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<br />
<br />CONQUEST ENGINEERlNG GROUP COMPANY
<br />NOTES TO THE FINANCIAL STATEMENTS
<br />
<br />NOTE 5 - BACKLOG
<br />
<br />The following is a reconciliation of backlog representing signed contracts in existence as of
<br />December 31:
<br />
<br />Balance at the beginning of the year
<br />New contracts and adjustments
<br />
<br />2007
<br />$ 6,694,924
<br />19,271,436
<br />25,966,360
<br />(13,369,789)
<br />$ 12,596,571
<br />
<br />2006
<br />$ 3,786,538
<br />13,528,347
<br />17,314,885
<br />(10,619,961)
<br />$ 6,694,924
<br />
<br />Less: contract revenues earned for the year
<br />Balance at the end of the year
<br />
<br />. Tl:le-company-assensfDara.11-cont:rKctsc.<y5tpNtawrrg-m-th:c;fimmciaYstatenrem-fortlre- year- ..
<br />then ended December 31, 2007 have been included,
<br />
<br />NOTE 6 - PROPERTY AND EQUIPMENT
<br />
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<br />
<br />Depreciation for the years ended December 31, 2007 and 2006 was $ 198,265 and $ 109,574
<br />respectively, Costs, accumulated depreciation, and estimated useful lives as of December
<br />31,2007 and 2006 were as follows:
<br />
<br /> Estimated
<br />Category useful lives 2007 2006
<br />Heavy equipment 517Years $ 1,142,963 $ 661,394
<br />Vehicles 5 Years 363,940 285,778
<br />Leasehold improvements 39 Years 63,629
<br />Office equipment 5 Years 1,589 1,160
<br /> 1,572,121 948,332
<br />Less: accumulated depreciation (391,1 81 ) (192,917)
<br /> $ 1,180,940 $ 755,415
<br />
<br />NOTE 7 - CONCENTRATION OF CREDIT RlSK
<br />
<br />The Company maintains its cash balances in financial institutions in Miami, Florida. The
<br />balances are insured by the Federal Deposit Insurance Corporation up to $100,000. These
<br />balances may at times exceed insured limits,
<br />
<br />The Company as of December31, 2007, had 84 % of their receivables with four customers,
<br />
<br />The Company as of December 31,2006, had 68 % of their receivables with four customers,
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