NEVADA
(State
or other jurisdiction of
incorporation
or organization)
|
88-0397234
(I.R.S.
Employer Identification No.)
|
Large Accelerated Filer o | Accelerated Filer o | Non-Accelerated Filer o | Smaller Report Company o |
Page
Number
|
||
PART
I. FINANCIAL
INFORMATION
|
||
Item
1. Financial Statements
|
||
Condensed
Consolidated Balance Sheets as of June 30, 2008 (unaudited) and
December
31, 2007
(audited)
|
3-4
|
|
Condensed
Consolidated Statements of Income for the three months ended June
30, 2008
and 2007 (unaudited)
|
5
|
|
Condensed
Consolidated Statements of Income for the six months ended June
30, 2008
and 2007 (unaudited)
|
6
|
|
Condensed
Consolidated Statements of Cash Flows for the six months ended
June 30,
2008 and 2007 (unaudited)
|
7-8
|
|
Notes
to unaudited Condensed Consolidated Financial Statements
|
9-26
|
|
Item
2. Management's Discussion and Analysis
|
27-34
|
|
Item
3. Controls and Procedures
|
35
|
|
Part
II. OTHER INFORMATION
|
36
|
|
Item
1. Legal Proceedings
|
36
|
|
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
|
36
|
|
Item
3. Defaults Upon Senior Securities
|
36
|
|
Item
4. Submission of Matters to a Vote of Security Holders
|
36
|
|
Item
5. Other Information
|
36
|
|
Item
6. Exhibits
|
37
|
|
SIGNATURES
|
38
|
|
2008
|
|
2007
|
|
|||
|
|
(Unaudited)
|
|
(Audited)
|
|
||
ASSETS | |||||||
CURRENT
ASSETS
|
|
|
|||||
Cash
and cash equivalents
|
$
|
347,391
|
$
|
232,249
|
|||
Accounts
receivable, net of allowance of $61,556 and
$22,641
|
680,346
|
299,863
|
|||||
Prepaid
expenses
|
43,905
|
16,529
|
|||||
Total current assets
|
1,071,642
|
548,641
|
|||||
|
|||||||
PROPERTY
AND EQUIPMENT, net
|
229,664
|
236,782
|
|||||
CUSTOMER
LIST, net of accumulated amortization
of $6,603,388 and $5,237,054
|
4,763,176
|
5,480,635
|
|||||
GOODWILL,
net of impairment
|
1,288,559
|
1,288,559
|
|||||
OTHER
ASSETS
|
645,933
|
677,267
|
|||||
|
|||||||
TOTAL
ASSETS
|
$
|
7,998,974
|
$
|
8,231,884
|
|
2008
|
|
2007
|
|
|||
|
|
(Unaudited)
|
|
(Audited)
|
|
||
CURRENT
LIABILITIES
|
|
|
|||||
|
|
|
|||||
Accounts
payable
|
$
|
35,027
|
$
|
78,713
|
|||
Accrued
expenses
|
120,548
|
138,021
|
|||||
Deferred
revenue
|
1,365,811
|
1,361,606
|
|||||
Notes
payable
|
739,500
|
1,268,866
|
|||||
|
|||||||
Total
current liabilities
|
2,260,886
|
2,847,206
|
|||||
|
|||||||
NOTES
PAYABLE, less current portion
|
1,434,377
|
1,694,836
|
|||||
NOTES
PAYABLE - STOCKHOLDERS, less current portion
|
599,677
|
686,687
|
|||||
|
|||||||
TOTAL
LIABILITIES
|
4,294,940
|
5,228,729
|
|||||
|
|||||||
STOCKHOLDERS'
EQUITY
|
|||||||
Preferred
Stock, $.001 par value, 10,000,000 shares authorized,
0 shares issued and outstanding
|
-
|
-
|
|||||
Common
stock, $.001 par value, 300,000,000 shares authorized,
91,326,463 and 91,326,463 shares issued and outstanding
on June 30, 2008 December 31, 2007 respectively
|
91,326
|
91,326
|
|||||
Additional
paid-in capital
|
13,880,947
|
13,880,947
|
|||||
Treasury
stock, $.001 par value, 2,955,147 common shares on
June 30, 2008 and December 31, 2007
|
(63,030
|
)
|
(63,030
|
)
|
|||
Accumulated
deficit
|
(10,205,209
|
)
|
(10,906,088
|
)
|
|||
|
|||||||
Total
stockholders’ equity
|
3,704,034
|
3,003,155
|
|||||
|
|||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
7,998,974
|
$
|
8,231,884
|
|
2008
|
|
2007
|
||||
REVENUE
|
$
|
2,614,699
|
$
|
1,528,733
|
|||
|
|||||||
COST
OF REVENUE
|
562,583
|
539,981
|
|||||
|
|||||||
GROSS
PROFIT
|
2,052,116
|
988,752
|
|||||
|
|||||||
OPERATING
EXPENSES:
|
|||||||
Selling
general and administrative expenses
|
1,618,940
|
845,150
|
|||||
|
|||||||
INCOME
FROM OPERATIONS
|
433,176
|
143,602
|
|||||
|
|||||||
OTHER
INCOME (EXPENSES)
|
(36,297
|
)
|
(54,082
|
)
|
|||
|
|||||||
INCOME
BEFORE INCOME TAXES
|
396,879
|
89,520
|
|||||
|
|||||||
INCOME
TAXES
|
-
|
-
|
|||||
|
|||||||
NET
INCOME
|
$
|
396,879
|
$
|
89,520
|
|||
|
|||||||
BASIC
AND DILUTED EARNINGS PER SHARE
|
$
|
0.00
|
$
|
0.00
|
|||
WEIGHTED
AVERAGE SHARES OUTSTANDING - BASIC AND
DILUTED
|
91,326,463
|
88,063,305
|
|
2008
|
|
2007
|
|
|||
REVENUE
|
$
|
5,159,244
|
$
|
2,968,714
|
|||
|
|||||||
COST
OF REVENUE
|
1,387,801
|
931,006
|
|||||
|
|||||||
GROSS
PROFIT
|
3,771,443
|
2,037,708
|
|||||
|
|||||||
OPERATING
EXPENSES:
|
|||||||
Selling
general and administrative expenses
|
2,984,032
|
1,553,545
|
|||||
|
|||||||
INCOME
FROM OPERATIONS
|
787,411
|
484,163
|
|||||
|
|||||||
OTHER
INCOME (EXPENSES)
|
(86,532
|
)
|
(86,075
|
)
|
|||
|
|||||||
INCOME
BEFORE INCOME TAXES
|
700,879
|
398,088
|
|||||
|
|||||||
INCOME
TAXES
|
-
|
-
|
|||||
|
|||||||
NET
INCOME
|
$
|
700,879
|
$
|
398,088
|
|||
|
|||||||
BASIC
AND DILUTED EARNINGS PER SHARE
|
$
|
0.01
|
$
|
0.01
|
|||
WEIGHTED
AVERAGE SHARES OUTSTANDING - BASIC AND
DILUTED
|
91,326,463
|
88,063,305
|
|
2008
|
|
2007
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|||||
Net
income
|
$
|
700,879
|
$
|
398,088
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Depreciation
and amortization expense
|
1,486,286
|
658,676
|
|||||
Bad
debt expense
|
38,914
|
3,723
|
|||||
(Increase)
decrease in:
|
|||||||
Accounts
receivable
|
(419,398
|
)
|
(46,115
|
)
|
|||
Prepaid
expenses
|
(27,376
|
)
|
4,189
|
||||
Increase
(decrease) in:
|
|||||||
Accounts
payable
|
(43,686
|
)
|
(76,101
|
)
|
|||
Accrued
expenses
|
(17,474
|
)
|
(205,606
|
)
|
|||
Deferred
revenue
|
4,207
|
51,819
|
|||||
|
|||||||
Net
cash provided by operating activities
|
1,722,352
|
788,673
|
|||||
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Other
assets held for resale
|
500
|
24,834
|
|||||
Purchase
of property and equipment
|
(12,000
|
)
|
(21,033
|
)
|
|||
Purchase
of non-compete
|
(70,000
|
)
|
(40,000
|
)
|
|||
Purchase
of customer list
|
(648,875
|
)
|
(987,585
|
)
|
|||
|
|||||||
Net
cash (used in) investing activities
|
(730,375
|
)
|
(1,023,784
|
)
|
|||
|
|||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Net
proceeds from notes payable
|
350,855
|
675,043
|
|||||
Repayment
of notes payable - stockholders
|
(87,010
|
)
|
(55,753
|
)
|
|||
Repayment
of notes payable
|
(1,140,680
|
)
|
(280,644
|
)
|
|||
|
|||||||
Net
cash provided by (used in) financing activities
|
(876,835
|
)
|
338,646
|
||||
|
|||||||
NET
INCREASE IN
CASH AND CASH EQUIVALENTS
|
115,142
|
103,535
|
|||||
|
|||||||
CASH
AND CASH EQUIVALENTS -BEGINNING OF PERIOD
|
232,249
|
129,453
|
|||||
|
|||||||
CASH
AND CASH EQUIVALENTS -END OF PERIOD
|
$
|
347,391
|
$
|
232,988
|
|
2008
|
2007
|
|||||
Net
income available to common shareholders
|
$
|
396,879
|
$
|
89,520
|
|||
Weighted
average number of common shares
|
91,326,463
|
88,063,305
|
|||||
Basic
and diluted income per share
|
$
|
.00
|
$
|
.00
|
|
2008
|
2007
|
|||||
Net
income available to common shareholders
|
$
|
700,879
|
$
|
398,088
|
|||
Weighted
average number of common shares
|
91,326,463
|
88,063,305
|
|||||
Basic
and diluted income per share
|
$
|
.01
|
$
|
.01
|
June
30, 2008
|
||||||||||
|
Corporate
|
Internet
|
Consolidated
|
|||||||
Revenue
|
$
|
-
|
$
|
2,614,699
|
$
|
2,614,699
|
||||
Operating
Income (loss)
|
$
|
(26,239
|
)
|
$
|
459,415
|
$
|
433,176
|
|||
Depreciation
and amortization
|
$
|
-
|
$
|
763,876
|
$
|
763,876
|
||||
Interest
expense
|
$
|
-
|
$
|
38,832
|
$
|
38,832
|
||||
Intangible
assets
|
$
|
-
|
$
|
6,427,429
|
$
|
6,427,429
|
||||
Total
assets
|
$
|
-
|
$
|
7,998,974
|
$
|
7,998,974
|
June
30, 2007
|
||||||||||
|
Corporate
|
Internet
|
Consolidated
|
|||||||
Revenue
|
$
|
-
|
$
|
1,528,733
|
$
|
1,528,733
|
||||
Operating
Income (loss)
|
$
|
(40,247
|
)
|
$
|
183,850
|
$
|
143,603
|
|||
Depreciation
and amortization
|
$
|
-
|
$
|
353,438
|
$
|
353,438
|
||||
Interest
expense
|
$
|
-
|
$
|
49,713
|
$
|
49,713
|
||||
Intangible
assets
|
$
|
-
|
$
|
3,526,436
|
$
|
3,526,436
|
||||
Total
assets
|
$
|
-
|
$
|
4,551,859
|
$
|
4,551,859
|
June
30, 2008
|
||||||||||
|
Corporate
|
Internet
|
Consolidated
|
|||||||
Revenue
|
$
|
-
|
$
|
5,159,244
|
$
|
5,159,244
|
||||
Operating
Income (loss)
|
$
|
(69,708
|
)
|
$
|
857,119
|
$
|
787,411
|
|||
Depreciation
and amortization
|
$
|
-
|
$
|
1,486,286
|
$
|
1,486,286
|
||||
Interest
expense
|
$
|
-
|
$
|
110,518
|
$
|
110,518
|
||||
Intangible
assets
|
$
|
-
|
$
|
6,427,429
|
$
|
6,427,429
|
||||
Total
assets
|
$
|
-
|
$
|
7,998,974
|
$
|
7,998,974
|
June
30, 2007
|
||||||||||
|
Corporate
|
Internet
|
Consolidated
|
|||||||
Revenue
|
$
|
-
|
$
|
2,968,714
|
$
|
2,968,714
|
||||
Operating
Income (loss)
|
$
|
(43,726
|
)
|
$
|
527,889
|
$
|
484,163
|
|||
Depreciation
and amortization
|
$
|
-
|
$
|
658,676
|
$
|
658,676
|
||||
Interest
expense
|
$
|
-
|
$
|
85,182
|
$
|
85,182
|
||||
Intangible
assets
|
$
|
-
|
$
|
3,526,436
|
$
|
3,526,436
|
||||
Total
assets
|
$
|
-
|
$
|
4,551,859
|
$
|
4,551,859
|
Customer
list
|
$
|
93,992
|
||
Non-compete
agreement
|
10,000
|
|||
Equipment
|
10,000
|
|||
Deferred
revenue
|
(5,522
|
)
|
||
Purchase
price
|
$
|
108,470
|
|
2007
|
|||
Net
sales
|
$
|
3,023,928
|
||
Gross
profit
|
$
|
2,078,171
|
||
Selling,
general and administrative expenses
|
$
|
1,584,665
|
||
Net
income
|
$
|
407,431
|
||
Basic
income per share
|
$
|
0.00
|
Accounts
receivable
|
$
|
(2,098
|
)
|
|
Customer
list
|
870,680
|
|||
Non-compete
agreement
|
25,000
|
|||
Equipment
|
10,000
|
|||
Deferred
revenue
|
(101,130
|
)
|
||
Purchase
price
|
$
|
802,452
|
|
2007
|
|||
Net
sales
|
$
|
3,489,856
|
||
Gross
profit
|
$
|
2,422,055
|
||
Selling,
general and administrative expenses
|
$
|
1,779,152
|
||
Net
income
|
$
|
556,828
|
||
Basic
income per share
|
$
|
0.01
|
Accounts
receivable
|
$
|
3,880
|
||
Customer
list
|
58,549
|
|||
Non-compete
agreement
|
5,000
|
|||
Deferred
revenue
|
(21,800
|
)
|
||
Purchase
price
|
$
|
45,629
|
|
2007
|
|||
Net
sales
|
$
|
3,012,248
|
||
Gross
profit
|
$
|
2,069,364
|
||
Selling,
general and administrative expenses
|
$
|
1,574,506
|
||
Net
income
|
$
|
408,212
|
||
Basic
income per share
|
$
|
0.00
|
Customer
list
|
$
|
4,292,656
|
||
Non-compete
agreement
|
350,000
|
|||
Deferred
revenue
|
(892,656
|
)
|
||
Purchase
price
|
$
|
3,750,000
|
2007
|
||||
Net
sales
|
$
|
5,414,537
|
||
Gross
profit
|
$
|
3,832,067
|
||
Selling,
general and administrative expenses
|
$
|
2,837,206
|
||
Net
income
|
$
|
836,354
|
||
Basic
income per share
|
$
|
0.01
|
Customer
list
|
$
|
62,223
|
||
Non-compete
agreement
|
5,000
|
|||
Accounts
receivable
|
2,343
|
|||
Deferred
revenue
|
(22,858
|
)
|
||
Purchase
price
|
$
|
46,708
|
|
2007
|
|||
Net
sales
|
$
|
3,014,532
|
||
Gross
profit
|
$
|
2,075,328
|
||
Selling,
general and administrative expenses
|
$
|
1,600,071
|
||
Net
income
|
$
|
387,043
|
||
Basic
income per share
|
$
|
0.00
|
Customer
list
|
$
|
40,512
|
||
Non-compete
agreement
|
5,000
|
|||
Accounts
receivable
|
2,328
|
|||
Equipment
|
10,000
|
|||
Deferred
revenue
|
(12,019
|
)
|
||
Purchase
price
|
$
|
45,821
|
|
2007
|
|||
Net
sales
|
$
|
3,017,652
|
||
Gross
profit
|
$
|
2,081,752
|
||
Selling,
general and administrative expenses
|
$
|
1,560,864
|
||
Net
income
|
$
|
434,080
|
||
Basic
income per share
|
$
|
0.00
|
Customer
list
|
$
|
250,000
|
||
Non-compete
agreement
|
5,000
|
|||
Deferred
revenue
|
(25,100
|
)
|
||
Purchase
price
|
$
|
229,900
|
|
2007
|
|||
Net
sales
|
$
|
3,063,214
|
||
Gross
profit
|
$
|
2,122,779
|
||
Selling,
general and administrative expenses
|
$
|
1,575,355
|
||
Net
income
|
$
|
459,305
|
||
Basic
income per share
|
$
|
0.01
|
Customer
list
|
$
|
277,965
|
||
Non-compete
agreement
|
50,000
|
|||
Deferred
revenue
|
(64,208
|
)
|
||
Purchase
price
|
$
|
263,757
|
|
2007
|
|||
Net
sales
|
$
|
3,102,412
|
||
Gross
profit
|
$
|
2,158,066
|
||
Selling,
general and administrative expenses
|
$
|
1,583,428
|
||
Net
income
|
$
|
488,563
|
||
Basic
income per share
|
$
|
0.01
|
Customer
list
|
$
|
15,428
|
||
Non-compete
agreement
|
5,000
|
|||
Accounts
receivable
|
164
|
|||
Equipment
|
2,000
|
|||
Deferred
revenue
|
(4,050
|
)
|
||
Purchase
price
|
$
|
18,542
|
|
2007
|
|||
Net
sales
|
$
|
2,975,291
|
||
Gross
profit
|
$
|
2,043,813
|
||
Selling,
general and administrative expenses
|
$
|
1,554,602
|
||
Net
income
|
$
|
403,136
|
||
Basic
income per share
|
$
|
0.00
|
Customer
list
|
$
|
400,000
|
||
Non-compete
agreement
|
10,000
|
|||
Deferred
revenue
|
(50,000
|
)
|
||
Purchase
price
|
$
|
360,000
|
|
2008
|
2007
|
|||||
Bank
note payable in monthly interest and principal payments of $1,784.
Interest is payable prime plus 4.5%, (9.75% and 9.75% as of June
30, 2008
and December 31, 2007 respectively). The note is guaranteed by a
stockholder of the Company and secured by a deed of trust against
personal
residences of three stockholders. Also, the bank has a blanket lien
against all other current and future assets of
Sitestar.net.
|
46,702
|
58,242
|
Bank
line of credit reissued on April 12, 2008 with a principal
limit of
$300,000. Interest is payable at an annual rate of prime plus
.25% (7.50%
as of December 31, 2007). The note is secured by a deed of
trust on the
Company’s building and is personally guaranteed by officers and directors
of the Company.
|
-
|
300,000
|
|||||
|
|||||||
Non-interest
bearing amount due on acquisition of AlaNet Internet Services
payable in
eleven monthly installments of $4,276 through April 2008.
|
-
|
20,807
|
|||||
Bank
note payable in twelve monthly interest and principal payments
of $30,650.
Interest is payable at an annual rate of 9.25%. The note is
guaranteed by officers and directors of the Company and secured
by shares
of Company stock owned by the officers and directors of the
Company.
|
149,756
|
322,048
|
Bank
note payable in twenty four monthly interest and principal payments
of
$21,167. Interest is payable at an annual rate of 8.5%. The note is
guaranteed by officers and directors of the Company and secured
by shares
of Company stock owned by officers and directors of the
Company.
|
327,951
|
438,264
|
|||||
Bank
bridge note originally payable on February 1, 2008. Interest is
payable at
an annual rate of 8.5%. The note was refinanced on February 21,
2008 at an
annual interest rate of 8.5% and is payable in twelve payments
of $21,760
and is personally guaranteed by officers and directors of the Company
and
secured by real estate owned by officers and directors of the
Company.
|
168,777
|
250,000
|
|||||
Non-interest
bearing amount due on acquisition of USA Telephone payable in thirty
six
monthly installments starting January 2008.
|
1,315,615
|
1,574.341
|
|||||
Non-interest
bearing amount due on acquisition of Comcation payable in five
monthly
installments starting April 2008.
|
7,827
|
-
|
|||||
Non-interest
bearing amount due on acquisition of N2theNet payable in eleven
monthly
installments starting May 2008.
|
34,813
|
-
|
|||||
Non-interest
bearing amount due on acquisition of Dial Assurance payable in
six monthly
installments starting June 2008
|
57,441
|
-
|
|||||
Non-interest
bearing amount due on acquisition of AdaNet payable in five monthly
installments starting July 2008
|
14,705
|
-
|
|||||
Non-interest
bearing amount due on acquisition of USA Telephone payable in 60
days from
closing.
|
50,290
|
-
|
|||||
Less
current portion
|
(739,500
|
)
|
(1,268,866
|
)
|
|||
|
|||||||
Long-term
portion
|
$
|
1,434,377
|
$
|
1,694,836
|
Twelve
months ending June 30, 2009
|
$
|
739,500
|
||
Twelve
months ending June 30, 2010
|
1,429,774
|
|||
Twelve
months ending June 30, 2011
|
4,603
|
|||
Twelve
months ending June 30, 2012
|
-
|
|||
Twelve
months ending June 30, 2013
|
-
|
|||
Thereafter
|
-
|
|||
Total
|
$
|
2,173,877
|
|
For
the six months ended June 30, 2008 (unaudited)
|
|||||||||
|
Corporate
|
Internet
|
Total
|
|||||||
Revenue
|
$
|
-
|
$
|
5,159,244
|
$
|
5,159,244
|
||||
Cost
of revenue
|
-
|
1,387,801
|
1,387,801
|
|||||||
|
||||||||||
Gross
profit
|
-
|
3,771,443
|
3,771,443
|
|||||||
|
||||||||||
Operating
expenses
|
69,708
|
2,914,324
|
2,984,032
|
|||||||
Income
(loss) from operations
|
(69,708
|
)
|
857,119
|
787,411
|
||||||
Other
income (expense)
|
-
|
(86,532
|
)
|
(86,532
|
)
|
|||||
Net
income (loss)
|
$
|
(69,708
|
)
|
$
|
770,587
|
$
|
700,879
|
|
For
the six months ended June 30, 2007 (unaudited)
|
|||||||||
|
Corporate
|
|
Internet
|
|
Total
|
|||||
Revenue
|
$
|
-
|
$
|
2,968,714
|
$
|
2,968,714
|
||||
Cost
of revenue
|
-
|
931,006
|
931,006
|
|||||||
|
||||||||||
Gross
profit
|
-
|
2,037,708
|
2,037,708
|
|||||||
|
||||||||||
Operating
expenses
|
43,726
|
1,509,819
|
1,553,545
|
|||||||
Income
(loss) from operations
|
(43,726
|
)
|
527,889
|
484,163
|
||||||
Other
income (expense)
|
-
|
(86,075
|
)
|
(86,075
|
)
|
|||||
Net
income (loss)
|
$
|
(43,726
|
)
|
$
|
441,814
|
$
|
398,088
|
For
the six months ended June 30,
2008
|
||||||||||
|
Corporate
|
Internet
|
Total
|
|||||||
EBITDA
|
$
|
(69,708
|
)
|
$
|
2,367,391
|
$
|
2,297,683
|
|||
Interest
expense
|
-
|
(110,518
|
)
|
(110,518
|
)
|
|||||
Taxes
|
-
|
-
|
-
|
|||||||
Depreciation
|
-
|
(19,118
|
)
|
(19,118
|
)
|
|||||
Amortization
|
-
|
(1,467,168
|
)
|
(1,467,168
|
)
|
|||||
Net
income (loss)
|
$
|
(69,708
|
)
|
$
|
770,587
|
$
|
700,879
|
For
the six months ended June
30, 2007
|
||||||||||
|
Corporate
|
Internet
|
Total
|
|||||||
EBITDA
|
$
|
(43,726
|
)
|
$
|
1,186,279
|
$
|
1,142,553
|
|||
Interest
expense
|
-
|
(85,182
|
)
|
(85,182
|
)
|
|||||
Taxes
|
-
|
-
|
-
|
|||||||
Depreciation
|
-
|
(30,731
|
)
|
(30,731
|
)
|
|||||
Amortization
|
-
|
(628,552
|
)
|
(628,552
|
)
|
|||||
Net
income (loss)
|
$
|
(43,726
|
)
|
$
|
441,814
|
$
|
398,088
|
2008
|
2007
|
||||||
EBITDA for
the six months ended June 30,
|
$
|
2,297,683
|
$
|
1,142,553
|
|||
Interest
expense
|
(110,518
|
)
|
(85,182
|
)
|
|||
Taxes
|
-
|
-
|
|||||
Depreciation
|
(19,118
|
)
|
(30,731
|
)
|
|||
Amortization
|
(1,467,168
|
)
|
(628,552
|
)
|
|||
Net
income for the six months ended June 30,
|
$
|
700,879
|
$
|
398,088
|
|
2008
|
2007
|
|||||||||||
Current
|
$
|
307,983
|
45
|
%
|
$
|
171,446
|
57
|
%
|
|||||
30
< 60
|
191,975
|
28
|
%
|
72,337
|
24
|
%
|
|||||||
60
+
|
180,388
|
27
|
%
|
56,080
|
19
|
%
|
|||||||
Total
|
$
|
680,346
|
100
|
%
|
$
|
299,863
|
100
|
%
|
31.1 |
Certification
of President Pursuant to the Securities Exchange Act of 1934, Rules
13a-14
and 15d-14, as adopted pursuant to Section 302 of the Sarbanes-Oxley
Act
of 2002.
|
31.2 |
Certification
of Chief Financial Officer Pursuant to the Securities Exchange
Act of
1934, Rules 13a-14 and 15d-14, as adopted pursuant to Section 302
of the
Sarbanes-Oxley Act of 2002.
|
32 |
Certification
Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002
|
SITESTAR CORPORATION | ||
|
|
|
Date: August 19, 2008 | By: | /s/ Frank Erhartic, Jr. |
Frank
Erhartic, Jr.
President,
Chief Executive Officer
(Principal
Executive Officer and
Principal
Accounting Officer)
|
Date: August 19, 2008 | By: | /s/ Daniel A. Judd. |
Daniel
A. Judd
Chief
Financial Officer
(Principal
Financial Officer)
|