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<br />SOlJTHEASTERN ENGINEERlNG CONTRACTORS, INC.
<br />NOTES TO THE FINANCIAL STATEMENTS
<br />
<br />NOTE 6 - MAJOR CUSTOMERS
<br />
<br />The Company earned revenues during the six months ended June 30, 2009 from five
<br />customers that individually accounted for more than 10% of the total revenues earned during
<br />the six months. Revenues earned from these customers amounted to $ 2,626,813,
<br />$ 1,936,792, $ 1,801,049, $ 1,702,548 and $ 1,346,987.
<br />
<br />The Company earned revenues during the six months ended June 30, 2008 from three.
<br />customers that indivi~ua1ly accounted for more than 10% of the total revenues earned during
<br />the six months. Revenues earned from these customers amounted to $ 4,351,500,
<br />$ 1,497,513 and $ 946,756.
<br />
<br />NOTE 7 - PROPERTY AND EQUIPMENT
<br />
<br />Depreciation for the six months ended June 30, 2009 and 2008 was $ 108,147 and
<br />$ 129,599, respectively. Costs, accumulated depreciation and estimated useful lives as of
<br />June 30, are as follows:
<br />
<br /> Estimated
<br />Category useful lives 2009 2008
<br />Auto and trucks 5 Years $ 647,093 $ 495,146
<br />Heavy equipment 7 Years 2,349,430 2,659,033
<br />Furniture and fixtures 7 Years 57,371 57,371
<br />Leasehold improvements 39 Years 44,621 44,621
<br /> 3,098,515 3,256,171
<br />Less: accumulated depreciation (2,221,711) (2,447,779)
<br /> $ 876,804 $ 808,392
<br />
<br />NOTE 8 - RELATED PARTY TRANSACTIONS
<br />
<br />The Company leases administrative offices, storage space and a parking facility from the
<br />Company's stockholders. The lease terms are on a month to month basis and rental payments
<br />made for the six months ended June 30, 2009 and 2008 were $ 128,244 and $ 65,453
<br />respectively.
<br />
<br />The Company's stockholders have lent $ 200,000 to the Company under an unsecured note
<br />payable with a due date of July 15,2010.
<br />
<br />The Company and these related parties mentioned above are not considered variable interest
<br />entities under F ASB Interpretation 46R - Consolidation of Variable Interest Entities.
<br />Accordingly, the accompanying fmancial statements have not been consolidated with these
<br />related companies. .
<br />
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