International Monetary : IMS 1st Quarter Financial Statement

International Monetary Systems, Ltd. and Subsidiaries

Consolidated Financial Statements

March 31, 2022 and 2021

Unaudited

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2022 and 2021

TABLE OF CONTENTS

	Page
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
Consolidated Balance Sheets	1
Consolidated Statements of Income	2
Consolidated Statements of Stockholders' Equity	3
Consolidated Statements of Cash Flows	4
Notes to Consolidated Financial Statements	6

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

March 31, 2022 and December 31, 2021

Unaudited

ASSETS		March 31, 2022	December 31, 2021
Current assets
Cash	$	2,485,452				$	2,515,179
Marketable securities		833,450					869,768
Accounts receivable, net		341,768				379,503
Prepaid expenses		67,188			61,226
Total current assets		3,727,858						3,825,676
Other assets
Property and equipment, net		245,108						256,759
Right of use assets, operating leases		1,146,245				1,184,243
Membership lists and other intangibles, net		401,082						416,801
Goodwill		3,564,278						3,564,278
Other long-term assets		43,923					43,923
Total other assets		5,400,636					5,456,004
Total assets	$	9,128,494	$	9,281,680
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$	824,014		$	802,875
Current portion of future lease obligations, net		501,039						494,324
Credit lines and current portions of long-term debt		104,230						124,980
Current portion of notes payable to related parties		200,000						200,000
Total current liabilities		1,629,283				1,622,179
Long-term liabilities, net of current portions
Long-term debt		-						10,495
Notes payable to related parties		640,000				640,000
Long-term portion of future lease obligations, net		645,206						689,919
Deferred income tax liability, net		44,021						42,797
Salary continuation agreement		60,000						67,500
Total long-term liabilities		1,389,227						1,450,711
Total liabilities		3,018,510						3,072,890
Stockholders' Equity
Common stock		53						53
Additional paid in capital		4,634,584			4,789,584
Treasury stock		(32,518)			(28,325)
Accumulated other comprehensive income		80,450					80,450
Accumulated earnings/(deficit)		1,427,415						1,367,028
Total stockholders' equity		6,109,984						6,208,790
Total liabilities and stockholders' equity	$	9,128,494					$	9,281,680

The accompanying notes are an integral part of the consolidated financial statements.

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INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

Three Months Ended March 30, 2022, and 2021

Unaudited

			2022					2021
Net revenue	$	2,091,901			$	2,044,486
Operating expenses:
Employee costs		1,468,244			1,532,634
Selling, general and administrative		630,543			604,982
Depreciation and amortization		44,737			52,507
Total operating expenses		2,143,524				2,190,123
Income from operations		(51,623)			(145,637)
Other income/(expense)
Employee Retention Credits (ERC)		-					495,001
Interest income		34			49
Interest expense		(16,801)			(20,978)
Income before income taxes		(68,390)			328,435
Income tax credit/(expense)		128,777					(102,870)
Net income	$	60,387			$	225,565
Net income per common share	$	0.13			$	0.44
Weighted average common
shares outstanding		455,622					524,395

The accompanying notes are an integral part of the consolidated financial statements.

2

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Three Months Ended March 31, 2022 and Year Ended December 31, 2021 Unaudited

The accompanying notes are an integral part of the consolidated financial statements.

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