[
X ]
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QUARTERLY
REPORT UNDER
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For the quarterly period ended March 31,
2006
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[
]
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TRANSITION
REPORT
UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
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For
the transition period from ________________ to
_________________
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Commission file number
0-50742
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SIGN
MEDIA SYSTEMS,
INC.
_____________________________________________________________________________
(Exact
name of small
business issuer as specified in its charter)
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FLORIDA
________________________________________________
(State or other jurisdiction of incorporation or organization) |
02-0555904
____________________________ (IRS
Employer
Identification No.)
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2100
19th Street, Sarasota FL
34234
_____________________________________________________________________________
(Address of principal executive offices) |
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(941)
330-0336
_____________________________________________________________________________
(Issuer's telephone number) |
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_____________________________________________________________________________
(Former name, former address and former fiscal year, if changed since last report) |
2006
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||||
CURRENT
ASSETS
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||||
Cash
and cash equivalents
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$
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3,103
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||
Accounts
receivable, net
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700,632
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|||
Inventory,
net
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17,464
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|||
721,199
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||||
PROPERTY
AND EQUIPMENT - Net
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167,565
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|||
OTHER
ASSETS
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||||
Due
from related parties
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727,952
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|||
727,952
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||||
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||||
TOTAL
ASSETS
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$
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1,616,716
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LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT)
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||||
CURRENT
LIABILITIES
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||||
Current
portion of long-term debt
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$
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13,815
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Accounts
payable and accrued expenses
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234,426
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|||
Current
portion of debt - related parties
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2,485
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|||
Deferred
revenue
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400,000
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|||
Liability
for stock to be issued
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224,900
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|||
875,626
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||||
LONG-TERM
DEBT - Net of Current Portion
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32,765
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|||
TOTAL
LIABILITIES
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908,391
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|||
STOCKHOLDERS'
EQUITY (DEFICIT)
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||||
Common
stock, no par value, 100,000,000 shares authorized at
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||||
March
31, 2006; 8,460,000 shares issued and outstanding
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||||
at
March 31 2006
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5,000
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|||
Additional
paid-in capital
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671,700
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|||
Retained
Earnings
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31,625
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|||
708,325
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||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
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$
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1,616,716
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2006
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2005
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||||||
REVENUE
- SALES, net
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$
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302,252
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$
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22,271
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|||
COSTS
OF GOODS SOLD
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9,351
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2,507
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|||||
GROSS
PROFIT
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292,901
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19,764
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|||||
OPERATING
EXPENSES
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|||||||
Professional
fees and administrative payroll
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79,383
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111,884
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|||||
General
and administrative expenses
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40,551
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65,989
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|||||
Depreciation
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9,000
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11,892
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|||||
128,934
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189,765
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||||||
NET
INCOME (LOSS) BEFORE OTHER INCOME (EXPENSE)
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163,967
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(170,001
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)
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||||
OTHER
INCOME (EXPENSE)
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|||||||
Interest
income and other
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10,704
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2
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|||||
Interest
(expense)
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(267
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)
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(303
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)
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|||
10,437
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(301
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)
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|||||
NET
INCOME (LOSS) BEFORE PROVISION FOR INCOME TAXES
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174,404
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(170,302
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)
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||||
Provision
for income taxes
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(5,600
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)
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-
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||||
NET
INCOME (LOSS) APPLICABLE TO COMMON SHARES
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$
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168,804
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$
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(170,302
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)
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NET
INCOME (LOSS) PER BASIC AND DILUTED SHARES
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$
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0.02
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$
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(0.02
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)
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WEIGHTED
AVERAGE NUMBER OF COMMON
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|||||||
SHARES
OUTSTANDING
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8,460,000
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8,460,000
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2006
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2005
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||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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|||||||
Net
income (loss)
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$
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168,804
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$
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(170,302
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)
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Adjustments
to reconcile net income (loss)
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|||||||
to
net cash (used in) operating activities:
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|||||||
Depreciation
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9,000
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11,892
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|||||
Changes
in assets and liabilities:
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|||||||
(Increase)
decrease in accounts receivable
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(700,632
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)
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7,340
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Decrease
in inventory
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7,536
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-
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|||||
Increase
in accounts payable and accrued expenses
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18,156
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90,711
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Increase
in deferred revenue
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400,000
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-
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Total
adjustments
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(265,940
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)
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109,943
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Net
cash (used in) operating activities
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(97,136
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)
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(60,359
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)
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CASH
FLOWS FROM INVESTING ACTIVITIES:
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Acquisition
of property and equipment
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(1,772
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)
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(17,461
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)
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Increase
in interest receivable - related party
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(10,300
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)
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-
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Proceeds
from related parties
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120,498
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-
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|||||
Net
cash provided by (used in) investing activities
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108,426
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(17,461
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)
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CASH
FLOWS FROM FINANCING ACTIVITIES:
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Increase
in liability for stock to be issued
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-
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24,900
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(Payments)
on long-term debt
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(4,605
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)
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(4,605
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)
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Proceeds
(Payments) on debt-related party
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(5,834
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)
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62,046
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Net
cash provided by (used in) financing activities
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(10,439
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)
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82,341
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NET
INCREASE IN CASH AND CASH EQUIVALENTS
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851
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4,521
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CASH
AND CASH EQUIVALENTS - BEGINNING OF PERIOD
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2,252
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6,352
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CASH
AND CASH EQUIVALENTS - END OF PERIOD
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$
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3,103
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$
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10,873
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SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
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Cash
paid during the year for interest
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$
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267
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$
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-
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Balance
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Charged
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Balance
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at
Beginning
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to
Costs
and
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at
End
of
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of
Period
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Expenses
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Deductions
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Period
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Three
Months ended March 31, 2006
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$
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-
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$
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-
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$
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-
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$
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-
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Three
Months ended March 31, 2005
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$
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-
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$
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-
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$
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-
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$
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-
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March
31,
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|||||||
2006
|
2005
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Net
income (loss)
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$
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168,804
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$
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(170,302
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)
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Weighted-average
common shares outstanding
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|||||||
Basic
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8,460,000
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8,460,000
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Weighted-average
common stock equivalents
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|||||||
Stock
options
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-
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-
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Warrants
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-
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-
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Weighted-average
common shares outstanding
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|||||||
Diluted
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8,460,000
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8,460,000
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2006
|
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Accounts
receivable
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$
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1,408,197
|
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Less
allownace for doubtful accounts
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(707,565
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)
|
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Total
accounts receivable, net
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$
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700,632
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2006
|
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Equipment
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$
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127,099
|
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Furniture
and Fixtures
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112,022
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Transportation
Equipment
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54,621
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|||
293,742
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Less:
Accumulated Depreciation
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126,177
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Net
Book Value
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$
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167,565
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2006
|
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Current
tax expense
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$
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5,600
|
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Benefit
of loss carry forward
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$
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-
|
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Net
current expense
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$
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5,600
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2006
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$
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21,975
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2007
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15,000
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$
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36,975
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2006
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2005
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Revenue-Sales,
net
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$
302,252
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$
22,271
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Cost
of Goods Sold
|
9,351
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2,507
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Gross
profit
|
292,901
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19,764
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Total
Operating Expenses
|
128,934
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189,765
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Net
Income (Loss) Before
Other
Income (Expense)
|
163,967
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(170,001)
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Total
Other Income
(Expense)
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10,437
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(301)
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Net
Income (Loss)Before
Provision
For Income
Taxes
|
174,404
|
(170,302)
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Provision
For Income
Taxes
|
(5,600)
|
-
|
Net
Income (Loss)
Applicable
To Common
Shares
|
$
168,804
|
$
(170,302)
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Net
Income (Loss) Per
Basic
And Diluted Shares
|
$
0.02
|
$
(0.02)
|
|
2006
|
2005
|
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Weighted
Average
Number
OF Common
Shares
Outstanding
|
8,460,000
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8,460,000
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Gross
profit margin
|
97%
|
89%
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SIGN
MEDIA SYSTEMS,
INC.
(Registrant) |
Date
September
29, 2006
|
/s/Antonio
F. Uccello,
III___
Antonio
F. Uccello,
III
Chief
Executive
Officer
Chairman
of the
Board
|