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Home My WebLink About20060404Application.pdfMolly O'Leary (ISB No. 4996) RICHARDSON &O'LEARY PLLC 515 N. 27th Street Boise, Idaho 83702 Telephone: (208) 938-7900 Fax: (208) 938-7904 F;; L\: \ G . . '.. ~~':,;:~.,(j;. -- Attorneys for OneEighty Networks, Inc. BEFORE THE IDAHO PUBLIC UTILITIES COMMISSION IN THE MATTER OF ONEEIGHTY NETWORKS, INC.S APPLICATION FOR APPROVAL OF A CERTIFICATE OF PUBLIC) CONVENIENCE AND NECESSITY CASE NO. 02 r- Db-O( APPLICATION OneEighty Networks, Inc. ("OneEighty") hereby submits this application for a Certificate of Public Convenience and Necessity ("Certificate ) to provide facilities-based basic local exchange service in Idaho. OneEighty respectfully requests that the Idaho Public Utilities Commission (the Commission) grant the Certificate pursuant to Sections 61-526 through - 528 Idaho Code. NAME. ADDRESS AND FORM OF BUSINESS OneEighty is a facilities-based regional provider of Broadband Internet, Private Line, and Hosting solutions offering a comprehensive range of Internet and Data services to customers throughout Northern (Coeur d' Alene, Post Falls) and Southern Idaho (Boise via the acquisition of Ice House), as well as in Eastern Washington and Northeast Oregon. ONEEIGHTYNETWORKS, INC.S APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - Today OneEighty Networks offers a complete line of dial-up, dedicated, and broadband Internet access solutions complemented by a suite of Web Hosting, Co-location, VPN, and Security products. OneEighty primarily serves business and enterprise customers. OneEighty Networks is focused on providing its customers with high quality Internet and Data Solutions and has made that its only business. OneEighty s principal business address is: 118 N. Stevens Street Spokane, WA 99201 OneEighty is a corporation duly formed in the state of Washington. A certified copy of OneEighty' s Articles of Incorporation is attached hereto as Exhibit 1. A certified copy of Certificate of Existence/Authorization in the state of Washington is attached as Exhibit 2. OneEighty is registered in Idaho as a foreign corporation. A Certificate of Authority from the Idaho Secretary of State is attached hereto as Exhibit 3. The name and address of One Eighty s registered agent for service in Idaho is: Molly O'Leary Richardson & O'Leary, PLLC 515 N. 27th Street Boise, Idaho 83702 The names and addresses of One Eighty s shareholders are as follows: Shares Percentage of Percentage Name and Owned All Shares of Voting Control Issued andAddressOutstanding Gregory D. Green 412 749 85.2252%85.2252%11 8 N Stevens Spokane, W A 99210 ONEEIGHTY NETWORKS, INC.' S APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - 2 - ,,_.._ ,--_n"""__'- I------ ------------- I-------I" ---,--- - ---_--____ r____ _____, i Chad Skidmore ! 949 340 ! 7.7701% 7701% ! 6815 S Shelby Ridge Spokane W A 99224 - - -- -- -- ------- -..------ ----- -- ----- -----" i-'----------------------------- ~-"---" .._----"-'------!---- -"--------------..---- --...u..-- ~-"-------------"-----"- Steve Winterton I 92631 I 0.7582% 7582% - 1203 SW 23rd Pendleton, OR 97801 -------"'~~~ :~= l 192 631 r; 582% ,,--- -- - 7 5 ~2 Pendleton, OR 97801 ..---- ---------- Jim V ~~lk~- --- 1;5 ~~~~--- -~;~------------;;:--- i 415 ShorelandDr. SE Bellevue W A 98004 ------..---- ----'--------------'- ------------,---- ------'---- r---- ----------------- -- r-------- ---- I Gail G. Stiltner 69 750 i 0.5709% 5709% I 10119 E 44th Ave Spokane W A 9206 r --..--- --- --.. -------------, ------------ 1'--------' r------- r------------- --- ------ -..-.. -- :------------------- -- John P. Kline I 53 884 i 0.4410% I 0.4410% .. i711SEByersAve Pendleton, OR 97801 i I -----..' --------- ---""'------ ---"'--------!--------------------- i-----------"--- -"---- ...---------..--------:----- --------- I Edwin V. Pugh !53 884 I 0.4410% I 0.4410% i ! 2030 SWQuinney Ave Pendleton, OR 97801 I ---..-Ir---- ---.. -,-- - ------- ----.-----... ..---- ,----------""---------- r----- -- ....--------- --,----- Marty Manny I 53 884 I 0.4410% I 0.4410% 3175 Canberra Dr Walla Walla W A : i 99362 - i - ---- ------- - -----------'---"'------"--~------------------------- r------ ------"---,----------'-------------------" - r--- -------------------- I Gary D. Dillavou 153 884 ! 0.4410% i 0.4410% i71403SWLakeDr I Pendleton, OR 97801 I - ----,-.. - r~:~~~- --- -~~ T~~~~~-0, 44 ~o/ ~--- 11 i Pendleton, OR 97801 -- ------- --;---------------' ----------'--1 r---------_ .._------ -n- R~d~S -"- 153 884 I 0.4410% I 0.4410% POBox 187 12 I Echo, OR 97826 : ,---- - -.--- ,..-....-. -----------..._--_ J_------.._.._ -_.._---------~_.._-_.._-_!....--_._--------.._------_......_-~--------_-_._.. ONEEIGHTY NETWORKS, INc.' APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - 3 The names and addresses of OneEighty s Officers are as follows: Name Office Address Gregory D. Green Chairman and CEO 11 8 N Stevens Board of Directors Spokane, VV i\ 99201 Kellen G. Green Board of Directors 1203 N King James Ln Liberty Lake, W A 99019 Margo Jett Corporate Secretary 11 8 N Stevens Spokane, VV A 99201 TELECOMMUNICATIONS SERVICE OneEighty is a facilities-based provider with its own switch located in Spokane Washington. OneEighty owns and operates one of the largest fiber optic networks in the region. With this state-of-the-art network, OneEighty is able to provide Broadband Internet services Private Line services, Metro Area Ethernet service, co-location services, and Web and Application hosting service. OneEighty currently provides Broadband services in Spokane Spokane Valley, Walla Walla, and the Tri-Cities areas in Washington, as well as in Post Falls and Coeur d' Alene, Idaho. In addition, OneEighty provides Narrowband Internet Services in the areas surrounding Spokane and Walla Walla, Washington, Pendleton, Bend and Hermiston Oregon and Coeur d' Alene, Idaho Upon receipt of its Certificate for Idaho, OneEighty will use its existing fiber optic network, unbundled network elements and Resale services from Verizon, Qwest, and other carriers, to expand its product offerings to include Voice over Internet Protocol ("VoIP") local exchange services, Carrier i\ccess, and Private Line services as it expands its Idaho footprint. ONEEIGHTY NETWORKS, INC.' S APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - 4 OneEighty has installed a voice switch and is in the process of securing access to a signaling and call related database provider, requesting numbering resources and working with Verizon to establish interconnection to process local and long distance calls. OneEighty will expand its product offerings to include residential customers as it makes economic sense, such as where VoIP local exchange services can be packaged with long distance and broadband internet access. Partnerships with the building community could lead to additional opportunities to provide OneEighty services to residential customers. Expansions to the network and the residential customer base will be accomplished as market conditions permit. Although OneEighty is submitting an exemplary Price List herewith (Exhibit 4), services will be provided only after a fInancial analysis is completed for the particular service the customer desires. All services and rates will be provided pursuant to contracts. SERVICE TERRITORY OneEighty will initially serve northern Idaho where Verizon is the incumbent provider. As OneEighty becomes established and opportunities present themselves, it may expand into Qwest territory in northern and southern Idaho. FINANCIAL INFORMATION OneEighty s financial information is attached hereto as Exhibit 5. MAPS Because OneEighty proposes to initially provide service in V erizon' s existing service area, it hereby references and incorporates herein Verizon' s service area map on file with the Commission. Likewise, in the event OneEighty expands into Qwest's service areas within ONEEIGHTY NETWORKS, INC.' S APPLICATION FOR CER TIFICA TE OF PUBLIC CONVENIENCE AND NECESSITY - 5 Idaho, it hereby references and incorporates herein Qwest's service area maps on file with the Commission. ILLUSTRATIVE TARIFF FILING OneEighty is filing herewith an illustrative Price List to reflect services to be offered under Title 62 authority in compliance with the appropriate Commission rules. (See Exhibit 4). COMPANY CONTACTS F or establishment of service, complaints and inquiries regarding service and billing, or reporting or inquiring about network outages or service problems: Customer Contact: OneEighty Networks, Inc. Attention: Customer Support Manager 118 N. Stevens Street Spokane, W A 99201 Toll free: 1.888.565.5953 E-mail: help~goI80.net For complaints, inquiries and matters concerning rates and price lists: Commission Contact: Nichole Smith OneEighty Networks, Inc. 118 N. Stevens Street Spokane, W A 99201 Telephone: 1.888.565.5953 E-mail: nsmith~go 180.net ONEEIGHTY NETWORKS, INC.S APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - 6 INTERCONNECTION AGREEMENT OneEighty currently has an Interconnection Agreement with Verizon. (See Exhibit 6 attached hereto.) An Interconnection Agreement with Qwest will be negotiated, as needed. COMPLIANCE WITH COMMISSION RULES OneEighty has reviewed all ofthe Commission rules and agrees to comply with said rules, as applicable, unless otherwise ordered. 10.RELEASE OF INFORMATION OneEighty hereby permits the release of its name, address and general business telephone number in response to a request for the same. DATED this 3rd day of April, 2006. ONEEIGHTYNETWORKS, INC.'S APPLICATION FOR CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY - 7 f" l' i t ~, \,! .,' ;- ., - - "" :ii ..\:l'_'--' L:i.::i":~)jiU,, EXHIBIT Washington Articles of Incorporation OneEighty Networks, Inc. Application For Certificate of Public Convenience and Necessity STATES OF t(~v ~ril!:b -\)~~ ,: , "f(t() ' ~ STATli: ' '? 'W " trt~: i ) vja~~tn~~ :t!,;; 1889 ~ ~t ~tatt Secretary of State , Sam Reed Secretary of State of the State of Washington and custodian of its seal hereby issue this certificate that the attached is a true and correct copy of AMENDED AND RESTATED ARTICLES OF INCORPORATION ONE EIGHTY NETWORKS, INC. as filed in this office on June 17, 2004. Date:March 15 , 2006 Given under my hand and the Seal of the State of Washington at Olympia, the State Capital Sam Reed, Secretary of State '1/V\1\1\1 CERTIFICA TE OF ONE EIGHTY NETWORKS, INc. FOR AMENDED AND RESTATED ARTICLES OF INCORPORATION This certificate is given by One Eighty Networks, Inc. (the "Corporation ) for the purposes of submitting the attached Amended and Restated Anicles of Incorporation for filing with the Washington Secretary of State pursuant to RCW 23B.1O.O70. The Corporation cenifies as follows: The name of the Corporation is One Eighty Networks , Inc. The complete text of all amendments to the Articles of Incorporation of the Corporation is set forth in the Amended and Restated Articles of Incorporation of the Corporation attached hereto and incorporated herein by reference , which supersede in their entirety the existing Articles of Incorporation of the Corporation. The Amended and Restated Articles of Incorporation are effective as of the date set forth below. The amendments set forth in the Amended and Restated Articles of Incorporation were duly approved by the Corporation s shareholders pursuant to RCW 23B.1O.030 and 23B.1O.040. Dated this l4~y of June , 2004. Gregory D. Green, Chief Executive Officer 1:\Spodocs\29942\OOOO8\corp\OOI81927-DOC JUNE 17, 2004 06/1712004 430625 '50.00 C,"",de .t103~71 Tr8de inq 10: 737901 Doc: 1110:- 430625~(l1 FILED SECRETARY OF STATE STATE OF WASHINGTON ARTICLES OF RESTATEMENT Pursuant to RCW 23B.IO.070, One Eighty Networks, Inc., a Washington Corporation (the "Corporation ), hereby submits these Articles of Restatement for the purposes of effectuating the attached Amended and Restated Articles of Incorporation. The name of the corporation is One Eighty Networks, Inc. The complete text of all amendments to the Articles of Incorporation of the Corporation is set forth in the Amended and Restated Articles of Incorporation of the Corporation attached hereto and incorporated herein by reference, which supersede in their entirety the existing Articles of Incorporation of the Corporation. -fADated this& day of June, 2004. Gregory D. Green, Chief Executive Officer J:\Spooocs\29942\OOOO8~orp\OO 168759. DOC .------ AMENDED AND RESTATED ARTICLES OF INCORPORATION ONE EIGHTY NETWORKS, INC. ARTICLE Name and Duration The name of this corporation is One Eighty Networks, Inc.and it shaH have perpetual existence. ARTICLE 2 Purposes This corporation is organized for the following purposes: (a)To provide internet services; and (b) To engage in any business, trade or activity which may lawfully be conducted by a corporation organized under the Washington Business Corporation Act (the "Act ) and to engage in any and all such activities as are incidental or conducive to the attainment of the ongoing purpose or purposes. ARTICLE 3 Shares Authorized Capital The total number of shares which this corporation is authorized to issue is One Hundred Million 000,000,000), consisting of Fifty Million (50,000,000) shares of Common Stock without par value and Fifty Million (50,000,000) shares of PrefeITed Stock without par value. The Common Stock is subject to the rights and preferences of the PrefeITed Stock as hereinafter set forth. Issuances of Preferred Stock in Series The PrefeITed Stock may be issued from time to time in one or more series in any manner permitted by law and the provisions of these Amended and Restated Articles of Incorporation of this corporation , as determined from time to time by the Board of Directors and stated in the resolution or resolutions providing for the issuance thereof, prior to the issuance of any shares thereof. The Board of Directors shall have the authority to fix and determine and to amend, subject to the provisions hereof, the designation , preferences , limitations and related rights of the shares of any series that is wholly unissued or to be established. Unless otherwise specifically provided in the resolution establishing any series, the Board of Directors shall further have the authority, after the issuance of shares of a series whose number it has designated, to amend the resolution establishing such series to decrease the number of shares of that series, but not below the number of shares of such series then outstanding. Dividends The holders of shares of the Preferred Stock shall be entitled to receive dividends, out of the funds of this corporation legally available therefor, at the rate and at the time or times whether cumulative or non-cumulative , as may be provided by the Board of Directors in establishing a particular series of Preferred Stock. If such dividends on the PrefeITed Stock shall be cumulative, then if dividends shall not have been paid, the deficiency shall be fully paid or the dividends declared and set apart for payment at such rate , but without interest on cumulative dividends, before any dividends on the Common Stock shall be paid or declared and set apart for payment. The holders of the Preferred Stock shall not be entitled to receive any dividends thereon other than the dividends refeITed to in this section. Redemptions The Preferred Stock may be redeemable at such price, in such amount, and at such time or times as may be provided by the Board of Directors in establishing a particular series of Preferred Stock. In any event, the Preferred Stock may be repurchased by this corporation to the extent legally permissible. Liquidation In the event of any liquidation , dissolution , or winding up of the affairs of this corporation, whether voluntary or involuntary, then, before any distribution shall be made to the holders of the Common Stock, the holders of the Preferred Stock at the time outstanding shall be entitled to be paid the preferential amount or amounts per share as may be provided by the Board of Directors in establishing a panicular series of Preferred Stock and dividing a particular series of Preferred Stock and dividends accrued thereon to the date of such payment. The holders of the Preferred Stock shall not be entitled to receive any distributive amount upon the liquidation dissolution, or winding up of the affairs of this corporation other than the distributive amounts refeITed to in this section, unless otherwise provided by the Board of Directors in establishing a particular series of Preferred Stock. Conversion Shares of Preferred Stock may be convertible into Common Stock of this corporation upon such terms and conditions , at such rate and subject to such adjustments as may be provided by the Board of Directors in establishing a particular series of Preferred Stock. Voting Rights Holders of PrefeITed Stock shall have such voting rights as may be provided by the Board of Directors in establishing a particular series of PrefeITed Stock. Execution of Consent By Less Than Unanimous Consent of All Shareholders. To the extent permitted by the Act, the taking of action by shareholders without a meeting by less than unanimous written consent of all shareholders entitled to vote on the action shall be permitted. Notice of the taking of such action shall be given in writing to those shareholders entitled to vote on the action who have not consented in writing (and, if the Act would otherwise require that notice of a meeting of shareholders to consider the action be given to nonvoting shareholders, to all nonvoting shareholders). The notice shall describe with reasonable clarity the general nature of the action , and shall be accompanied by the same material that , under the Act , would have been required to be sent to nonconsenting (or nonvoting) shareholders in a notice of meeting at which the action would have been submitted for shareholder action. Such notice shall be either (i) by deposit in the u.S. mail before the action becomes effective (or, such longer period as required by law, in the case of a significant business transaction under RCW 23B.19.020(15)), with first-class postage thereon prepaid coITectly addressed to each shareholder entitled thereto at the shareholder s address as it appears on the CUITent record of shareholders of the corporation; or (ii) by personal delivery, courier service, wire or wireless equipment, telegraphic or other facsimile transmission, or any other electronic means which transmits a facsimile of such communication coITectly addressed to each shareholder entitled thereto at the shareholder s physical address, electronic mail address, or facsimile number, as it appears on the CUITent record of shareholders of the corporation. Notice under clause (i) shall be given at least seventy-two (72) hours, and notice under clause (ii) shall be given at least twenty-four (24) hours before the action becomes effective (or such longer period as required by law, in the case of a significant business transaction under RCW 238.19.020 (15)). ARTICLE 4 Registered Office and Agent . The name of the registered agent of this corporation and the address of its registered office are as follows: Margo J ett 117 N. Howard, Suite 300 Spokane, Washington 99201 ARTICLE 5 Preemptive Rights No preemptive rights shall exist with respect to shares of stock or securities convertible into shares of stock of this corporation; provided, however, that notwithstanding the foregoing denial of preemptive rights, this corporation shall have the power to separately grant similar rights by contract. ARTICLE 6 Cumulative Voting The right to cumulate votes in the election of Directors shall not exist with respect to shares of stock of this corporation. ARTICLE 7 Directors The number of Directors of this corporation shall be detennined in the manner provided by the Bylaws and may be increased or decreased from time to time in the manner provided therein. ARTICLE 8 Bylaws The Board of Directors shall have the power to adopt, amend or repeal the Bylaws of this corporation, subject to the power of the shareholders to amend or repeal such Bylaws. The shareholders shall also have the power to amend or repeal the Bylaws of this corporation and to adopt new Bylaws. ARTICLE 9 Amendments to Articles of Incorporation This corporation reserves the right to amend or repeal any of the provisions contained in these Articles of Incorporation in any manner now or hereafter pennitted by law, and the rights of the shareholders of this corporation are granted subject to this reservation. ARTICLE 10 Indemnification and Limitation of Liability 10.Indemnification of Directors, Officers, Employees and Agents. The capitalized tenns in this Section 10.1 shall have the meanings set forth in RCW 23B.08.500 as now existing or hereafter amended. (a) This corporation shall indemnify and hold hannless each individual who is or was serving as a Director or officer of this corporation or who, while serving as a Director or officer of this corporation, is or was serving at the request of this corporation as a Director, officer, partner, trustee, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan , or other enterprise, against any and all Liability incurred with respect to any Proceeding to which the individual is or is threatened to be made a Party because of such service, and shall make advances of reasonable Expenses with respect to such Proceeding, to the fullest extent permitted by law, without regard to the limitations in RCW 23B.08.51O through 238.08.550; provided that no such indemnity shall indemnify any Director or officer from or on account of (1) acts or omissions of the Director or officer finally adjudged to be intentional misconduct or a knowing violation of law; (2) conduct of the Director or officer finally adjudged to be in violation of RCW 23B.08.31O; or (3) any transaction with respect to which it was finally adjudged that such Director or officer personally received a benefit in money, property, or services to which the Director or officer was not legally entitled. (b) This corporation may purchase and maintain insurance on behalf of an individual who is or was a Director, officer, employee, or agent of this corporation or, who, while a Director, officer, employee, or agent of this corporation , is or was serving at the request of this corporation as a Director, officer, partner, trustee, employee, or agent of another foreign or domestic corporation, partnership, joint venture, trust, employee benefit plan, or other enterprise against Liability asserted against or incurred by the individual in that capacity or arising from the individual's status as a Director , officer, employee, or agent, whether or not this corporation would have power to indemnify the individual against such Liability under RCW 23B.08.510 or 23B.08.520. (c) If, after the effective date of this Section 10., the Act is amended to authorize further indemnification of Directors or officers, then Directors and officers of this corporation shal1 be indemnified to the ful1est extent permitted by the Act. (d) To the extent permitted by law, the rights to indemnification and advance of reasonable Expenses conferred in this Section 10.1 shall not be exclusive of any other right which any individual may have or hereafter acquire under any statute , provision of the Bylaws agreement, vote of shareholders or disinterested Directors, or otherwise. The right to indemnification conferred in this Section 10.1 shall be a contract right upon which each Director or officer shall be presumed to have relied in detennining to serve or to continue to serve as such. Any amendment to or repeal of this Section 10.1 or amendment to the Act shall not adversely affect any right or protection of a Director or officer of this corporation for or with respect to any acts or omissions of such Director or officer occurring prior to such amendment or repeal. (e) If any provision of this Section 10.1 or any application thereof shall be invalid, unenforceable, or contrary to applicable law , the remainder of this Section 10., and the - application of such provisions to individuals or circumstances other than those as to which it is held invalid, unenforceable, or contrary to applicable law , shall not be affected thereby. 10.Limitation of Directors' Liability. To the fullest extent pennitted by the Act , as it exists on the date hereof or may hereafter be amended, a Director of this corporation shall not be personally liable to this corporation or its shareholders for monetary damages for conduct as a Director. Any amendment to or repeal of this Section 10.2 shall not adversely affect a Director of this corporation with respect to any conduct of such Director occurring prior to such amendmentor repeal. -;..it Executed thiS day of vI"? J2.-..-2004. Gregory D. Green , Chief Executive Officer 1:\Spodocs\29942\OOOO I \corp\OOI81898.DOC . --:3 r;; ~: 17 , . ;;!LIT!'::J cu; i ;':i~~;!lJi: EXHIBIT 2 Washington Certificate Of Existence/Authority OneEighty Networks, Inc. Application For Certificate of Public Convenience and Necessity ~ S'l'ATES OF f(~v ~ril!:lt ()~~ . -:' . Secretary o f State , SAM REED Secretary of State of the State of Washington and custodian of its seal, hereby issue this CERTIFICATE OF EXISTENCE/AUTHORIZATION ONE EIGHTY NETWORKS, INC. I FURTHER CERTIFY that the records on file in this office show that the above named Profit Corporation was formed under the laws of the State of W A and was issued a Certificate Of Incorporation in Washington on 12/5/2001. I FURTHER CERTIFY that as of the date of this certificate, ONE EIGHTY NETWORKS INC. remains active and has complied with the filing requirements of this office. Date: March 15 2006 UBI: 602-165-586 Given under my hand and the Seal of the State of Washington at Olympia, the State Capital Sam Reed, Secretary of State ;. :J P;) I_:: i 7 iU; ,) (::J, ii ~)iU;; EXHIBIT 3 Idaho Certificate of Authority OneEighty Networks, Inc. Application For Certificate of Public Convenience and Necessity tate of Idah CERTIFICATE OF AUTHORITY ONE EIGHTY NETWORKS, INC. File Number C 165460 , BEN YSURSA, Secretary of State of the State of Idaho, hereby certify that an Application for Certificate of Authority, duly executed pursuant to the provisions of the Idaho Business Corporation Act, has been received in this office and is found to conform to law. ACCORDINGLY and by virtue of the authority vested in me by law, I issue this Certificate of Authority to transact business in this State and attach hereto duplicate of the application for such certificate. Dated: 6 March 2006 SECRETARY OF STATE By (Lx~ , , ' --- ' ' 1"', r ,j ' , '; I . j iiLII ; (, ;J; ;~~SiG" EXHIBIT 5 One Eighty s Financial Information OneEighty Networks , Inc. Application For Certificate of Public Convenience and Necessity Il l y On e E i g h t y N e t w o r k s , I n c . In c o m e S t a t e m e n t 20 0 5 Y e a r t o D a t e 20 0 5 T o t a l s Re v e n u e : Na r r o w b a n d I n t e r n e t $1 3 2 , 19 7 $1 2 1 , 09 5 $1 1 2 60 8 $1 1 0 , 16 1 $1 0 6 , 55 9 $8 9 , 33 7 $9 5 , 26 8 $9 5 , 39 2 $8 9 , 15 2 $8 4 , 98 4 $8 2 20 1 $1 , 11 8 , 95 5 8r o a d b a n d I n t e r n e t 89 , 79 2 89 7 54 4 94 , 45 0 94 , 76 9 88 , 96 2 83 , 60 3 12 2 , 39 4 10 5 , 31 4 91 , 81 2 91 , 08 7 04 7 , 62 3 LM D S 72 9 80 1 74 9 51 6 85 4 35 3 44 5 99 0 99 0 42 7 Wir e l e s s D S L ( U N I I ) 13 , 83 0 13 , 75 2 13 , S2 8 13 . 7 2 1 10 , 91 2 21 5 10 0 05 4 79 9 93 , 91 2 We b H o s t i n g S e r v i c e s 30 , 29 3 26 , 45 1 26 , 51 0 77 1 27 , 52 9 16 , 12 0 17 , 38 7 16 , 89 1 15 , 82 8 20 , 8 3 1 17 , 67 7 24 3 28 7 Co - lo c a t i o n 30 9 86 0 15 4 65 8 58 9 88 1 03 4 25 1 15 , 72 3 91 6 32 1 99 , 69 6 Pr i v a t e - li n e T r a n s p o r t 59 , 79 2 59 , 74 2 62 , 4 9 8 81 5 63 . 0 0 8 53 , 59 4 51 , 78 1 52 , 41 0 63 , 67 2 52 , 04 1 70 4 62 4 , 05 6 Et h e r n e t T r a n s p o r t 74 9 69 , 27 2 70 , 22 3 73 , 68 8 74 , 38 2 75 , 09 7 75 , 65 7 75 , 65 7 75 , 85 4 75 , 65 7 77 , 09 2 81 0 32 7 In c o m e - O t h e r 21 , Q 4 3 26 , 17 6 70 0 23 , 84 1 18 , 51 0 15 , 24 5 14 , 96 2 52 9 14 , 52 9 14 , 08 9 14 , 75 1 20 0 37 4 No n - Re c u r r i n g I n c o m e 50 3 28 9 16 , 38 9 16 0 36 , 91 0 11 , 26 8 (8 , 95 2 ) 29 0 20 7 90 7 10 7 , 05 9 Ne t R e v e n u e 54 4 6 . 23 7 54 4 7 . 33 5 54 3 5 . 90 3 ll i . D . l l l ll l i . U ! ll l l . . l l i 53 4 5 . 28 5 li l l . . i l l il l . . ! , l l l .r n . M t l iI D . i l l 40 3 Co s t o f S a l e s : CO G S - N a r r o w b a n d I n t e r n e t $4 1 , 75 4 $4 0 , 55 7 $3 8 , 78 3 $2 9 , 03 1 $3 4 , 34 6 $4 3 , 58 9 $2 8 , 63 0 $3 3 , 79 2 $2 1 , 67 6 $2 2 . 8 9 0 $1 7 , 89 0 $3 5 2 , 93 9 CO G S - I S P T e l c o 37 8 43 7 36 6 60 9 58 3 75 9 66 1 47 8 38 3 59 1 59 0 83 6 CO G S - 8 r o a d b a n d I n t e r n e t L o o p 25 , 20 1 25 , 67 7 28 , 60 2 29 , 17 9 32 , 17 2 51 , 88 0 95 6 25 , 98 1 28 , 16 3 12 , 58 8 18 , 17 4 31 5 , 57 4 CO G S - L M D 5 95 0 93 8 88 6 93 7 97 0 52 2 69 3 96 9 96 9 97 0 97 0 77 3 CO G S - H o s t i n g S e r v i c e s 37 8 35 5 67 9 82 7 87 9 23 5 94 8 75 0 3, 4 8 5 95 3 46 0 94 8 CO G S P r i v a t e - lin e T r a n s p o r t 25 7 17 , 32 1 13 , 74 6 19 , 15 \ 21 , 75 0 32 , 73 1 11 , 17 9 10 , 36 9 11 , 71 4 10 , 53 3 11 , 22 0 18 2 97 1 CO G S E t h e r n e t T r a n s p o r t 20 , 65 0 21 , 30 3 21 , 55 6 22 , 05 7 22 , 13 0 21 , 24 7 30 , 90 5 22 , 15 7 21 , 06 4 21 , 34 7 21 , 34 7 24 5 76 4 CO G S D S L T r a n s p o r t 19 , 78 5 16 , 90 1 17 , 10 9 18 , 19 1 17 , 01 2 17 , 09 4 19 , 38 2 18 , 19 2 19 , 48 1 11 , 61 3 16 , 07 9 19 0 , 83 9 CO G S S O N E T M e t r o 8 a c k b o n e 13 , 42 5 16 , 42 5 16 , 42 5 16 . 4 2 5 20 , 92 5 20 , 92 5 20 , 92 5 20 , 92 5 13 , 42 5 20 , 92 5 20 , 92 5 20 1 67 5 CO G S I P T r a n s i t 00 0 10 , 56 6 00 0 00 0 00 0 00 0 00 0 00 0 00 0 06 0 00 0 10 0 62 6 CO G S I L E C C o - lo c a t e 10 , 56 6 45 0 90 6 32 4 28 , 96 9 10 , 61 5 58 1 06 4 90 7 70 9 80 7 10 8 , 89 9 Ot h e r C o s t o f S a l e s 74 5 97 5 89 1 51 5 45 0 45 0 45 0 45 0 45 0 45 0 82 6 To t a l C o s t o f S a l e s 51 7 9 . 08 9 1i l l . . l l . ! ! ll i . ' l . l l i . 1i l l . . l l J ! ll l . 8 . i l l l! l l . l l l iW ! . l 1 1 51 4 2 . 71 7 51 2 9 . 63 0 ll . J . . O . ! . ! . 1 67 0 Gr o s s P r o f i t $2 6 7 , 14 8 $2 8 5 , 40 5 $2 6 8 , 87 0 $2 5 4 , 15 9 $2 4 5 , 77 0 $1 4 7 , 02 4 $1 6 5 97 4 $2 3 4 47 5 $2 4 8 , 63 5 $2 2 9 96 1 $2 2 1 , 62 7 $2 , 56 9 04 8 Op e r a t i n g E x p e n s e s : Pa y r o l l & B e n e f i t s $1 4 4 , 59 3 $1 4 4 14 3 $1 3 8 , 51 1 $1 3 6 , 47 1 $1 2 8 , 81 3 $1 0 5 , 50 6 $1 0 3 , 37 4 $6 9 , 09 1 $6 9 , 57 1 $6 8 , 88 9 $6 7 , 8B 5 $1 , 17 6 84 7 Tr a i n i n g 00 0 59 7 59 7 23 5 Lo d g i n g 55 4 51 7 84 3 45 7 82 2 33 3 32 9 14 5 41 9 44 0 85 9 Me a l s & E n t e r t a i n m e n t 1, 3 5 1 51 9 75 2 73 3 66 1 90 6 17 6 29 1 79 3 89 7 15 6 Tr a n s p o r t : l t i o n 58 B 70 6 87 4 15 1 11 0 37 5 38 1 21 2 12 , 41 8 Pa r k i n g 44 3 41 0 55 4 44 9 09 8 1, 4 3 0 28 5 60 0 41 0 45 0 41 2 12 , 54 1 Lo n g h a u l B a c k b o n e 19 , 89 9 14 , 52 1 10 , 54 2 15 , 61 6 14 , 94 8 15 , 64 1 18 , 21 5 11 , 54 4 17 , 39 3 15 , 64 5 15 , 65 6 16 9 , 62 0 Ba c k h a u l f o r M o n i t o r i n g 10 6 19 6 19 6 19 6 19 6 19 6 21 4 79 6 79 6 29 2 32 2 10 , 50 8 Of f i c e - R e n t a l P a y m e n t s 22 , 0 2 2 45 3 19 , 30 7 21 , 53 5 23 , 76 3 10 , 76 2 20 , 76 2 95 0 23 , 58 8 23 , 21 4 19 , 95 0 22 7 , 30 5 Of f i c e - M a i n t e n a n c e & M o n i t o r i n g 75 7 69 4 61 5 47 1 23 3 13 5 24 8 97 1 39 1 23 0 14 , 79 5 Of f i c e - U t i l i t i e s 4. 4 9 3 14 6 09 4 58 0 67 6 65 8 01 9 90 2 95 3 43 8 99 8 95 8 Hu b S i t e - L e a s e / R e n t 97 2 09 7 21 6 11 , 45 3 18 2 10 , 54 1 12 , 15 8 95 0 79 0 00 1 20 0 56 0 Hu b S i t e - U t i l i t i e s 19 4 18 3 22 8 21 1 22 6 31 3 21 7 60 0 19 0 19 0 32 1 87 3 Pr o f e s s i o n a l S e r v i c e s 30 , 92 2 25 , 70 8 96 7 29 , 78 0 23 , 54 3 50 0 50 0 22 , 90 5 22 , 50 0 11 , 68 2 12 , 09 0 25 2 09 7 8u s i n e s s T a x e s 60 3 30 1 57 7 83 6 63 1 (1 , 73 1 ) 57 7 18 8 84 4 67 7 15 , 50 3 Pr o p e r t y T a x e s 86 5 34 4 34 4 34 4 26 1 15 9 99 9 70 0 10 1 15 5 17 5 44 7 Re g u l a t o r y F e e s 1,4 9 6 51 0 05 4 18 5 06 7 81 8 53 0 15 0 15 0 27 5 30 7 Te l e p h o n e C h a r g e s 16 6 52 8 95 2 23 6 83 1 97 9 22 3 74 4 84 2 29 7 25 9 58 , 05 7 Ce l l u l a r T e l e p h o n e C h a r g e s 76 9 34 4 , l i S 02 8 2, 4 7 8 09 6 92 8 24 4 90 6 32 4 54 4 20 , 77 5 8u s i n e s s I n s u r a n c e 17 1 17 1 53 5 58 2 17 0 17 1 17 1 57 6 29 3 17 1 17 1 25 , 18 1 Po s t a g e & S h i p p i n g 13 2 06 9 57 3 81 9 91 5 93 4 15 4 67 8 87 8 22 4 18 , 42 8 Pr i n t i n g 28 4 17 1 69 5 32 6 21 9 66 7 86 1 27 7 42 0 04 6 Of f i c e E x p e n s e s & S u p p l i e s 30 3 53 7 11 9 77 3 10 , 80 1 34 2 24 3 36 5 27 2 81 1 25 0 25 , 81 5 To o l s & S u p p l i e s 49 6 13 2 97 9 80 2 22 8 88 7 11 , 09 1 97 9 1, 4 4 3 16 0 19 , 25 8 Fr e i g h t E x p e n s e 14 5 36 1 15 0 59 7 20 8 55 0 CP E E x p e n s e 58 0 18 2 93 0 97 5 12 6 05 6 10 7 13 , 95 6 Le a s e s - E q u i p m e n t 50 7 17 , 56 1 19 4 16 , 13 1 16 , 41 1 15 , 88 6 16 , 20 8 16 , 4 7 3 16 , 57 1 16 , 82 1 16 , 82 1 16 6 , 58 4 Le a s e s - W h o / O t h e r 08 3 19 8 05 6 06 0 40 7 10 6 06 7 35 5 39 3 35 6 35 6 26 , 43 7 Pr o c e s s i n g F e e s 67 7 85 9 56 1 25 7 44 4 20 0 20 0 88 9 20 0 17 , 28 7 IS S o f t W a r e & H a r d w a r e M a i n t . 65 5 23 8 23 5 10 5 13 4 59 1 77 4 77 4 59 1 82 0 91 8 Eq u i p m e n t R e p a i r & M a i n t . 49 7 40 4 27 2 43 8 47 7 65 5 30 8 17 5 37 6 Sa l e s & M a r k e t i n g 17 , 23 7 46 6 60 6 10 , 56 1 18 , 43 5 93 8 28 3 12 8 35 6 79 9 52 2 10 6 , 33 1 Ga i n / ( L o s s ) o n S a l e o f F i x e d A s s e t s (1 0 , 83 9 ) (1 0 . 83 9 ) To t a l O p e r a t i n g E x p e n s e s 52 8 8 . 69 4 52 7 9 . 27 5 il l i . . i l l ll l l . M J ! ll l l i ! l l 52 1 9 . 94 9 52 4 1 . 28 5 $1 7 9 . 33 9 ii l l . l 5 j ll l l . 1 l l $1 7 0 . 09 7 52 . 57 9 EB I T D A ($ 2 1 , 54 6 ) $6 , 13 0 $1 , 69 4 ($ 3 2 , 78 9 ) ($ 3 9 , 29 7 ) ($ 7 2 , 92 5 ) ($ 7 5 31 2 ) $5 5 , 13 6 $5 9 , 27 6 $5 7 , 73 7 $5 1 53 0 ($ 1 0 , 36 6 ) In t e r e s t E x p e n s e $2 1 , 60 1 $2 0 , 25 3 $2 1 , 82 5 $2 3 , 92 7 $2 2 33 6 $2 0 06 6 $3 3 , 09 1 $2 1 41 8 $2 3 30 5 $2 2 , 50 0 $2 2 , 50 0 $2 5 2 , 82 2 Pr o f i t a f t e r I n t e r e s t ($ 4 3 , 14 7 ) ($ 1 4 12 3 ) ($ 2 0 , 13 1 ) ($ 5 6 71 6 ) ($ 6 1 . 63 3 ) ($ 9 2 . 99 1 ) ($ 1 0 8 40 2 ) $3 3 , 71 8 $3 5 , 97 1 $3 5 , 23 7 $2 9 03 0 ($ 2 6 3 , 18 8 ) De p r e c i a t i o n E x p e n s e $2 2 62 2 $2 3 , 00 0 $2 3 , Q 4 2 $2 2 14 4 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 8 8 , 80 8 Am o r t i z a t i o n E x p e n s e 54 4 $4 , 54 4 54 4 54 4 $4 , 54 4 $4 , 54 4 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 9 , 98 4 8a d D e b t E x p e n s e $2 , 4 3 9 $2 4 7 $4 , 72 3 ($ 7 3 ) $1 , 95 4 $1 , 53 7 $2 , 99 4 $2 , 57 0 $1 , 05 7 $1 , 48 8 $1 . 1 5 0 $2 0 . 08 6 Ne t P r o f i t ($ 7 2 , 75 2 ) ($ 4 1 91 4 ) ($ 5 2 44 0 ) ($ 8 3 , 33 1 ) ($ 8 2 13 1 ) ($ 1 1 3 , 07 2 ) ($ 1 2 9 94 0 ) $1 2 , 60 4 $1 6 37 0 $1 5 20 5 $9 , 33 6 ($ 5 2 2 , 06 5 ) Ad d B a c k N o n - Ca s h E x p e n s e s : De p r e c i a t i o n E x p e n s e $2 2 , 62 2 $2 3 , 00 0 $2 3 , Q 4 2 $2 2 , 14 4 $1 4 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 4 , 00 0 $1 8 8 , 80 8 Am o r t i z a t i o n E x p e n s e $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 54 4 $4 , 54 4 $4 , 54 4 54 4 $4 9 , 98 4 Ne t C a s h P r o f i t ($ 4 5 , 58 6 ) ($ 1 4 37 0 ) ($ 2 4 , 85 4 ) ($ 5 6 , 64 3 ) ($ 7 2 , 67 5 ) ($ 9 4 52 8 ) ($ 1 1 1 39 6 ) $3 1 14 8 $3 4 , 91 4 $3 3 . 74 9 $2 7 , 88 0 ($ 2 9 2 , 36 1 ) Il l y On e E i g h t y N e t w o r k s , I n c . 20 0 6 F o r e c a s t I 2 0 0 6 T o t a l s I Re v e n u e : Na r r o w b a n d I n t e r n e t $8 5 , 25 0 $1 7 8 , 64 9 $1 7 5 , 50 0 $1 7 2 , 25 0 $1 7 0 , 25 0 $1 6 8 95 0 $1 6 6 , 95 0 $1 6 5 , 00 0 $1 6 4 , 52 5 $1 6 3 , 75 0 $1 6 2 , 50 0 $1 6 1 , 00 0 93 4 , 57 4 8r o a d b a n d I n t e r n e t 10 5 , 50 0 12 2 , 99 3 12 4 , 55 0 12 5 , 00 0 12 6 , 00 0 12 6 , 50 0 12 7 , 00 0 12 7 , 50 0 12 7 , 50 0 12 8 , 50 0 12 9 , 00 0 13 0 , 25 0 50 0 , 29 3 Vo i c e o v e r I P 00 0 00 0 00 0 12 , 00 0 15 , 00 0 00 0 Lo n g D i s t a n c e 10 0 20 0 30 0 40 0 00 0 We b H o s t i n g S e r v i c e s 16 , 25 0 24 , 55 0 25 , 05 0 25 , 55 0 26 , 05 0 26 , 55 0 27 , 05 0 27 , 55 0 28 , 05 0 28 , 55 0 29 , 05 0 29 , 55 0 31 3 80 0 Co - lo c a t i o n 15 , 85 0 12 , 32 1 12 , 57 1 12 , 82 1 13 , 07 1 13 , 32 1 13 , 57 1 13 , 82 1 14 , 07 1 14 , 32 1 14 , 57 1 82 1 16 5 13 1 Pr i v a t e - lin e T r a n s p o r t 63 , 67 2 51 , 70 4 55 , 25 0 55 , 95 0 58 , 35 0 80 , 25 0 83 , 75 0 87 , 25 0 75 0 94 , 25 0 97 , 75 0 10 1 , 25 0 92 0 , 17 6 Et h e r n e t T r a n s p o r t 75 , 90 0 77 , 09 2 80 , 0 9 2 83 , 34 2 86 , 59 2 89 , 84 2 94 , 59 2 95 , 25 0 97 , 00 0 00 0 99 , 50 0 10 1 50 0 07 7 70 2 In c o m e - O t h e r 23 , 00 0 21 , 95 0 22 , 95 0 23 , 95 0 24 , 95 0 25 , 95 0 25 , 45 0 26 , 4 5 0 45 0 45 0 29 , 4 5 0 30 , 45 0 31 0 45 0 No n - Re c u r r i n g I n c o m e 12 , 50 0 13 , 00 0 50 0 14 , 50 0 50 0 16 , 50 0 17 , 50 0 18 , 50 0 19 , 50 0 20 , 50 0 21 , 50 0 22 , 50 0 20 5 50 0 Ne t R e v e n u e ll l i . i l l Si l l . 1 l l l5 . . ! l . . i l l . 55 2 0 . 76 3 55 4 7 . 86 3 li l l . l l i ll . M . l l l ll M . i l l ll 8 1 . l l l ll l l . l l ! ll i ! . l l l 56 . 73 . 6 Co s t or Sa l e s : ca s - N a r r o w b a n d In t e r n e t $2 7 , 75 0 $4 5 , 89 0 $4 5 , 89 0 $4 5 , 89 0 $3 8 , 89 0 $3 8 , 89 0 $1 5 , 00 0 $1 5 , 00 0 $1 5 , 00 0 $1 0 , 00 0 $1 0 , 00 0 $1 0 , 00 0 $3 1 8 , 20 0 ca s , I S P Te l c o 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 41 , 00 0 ca s - B r o a d b a n d In t e r n e t L o o p 20 , 15 0 20 , 15 0 30 , 50 0 30 , 50 0 31 , 50 0 31 , 50 0 31 , 75 0 31 , 75 0 32 , 50 0 32 , 50 0 32 , 50 0 32 , 95 0 35 8 25 0 ca s - V o i c e ov e r I P 00 0 00 0 00 0 00 0 50 0 50 0 00 0 3, 0 0 0 19 , 00 0 ca s - L o n g Di s t a n c e 10 0 20 0 40 0 20 0 92 5 ca s - P r i v a t e - lin e T r a n s p o r t 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 16 , 00 0 16 , 50 0 16 , 50 0 17 , 50 0 17 , 50 0 17 , 50 0 17 , 50 0 17 , 50 0 19 6 , 50 0 ca s - Et h e r n e t T r a n s p o r t 75 0 21 , 75 0 21 , 75 0 21 , 75 0 23 , 00 0 23 , 00 0 25 , 50 0 25 , 50 0 27 , 00 0 27 , 00 0 27 , 50 0 28 , 00 0 29 3 , 50 0 ca s - D S L Tr a n s p o r t 25 0 17 , 50 0 19 , 50 0 21 , 56 3 73 5 21 , 82 1 90 8 99 4 21 , 99 4 22 , 16 6 25 3 22 , 4 6 8 25 4 15 1 ca s - S a N E T M e t r o B a c k b o n e 20 , 92 5 20 , 92 5 20 , 92 5 00 0 24 , 0 0 0 00 0 24 , 00 0 24 , 00 0 24 , 00 0 24 , 00 0 24 , 00 0 24 , 00 0 27 8 77 5 ca s - I P Tr a n s i t 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 85 , 00 0 ca s - I L E C C o - lo c a t e 91 0 91 0 91 0 91 0 91 0 91 0 91 0 91 0 11 , 00 0 11 , 00 0 11 , 00 0 00 0 12 3 , 28 0 Ot h e r C o s t o f S a l e s 45 0 45 0 45 0 45 0 45 0 45 0 45 0 45 0 45 0 45 0 45 0 45 0 10 , 40 0 To t a l C o s t or Sa l e s 51 4 7 . 43 5 51 7 0 . 82 5 51 7 6 . 17 5 ll M . i l l 51 7 8 . 73 5 1l l l . l l l 1l l i . l l . ! ! 1l l i . l Z . 2 l. W . l l i .s . l l M . M li l l . . l l i 97 8 Gr o s s P r o f i t $2 5 0 , 48 7 $3 3 1 , 43 4 $3 3 3 28 8 $3 3 3 , 05 1 $3 4 2 02 8 $3 7 0 , 54 2 $3 9 9 , 59 6 $4 0 6 , 94 2 $4 1 3 , 65 2 $4 2 7 , 95 5 $4 3 7 , 76 9 $4 4 7 , 90 3 $4 , 49 4 , 64 5 Op e r a t i n g E x p e n s e s : Pa y r o l l & B e n e f i t s $6 9 , 50 0 $9 6 , 45 0 $9 6 , 4 5 0 $9 6 , 45 0 $9 6 45 0 $9 6 , 4 5 0 $9 6 , 45 0 $1 0 2 , 50 0 $1 0 2 , 50 0 $1 0 2 , 50 0 $1 0 2 , 50 0 $1 0 2 , 50 0 16 0 , 70 0 Tr a i n i n g 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 18 , 00 0 Lo d g i n g 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 18 , 00 0 Me a l s & E n t e r t a i n m e n t 00 0 00 0 00 0 00 0 00 0 00 0 1. 0 0 0 00 0 00 0 00 0 00 0 00 0 12 , 00 0 Tr a n s p o r t a t i o n 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 00 0 Pa r k i " g 90 0 90 0 90 0 90 0 90 0 90 0 90 0 90 0 90 0 90 0 90 0 90 0 80 0 Lo n g h a u l B a c k b o n e 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 17 , 70 0 21 2 , 40 0 Ba c k h a u l f o r M o n i t o r i n g 50 0 50 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 13 , 00 0 Of f i c e - R e n t a l P a y m e n t s 22 , 5 0 0 22 , 50 0 22 , 5 0 0 22 , 50 0 22 , 50 0 22 , 50 0 22 , 50 0 22 , 50 0 50 0 22 , 50 0 22 , 50 0 22 , 5 0 0 27 0 , 00 0 Of f i c e - M a i n t e n a n c e & M o n i t o r i n g 00 0 50 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 23 , 50 0 Of f i c e - U t i l i t i e s 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 Hu b S i t e - l e a s e / R e n t 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 10 0 85 , 20 0 Hu b S i t e - U t i l i t i e s 20 0 50 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 70 0 Pr o f e s s i o n a l S e r v i c e s 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 15 , 00 0 18 0 00 0 Bu s i n e s s T a x e s 80 0 90 0 00 0 10 0 20 0 30 0 40 0 50 0 60 0 70 0 80 0 90 0 28 , 20 0 Pr o p e r t y T a x e s 1, 3 5 0 35 0 35 0 35 0 35 0 35 0 35 0 35 0 35 0 35 0 35 0 35 0 16 , 20 0 Bu s i n e s s L i c e n s e s & F e e s 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 00 0 Te l e p h o n e C h a r g e s 30 0 30 0 30 0 30 0 30 0 30 0 30 0 30 0 30 0 30 0 30 0 30 0 63 , 60 0 Ce l l u l a r T e l e p h o n e C h a r g e s 85 0 85 0 85 0 85 0 85 0 85 0 85 0 85 0 85 0 85 0 85 0 85 0 20 0 Bu s i n e s s I n s u r a n c e 17 1 27 5 27 5 27 5 27 5 27 5 27 5 27 5 27 5 27 5 27 5 27 5 19 6 Po s t a g e & 5 h i p p i n g 80 0 80 0 80 0 80 0 80 0 80 0 80 0 80 0 80 0 80 0 80 0 80 0 21 , 60 0 Pr i n t i n g 42 0 70 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 12 0 Of f i c e E x p e n s e s & 5 u p p l i e s 50 0 85 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 18 , 35 0 5m a l l T o o l s & I n c i d e n t a l s 40 0 75 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 50 0 15 0 Fr e i g h t E x p e n s e 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 20 0 40 0 CP E E x p e n s e 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 00 0 le a s e s - E q u i p m e n t 17 , 35 0 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 25 , 82 1 82 1 30 1 , 38 1 le a s e s - W h s / O t h e r 17 6 06 7 06 7 06 7 06 7 06 7 06 7 06 7 06 7 06 7 06 7 06 7 91 3 Me r c h a n t S e r v i c e s / F e e s 20 0 50 0 50 0 50 0 50 0 50 0 75 0 75 0 75 0 75 0 75 0 75 0 30 , 20 0 15 S o f t W a r e & H a r d w a r e M a i n t - 65 0 75 0 65 0 65 0 65 0 65 0 65 0 65 0 65 0 65 0 65 0 65 0 90 0 Eq u i p m e n t R e p a i r & M a i n t . 25 0 40 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 25 0 15 0 Sa l e s & M a r k e t i n g 00 0 00 0 00 0 10 , 00 0 10 , 00 0 12 , 50 0 15 , 00 0 15 , 00 0 20 , 00 0 20 , 00 0 20 , 00 0 20 , 00 0 16 6 50 0 Ga i n / ( l o s s ) o n S a l e o f F i x e d A s s e t s To t a l O p e r a t i n g E x p e n s e s li l l M Z 1l l i . . i l l . $2 3 4 . 86 3 $2 3 6 . 96 3 .r n L . i l l . ll l l . l l i $2 4 2 . 51 3 ll l i . l l i tl l i . . l l i . $2 5 3 . 86 3 li l l . . H 1 ll . W ! l l 88 3 36 0 EB I T D A $5 7 42 0 $9 6 52 1 $9 8 , 42 5 $9 6 , 08 8 $1 0 4 , 96 5 $1 3 0 , 87 9 $1 5 7 08 3 $1 5 8 , 27 9 $1 5 9 88 9 $1 7 4 , 09 2 $1 8 3 , 80 6 $1 9 3 , 84 0 61 1 , 28 5 In t e r e s t E x p e n s e $2 2 , 50 0 $2 2 , 50 0 $2 2 50 0 $2 2 50 0 $2 2 , 50 0 $2 2 , 50 0 $2 2 50 0 $2 2 50 0 $2 2 50 0 $2 2 50 0 $2 2 50 0 $2 2 , 50 0 $2 7 0 00 0 Pr o f i t a f t e r I n t e r e s t $3 4 , 92 0 $7 4 , 02 1 $7 5 , 92 5 $7 3 58 8 $8 2 , 46 5 $1 0 8 , 37 9 $1 3 4 , 58 3 $1 3 5 , 77 9 $1 3 7 , 38 9 $1 5 1 , 59 2 $1 6 1 , 30 6 $1 7 1 34 0 34 1 28 5 De p r e c i a t i o n E x p e n s e $2 3 . 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 7 6 , 00 0 Am o r t i z a t i o n E x p e n s e $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 54 4 $4 , 54 4 $5 4 52 8 Ba d D e b t E x p e n s e $1 , 50 0 $1 , 50 0 50 0 $1 , 50 0 $1 , 50 0 $1 , 50 0 $1 , 50 0 $1 , 50 0 50 0 50 0 $1 , 50 0 $1 , 50 0 $1 8 , 00 0 Ne t P r o f i t $5 , 87 6 $4 4 97 7 $4 6 88 1 $4 4 , 54 4 $5 3 , 42 1 $7 9 33 5 $1 0 5 , 53 9 $1 0 6 , 73 5 $1 0 8 34 5 $1 2 2 , 54 8 $1 3 2 , 26 2 $1 4 2 29 6 $9 9 2 75 7 Ad d B a c k N o n - Ca s h E x p e n s e s : De p r e c i a t i o n E x p e n s e $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 3 , 00 0 $2 7 6 , 00 0 Am o r t i z a t i o n E x p e n s e $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 $4 , 54 4 54 4 $4 , 54 4 $4 , 54 4 $5 4 52 8 Ne t C a s h P r o f i t $3 3 , 42 0 $7 2 52 1 $7 4 , 42 5 $7 2 , 08 8 $8 0 , 96 5 $1 0 6 , 87 9 $1 3 3 , 08 3 $1 3 4 27 9 $1 3 5 , 88 9 $1 5 0 , 09 2 $1 5 9 80 6 $1 6 9 , 84 0 32 3 , 28 5 OneEighty Networks, Inc. Balance Sheet September YTD 05' --- Assets---OEN Sepember YTD 2005 Current Assets Cash Accounts Receivable Prepaid Insurance Prepaid Taxes Prepaid Maint. - Equip.&Software Earnest Money Prepaid Other Other Assets Deposits to - Carriers Deposits - Leases, etc Loan Fees Accum Amort Customer Lists Unicorn Note Recievable Total Other Assets 267. 255 457.41 (1,234.35) 100. 302. 156. 671.14 $271 721.63 $57 901. 952.48 311.95 654.4 7 659. 150 608. 102. 322. 556. 121.83 118 319. 50,450. 939.52 643. 608. 211 843.40 831.42 176. 517 897. 201 284.43) $102 615. $18 565. 150 000. 916. (99 802.88) 302 950. $415 628. $789,965. Total Current Assets Property and Equipment Vehicles Power Systems Central Office/Hubs/Node Sites Fiber - Distribution Test Equipment Leasehold Improvements Office Furn/Fixtures - ;::.$250 Office Equipment Computer Hardware - IS Computer Hardware - SP Data Comm Core Data Comm Edge Transport - Core Voicemail Platform - IS Voicemail Platform - SP Computer Software - IS Computer Software - SP Telecom Network Equipment - Highspeed Accumulated Depreciation Total PPE Total Assets --- Liabilities & Equity--- Current Liabilities Accounts Payable - Accrued State Sales Tax Payable County Sales Tax Payable City Sales Tax Payable Local Utility Tax Payable Telephone Assistance TRS Fund Payable Accrued Other Empee Benefits Deferred Revenue Total Current Liabilities Long-term Liabilities Notes Payable - (GregGreen.com. Notes Payable- Banner Bank Notes Payable - Bank CD, A\R LOC Notes Payable- Aspen Notes Payable-BT AlHSC Vehicle Liability-PT 1&2 Total Long- Tenn Liabilities Total Liabilities Equity Contributed Capital Retained Earnings Distributions Net Income Total Equity Total Liabilities & Equity OneEighty Networks, Inc. Balance Sheet September YTD 05' $192 863.41 591.00 783. 303. 409. 440. 23.52 271.74) 717. $238 862. $328 563. 146 228. 199 101.03 644 800. 738 347. 101.06 077 141.65 316 003. $225 000. (1,228 973.00) (522 065.00) ($1,526 038.00) $789,965.