EURO GROUP OF COMPANIES, INC.

CIK:0001005663|SEC Filings

Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Sales	$ 7,885	$ 18,865	$ 27,968	$ 58,756
Less Cost of sales	10,967	10,495	24,967	22,594
Gross profit	(3,082)	8,370	3,001	36,162
Selling, general and administrative expenses	57,710	148,293	85,416	1,347,285
Loss from operations	(60,792)	(139,923)	(82,415)	(1,311,123)
Other expense
Interest expense		(2,730)		(346,428)
Net loss	$ (60,792)	$ (142,653)	$ (82,415)	$ (1,657,551)
Basic and diluted earnings (loss) per common share	$ 0.00	$ 0.00	$ 0.00	$ (0.01)
Weighted average shares outstanding, basic and diluted	115,246,394	115,004,394	115,246,394	114,141,232

Consolidated Statements of Cash Flows (Unaudited) (USD $)	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Operating Activities
Net (loss)	$ (82,415)	$ (1,660,281)
Depreciation and amortization	18,304	35,396
Stock for consulting services
Interest on common stock subject to put feature		2,730
Loss on inventory adjustment		346,428
Provision for returns and allowance for doubtful accounts and bad debts write-offs		503,679
Changes in operating assets and liabilities
Receivables	(714)	91,992
Inventories	713	486,908
Deposits for future inventory purchases		(82,647)
Deposit and prepaid expenses		(91,280)
Customer deposits and deferred activations		421,124
Accounts payable and accrued expenses	45,984	(148,651)
Common Stock subject to put feature		75,000
Payroll taxes and withholdings		(19,699)
Net cash (used for) operating activities	(18,128)	(39,301)
Investing Activities
Property and equipment disposals		23,751
Net cash (used for) investing activities		23,751
Financing Activities
Increase (decrease) in loans payable to related parties	(52,410)	(211,920)
Proceeds from loans		213,350
Proceeds from sale of common stock		89,700
Net cash provided by financing activities	(52,410)	91,130
Net increase (decrease) in cash	(70,538)	75,580
Cash and cash equivalents at beginning of period	72,230	1,677
Cash at end of period	$ 1,692	$ 77,257

Consolidated Balance Sheets (Unaudited) (USD $)	Jun. 30, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash and cash equivalents	$ 1,692	$ 72,230
Accounts receivable, less allowance for doubtful accounts of $147,597 and $197,025, respectively	43,892	43,178
Loan receivable - short term	13,000	13,000
Inventory	76,903	77,616
Deposits for future inventory purchases	210,344	210,344
Prepaid Expenses	92,130	92,130
Total current assets	437,961	508,498
Property and equipment, less accumulated depreciation of $194,573 and $123,781 respectively		18,304
Security deposits - retail store	13,980	13,980
TOTAL ASSETS	451,941	540,782
CURRENT LIABILITIES
Bank overdrafts	34,293	34,293
Bank lines of credit
Accounts payable and accrued expenses	1,054,177	1,008,193
Payroll taxes and withholdings	633,718	633,718
Deferred activations	213,966	213,966
Customer deposits	207,158	207,158
Common stock subject to put feature	323,000	323,000
Total current liabilities	2,466,312	2,420,328
LONG TERM LIABILITIES
Loans payable	368,451	368,451
Loans payable to related parties	2,965,604	3,018,014
TOTAL LIABILITIES	5,800,367	5,806,793
STOCKHOLDERS' EQUITY (DEFICIENCY)
Preferred stock, $.001 par value, 10,000,000 shares authorized, 0 shares issued
Common stock, $.001 par value, 200,000,000 shares authorized; issued and outstanding 115,246,793 and 113,076,793 shares, respectively	115,246	115,246
Additional paid-in capital	6,276,526	6,276,526
Subscription receivable	(25,000)	(25,000)
Retained earnings (deficit)	(11,715,198)	(11,632,783)
Total stockholders' equity (deficiency)	(5,348,426)	(5,266,011)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)	$ 451,941	$ 540,782