Moro : 6/30/2022 Unaudited Financial Statements

MORO CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEET

JUNE 30, 2022

2022

ASSETS

CURRENT ASSETS

Cash and cash equivalents

Cash

$

364,828

Accounts receivable, net

2,943,550

Contract receivables, net

5,301,575

Inventories, net

6,292,711

Contract assets

3,719,705

Prepaid expenses and other current assets

375,868

Prepaid income taxes

212,171

Assets of discontinued operations

2,334,886

TOTAL CURRENT ASSETS

21,545,294

PROPERTY AND EQUIPMENT, net of accumulated depreciation

782,942

Right of use (ROU) assets from operating leases

1,152,888

Right of use (ROU) assets from finance leases, net of amortization

1,042,872

OTHER ASSETS

Deferred income taxes, net

110,560

Goodwill

1,262,798

TOTAL OTHER ASSETS

1,373,358

TOTAL ASSETS

$

25,897,354

LIABILITIES

CURRENT LIABILITIES

Line of credit

$

2,771,241

Current portion of long-term debt

35,314

Current portion of operating lease liabilities

333,104

Current portion of finance lease liabilities

297,015

Accounts payable

4,942,991

Accrued expenses and other current liabilities

501,265

Contract liabilities

1,258,554

Liabilities of discontinued operations

14,481

TOTAL CURRENT LIABILITIES

10,153,965

LONG TERM LIABILITIES

Long-term debt, net of current portion

119,237

Operating lease liabilities, net of current portion

816,292

Finance lease liabilities, net of current portion

574,425

TOTAL LONG TERM LIABILITIES

1,509,954

TOTAL LIABILITIES

11,663,919

STOCKHOLDERS' EQUITY

Common stock, $.001 par value,

25,000,000 shares authorized; 6,369,337 shares issued;

6,119,337 shares outstanding

6,370

Additional paid-in-capital

963,205

Retained earnings

13,363,860

14,333,435

Treasury stock, at cost, 250,000 shares

(100,000)

TOTAL STOCKHOLDERS' EQUITY

14,233,435

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

$

25,897,354

% of Earned

2022

Revenues

EARNED REVENUES

Construction material sales

$

7,839,286

30.6%

Construction contracts revenue earned

17,738,154

69.4%

TOTAL EARNED REVENUES

25,577,440

100.0%

COST OF EARNED REVENUES

Cost of goods sold

6,397,257

25.0%

Cost of construction contracts revenue earned

12,638,935

49.4%

TOTAL COST OF EARNED REVENUES

19,036,192

74.4%

GROSS PROFIT

6,541,248

25.6%

GENERAL AND ADMINISTRATIVE EXPENSES

6,148,247

24.0%

INCOME/(LOSS) FROM OPERATIONS

393,001

1.5%

OTHER INCOME (EXPENSE)

Interest expense

(56,237)

-0.2%

Gain on sale of property and equipment

4,143

0.0%

Other income (expense)

28,266

0.1%

NET OTHER INCOME (EXPENSES)

(23,828)

-0.1%

INCOME/(LOSS) FROM CONTINUING OPERATIONS

BEFORE TAXES

369,173

1.4%

INCOME TAX EXPENSE/(BENEFIT)

110,882

0.4%

INCOME FROM CONTINUING OPERATIONS

258,291

1.0%

DISCONTINUED OPERATIONS

Loss from operations of discontinued operations net of

applicable tax benefit of $205,969

(480,841)

-1.9%

NET INCOME/(LOSS)

$

(222,550)

-0.9%

NET INCOME/(LOSS) PER SHARE, BASIC & DILUTED

$

(0.04)

Weighted average common shares and diluted

potential common shares.

6,119,337

Total

Common Stock

Additional

Retained

Treasury Stock

Stockholders'

Shares

Amount

Paid-in Capital

Earnings

Shares

Amount

Equity

Balance, December 31, 2021

6,369,337

$ 6,370

$

963,205

$

13,586,410

250,000

$

(100,000)

$

14,455,985

Net Income/(Loss)

-

-

-

(222,550)

-

-

(222,550)

Balance, June 30, 2022

6,369,337

$ 6,370

$

963,205

$

13,363,860

250,000

$

(100,000)

$

14,233,435