884 4,744,084
Accounts receivable, net of allowance for doubtful accounts of $1,305,286 11,727,252 10,915,611
and $1,284,360 at September 30, 2010 and June 30, 2010, respectively
Inventory 8,952,276 8,298,177
Trade notes receivable 399,207 515,150
Other receivables 1,237,519 484,003
Advance payments 3,521,081 3,670,469
Prepaid expenses and other current assets 598,988 299,713
Total current assets 33,121,227 35,148,480

Property and equipment, net 12,109,509 11,201,241

Other noncurrent assets:
Intangible assets, net 3,079,635 -
Deferred loss on sales of assets 1,884,896 1,899,277
Prepaid expenses 902,022 952,676

Total assets $ 51,097,289 $ 49,201,674

Liabilities
Current liabilities:
Accounts payable and accrued expenses $ 3,915,947 $ 2,401,560
Trade notes payable 3,251,977 4,659,370
Short-term bank loans 2,994,000 2,946,000
Current portion of long-term debt 2,631,599 2,589,409
Income tax payable 189,718 127,169
Other current liabilities 164,765 167,728
Total current liabilities 13,148,006 12,891,236
Long-term debt 3,189,543 3,049,115
Total liabilities 16,337,549 15,940,351

Equity
Stockholders’ equity:
Series A convertible preferred stock, $0.0001 par value, 5,608,564
shares authorized, issued and outstanding 561 561
Series B convertible preferred stock, $0.0001 par value, 5,000,000
shares authorized, issued and outstanding 500 500
Series C convertible preferred stock, $0.0001 par value, 12,000,000
shares authorized, issued and outstanding 1,200 1,200
Common stock, $0.001 par value, 300,000,000 shares authorized,
36,368,334 shares issued and outstanding at September 30, 2010
and June 30, 2010, respectively 36,368 36,368
Series A preferred stock 2,484,226 2,484,226
Series B preferred stock 1,390,853 1,390,853
Additional paid-in capital 23,184,206 23,184,206
Retained earnings 2,753,328 1,776,028
Statutory reserves 1,551,089 1,551,089
Accumulated other comprehensive income 3,250,489 2,731,043
Total stockholders’ equity 34,652,820 33,156,074
Noncontrolling interest 106,920 105,249
Total equity 24,759,740 33,261,323

Total liabilities and equity $ 51,097,289 $ 49,201,674



The accompanying notes are an integral part of these consolidated financial statements.
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JPAK GROUP, INC.






Consolidated Statements of Operations and Comprehensive Income (Loss)
(Unaudited)
For the Three Months Ended
September 30,
2010 2009

Sales $ 16,185,647 $ 16,561,920

Cost of sales 12,625,157 11,837,612

Gross profit 3,560,490 4,724,308

Operating expenses
Selling, general and administrative 2,232,495 2,888,343

Income from operations 1,327,995 1,835,965

Other income (expenses):
Interest expense, net (150,736 ) (97,051 )
Non-operating expense, net (12,567 ) (3,512 )

Total other income (expenses) (163,303 ) (100,563 )

Income before provision for income taxes 1,164,692 1,735,402

Provision for income taxes 187,436 242,838

Net income 977,256 1,492,564

Less: Net income attributable to noncontrolling interest (44 ) (56 )

Net income attributable to Jpak Group, Inc. 977,300 1,492,620

Undistributed income attributable to preferred stockholders 453,987 654,946

Net income attributable to common stockholders 523,313 837,674

Other comprehensive income
Foreign currency translation adjustment 519,446 32,030

Comprehensive income $ 1,496,746 $ 1,524,650

Basic earnings per common share $ 0.01 $ 0.03
Diluted earnings per common share $ 0.01 $ 0.03

Weighted average number of common shares outstanding
Basic 36,368,334 25,005,000
Diluted 67,918,795 44,555,461