Annex B

GERONTOLOGY REALESTATE & DEVELOPMENT, INC.

BALANCE SHEET

December 31th 2005

ASSETS

CURRENT ASSETS

Cash and cash equivalents

P

4,359,659

Accounts receivable

 

8,000,000

Other current assets

 

-

 

Total Current Assets

 

12,359,659

NON-CURRENT ASSETS

Property and equipment - net

 

62,443,219

 

 

12,359,659

TOTAL ASSETS

P

74,802,878

LIABILITIES AND STOCKHOLDERS' EQUITY


Current Liabilities

Accounts payable and accrued expenses

P

80,964

Auto loan

 

300,000

Other current liabilities

 

-

 

 

 

 

 

Total Current Liabilities

 

380,964

Non-current Liabilities

Advances from stockholders

 

25,876,975

Deferred income

 

40,623,000

 

 

 

Total Non-current Liabilities

 

66,499,975

 

 

 

 

 

Total Liabilities

 

66,880,939

Stockholders' Equity

Capital stock

 

4,390,000

Retained earnings

 

3,531,939

 

 

 

Total Stockholders' Equity

 

7,921,939

 

 

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY

P

74,802,878

Rental revenues

P

6,739,833

Operating expenses

Depreciation

P

3,864,908

General, selling and administrative

 

1,716,250

Office rent and other expenses

 

324,000

Representation and entertainment

 

145,438

Transportation and travel

 

55,437

Fuel and oil

 

67,844

Office supplies

 

96,327

Communications, light and water

 

86,302

Research and development

 

-

Insurance

 

34,516

Registration and membership fees

 

53,069

Repairs and maintenance

 

22,395

Taxes and licenses

 

15,346

Miscellaneous

 

4,989

 

 

6,486,821

Income Before Tax

 

253,012

 

 

 

Provision for Income Tax

 

80,964

 

 

 
Net Income

P

172,048

GERONTOLOGY REAL ESTATE & DEVELOPMENT, INC.
STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 2005

CAPITAL STOCK

Authorized - 10,000shares

 

 

sued and outstanding - 4,390dhares

P

4,390,000

 

RETAINED EARNINGS

Balance at beginning of period

 

3,359,891

Net income

P

172,048

 

 

 

Balance at end of period

 

3,531,939

 

 

 

TOTAL EQUITY

P

7,921,939