Board of Directors Meeting Financial Review 10 January 2008

10 January 2008Company Confidential Pg 1

Board of Directors MeetingBoard of Directors MeetingFinancial ReviewFinancial Review10 January 200810 January 2008


FY 2007 ResultsFY 2007 Results• Revenue – 16% under forecast

– Publishing – 16% under forecast– Public Policy – 34% under forecast– Protective Intelligence – 20% under

forecast– CIS - 8% over forecast

• Expenses – 9% over budget• SG&A – 22% under budget• Profit – 188% under budget


Financial Results – P&LJanuary January January February February February March March MarchBudget Actuals Variance Budget Actuals Variance Budget Actuals Variance

RevenuesPublishing - Individual 236,652$ 236,652$ -$ 265,341$ 242,997$ (22,344)$ 269,276$ 253,949$ (15,327)$ Publishing - Institutional 91,649$ 91,649$ -$ 90,821$ 90,524$ (297)$ 90,902$ 95,207$ 4,305$ Public Policy 86,850$ 86,850$ -$ 117,850$ 98,325$ (19,525)$ 168,850$ 89,825$ (79,025)$ Security 75,367$ 75,367$ -$ 60,658$ 84,160$ 23,502$ 63,408$ 80,910$ 17,502$ Int'l - GV -$ -$ -$ 19,000$ -$ (19,000)$ 19,000$ -$ (19,000)$ Int'l - CIS/Consulting 147,000$ 147,000$ -$ 151,650$ 203,000$ 51,350$ 145,145$ 43,500$ (101,645)$

637,518$ 637,518$ -$ 705,321$ 719,006$ 13,686$ 756,581$ 563,391$ (193,190)$

Monthly ExpensesPayroll

Regular 193,184$ 193,184$ -$ 196,466$ 196,604$ 138$ 196,466$ 199,943$ 3,477$ Adjustments -$ -$ -$ 583$ -$ (583)$ 5,000$ -$ (5,000)$ Commissions 14,430$ 14,430$ -$ 20,867$ 36,796$ 15,929$ 25,975$ 21,271$ (4,704)$

Regular + Commissions 207,614$ 207,614$ -$ 217,916$ 233,400$ 15,484$ 227,441$ 221,214$ (6,227)$ Payroll Taxes 26,608$ 26,608$ -$ 29,637$ 19,484$ (10,153)$ 29,637$ 15,417$ (14,220)$ Benefits 16,706$ 16,706$ -$ 27,208$ 17,705$ (9,503)$ 27,208$ 20,846$ (6,362)$ UA 34,967$ 34,967$ -$ 28,188$ 28,405$ 217$ 28,188$ 28,035$ (153)$ UA Gross-up @ -$ -$ -$ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ International 26,718$ 26,718$ -$ 23,945$ 34,070$ 10,125$ 23,945$ 32,081$ 8,136$ Adjustments -$ -$ -$ 500$ -$ (500)$ 1,000$ -$ (1,000)$ International Gross-up @ -$ -$ -$ -$ -$ -$ -$ -$ -$

293,798$ 293,798$ -$ 334,441$ 333,064$ (1,377)$ 344,466$ 317,593$ (26,873)$ Other Operating

Subcontractors/Consultants 37,023$ 37,023$ -$ 39,500$ 25,789$ (13,711)$ 35,500$ 29,763$ (5,737)$ International Placement -$ -$ -$ -$ -$ -$ -$ 22,951$ 22,951$ Facilities 39,645$ 39,645$ -$ 35,405$ 32,863$ (2,542)$ 35,405$ 37,061$ 1,656$ Utilities 640$ 640$ -$ 50$ (252)$ (302)$ 50$ 935$ 885$ Purchased IT 12,179$ 12,179$ -$ 26,609$ 17,323$ (9,286)$ 21,335$ 18,767$ (2,568)$ Employee Expenses -$ -$ -$ 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ Non Billable Travel 21,090$ 21,090$ -$ 13,500$ (3,766)$ (17,266)$ 13,500$ 6,544$ (6,956)$ Legal 6,237$ 6,237$ -$ 5,000$ 3,721$ (1,279)$ 5,000$ 14,763$ 9,763$ Other 13,797$ 13,797$ -$ 6,700$ 9,010$ 2,310$ 6,700$ 11,923$ 5,223$ Professional Services 5,454$ 5,454$ -$ 1,920$ 2,393$ 473$ 1,920$ 3,185$ 1,265$ Employee (Old) -$ -$ -$ 17,018$ -$ (17,018)$ 9,518$ -$ (9,518)$

136,065$ 136,065$ -$ 158,202$ 87,081$ (71,121)$ 141,428$ 145,892$ 4,464$

Subtotal Operating Expense 429,863$ 429,863$ -$ 492,643$ 420,145$ (72,498)$ 485,894$ 463,485$ (22,409)$

SG&AFinance/HR 8,442$ 8,442$ -$ 8,442$ 8,442$ 0$ 8,958$ 8,958$ -$ Administrative 19,167$ 19,167$ -$ 19,583$ 23,333$ 3,750$ 21,250$ 25,000$ 3,750$ Executive 44,583$ 44,583$ -$ 56,667$ 46,250$ (10,417)$ 56,667$ 46,250$ (10,417)$ Sales, Marketing, PR 15,883$ 15,883$ -$ 20,258$ 15,883$ (4,375)$ 20,258$ 15,883$ (4,375)$ IT 10,167$ 10,167$ -$ 10,167$ 10,167$ 0$ 10,167$ 10,167$ -$ Business Development 10,883$ 10,883$ -$ -$ 10,833$ 10,833$ -$ 10,883$ 10,883$ Payroll Taxes 14,727$ 14,727$ -$ 15,656$ 11,386$ (4,270)$ 15,953$ 9,024$ (6,929)$ Benefits 5,930$ 5,930$ -$ 20,392$ (13,869)$ (34,261)$ 20,392$ 9,277$ (11,115)$

129,782$ 129,782$ -$ 151,165$ 112,425$ (38,740)$ 153,645$ 135,442$ (18,203)$

Total Operating Expense 559,645$ 559,645$ -$ 643,808$ 532,570$ (111,238)$ 639,539$ 598,927$ (40,612)$

Operating Income/EBITDA 77,873$ 77,873$ -$ 61,512$ 186,436$ 124,924$ 117,042$ (35,536)$ (152,578)$


Financial Results – P&LApril April April May May May June June June

Budget Actuals Variance Budget Actuals Variance Budget Actuals VarianceRevenues

Publishing - Individual 277,188$ 254,996$ (22,192)$ 283,473$ 265,387$ (18,086)$ 298,550$ 276,223$ (22,327)$ Publishing - Institutional 91,095$ 97,347$ 6,252$ 92,411$ 102,895$ 10,485$ 113,403$ 101,424$ (11,979)$ Public Policy 151,350$ 71,800$ (79,550)$ 143,017$ 143,850$ 833$ 192,850$ 95,610$ (97,240)$ Security 78,408$ 41,910$ (36,498)$ 75,908$ 45,410$ (30,498)$ 75,908$ 83,985$ 8,077$ Int'l - GV 19,000$ 5,000$ (14,000)$ 19,000$ 15,167$ (3,833)$ 19,000$ 17,467$ (1,533)$ Int'l - CIS/Consulting 120,150$ 58,495$ (61,655)$ 132,150$ 99,750$ (32,400)$ 38,650$ 99,500$ 60,850$

737,192$ 529,548$ (207,644)$ 745,959$ 672,459$ (73,500)$ 738,361$ 674,209$ (64,152)$


Regular 196,466$ 202,971$ 6,505$ 196,466$ 236,234$ 39,768$ 196,466$ 266,249$ 69,783$ Adjustments 5,000$ -$ (5,000)$ 5,000$ -$ (5,000)$ 5,000$ -$ (5,000)$ Commissions 24,245$ 34,860$ 10,615$ 23,543$ 4,115$ (19,428)$ 30,625$ 53,259$ 22,634$

Regular + Commissions 225,710$ 237,831$ 12,121$ 225,009$ 240,349$ 15,340$ 232,091$ 319,508$ 87,417$ Payroll Taxes 29,637$ 15,656$ (13,981)$ 29,637$ 16,253$ (13,384)$ 29,637$ 19,697$ (9,940)$ Benefits 27,208$ 18,110$ (9,098)$ 27,208$ 21,658$ (5,550)$ 27,208$ 37,843$ 10,635$ UA 28,188$ 29,067$ 879$ 28,188$ 32,803$ 4,615$ 28,188$ 42,233$ 14,045$ UA Gross-up @ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ International 23,945$ 27,164$ 3,219$ 23,945$ 34,107$ 10,162$ 23,945$ 32,909$ 8,964$ Adjustments 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ International Gross-up -$ -$ -$ -$ -$ -$ -$ -$ -$

342,735$ 327,828$ (14,907)$ 342,034$ 345,170$ 3,136$ 349,116$ 452,190$ 103,074$ Other Operating

Subcontractors/Consultants 45,500$ 36,069$ (9,431)$ 45,500$ 46,636$ 1,136$ 50,500$ 58,703$ 8,203$ International Placement 12,500$ 35,010$ 22,510$ 12,500$ 8,875$ (3,625)$ 12,500$ 8,976$ (3,524)$ Facilities 32,955$ 45,327$ 12,372$ 29,855$ 45,994$ 16,139$ 29,855$ 44,462$ 14,607$ Utilities 50$ 465$ 415$ 50$ 926$ 876$ 50$ 1,004$ 954$ Purchased IT 17,609$ 16,462$ (1,147)$ 17,609$ 14,548$ (3,061)$ 33,835$ 26,325$ (7,510)$ Employee Expenses 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ Non Billable Travel 13,500$ 22,179$ 8,679$ 13,500$ 6,498$ (7,002)$ 13,500$ 11,343$ (2,157)$ Legal 4,500$ 4,073$ (427)$ 4,500$ 4,632$ 132$ 4,500$ 14,082$ 9,582$ Other 6,700$ 21,673$ 14,973$ 6,700$ 15,068$ 8,368$ 6,700$ 15,975$ 9,275$ Professional Services 1,920$ 1,659$ (261)$ 1,920$ 5,055$ 3,135$ 1,920$ 10,852$ 8,932$ Employee (Old) 9,518$ -$ (9,518)$ 9,518$ -$ (9,518)$ 8,492$ -$ (8,492)$

157,252$ 182,917$ 25,665$ 154,152$ 148,232$ (5,920)$ 174,352$ 191,722$ 17,370$

Subtotal Operating Expense 499,987$ 510,745$ 10,758$ 496,186$ 493,402$ (2,784)$ 523,468$ 643,912$ 120,444$

SG&AFinance/HR 8,958$ 8,961$ 3$ 8,958$ 13,136$ 4,178$ 8,958$ 13,136$ 4,178$ Administrative 21,250$ 27,521$ 6,271$ 21,250$ -$ (21,250)$ 21,250$ -$ (21,250)$ Executive 56,667$ 57,208$ 541$ 46,250$ 52,577$ 6,327$ 47,917$ 52,577$ 4,660$ Sales, Marketing, PR 20,258$ 15,310$ (4,948)$ 20,258$ 30,548$ 10,290$ 20,258$ 12,239$ (8,019)$ IT 20,167$ 10,169$ (9,998)$ 20,167$ 22,669$ 2,502$ 20,167$ 22,669$ 2,502$ Business Development -$ 10,852$ 10,852$ -$ -$ -$ -$ -$ -$ Payroll Taxes 17,313$ 10,191$ (7,122)$ 15,896$ 12,613$ (3,283)$ 16,123$ 6,848$ (9,275)$ Benefits 20,392$ 9,167$ (11,225)$ 20,392$ 12,725$ (7,667)$ 20,392$ 17,469$ (2,923)$

165,005$ 149,379$ (15,626)$ 153,172$ 144,268$ (8,904)$ 155,065$ 124,938$ (30,127)$

Total Operating Expense 664,993$ 660,124$ (4,869)$ 649,357$ 637,670$ (11,687)$ 678,533$ 768,850$ 90,317$

Operating Income/EBITDA 72,199$ (130,576)$ (202,775)$ 96,601$ 34,789$ (61,813)$ 59,828$ (94,641)$ (154,469)$


Financial Results – P&LJuly July July August August August September September September

Budget Actuals Variance Budget Actuals Variance Budget Actuals VarianceRevenues

Publishing - Individual 307,035$ 264,446$ (42,589)$ 320,327$ 268,199$ (52,128)$ 338,966$ 271,437$ (67,529)$ Publishing - Institutional 114,669$ 102,994$ (11,675)$ 162,888$ 103,285$ (59,603)$ 163,575$ 116,685$ (46,890)$ Public Policy 155,017$ 76,680$ (78,337)$ 150,850$ 95,460$ (55,390)$ 155,017$ 94,760$ (60,257)$ Security 75,908$ 38,843$ (37,065)$ 75,908$ 43,942$ (31,966)$ 75,908$ 44,170$ (31,738)$ Int'l - GV 19,000$ 19,133$ 133$ 19,000$ 24,133$ 5,133$ 19,000$ 22,467$ 3,467$ Int'l - CIS/Consulting 40,650$ 17,170$ (23,480)$ 35,650$ 162,004$ 126,354$ 40,650$ 46,435$ 5,785$

712,280$ 519,266$ (193,014)$ 764,623$ 697,023$ (67,600)$ 793,117$ 595,954$ (197,163)$


Regular 196,466$ 268,652$ 72,186$ 196,466$ 268,652$ 72,186$ 196,466$ 256,156$ 59,690$ Adjustments 11,250$ -$ (11,250)$ 11,250$ -$ (11,250)$ 11,250$ -$ (11,250)$ Commissions 26,969$ 7,986$ (18,983)$ 31,374$ 21,215$ (10,159)$ 31,859$ 23,502$ (8,357)$

Regular + Commissions 234,684$ 276,638$ 41,954$ 239,090$ 289,867$ 50,777$ 239,575$ 279,658$ 40,083$ Payroll Taxes 29,637$ 25,258$ (4,379)$ 29,637$ 18,196$ (11,441)$ 29,637$ 16,381$ (13,256)$ Benefits 27,208$ 22,608$ (4,600)$ 27,208$ 25,556$ (1,652)$ 27,208$ 23,365$ (3,843)$ UA 28,188$ 38,318$ 10,130$ 28,188$ 36,921$ 8,733$ 28,188$ 33,006$ 4,818$ UA Gross-up @ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ International 23,945$ 34,273$ 10,328$ 23,945$ 37,300$ 13,355$ 23,945$ 39,092$ 15,147$ Adjustments 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ International Gross-up -$ -$ -$ -$ -$ -$ -$ -$ -$

351,709$ 397,095$ 45,386$ 356,115$ 407,840$ 51,725$ 356,600$ 391,502$ 34,902$ Other Operating

Subcontractors/Consultants 40,500$ 21,582$ (18,918)$ 40,500$ 22,529$ (17,971)$ 40,500$ 41,772$ 1,272$ International Placement 25,000$ 23,268$ (1,732)$ 25,000$ 13,993$ (11,007)$ 25,000$ 14,447$ (10,553)$ Facilities 29,855$ 41,050$ 11,195$ 29,855$ 40,419$ 10,564$ 29,855$ 39,099$ 9,244$ Utilities 50$ 827$ 777$ 50$ 736$ 686$ 50$ 913$ 863$ Purchased IT 32,609$ 19,833$ (12,776)$ 32,609$ 47,873$ 15,264$ 41,335$ 41,224$ (111)$ Employee Expenses 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ Non Billable Travel 13,500$ 13,169$ (331)$ 13,500$ 33,131$ 19,631$ 13,500$ 10,996$ (2,504)$ Legal 4,500$ 11,428$ 6,928$ 4,500$ 7,062$ 2,562$ 4,500$ 6,784$ 2,284$ Other 6,700$ 35,659$ 28,959$ 6,700$ 33,364$ 26,664$ 6,700$ 62,230$ 55,530$ Professional Services 1,920$ 5,431$ 3,511$ 1,920$ 5,431$ 3,511$ 1,920$ 7,680$ 5,760$ Employee (Old) 8,492$ -$ (8,492)$ 3,700$ -$ (3,700)$ 3,700$ -$ (3,700)$

175,626$ 172,247$ (3,379)$ 170,834$ 204,538$ 33,704$ 179,560$ 225,145$ 45,585$

Subtotal Operating Expense 527,335$ 569,342$ 42,007$ 526,949$ 612,378$ 85,429$ 536,160$ 616,647$ 80,487$

SG&AFinance/HR 8,958$ 13,136$ 4,178$ 8,958$ 15,220$ 6,262$ 8,958$ 15,220$ 6,262$ Administrative 21,250$ -$ (21,250)$ 21250 -$ (21,250)$ 21,250$ -$ (21,250)$ Executive 47,917$ 52,577$ 4,660$ 47,917$ 42,141$ (5,776)$ 47,917$ 42,141$ (5,776)$ Sales, Marketing, PR 20,258$ 13,908$ (6,350)$ 20,258$ 13,033$ (7,225)$ 20,258$ 12,866$ (7,392)$ IT 32,667$ 22,669$ (9,998)$ 32,667$ 29,780$ (2,887)$ 32,667$ 29,335$ (3,332)$ Business Development -$ -$ -$ -$ -$ -$ -$ -$ -$ Payroll Taxes 17,823$ 7,180$ (10,643)$ 17,823$ 6,923$ (10,900)$ 17,823$ 6,706$ (11,117)$ Benefits 20,392$ 16,864$ (3,528)$ 20,392$ 16,079$ (4,313)$ 20,392$ 12,811$ (7,581)$

169,265$ 126,334$ (42,931)$ 169,265$ 123,176$ (46,089)$ 169,265$ 119,079$ (50,186)$

Total Operating Expense 696,600$ 695,676$ (924)$ 696,214$ 735,554$ 39,340$ 705,425$ 735,726$ 30,301$

Operating Income/EBITDA 15,679$ (176,410)$ (192,089)$ 68,409$ (38,531)$ (106,940)$ 87,691$ (139,772)$ (227,463)$


Financial Results – P&LOctober October October November November November December December DecemberBudget Actuals Variance Budget Actuals Variance Budget Actuals Variance

RevenuesPublishing - Individual 341,735$ 260,099$ (81,636)$ 352,932$ 258,200$ (94,732)$ 353,035$ 269,462$ (83,573)$ Publishing - Institutional 163,879$ 116,953$ (46,926)$ 157,912$ 113,792$ (44,120)$ 155,316$ 118,160$ (37,156)$ Public Policy 130,850$ 103,716$ (27,134)$ 130,850$ 99,468$ (31,382)$ 130,850$ 76,468$ (54,382)$ Security 75,908$ 79,777$ 3,869$ 75,908$ 53,529$ (22,379)$ 75,908$ 37,617$ (38,291)$ Int'l - GV 19,000$ 24,300$ 5,300$ 19,000$ 26,467$ 7,467$ 19,000$ 26,467$ 7,467$ Int'l - CIS/Consulting 35,650$ 53,083$ 17,433$ 35,650$ 47,409$ 11,759$ 35,650$ 62,409$ 26,759$

767,022$ 637,928$ (129,094)$ 772,253$ 598,865$ (173,388)$ 769,759$ 590,583$ (179,176)$


Regular 196,466$ 260,185$ 63,719$ 196,466$ 257,767$ 61,301$ 196,466$ 260,503$ 64,037$ Adjustments 11,250$ -$ (11,250)$ 11,250$ -$ (11,250)$ 11,250$ -$ (11,250)$ Commissions 29,473$ 18,247$ (11,226)$ 28,876$ 32,627$ 3,751$ 28,617$ 24,020$ (4,597)$

Regular + Commissions 237,189$ 278,432$ 41,243$ 236,592$ 290,394$ 53,802$ 236,332$ 284,523$ 48,191$ Payroll Taxes 29,637$ 16,741$ (12,896)$ 29,637$ 17,713$ (11,924)$ 29,637$ 15,368$ (14,269)$ Benefits 27,208$ 31,998$ 4,790$ 27,208$ 25,539$ (1,669)$ 27,208$ 25,157$ (2,051)$ UA 28,188$ 31,011$ 2,823$ 28,188$ 27,087$ (1,101)$ 28,188$ 27,300$ (888)$ UA Gross-up @ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ 7,047$ -$ (7,047)$ International 23,945$ 38,566$ 14,621$ 23,945$ 38,772$ 14,827$ 23,945$ 44,975$ 21,030$ Adjustments 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ 1,000$ -$ (1,000)$ International Gross-up -$ -$ -$ -$ -$ -$ -$ -$ -$

354,214$ 396,748$ 42,534$ 353,617$ 399,505$ 45,888$ 353,357$ 397,323$ 43,966$ Other Operating

Subcontractors/Consultants 40,500$ 33,539$ (6,961)$ 40,500$ 39,526$ (974)$ 40,500$ 15,852$ (24,648)$ International Placement 25,000$ 4,724$ (20,276)$ 25,000$ 6,776$ (18,224)$ 25,000$ 13,651$ (11,349)$ Facilities 29,855$ 46,271$ 16,416$ 29,855$ 41,275$ 11,420$ 32,305$ 39,720$ 7,415$ Utilities 50$ 612$ 562$ 50$ 676$ 626$ 50$ 785$ 735$ Purchased IT 42,609$ 49,228$ 6,619$ 37,609$ 52,674$ 15,065$ 36,335$ 69,011$ 32,676$ Employee Expenses 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ 12,500$ -$ (12,500)$ Non Billable Travel 13,500$ 28,585$ 15,085$ 13,500$ 21,417$ 7,917$ 13,500$ 13,780$ 280$ Legal 4,500$ 6,626$ 2,126$ 4,500$ 5,023$ 523$ 4,500$ 2,954$ (1,546)$ Other 6,700$ 15,625$ 8,925$ 6,700$ 57,057$ 50,357$ 6,700$ 146,429$ 139,729$ Professional Services 1,920$ 5,374$ 3,454$ 1,920$ 6,877$ 4,957$ 1,920$ 9,390$ 7,470$ Employee (Old) 3,700$ -$ (3,700)$ 3,700$ -$ (3,700)$ -$ -$ -$

180,834$ 190,584$ 9,750$ 175,834$ 231,301$ 55,467$ 173,310$ 311,572$ 138,262$

Subtotal Operating Expense 535,048$ 587,332$ 52,284$ 529,451$ 630,806$ 101,355$ 526,667$ 708,895$ 182,228$

SG&AFinance/HR 8,958$ 19,595$ 10,637$ 8,958$ 19,595$ 10,637$ 8,958$ 19,595$ 10,637$ Administrative 21,250$ -$ (21,250)$ 21,250$ -$ (21,250)$ 21,250$ -$ (21,250)$ Executive 47,917$ 42,141$ (5,776)$ 47,917$ 42,141$ (5,776)$ 47,917$ 42,141$ (5,776)$ Sales, Marketing, PR 20,258$ 13,361$ (6,897)$ 20,258$ 13,361$ (6,897)$ 20,258$ 13,614$ (6,644)$ IT 32,667$ 19,960$ (12,707)$ 32,667$ 24,252$ (8,415)$ 32,667$ 28,502$ (4,165)$ Business Development -$ -$ -$ -$ -$ -$ -$ -$ -$ Payroll Taxes 17,823$ 6,482$ (11,341)$ 17,823$ 6,190$ (11,633)$ 17,823$ 6,097$ (11,726)$ Benefits 20,392$ 8,451$ (11,941)$ 20,392$ 9,755$ (10,637)$ 20,392$ 9,867$ (10,525)$

169,265$ 109,990$ (59,275)$ 169,265$ 115,294$ (53,971)$ 169,265$ 119,816$ (49,449)$

Total Operating Expense 704,313$ 697,322$ (6,991)$ 698,716$ 746,100$ 47,384$ 695,933$ 828,711$ 132,778$

Operating Income/EBITDA 62,709$ (59,394)$ (122,103)$ 73,536$ (147,235)$ (220,771)$ 73,827$ (238,128)$ (311,955)$


Financial Results – P&LYTD YTD YTD

Budget Actuals VarianceRevenues

Publishing - Individual 3,644,510$ 3,122,047$ (522,463)$ Publishing - Institutional 1,488,520$ 1,250,915$ (237,605)$ Public Policy 1,714,201$ 1,132,812$ (581,389)$ Security 885,109$ 709,620$ (175,489)$ Int'l - GV 209,000$ 180,601$ (28,399)$ Int'l - CIS/Consulting 958,645$ 1,039,755$ 81,110$

8,899,985$ 7,435,750$ (1,464,235)$


Regular 2,354,308$ 2,867,100$ 512,792$ Adjustments 88,083$ -$ (88,083)$ Commissions 316,852$ 292,328$ (24,524)$

Regular + Commissions 2,759,244$ 3,159,428$ 400,184$ Payroll Taxes 352,611$ 222,772$ (129,839)$ Benefits 315,997$ 287,091$ (28,906)$ UA 345,035$ 389,153$ 44,118$ UA Gross-up @ 77,517$ -$ (77,517)$ International 290,113$ 420,027$ 129,914$ Adjustments 10,500$ -$ (10,500)$ International Gross-up -$ -$ -$

4,132,202$ 4,459,656$ 327,454$ Other Operating

Subcontractors/Consultants 496,523$ 408,783$ (87,740)$ International Placement 187,500$ 152,671$ (34,829)$ Facilities 384,700$ 493,186$ 108,486$ Utilities 1,190$ 8,267$ 7,077$ Purchased IT 352,282$ 385,447$ 33,165$ Employee Expenses 137,500$ -$ (137,500)$ Non Billable Travel 169,590$ 184,966$ 15,376$ Legal 56,737$ 87,385$ 30,648$ Other 87,497$ 437,810$ 350,313$ Professional Services 26,574$ 68,781$ 42,207$ Employee (Old) 77,355$ -$ (77,355)$

1,977,448$ 2,227,296$ 249,848$

Subtotal Operating Expense 6,109,650$ 6,686,952$ 577,302$

SG&AFinance/HR 106,467$ 163,436$ 56,969$ Administrative 251,250$ 95,021$ (156,229)$ Executive 596,249$ 562,727$ (33,522)$ Sales, Marketing, PR 238,725$ 185,889$ (52,836)$ IT 287,000$ 240,506$ (46,495)$ Business Development 10,883$ 43,451$ 32,568$ Payroll Taxes 202,604$ 104,367$ (98,237)$ Benefits 230,247$ 114,526$ (115,721)$

1,923,427$ 1,509,923$ (413,504)$

Total Operating Expense 8,033,077$ 8,196,875$ 163,798$

Operating Income/EBITDA 866,908$ (761,125)$ (1,628,033)$


Financial Results – Balance SheetASSETS

Current Assets

Checking/Savings

10000 · Cash

101 · Texas Capital Bank -3,468.09

10100 · Guaranty Bank 39,744.60

10102 · CoAmerica Bank 1,119.56

10110 · TCB-Payroll 59.04

10900 · Petty Cash 152.07

Total 10000 · Cash 37,607.18

Total Checking/Savings 37,607.18

Accounts Receivable

12000 · Accounts Receivable

12100 · Allowance for Doubtful Accounts -12,447.00

12000 · Accounts Receivable - Other 174,827.85

Total 12000 · Accounts Receivable 162,380.85

Total Accounts Receivable 162,380.85

Other Current Assets

13100 · Deposits 46,810.30

13500 · Prepaid Insurance 14,282.45

13700 · Prepaid, Other 19,635.17

Total Other Current Assets 80,727.92

Total Current Assets 280,715.95

Fixed Assets

17000 · Fixed Assets

17100 · Computer Equipment 294,828.34

17150 · Equipment 2,814.45

17300 · Software 56,115.84

17500 · Furniture and Fixtures 123,676.01

18000 · Accumulated Depreciation -383,356.17

Total 17000 · Fixed Assets 94,078.47

Total Fixed Assets 94,078.47

Other Assets

19000 · Other Assets

19010 · Reimbursable Travel 4,297.92

Total 19000 · Other Assets 4,297.92

Total Other Assets 4,297.92

TOTAL ASSETS 379,092.34

Liabilities

Current Liabilities

Accounts Payable

20100 · Accounts Payable 188,636.21

Total Accounts Payable 188,636.21

Credit Cards

21105 · Office Depot 2,538.92

21107 · Sam's Wholesale Club 2,542.28

21108 · Dell Commercial Credit 486.87

Total Credit Cards 5,568.07

Other Current Liabilities

21000 · Payroll Liabilities

21300 · State W/H Payroll Taxes Payabl 27,385.75

21500 · 401K P/R 5,867.28

21525 · Flex Spending Account Payable 1,403.60

21920 · Accrued Insurance 1,656.73

Total 21000 · Payroll Liabilities 36,313.36

22000 · Other Current Liabilities

22050 · Settlements - Short Term 122,664.63

22200 · Sales Tax Payable 70,661.02

22300 · Fed-Tax-2003*2004*2005 115,000.00

22350 · Fed-Tax - Other IRS obligations 134,679.55

22400 · Misc. Current Liabilities 71,080.78

22750 · Current Portion - Van 18,000.00

22800 · Current Portion - Kuykendall 110,000.00

22850 · Current Portion- Line of Credit 100,000.00

Total 22000 · Other Current Liabilities 742,085.98

23000 · Deferred Revenue

23400 · Subscription Revenue - ST 2,334,541.11

23500 · Consulting Revenue 474,249.90

Total 23000 · Deferred Revenue 2,808,791.01

Total Other Current Liabilities 3,587,190.35

Total Current Liabilities 3,781,394.63

Long Term Liabilities

24000 · Notes Payable

24200 · NonCurrent Portion - Kuykendall 301,000.00

24700 · NonCurrent Portion - Van 108,000.00

Total 24000 · Notes Payable 409,000.00

24900 · Subordinated Debts 1,010,000.00

25000 · Capital Lease Obligations

25030 · Avaya Financial - 010 375.96

25065 · Priority Leasing 12,925.40

Total 25000 · Capital Lease Obligations 13,301.36

26000 · Other Long Term Liabilities

26050 · Settlements - Long Term 136,160.26

26400 · Subscription Revenue - LT 863,248.19

Total 26000 · Other Long Term Liabilities 999,408.45

Total Long Term Liabilities 2,431,709.81

Total Liabilities 6,213,104.44

Equity

32000 · Capital Stock

32050 · Preferred Stock 0.98

32100 · Class A 200.00

32200 · Class B 100.00

Total 32000 · Capital Stock 300.98

39000 · Retained Earnings -4,991,098.26

Net Income -843,214.82

Total Equity -5,834,012.10

TOTAL LIABILITIES & EQUITY 379,092.34


CommentsComments

• Primary contributors to November and December 2007 financial performance– IT Expenditures (website)– Tax Expenditures (UA)– Intelligence Build Out (24/5 coverage)

• In the process of developing FY 2008 Budget and Sales Forecast– Plan to complete by 31 January 2008

Documents

Board of Directors Meeting Financial Review 10 January 2008