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<br />Ceres Environmental Services, Inc. <br /> <br />o <br /> <br />BALANCE SHEETS <br />December 31, 2006 and 2005 <br /> <br />LIABILITIES AND STocKHoLDER'S EQUITY <br /> <br /> 2006 2005 <br /> CURRENT LIABILITIES <br /> Accounts payable $ 51,820,157 $ 59,538,136 <br /> Due to related party (Notes 4 and 7) 30,345,588 390,773 <br /> Accrued liabilities <br /> Contract costs 11 ,844,948 7,119,500 <br /> Payroll and payroll taxes 5,550,238 6,813,554 <br /> Sales taxes 10,831 6,752 <br /> Insurance 1,359,276 -O~ <br /> Interest 570,000 3,631 <br /> Other 27,350 ~o- <br /> Billings in excess of costs and estimated earnings <br /> on uncompleted contracts (Note 3) -0- 728,143 <br />0 Dividends payable -0- 18,807,000 <br />Current maturities of long~term debt (Note 5) -0- 3,966,139 <br />Total current liabilities 101,528,388 97,373,628 <br /> <br />STOCKHOLDER'S EQUITY <br />Common stock, $.01 par value <br />Authorized 1,000,000 shares <br />Issued and outstanding 100..000 shares <br />Additional paid-in capital <br />Retained earnings <br />Total stockholder's equity <br /> <br />1,000 <br />1,222,717 <br />20,830,699 <br />22,054,416 <br /> <br />1,000 <br />1,222,717 <br />38,031,107 <br />39,254,824 <br /> <br />c <br /> <br />TOTAL LIABll..ITIES AND <br />STOCKHOLDER'S EQUITY <br /> <br />$ 123,582,804 $ 136,628,452 <br /> <br />-2- <br />