The following tables set forth our selected historical financial data for the periods indicated. The selected statement of operations data for the years ended December 31, 2009 and 2008, and the selected balance sheet data as of December 31, 2009 and 2008, have been derived from our audited financial statements and related notes thereto included elsewhere in this annual report.
OPERATING EXPENSES. Our operating expenses consist primarily of payroll and related taxes, professional and consulting services, expenses for executive and administrative personnel and insurance, telephone and communications, facilities expenses, travel and related expenses, and other general corporate expenses. Our operating expenses for fiscal 2009 were $1,127,096 compared to fiscal year 2008 operating expenses of $1,788,254 a decrease of $661,158 related mainly to a decrease in commissions payable which corresponds to lower revenue achieved.
ASSETS. At December 31, 2009, we had total assets of $171,756 compared to total assets of $295,735 as of December 31, 2008. The decrease is mainly attributable to lower accounts receivable.
CASH FLOWS. Our cash provided in operating activities was $14,829 compared to cash used of ($23,066) for the prior year.
During 2009, there was ($15,442) used in fiancing activities compared to ($34,689) used in financing activities in 2008.
We have audited the accompanying consolidated balance sheets of AAA Public Adjusting Group, Inc. as of December 31, 2009 and 2008 and the statements of operations, cash flows and stockholders' equity for the years then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, these financial statements present fairly, in all material respects, the financial position of AAA Public Adjusting Group, Inc. as of December 31, 2009 and 2008 and the results of its operations and its cash flows for the years ended in conformity with accounting principles generally accepted in the United States of America.
FOR THE PERIOD FROM JANUARY 1, 2008 THROUGH DECEMBER 31, 2009
The accompanying notes are an intergral part of the financial statements
In the unlikely event that an uncertain tax position exists in which the Company could incur income taxes, the Company would evaluate whether there is a probability that the uncertain tax position taken would be sustained upon examination by the taxing authorities. Reserves for uncertain tax positions would be recorded if the Company determined it is probable that a position would not be sustained upon examination or if payment would have to be made to a taxing authority and the amount is reasonably estimate. As of December 31, 2009, the Company does not believe it has any uncertain tax positions that would result in the Company having a liability to the taxing authorities. The Company’s tax returns are subject to examination by the federal and state tax authorities for the years ended 2006 through 2009.
The Company considers all highly liquid instruments with an original maturity of three months or less to be cash equivalents.
The following is a summary of property and equipment at December 31, 2009 and December 31, 2008:
Depreciation expense for the years ended December 31, 2009 and 2008 was $ 30,793 and $ 28,522 respectively.
Pursuant to 504 of Regulation D of the Securities Act, the company sold 5,183 shares of restricted common stock in January 2008 for $ 28,662.
For the years ended December 31, 2009 and 2008, the majority stockholders and officers of the company received consulting fees, in addition to salary of $ -0- and $ 21,475 respectively.
The Company has implemented this update effective for the years beginning January 1, 2010 and does not believe that it would have a material impact on the financial statement for the year ending December 31, 2009.