International Monetary : IMS 3rd Qtr Financial Statement

International Monetary Systems, Ltd. and Subsidiaries

Consolidated Financial Statements

September 30, 2021 and 2020

Unaudited

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2021 and 2020

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

September 30, 2021 and December 31, 2020

Unaudited

	September 30, 2021	December 31, 2020
ASSETS
Current assets
Cash	$		2,490,292		$	1,652,049
Marketable securities			798,690				256,395
Accounts receivable, net			248,044				346,017
Prepaid expenses			61,420			91,757
Total current assets			3,598,446				2,346,218
Other assets
Property and equipment, net			263,982				322,342
Right of use assets, operating leases			1,304,967				1,185,832
Membership lists and other intangibles, net			435,020				502,786
Goodwill			3,564,278				3,564,278
Deferred income taxes			16,748			19,314
Other long-term assets			43,923			43,923
Total other assets			5,628,918				5,638,475
Total assets	$		9,227,364		$	7,984,693
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable and accrued expenses	$		452,800		$	572,276
Current portion of future lease obligations, net			504,342				471,456
Credit lines and current portions of long-term debt			124,980				399,880
Current portion of notes payable to related parties			200,000				200,000
Total current liabilities			1,282,122				1,643,612
Long-term liabilities, net of current portions
Long-term debt			41,740			176,730
Notes payable to related parties			655,000				680,000
Long-term portion of future lease obligations, net			800,625				714,376
Salary continuation agreement			75,000			97,500
Total long-term liabilities			1,572,365				1,668,606
Total liabilities			2,854,487				3,312,218
Stockholders' Equity
Common stock			53			53
Additional paid in capital			5,139,206				5,295,883
Treasury stock			-				-
Accumulated other comprehensive income			80,450			63,172
Accumulated earnings/(deficit)			1,153,168				(686,633)
Total stockholders' equity			6,372,877				4,672,475
Total liabilities and stockholders' equity	$		9,227,364		$	7,984,693

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 and Nine Months Ended September 30, 2021 and 2020

Unaudited

			Three Months Ended			Nine Months Ended
			September 30,			September 30,
		2021				2020				2021		2020
Net revenue	$	2,269,120		$	2,377,877		$	6,871,251	$	7,010,418
Operating expenses:
Employee costs		1,519,417			1,482,365				4,612,372		4,448,472
Selling, general and administrative		645,122				692,509				1,867,813		1,945,005
Depreciation and amortization		48,802				52,767				153,448		162,608
Total operating expenses		2,213,341				2,227,641				6,633,633		6,556,085
Income from operations		55,779				150,236				237,618		454,333
Other income/(expense)
Employee Retention Credits (ERC)		529,346				-				1,477,360		-
PPP loan forgiven		800,000				-				800,000		-
Interest income		34			44				137		147
Gain/(loss) on disposal of assets		-				(9,683)			-		(19,135)
Interest expense		(17,601)			(23,730)			(56,618)		(72,138)
Income before income taxes		1,367,558				116,867				2,458,497		363,207
Income tax expense		(206,566)			(26,357)			(603,566)		(89,386)
Net income	$	1,160,992		$	90,510		$		1,854,931	$	273,821
Net income per common share	$	2.28	$	0.17		$	3.58	$	0.51
Weighted average common
shares outstanding		509,121				525,996				523,581		526,866

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

2

INTERNATIONAL MONETARY SYSTEMS, LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Nine Months Ended September 30, 2021 and Year Ended December 31, 2020 Unaudited

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

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