PS, financials are out 265k for the whole year, but look how many notes are owed and how much they borrowed they even owe the government millions...
SHOT SPIRITS CORPORATION
BALANCE SHEET
September 30, 2010
(unaudited)
See Notes to Financial Statements
Revenue $ 2 65,000
Depreciation & Operating Expenses:
Depreciation 7,000
Operating Expenses 391,097
Total Depreciation & Operating Expenses 398,097
Loss From Operations (133,097)
Net Deficit $ (133,097)
SHOT SPIRITS CORPORATION
STATEMENT OF OPERATIONS
For the Quarter Ended September 30, 2010
(unaudited)
See Notes to Financial Statements
PREFERRED STOCK - Series A
Balance at June 31, 2010 $ 2,500
Par value of shares issued:
Shares Issued: -
Balance at September 30, 2010 $ 2,500
PREFERRED STOCK - Series B
Balance at June 31, 2010 $ 2,300
Par value of shares issued: -
Shares Issued
Balance at September 30, 2010 $ 2,300
COMMON STOCK
Balance at June 31, 2010 $ 2,725,673
Shares issued to investors -
Shares issued for services -
Shares issued for assumption of liabilities $ 1,085,000
Shares issued for note conversion -
Balance at September 30, 2010 $ 3,810,673
ADDITIONAL PAID IN CAPITAL
Balance at June 31, 2010 $ 9,427,605
Proceeds in excess of par value of shares of common stock issued:
Shares issued for services
Proceeds received in advance of share issuance
$ 9,427,605
Balance at September 30, 2010
Retained Deficit
Balance at June 31, 2010 $ (13,606,838)
Net losss for the quarter ended September 30, 2010 $ (133,097)
Balance at September 30, 2010 $ (13,739,936)
SHOT SPIRITS CORPORATION
STATEMENT OF CHANGES IN STOCKHOLDER'S EQUITY
For the Quarter Ended September 30, 2010
(unaudited)
See Notes to Financial Statements
SHOT SPIRITS CORPORATION
NOTES TO FINANCIAL STATEMENTS
September 30, 2010
NOTE A – SUMARY OF SIGNIFICANT ACCOUNTING POLICIES:
NATURE OF BUSINESS: Shot Spirits Corporation is a beverage company focused on innovative products
for the on premise and off premise marketplace. Shot Spirits, through their relationship with Beverage
Pouch Group, introduced single shot flavored cocktails in a patented standup pouch
The Company is also a leading provider of customer insight solutions for the hospitality industry and its
suppliers/distributors, through the GuestMetrics software that is fully integrated with the leading pointof-
sale (POS) systems and allows hospitality providers, at every level of the market, to improve business
operations.
BASIS OF ACCOUNTING: These financial statements have been prepared under the accrual method of
accounting.
REVENUE RECOGNITION: The Company recognizes revenues under the accrual method of accounting.
When materials are delivered and accepted by customers, invoices are generated and revenues are
recognized. If payment for an annual contract is received in advance, the amount received is recorded
as deferred income and revenues are recognized as they are earned.
INCOME TAXES: There has been no provision for federal income tax expense as the Company is
currently operating at a loss and has no income tax liability. A liability of $1600 has been recorded for
the minimum annual sales income taxes payable.
PROPERTY AND EQUIPMENT: Property and equipment are stated at cost. Depreciation is computed
over the estimated useful lives of the assets using the declining balance and straight-line methods.
Depreciation expense for the quarter ended September 30, 2010 totaled $7,000 and is included in
operating expenses.
Expenditures for additions, major renewals and betterments are capitalized and expenditures for
maintenance and repairs are charged to income as incurred. Upon sale or retirement of items or
property and equipment, the cost and related accumulated depreciation are eliminated from the
accounts and the resulting gain and loss, if any, is reflected in earnings of the period of disposition.
LONG-LIVED ASSETS: Long-lived assets to be held and used are reviewed for impairment whenever
events or changes in circumstances indicate that the related carrying amount may not be recoverable.
When required, impairment losses on assets to be held and used are recognized based on the fair value
of the asset and long-lived assets to be disposed of are reported at the lower of carrying amount on fair
value less cost to sell. There were no such impairments recorded during the year.
NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
ESTIMATES: The preparation of financial statements in conformity with generally accepted accounting
principles requires the Company’s management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results may differ from those estimates.
FAIR VALUE OF FINANCIAL INSTRUMENTS: This carrying amount of the Company’s notes payable
approximates their fair value.
NOTE B – CASH
Cash contains entirely of demand deposits with banking institutions. At September 30, 2010, The
Company did not have any funds in excess of $250,000 federally insured limit.
NOTE C – ACCOUNTS RECEIVABLE:
Accounts receivable consisted of the following at September 30, 2010
Commercial customers $ 76,250
Accounts receivable are recorded when invoices are issued. The Company evaluates the collectability of
its receivables based on a combination of factors. In circumstances where it is aware of a specific
customer’s inability to meet its financial obligations, it records a specific reserve to reduce the amount
recorded to what it believes will be collected. For all other customers, it recognizes reserves for bad
debt based on historical experience of bad debts as percent of revenues, adjusted for relative
improvements or deteriorations in the agings and changes in current economic conditions. The
allowance for uncollectible receivables at September 30, 2010 was $0.
NOTE D – INVESTMENT IN DIVISION:
Investment in division represents the excess of liabilities over assets recorded on the acquisition of
GuestMetrics, Inc. on November 11, 2009
NOTE E – INVESTMENT IN CORPORATION:
The investment in corporation represents the acquisition of 96,362.8 shares of Cloud Centric Systems,
Inc. Series E preferred stock.
NOTE F – NOTES PAYABLES:
The notes payable at September 30, 2010 consisted of the following:
A secured convertible promissory note payable to a limited liability company, with a balance
outstanding at September 30, 2010 of $250,000.00 Interest accrues annually at a rate of 15% and is
secured by certain assets of the Company.
A convertible promissory note payable to an individual, with a balance outstanding at September 30,
2010 of $90,000.00. The note bears interest at the rate of 9% annually. The note is due December 31
2010. At any time after December 31, 2010 the note is convertible into shares of the common stock of
the Company.
A demand note payable to a bank with a balance outstanding at September 30, 2010 of $70,000.00.
Interest accrues annually at the rate of 8% and is secured by shares of the Company’s stock.
A secured promissory note payable to a corporation, with a balance outstanding at September 31, 2010
of $46,776.16. The note bears interest at a rate of 18% annually and is secured by the Company’s
assets.
TOTAL NOTES PAYABLE $ 456,776
NOTE H – LONG TERM DEBT:
A secured promissory note payable to a corporation, with a balance outstanding at September 30, 2010
of $250,000. Interest accrues annually at a rate of 6%, and is secured by a security interest in certain
intangible assets of the Company.
A note payable to a partnership, with a balance outstanding at September 30, 2010 of $570,000 Interest
accrues at 10% and payments are based upon product sales. The note is guaranteed by Beverage Pouch
Group.
A note payable to a corporation, with a balance outstanding at September 30, 2010 of $60,000. Interest
accrues at a rate of 10% and payments are based upon product sales. The note is guaranteed by
Beverage Pouch Group.
A secured contingent demand note for cash advances from Beverage Pouch Group with a balance
outstanding at September 20, 2010 of $ 755,061.04
A note payable to the officers of the corporation with a balance outstanding at September 30, 2010 of
$189,450.00
TOTAL LONG TERM DEBT $ 1,824,511
NOTE J – PAYROLL TAX LIABILITIES:
The Company has recorded a liability for unpaid taxes as of September 30, 2010 of $ 1,098,103.
The Company currently has an offer in compromise pending with the government that would
significantly reduce this liability.
AI
