DIVERSIFIED GLOBAL HOLDINGS GROUP INC.

CIK:0001451775|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Net sales:
Revenue (net of return and allowances)	$ 23,337,782	$ 5,385,504	$ 33,269,623	$ 8,280,713
Cost and expenses:
Cost of sales	20,431,602	3,989,448	27,390,455	5,901,702
General and administrative	804,805	605,729	2,306,737	1,341,639
Total	21,236,407	4,595,177	29,697,192	7,243,341
Income from operations	2,101,375	790,327	3,572,431	1,037,372
Other income (expense):
Other income	9,306	26,199	49,723	37,008
Interest expense	(333,710)	(144,817)	(822,368)	(156,035)
Total	(324,404)	(118,618)	(772,645)	(119,027)
Earnings before provision for income taxes	1,776,971	671,709	2,799,786	918,345
Provision for income taxes	434,998	130,963	745,556	181,232
Net earnings	$ 1,341,973	$ 540,746	$ 2,054,230	$ 737,113
Earnings per common share - basic and diluted	$ 0.01	$ 0.01	$ 0.02	$ 0.01
Weighted average number of common shares outstanding - basic	99,278,730	89,681,295	93,329,161	92,326,384

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net earnings	$ 2,054,230	$ 737,113
Depreciation and amortization	680,319	109,635
Stock-based compensation	85,032
Amortization of discounted note	17,690
Changes in operating assets and liabilities	14,737,298	(7,418,417)
Net cash provided by operating activities	17,574,569	(6,571,669)
Cash flows from investing activities:
Advances on note receivable	29,181	(19,738)
Repayments on note receivable
Cash received in acquisition		2,617,209
Purchase of property and equipment	110,683	326,972
Net cash used in investing activities	81,502	(2,270,499)
Cash flows from financing activities:
Payments on debt	(17,886,090)	(2,723,795)
Proceeds from loans	578,500	8,065,998
Proceeds from advances from related parties	32,782	46,899
Repayments to related parties	(82,271)	(24,758)
Proceeds from sale of common stock	10,000	107,699
Deposits on sale of common stock	243,900
Net cash provided by (used in) financing activities	(17,103,179)	5,472,043
Effect of exchange rate changes on cash	(77,286)	(6,722)
Net increase (decrease) in cash and cash equivalents	(2,514,273)	308,011
Cash and cash equivalents-beginning of period	2,256,021	320,345
Cash and cash equivalents-end of period	$ 2,568,623	$ 628,356

CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $)	Sep. 30, 2011	Dec. 31, 2010
ASSETS
Cash and cash equivalents	$ 2,568,623	$ 2,256,021
Accounts receivable-net of allowance of $30,000 and $39,000, respectively	15,242,328	11,639,051
Notes receivable - related parties	13,660	24,333
Inventories	528,567	14,555,927
Other current assets	1,209,923	1,087,898
Total Current Assets	19,563,101	29,563,230
Property and equipment-net	186,463,717	187,034,900
Goodwill	9,109,253	9,109,253
Investments	9,542,400
Other assets	175,692	228,071
Total Assets	224,854,163	225,935,454
LIABILITIES AND STOCKHOLDERS' EQUITY
Current portion of long-term debt	12,582	12,877,335
Convertible notes payable - net of discount	74,690
Accounts payable and accrued expenses	7,319,279	3,229,971
Customer advances	543,127	336,263
Advances from related parties	426,965	439,671
Deferred revenue		45,871
Income taxes payable	1,652,607	1,070,576
Total Current Liabilities	10,029,250	17,999,687
Long-term debt-less current portion above	483,256	5,029,593
Advances from related parties		36,783
Total Long-term Liabilities	483,256	5,066,376
Total Liabilities	10,512,506	23,066,063
Commitments & Contingencies
Stockholders' Equity:
Common Stock, $.001 par value; authorized 500,000,000 shares:99,278,730 and 87,294,801 shares issued and outstanding at September 30, 2011 and December 31, 2010, respectively	99,278	87,294
Additional paid-in capital	207,330,825	197,658,877
Retained earnings	6,734,991	4,680,761
Deposit on sale of preferred stock	243,900
Accumulated other comprehensive income	(67,337)	442,459
Total Stockholders' Equity	214,341,657	202,869,391
Total Liabilities and Stockholders' Equity	$ 224,854,163	$ 225,935,454