VALCOM, INC

CIK:0001013453|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended		9 Months Ended
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
REVENUES
Advertising	$ 25,290		$ 119,463
Programming	7,156	98,354	124,897
Royalties			125,000
Distribution	126,944		134,331
Ticket sales			89,328
Miscellaneous	7,500		33,037	(20,245)
Total revenues	166,890	98,354	626,056	(20,245)
Expenses
Depreciation and amortization	31,292	48,604	93,876	145,880
Bad debt	435,531		435,531
General and administrative	233,832	629,970	1,637,051	1,723,046
Total expenses	700,655	678,574	2,166,458	1,868,926
Loss before other income (expenses)	(533,765)	(580,220)	(1,540,402)	(1,888,171)
Other income (expenses)
Interest expense	(26)	(282,882)	(32,562)	(512,649)
Gain (loss) on derivative liabilities		(118,980)		78,076
Film library inventory adjustment			16,621,655
Other income		17,613	10,974	18,834
Other expenses	(8,511)		(9,515)
Total other income (expenses)	(8,537)	(384,249)	16,590,552	(415,739)
Net gain (loss) from operations	(542,302)	(964,469)	15,050,150	(2,304,910)
Loss from discontinued operations				(19,174)
Net income (loss)	$ (542,302)	$ (964,469)	$ 15,050,150	$ (2,324,084)
Weighted average shares outstanding (in shares)	174,009,158	44,450,288	124,895,158	41,612,121
LOSS PER SHARE - basic and diluted (in dollars per share)	$ 0.00	$ (0.02)	$ 0.12	$ (0.06)

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2011	Jun. 30, 2010
OPERATING ACTIVITIES
Net gain (loss)	$ 15,050,150	$ (2,324,084)
Adjustments to reconcile net loss to net cash provided by operating activities:
Stock paid for services	182,938	459,346
Depreciation and amortization expense	93,876	145,880
Amortization of debt discounts		439,792
Bad debt	435,531
Gain on derivative contracts		(78,076)
Gain on extinguishment of liabilities		(2,200)
Changes in operating assets and liabilities:
Accounts receivable	(155,601)	2,691
Royalties receivable	125,000
Loans receivable	(41,602)
Production costs	(620,651)
Film costs	(73,754)
Prepaid expenses	(10,000)	(275,000)
Inventory	(17,121,655)	300
Accounts payable	(160,815)	136,713
Accrued expenses	(6,215)
Due to Foster	(1,500)	15,000
Due to Sin City	(35,000)
Due to related parties	(681,000)
Deferred revenue	(125,000)	250,000
Net cash used in continuing operations	(3,145,298)	(1,229,638)
Net cash provided by discontinued operations		18,746
Net cash used in operating activities:	(3,145,298)	(1,210,892)
INVESTING ACTIVITIES
Purchase of property and equipment		(1,090)
Increase in restricted assets		60,230
Net cash provided by investing activities		59,140
FINANCING ACTIVITIES
Proceeds from the sale of common stock		100,950
Changes in additional paid in capital	3,048,540
Proceeds from notes payable, net		956,990
Proceeds from related party debt, net	410,900	25,000
Net cash provided by financing activities	3,459,440	1,082,940
NET INCREASE (DECREASE) IN CASH	314,142	(68,812)
CASH AT BEGINNING OF PERIOD	18,318	81,410
CASH AT END OF PERIOD	332,460	12,598
CASH PAID FOR:
Interest		2,500
Income taxes

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Sep. 30, 2010
ASSETS
Cash	$ 332,460	$ 18,318
Accounts receivable, net	133,705	413,635
Royalties receivable	1,875,000	2,000,000
Loans receivable	62,500	20,898
Film costs, net of accumulated amortization	1,039,058	965,304
Production costs	620,651
Prepaid expenses	10,000
Deferred credits - PTL Publishing	225,000	200,000
Property, equipment, net of accumulated depreciation	2,749,190	2,544,812
Inventory	18,775,150	1,653,495
TOTAL ASSETS	25,822,714	7,816,462
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable	848,931	688,116
Accrued expenses	64,457	70,672
Due to Foster		1,500
Due to Sin City		35,000
Deferred revenue - royalties	1,875,000	2,000,000
Due to related parties		681,000
Notes payable	1,323,890	912,990
Total Liabilities	4,112,278	4,389,278
SHAREHOLDERS' EQUITY
Common stock, 500,000,000 shares authorized, $0.001 par value, 178,151,158 and 50,138,158 issued and outstanding as of June 30, 2011 and September 30, 2010 respectively	178,151	50,138
Treasury stock, 35,000 shares	(23,522)	(23,522)
Additional paid-in capital	19,185,073	16,136,533
Retained earnings (deficit)	2,302,005	(12,754,694)
Total Shareholder's Equity	21,710,436	3,427,184
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	25,822,714	7,816,462
Series A Preferred Stock
SHAREHOLDERS' EQUITY
Preferred Stock, Value	50,000
Series B Preferred Stock
SHAREHOLDERS' EQUITY
Preferred Stock, Value	38	38
Series C Preferred Stock
SHAREHOLDERS' EQUITY
Preferred Stock, Value	$ 18,691	$ 18,691