International Monetary : IMS 2nd Quarter Financial Statement

International Monetary Systems, Ltd. and Subsidiary

Consolidated Financial Statements

June 30, 2022 and 2021

Unaudited

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS

June 30, 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 SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

June 30, 2022 and December 31, 2021

Unaudited

ASSETS		June 30, 2022	December 31, 2021
Current assets
Cash	$	1,961,365				$	2,515,179
Marketable securities		699,844					869,768
Accounts receivable, net		376,245				379,503
Prepaid expenses		87,261			61,226
Total current assets		3,124,715						3,825,676
Other assets
Property and equipment, net		226,897						256,759
Right of use assets, operating leases		1,028,805				1,184,243
Membership lists and other intangibles, net		385,364						416,801
Goodwill		3,564,278						3,564,278
Other long-term assets		43,923					43,923
Total other assets		5,249,267					5,456,004
Total assets	$	8,373,982	$	9,281,680
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$	490,148		$	802,875
Current portion of future lease obligations, net		496,970						494,324
Credit lines and current portions of long-term debt		-						124,980
Current portion of notes payable to related parties		200,000						200,000
Total current liabilities		1,187,118				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		531,835						689,919
Deferred income tax liability, net		45,243						42,797
Salary continuation agreement		52,500						67,500
Total long-term liabilities		1,269,578						1,450,711
Total liabilities		2,456,696						3,072,890
Stockholders' Equity
Common stock		53						53
Additional paid in capital		4,585,884			4,789,584
Treasury stock		(982)			(28,325)
Accumulated other comprehensive income		80,450					80,450
Accumulated earnings/(deficit)		1,251,881						1,367,028
Total stockholders' equity		5,917,286						6,208,790
Total liabilities and stockholders' equity	$	8,373,982					$	9,281,680

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

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INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

Three and Six Months Ended June 30, 2022, and 2021

Unaudited

		Three Months Ended			Six Months Ended
		June 30,			June 30,
		2022				2021				2022				2021
Net revenue	$	2,108,865		$	2,557,645	$	4,200,766	$	4,602,131
Operating expenses:
Employee costs		1,740,429		1,560,223			3,208,673			3,092,857
Selling, general and administrative		596,474		617,807			1,227,017			1,222,789
Depreciation and amortization		37,495		52,139			82,233			104,646
Total operating expenses		2,374,398			2,230,169				4,517,923			4,420,292
Income from operations		(265,533)		327,476			(317,157)			181,839
Other income/(expense)
Employee Retention Credits (ERC)		-			453,013			-			948,014
Interest income		23			53			58			102
Interest expense		(16,801)		(18,039)			(33,602)			(39,017)
Income/(loss) before income taxes		(282,311)		762,503			(350,701)			1,090,938
Income tax credit/(expense)		106,777		(301,000)			235,554			(403,870)
Net income/(loss)	$	(175,534)	$	461,503	$		(115,147)	$	687,068
Net income/(loss) per common share	$	(0.39)	$	0.93	$	(0.25)	$	1.37
Weighted average common
shares outstanding		448,576				522,763			452,080				523,581

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

2

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARY CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Six Months Ended June 30, 2022 and Year Ended December 31, 2021 Unaudited

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

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