RushNet : Consolidated Financial Statements For the Three Months Ended June 30, 2022

RushNet, Inc.

Unaudited Consolidated Balance Sheets

As of June 30, 2022, and December 31, 2021

		June 30, 2022		December 31, 2021
ASSETS		(Unaudited)		(Audited)
Current Assets:	$		$
Cash	87,360	274,745
Accounts receivable, net (note 3)		806,078		389,911
Prepaid expenses		21,495		26,503
Total Current Assets		914,933		691,159
Non-Current Assets:
Operating lease right-of-use asset (note 6)		112,265		143,619
Net fixed and lease financed assets (note 4)		840,266		993,599
Other Assets:
Goodwill		6,022,411		6,022,411
Prepaid expenses other long term assets		25,152		34,733
Total Other Assets		6,047,563		6,057,144
Total Non-Current Assets		7,000,094		7,194,362
TOTAL ASSETS		7,915,027		7,885,521
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued expenses		651,811		250,162
Line of credit (note 7)		-		36,866
Deposit liability		81,150		81,150
Current portion of debt obligation (note 8)		1,457,358		1,185,093
Operating lease obligations (note 6)		62,918		61,392
Finance lease obligations (note 6)		361,281		356,153
Total Current Liabilities		2,614,518		1,970,816
Non-Current Liabilities:
Debt obligation (note 8)		3,566,877		3,918,948
Deferred tax liability (note 5)		346,803		356,628
Operating lease obligations (note 6)		50,658		82,590
Finance lease obligations (note 6)		384,966		562,604
Total Non-Current Liabilities		4,349,304		4,920,770
TOTAL LIABILITIES		6,963,822		6,891,586
Shareholders' Equity:
Additional paid in capital		386,500		386,500
Common stock ($.0001 par value) (note 9)		18,395		18,395
Preferred stock, series A ($.0001 par value)		3,500		3,500
Preferred stock, series B ($.0001 par value)		-		-
Retained Earnings		542,810		585,540
Total Shareholders' Equity		951,205		993,935
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	7,915,027	$	7,885,521

No assurance provided - the notes are an integral part of these financial statements

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RushNet, Inc.

Unaudited Consolidated Statements of Revenues and Expenses

For the Quarter and Six Months Ended June 30, 2022, and 2021

		Three Months Ended June 30,			Six Months Ended June 30,
		(Unaudited)			(Unaudited)
		2022		2021			2022		2021
REVENUES
Billing services	$	3,117	$	15,476	$	7,304	$	19,476
Laboratory testing fees		1,974,644		1,536,383			3,365,135		2,902,779
Total Revenues		1,977,761		1,551,859			3,372,439		2,922,255
Cost of Revenues
Direct labor		14,046		117,822			301,163		218,859
Other direct costs		416,830		209,771			680,410		460,445
Total Cost of Revenues		430,876		327,593			981,573		679,304
Gross Profit		1,546,885		1,224,266			2,390,866		2,242,951
EXPENSES
Operating Expenses
Selling and general and administrative		1,141,367		893,998			2,189,093		1,446,500
Depreciation and amortization expense		80,122		74,489			160,244		112,270
Total Operating Expenses		1,221,489		968,486			2,349,337		1,558,770
INCOME FROM OPERATIONS		325,396		255,780			41,529		684,181
Other Income (Expense)
Interest income		27		-			124		-
Interest expense		(63,761)		(15,369)			(94,690)		(32,480)
Other		432		2,052			483		2,075
Total Other Income (Expense)		(63,302)		(13,317)			(94,083)		(30,405)
NET INCOME Before Taxes	$	262,094	$	242,463	$	(52,554)	$	653,776
Deferred income tax (expense) benefit		(47,735)		-			9,825		-
Total Income Tax Expense		(47,735)		-			9,825		-
NET INCOME AFTER TAXES	$	214,359	$	242,463	$	(42,729)	$	653,776
Net Basic and Fully Diluted Earnings Per Share	$	0.00003	$	0.00002	$	(0.00001)	$	0.00006
Weighted average of common shares outstanding:
Basic		8,174,641,795		10,500,000,000			8,174,641,795		10,500,000,000
Fully diluted		8,366,641,795		10,500,000,000			8,366,641,795		10,500,000,000

No assurance provided - the notes are an integral part of these financial statements

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RushNet, Inc.

Unaudited Consolidated Statements of Cash Flows

For the Quarter and Six Months Ended June 30, 2022, and 2021

		Six Months Ended June 30,
		2022		2021
OPERATING ACTIVITIES:
Net income	$	(42,729)	$	653,776
Adjustments to reconcile net income
to net cash (used in) provided by operating activities:
Depreciation and amortization		160,244		112,270
Deferred taxes		(9,825)		-
(Increase) decrease in:
Accounts receivable		(416,167)		(73,482)
Prepaids and other assets		14,589		9,581
Right to use operating leases		948		400
Increase (decrease) in:
Accounts payable and accrued expenses		401,648		293,797
Net Cash Provided by Operating Activities		108,708		996,342
INVESTING ACTIVITIES:
(Purchase) Proceeds-fixed assets		(6,911)		(696,713)
(Purchase) Proceeds-goodwill		-		(461,479)
Net Cash (Used in) Provided by Investing Activities		(6,911)		(1,158,192)
FINANCING ACTIVITIES:
Proceeds (Payments) from line of credit, net		(36,866)		-
Principal Proceeds (Payments) on debt obligations		(252,316)		319,865
Member contributions		-		3,000
S corporation dividends and member distributions		-		(81,823)
Net Cash Used in Financing Activities		(289,182)		241,042
Net Change in Cash and Cash Equivalents	$	(187,385)	$	(1,079,000)
Cash and Cash Equivalents at the Beginning of the Period		274,745		96,538
Cash and Cash Equivalents at the End of the Period	$	87,360	$	(982,462)
SUPPLEMENTAL CASH FLOW DISCLOSURES:
Interest paid	$	(94,690)	$	(32,480)
NON-CASH FINANCING ACTIVITIES:
Preferred shares, series B issued for acquisition of HeliosDx	$	-	$	-
Common shares issued for acquisition of Grandeza	$	-	$	-

No assurance provided - the notes are an integral part of these financial statements

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RushNet, Inc.

Unaudited Consolidated Statements of Changes in Shareholders' Equity

For the Quarter and Six Months Ended June 30, 2022

	Common Stock			Preferred Stock-Series A			Preferred Stock-Series B
			Amount (Par				Amount (Par					Amount (Par			Paid-in		Retained
	Shares		$	.0001)		Shares		$	.0001)			Shares		$	.0001)			Capital	Earnings (Deficit)
Balance, December 31, 2020	10,500,000,000	$	-	-	$	-			-	$	-	$	-	$	503,803
Stockholder acquires controlling interest in	(10,500,000,000)			-	35,000,000			3,500			-			-			6,500		-
RushNet, Inc. on March 19, 2021
Member contribution	-			-	-			-			-			-			3,000		-
Net income for the period	-			-	-			-			-			-			-		411,313
Member distributions	-			-	-			-			-			-			-		(9,643)
Balance, March 31, 2021	-	$	-	35,000,000	$	3,500	$	-	$	-	$	9,500	$	905,473
Net income for the period	-			-	-			-			-			-			-		242,463
Member distributions	-			-	-			-			-			-			-		(72,180)
Balance, June 30, 2021	-	$	-	35,000,000	$	3,500	$	-	$	-	$	9,500	$	1,075,756
Issuance of common stock to Rushnet, Inc.
common stockholders with acquisition on	7,764,641,795			7,395	-			-			-			-			-		-
July 1, 2021
Issuance of preferred shares, series B (note 12)	-			-	-			-	32,000,000			-			-		-
Issuance of common shares to reduce	50,000,000			5,000	-			-			-			-			335,000		-
liability on August 11, 2021
Issuance of common shares for Grandeza to
controlling stockholder for common control	240,000,000			-	-			-			-			-			-		-
merger
Issuance of common shares for Grandeza to
minority stockholder for common control	60,000,000			-	-			-			-			-			-		-
merger
Net income for the period	-			-	-			-			-			-			-		290,195
Balance, September, 30, 2021	8,114,641,795	$	12,395	35,000,000	$	3,500	32,000,000	$	-	$	344,500	$	1,365,951
Issuance of common shares for services on	60,000,000			6,000	-			-			-			-			42,000		-
December 16, 2021
Net income for the period	-			-	-			-			-			-			-		(780,411)
Balance, December 31, 2021	8,174,641,795	$	18,395	35,000,000	$	3,500	32,000,000	$	-	$	386,500	$	585,540
Net income for the period	-			-	-			-			-			-			-		(257,089)
Balance, March 31, 2022	8,174,641,795	$	18,395	35,000,000	$	3,500	32,000,000	$	-	$	386,500	$	328,451
Net income for the period	-			-	-			-									-		214,359
Balance, June 30, 2022	8,174,641,795	$	18,395	35,000,000	$	3,500	32,000,000	$	-	$	386,500	$	542,810

No assurance provided - the notes are an integral part of these financial statements

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RushNet, Inc.

Notes to the Unaudited Consolidated Financial Statements

For the Quarter and Six Months Ended June 30, 2022

Note 1: Organization and Nature of Operations and Presentation of Financial Statements

RushNet, Inc. was organized in Nevada on January 15, 1997, redomiciled to Colorado on January 2, 2015; its principal offices are in Alpharetta, Georgia. The consolidated financial statements include those of RushNet, Inc. and its legal subsidiaries; Chattahoochee Physicians Laboratory Services, LLC; doing business as HeliosDx (the Company), and Grandeza Healthcare Consultants, LLC (Grandeza). All significant intercompany transactions have been eliminated.

Interim Financial statements:

The interim financial statements are condensed and should be read in conjunction with the company's latest annual financial statements and the interim disclosures do not repost those in the annual statements.

Note 2: Summary of Significant Accounting Policies

Recent Accounting Pronouncements Adopted:

In November 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-10, "Government Assistance." The ASU includes tax credits but not within Topic 740, "Income Taxes," cash grants, grants of other assets and project grants. The ASU excludes transactions in which a government is a customer within Topic 606, "Revenue from Contracts with Customers." The ASU will be effective for fiscal years beginning after December 15, 2021, with early adoption permitted. We are currently evaluating the effect of adopting this pronouncement on our consolidated financial statements and disclosures.

Recent Accounting Pronouncements to be Adopted:

In October 2021, the FASB issued ASU 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities (deferred revenue) from acquired contracts using the revenue recognition guidance in Topic 606. Under this approach, the acquirer applies the revenue model as if it had originated the contracts. This is a departure from the current requirement to measure contract assets and contract liabilities at fair value. ASU 2021-08 is applied to business combinations occurring on or after January 1, 2023. We are currently evaluating the effect of adopting this pronouncement on our consolidated financial statements and disclosures.

Liquidity:

Since its inception, the Company has devoted substantially significant resources towards business planning and raising capital. Management's efforts to bring the Company into full compliance with its reporting and improving operations require a significant level of operating resources. As of June 30, 2022 and December 31, 2021, the Company had approximately $88,000 and $275,000, respectively, in cash and cash equivalents.

Although our revenues generated from operations are increasing each month, in order to support our operational activities, our revenues may need to be supplemented by the proceeds from the issuance of securities, including equity and debt issuances. At June 30, 2022, we had a working capital deficit of approximately $1,275,000. We anticipate that our current cash and revenue generated from operations will be sufficient for day-to-day operations; however, we anticipate that we will need additional capital for business expansion. If our revenues continue to be insufficient to support our operational activities, we intend to raise additional capital through the sale of equity securities or borrowings from financial institutions and possibly from related and nonrelated parties who may in fact lend to us on reasonable terms and ultimately generating sufficient revenue from operations. Our operating income and cash reserves will allow us to continue for several months until sufficient revenue is met. Management believes that its actions to secure additional funding will allow us to continue as a going concern. We currently do not have any binding sources of financing other than our line of credit and accounts receivable factoring agreement, each of which requires us to meet certain requirements to utilize. There can be no assurance that we will meet all or any of the requirements pursuant to our line of credit, and accounts receivable factoring agreement, and therefore those financing options may be unavailable to us. There is no guarantee we will be successful in raising capital outside of our current sources, and if so, that we will be able to do so on favorable terms. To implement our business plan, we may require additional financing. Further, current or

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