SOURCE: Phoenix Associates Land Syndicate

August 03, 2005 07:00 ET

Phoenix Associates Releases Unaudited Balance Sheet for Year Ended December 31, 2004

COVINGTON, LA -- (MARKET WIRE) -- August 3, 2005 -- Phoenix Associates Land Syndicate (Phoenix) (OTC: PBLS) today announced that Dennis Kowalski of Kowalski & Associates has completed an initial review of the Company's Balance Sheet for the period ended December 31, 2004. This balance sheet, while unaudited, represents that the total stockholders equity (net worth) of Phoenix is about $39.7 million. Mr. Kowalski's firm has been contracted to audit 2003, 2004, and 2005 and will work in conjunction with the law firm of Dickinson/Wright to help make Phoenix a fully reporting company by mid to late 2006.

As indicated by Mr. Kowalski, this unaudited compilation consists of presenting, in the form of financial statements, information that is provided by and is the representation of management. He has not audited the accompanying financial statement and, accordingly he does not express an opinion or any other form of assurance regarding the statement. It is management's intent that a full audit be performed for the years ended December 31, 2003, December 31, 2004 and December 31, 2005. It is anticipated that the audits for the years 2003, 2004 and 2005 will begin in the fourth quarter of 2005. Management does not anticipate material changes as a result of the upcoming audit.

Mr. Kowalski indicated that management elected to omit at this time, with the exception of those listed below, all disclosures and accompanying footnotes, until such time as the audits are performed. As a result, the attached unaudited balance sheet for the year ended December 31, 2004 is not designed for those who are not informed about such matters.

* Land access: consists of a rights agreement initiated on August 29, 1997, including (5) five-year renewals into 2023.

* Depletable property: a percentage of proven mineral reserves totaling $266,000,000.

Paul Alonzo, CEO of Phoenix, stated, "I have made the decision to release this preliminary balance sheet information in the spirit of providing as much information to our investors as can reasonably be made available on a timely basis, as we prepare for the full audit of our financials, and work toward Phoenix becoming a fully reporting company. We are pleased that this preliminary information provides an indication to our shareholders that Phoenix has a net worth of about $39.7 million, based on what we believe to be conservative estimates of the full value of our mineral rights."

Phoenix Associates Land Syndicate
Consolidated Balance Sheet
(Unaudited)
As of December 31, 2004

Assets
Current Assets:
   Cash and cash equivalents                                  60,676
   Accounts receivable                                        83,000
   Inventories                                             9,500,000
                                                ---------------------
        Total current assets                               9,643,676

Fixed assets:
    Property, plant & equipment                            1,918,300
     Accumulated depreciation                               (455,490)
    Land access *                                            850,000
     Accumulated depreciation                               (238,000)
    Depletable property *                                 26,000,000
     Accumulated depletion                                (6,240,000)
    Leasehold improvements                                18,527,500
     Accumulated depreciation                             (4,323,083)
                                                ---------------------
        Total fixed assets                                36,039,227

Other assets:
    Prepaid expenses                                               0
                                                ---------------------
        Total other assets                                         0
            Total assets                                  45,682,903
                                                =====================

Liabilities and Stockholders' Equity

Current liabilities:
    Accounts payable                                           6,382
    Current portion of long term debt                              0
    Other current liabilities                                741,467
    Other accrued expenses                                     7,425
                                                ---------------------
        Total current liabilities                            755,274

Non-current liabilities
    Note payable - stockholder                               378,176
    Interest payable                                          30,765
    Other non-current liabilities                          4,859,382
                                                ---------------------
        Total non-current liabilities                      5,268,323

Stockholders' equity
    Preferred stock - affiliates                           5,045,000
    Common stock, .01 par value, 214,402,969
      shares issued at December 31, 2004                   2,144,030
    Paid - in - capital                                   33,327,719
    Retained earnings                                       (857,443)
                                                ---------------------
        Total stockholders' equity                        39,659,306
            Total liabilities and
             stockholders' equity                         45,682,903
                                                =====================

Notes to accompanying statement of assets, liabilities and stockholders' equity:

Phoenix Associates Land Syndicate

(PBLS) OTC Pink Sheets

I have compiled the accompanying statement of assets, liabilities and stockholders' equity in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

A compilation consists of presenting in the form of financial statements, information that is provided by, and the representation of management. I have not audited the accompanying financial statement and, accordingly, do not express an opinion or any other form of assurance regarding the statement. It is management's intent that a full audit be performed for years ended December 31, 2004 and December 31, 2005. It is anticipated that the audits for years 2004 and 2005 will begin in the fourth quarter of 2005. Management does not anticipate material changes as a result of the upcoming audit.

Management has elected to omit at this time, with the exception of those listed below, all disclosures and accompanying footnotes, until which time as the audits are performed. As a result, this financial statement is not designed for those who are not informed about such matters.

Land access: consists of a rights agreement initiated on August 29, 1997, including (5) five-year renewals into 2023.

Depletable property: a percentage of proven mineral reserves totaling $266,000,000.

Contact Information

  • For More Information Contact:
    Ron Blackburn
    (985) 845-4627
    Email Contact

    Mike Mulshine
    Osprey Partners
    (732) 233-3853
    Email Contact

    KOWALSKI & ASSOCIATES
    3230 Central Park West. Suite 202
    Toledo, Ohio 43617
    Office: 419.517.4847
    Fax: 419.517.4850