Exhibit 99.1

B2 Digital dba Hotel Movie Network

Balance Sheet

As of March 31, 2008

		March 31, 2008
ASSETS
Current Assets
Checking/Savings
American Express							–3,561.70
Bank Non-Cash Deposit Correction							–15.09
Checking at Bank of America							11,068.87
Office Petty Cash Account							43.97
Total Checking/Savings							7,536.05
Accounts Receivable
Accounts Receivable							276,303.87
Total Accounts Receivable							276,303.87
Other Current Assets
Bad Debt Allowance							–218,655.35
Inventory Asset							2,327,272.82
Inventory Asset Valuation Allow							–2,041,403.65
Loan							14,238.00
Total Other Current Assets							81,451.82
Total Current Assets							365,291.74
Fixed Assets
Accum. Deprec. E & M							–918,252.23
Equipment & Machinery							357,282.06
Field Test Equipment
Equipment-Other			1,103.12
FTG			23,939.97
PPV			9,865.69
Field Test Equipment – Other			2,214.00
Total Field Test Equipment							37,122.78
Leasehold Improvements							29,485.46
Office Equipment
Bench Test Equipment			1,248.77
Computer			14,891.12
Office Equipment – Other			6,691.74
Total Office Equipment							22,831.63
Office Furniture							1,367.00
Total Fixed Assets							–470,163.30
Other Assets
Hotel Movie Express Equipment							470,163 30
Total Other Assets							470,163.30
TOTAL ASSETS							365,291.74

B2 Digital dba Hotel Movie Network

Balance Sheet

As of March 31, 2008

		March 31, 2008
LIABILITIES & EQUITY
Liabilities
Current Liabilities
Accounts Payable
Accounts Payable			35,114.54
Total Accounts Payable			35,114.54
Credit Cards
American Express Business Gold			–623.85
Total Credit Cards			–623.85
Other Current Liabilities
Emerst McKay			50,000.00
Paul LaBarre			50,000.00
Retainers			1,125.77
Total Other Current Liabilities			101,125.77
Total Current Liabilities			135,616.46
Long Term Liabilities
Free To Guest Deposit Account			7,588.70
Total Long Term Liabilities			7,588.70
Total Liabilities			143,205.16
Equity
Common Stock			25,000.00
Inventory Allowance			–220.62
Paid in capital			1,873,072.00
Retained Earnings			–1,687,680.88
Net Income			11,916.08
Total Equity			222,086.58
TOTAL LIABILITIES & EQUITY			365,291.74

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

Twelve Months Ended March 31, 2008

Ordinary Income/Expense

Income

Billable Field Service

262.50

Equipment Sales

250.00

Reimbursed Charges

1,615.20

Sales

Free To Guest

Directv Commissions

7,346.42

FTG Adjustment

–2,224.80

Free To Guest – Other

204,259.62

Total Free To Guest

209,381.24

PPV Programing

PPV Adjustments

–1,341.32

PPV Hotel Commission Adjustment

–12,740.87

PPV Programing – Other

10,522.30

Total PPV Programing

–3,559.89

Sales – Other

0.00

Total Sales

205,821.35

Uncategorized Income

694.98

Total Income

208,644.03

Cost of Goods Sold

*Cost of Goods Sold/inventory

815.71

Cost of Goods Sold

–25,229.09

Progrming Fees

FTG Fees

112,228.05

Royalties

20th Century Fox Royalty

1,087.54

Hollywood Adult Video

230.43

Total Royalties

1,317.97

Progrming Fees – Other

4,638.98

Total Progrming Fees

118,185.00

Sales Adjustments

467.19

VHS Duplication Cost

VHS Blank Tapes

312.50

VHS Duplication Cost – Other

6,875.50

Total VHS Duplication Cost

7,188.00

Total COGS

101,426.81

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

		Twelve Months Ended March 31, 2008
Gross Profit											107,217.22
Expense
Advertising											30,560.25
alarm monitoring services											180.00
Automobile Expense											59.20
Batteries											86.44
Dish Residential											–293.05
Fees											–564.13
Fees Ex.											263.42
Field Service											2,459.35
Interest Expense
Finance Charge							3.70
Total Interest Expense											3.70
INTERNET SERVICES											486.00
Late Fee											45.00
LATE FEE											30.00
Lease Payment											1,551.46
Licenses and Permits											100.00
Miscellaneous											0.54
Office and Storage Expences
Rent							17,600.00
Security System							50.00
Storage Units							2464.35
Office and Storage Expences – Other							1454.35
Total Office and Storage Expences											21,568.70
Office Supplies											1,054.14
Parts
Computer Programming/Software			175.00
Total Computer							175.00
Digital PPV Rack							5,024.71
Electronics							647.43
Tools							523.47
Parts – Other							691.87
Total Parts											7,062.48
Permits											10.00
Postage and Delivery
Federal Express							367.44

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

		Twelve Months Ended March 31, 2008
Freight Charges							720.70
Pitney Bowes Postage Machine							400.50
Postage Refill							857.01
UPS
Return Service			5.76
Service Charges			94.00
Shipping Charge Corrections			57.15
UPS – Other			4382.56
Total UPS							4,539.47
Postage and Delivery – Other							95.41
Total Postage and Delivery											6,980.53
Professional Fees
Maintenance Agreement							802.64
Total Professional Fees											802.64
Repairs
Building Repairs							928.44
Total Repairs											928.44
Salary
Administrative							3,500.00
Total Salary											3,500.00
Service Charges
American Express							68.13
Merchant Fees
Amex			50.65
EPS			383.85
Legacy			26.85
Northern Leasing			1,470.40
Visa/MC			40.19
Merchant Fees – Other			376.69
Total Merchant Fees							2,348.63
Service Charges – Other							203.75
Total Service Charges											2620.51
Shipping Supplies											2110.39
Taxes
Payroll Taxes							2762.70
Taxes – Other							134.87

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

		Twelve Months Ended March 31, 2008
Total Taxes											2897.57
Telephone
Cellular Phone							306.11
Telephone – Other							5190.20
Total Telephone											5496.31
Travel & Ent
Meals							289.02
Travel							250.00
Total Travel & Ent											539.02
Utilities
Electric							3941.46
Water, Gas & Trash							1,495.14
Total Utilities											5,436.60
Vehicles
Vehicle Maintenance
Chevy-Brian			85.50
Vehicle Maintenance – Other			103.76
Total Vehicle Maintenance							189.26
Vehicles – Other							368.29
Total Vehicles											557.55
voided check											0.00
Work Expense
Gas							812.89
Meals							272.07
Misc.							64.93
Work Expense – Other							2,223.18
Total Work Expense											3,373.07
Total Expense											99,906.13
Net Ordinary Income											7,311.09
Other Income/Expense
Other Income
Other Income											4,900.11
Refund											17.38
Total Other Income											4917.49
Other Expense
Other Expenses											312.50

B2 Digital dba Hotel Movie Network

Profit & Loss

April 2007 through March 2008

		Twelve Months Ended March 31, 2008
Total Other Expense							312.50
Net Other Income							4604.99
Net Income							11,916.08

B2 Digital dba Hotel Movie Network

Statement of Cash Flows

April 2007 through March 2008

		Twelve Months Ended March 31, 2008
OPERATING ACTIVITIES
Net Income			11,916.08
Adjustments to reconcile Net Income to net cash provided by operations:
Accounts Receivable			–13,889.30
Inventory Asset			345.91
Inventory Asset Valuation Allow			35.71
Loan			–14,238.00
Accounts Payable			18,844.32
American Express Business Gold			–623.85
Net cash provided by Operating Activities			2,390.87
FINANCING ACTIVITIES
Inventory Allowance			–220.62
Net cash provided by Financing Activities			–220.62
Net cash increase for period			2,170.25
Cash at beginning of period			5,365.80
Cash at end of period			7,536.05