United eSystems, Inc.

CIK:0001171357|SEC Filings

EARNINGS PER SHARE	9 Months Ended
Sep. 30, 2011
Notes to Financial Statements
EARNINGS PER SHARE	NOTE 10 — EARNINGS PER SHARE For earnings per share calculations, the weighted average common shares outstanding amounted to 4,192,145, and 4,098,022, for the three months and nine months ended September 30, 2011, respectively. The weighted average common shares outstanding were 3,934,513 and 3,824,887, for the three months and nine months ended September 30, 2010, respectively. Options to purchase 115,700 shares at $.50 per share were outstanding during the three months and nine months ended September 30, 2011, but were not included in the computation of diluted earnings per share because the options’ weighted average exercise price was greater than the estimated market price of the common shares. On January 19, 2011, a total of 6,375 common shares were issued to employees pursuant to the Company’s 2008 ISO Plan.

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2011

NOTE 10 — EARNINGS PER SHARE

For earnings per share calculations, the weighted average common shares outstanding amounted to 4,192,145, and 4,098,022, for the three months and nine months ended September 30, 2011, respectively. The weighted average common shares outstanding were 3,934,513 and 3,824,887, for the three months and nine months ended September 30, 2010, respectively. Options to purchase 115,700 shares at $.50 per share were outstanding during the three months and nine months ended September 30, 2011, but were not included in the computation of diluted earnings per share because the options’ weighted average exercise price was greater than the estimated market price of the common shares.

On January 19, 2011, a total of 6,375 common shares were issued to employees pursuant to the Company’s 2008 ISO Plan.

Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Net (Loss)	$ (660,638)	$ (616,201)
Adjustments to Reconcile Net (Loss) to Net Cash (Used In) Provided by Operating Activities
Depreciation and Amortization	490,663	477,720
Decrease in Trade Receivables	25,344	38,797
Increase in Prepaid Expenses	(17,457)	(2,300)
Compensation expense related to employee stock issued	12,752	0
Decrease in Prepaid Interest	8,335	78,000
Decrease (Increase) in Restricted Cash	210,799	(35,219)
Increase in Deferred Tax Asset	0	240,785
(Decrease) Increase in ACH Settlements Payable	(203,298)	19,219
Increase (Decrease) in Accounts Payable and accrued liabilities	254,679	(60,297)
(Decrease) Increase in Customer Deposits	(7,500)	16,000
Net Cash Provided by Operating Activities	113,679	156,504
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of Property and Equipment	(640)	(5,005)
Cash paid in Conjunction with acquisition of Portfolio Asset	(3,960)	(94,080)
Cash paid for other assets	(500)	0
Net Cash Used in Investing Activities	(5,100)	(99,085)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Proceeds from restricted stock	17,500	898,595
Proceeds from notes payable	213,500	94,000
Stock issued to reduce notes payable	240,000	0
Proceeds from Employee Exercise of Stock Options	0	3,000
Principal paid on notes payable	(608,833)	(1,017,229)
Net Cash Provided by Financing Activities	(137,833)	(21,634)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	(29,254)	35,785
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	137,732	228,213
CASH AND CASH EQUIVALENTS - END OF PERIOD	108,478	263,998
SUPPLEMENTAL DISCLOSURES
Cash Paid During the Period for Interest	200,675	372,103
Cash Paid During the Period for Taxes	0	15,000
NON-CASH TRANSACTIONS
Exchange of 250,000 shares of common stock for debt	$ 240,000	$ 0

Consolidated Balance Sheets (USD $)	Sep. 30, 2011	Dec. 31, 2010
CURRENT ASSETS
Cash and Cash Equivalents	$ 108,478	$ 137,732
Restricted Cash	195,795	406,594
Trade Receivables, net	41,494	66,838
Deferred Tax Asset, current	0	0
Prepaid Interest	251,665	20,000
Prepaid Expenses	29,334	11,877
Total Current Assets	626,766	643,041
PROPERTY AND EQUIPMENT, NET	12,946	26,369
OTHER ASSETS
Intangible Assets, net	3,993,295	4,465,934
Deferred Tax Asset, Non-current	0	0
Other	63,815	63,315
Total Assets	4,696,822	5,198,659
CURRENT LIABILITIES
ACH Settlements Payable	175,690	378,988
Current Portion Long-Term Debt	657,466	867,484
Accounts Payable and Accrued Liabilities	309,004	54,325
Customers' Deposits	20,105	27,605
Total Current Liabilities	1,162,265	1,328,402
LONG TERM LIABILITIES
Notes Payable	3,016,529	3,221,841
Deferred Tax Liabilities, non-current	3,051	3,051
Total Liabilities	4,181,845	4,553,294
STOCKHOLDERS' EQUITY
Common Stock - $.001 Par Value;75,000,000 Shares Authorized,4,192,145 and 3,944,513 shares Issued and Outstanding at September 30, 2011 and December 31, 2010	39,710	39,445
Additional Paid-In Capital	2,273,746	1,743,761
Retained Earnings	(1,798,479)	(1,137,841)
Total Stockholders' Equity	514,977	645,365
Total Liabilities and Stockholders' Equity	$ 4,696,822	$ 5,198,659