Item 1. Financial Statements
 


TransWorld Benefits International, Inc. and Subsidiary
(A Development Stage Company)
Condensed Consolidated Balance Sheets
As of September 30, 2005 and 2004
(Unaudited)
 
     
September 30, 
 
     
 2005 
     
 2004 
 
                 
Total assets
  $     $  
                 
Liabilities and stockholders’ deficiency
               
                 
Current liabilities:
               
Accounts payable and accrued expenses
  $ 260,894     $ 226,528  
Accrued consulting and related
    279,058       229,708  
Accounts payable to related parties
    1,317,717       966,666  
Advances from related parties
    109,500       159,500  
Notes payable to related party
    154,067       154,067  
Accrued interest on notes payable to related party
    96,711       79,764  
Advances payable
    27,000       72,000  
Accrued interest on convertible debenture
    36,828       21,328  
Accrued liability related to warrants and stock purchase rights
 
-_
      1,000  
      2,281,775       1,910,561  
Convertible debenture, net of unamortized debt discount
    184,418       138,183  
                 
Total liabilities
    2,466,193       2,048,744  
                 
Stockholders’ deficiency:
               
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
    -       -  
Common stock, $0.001 par value; 100,000,000 shares authorized; 35,069,898 shares issued and outstanding
at September 30, 2005 and 2004
    35,070       35,070  
Additional paid-in capital
    1,720,908       1,720,908  
Accumulated deficit
    (4,222,171 )     (3,804,722 )
Total stockholders’ deficiency
    (2,466,193 )     (2,048,744 )
                 
Total liabilities and stockholders’ deficiency
 
$0_
    $  
                 

The accompanying notes are an integral part of these unaudited consolidated financial statements


 
 
TransWorld Benefits International, Inc. and Subsidiary
(A Development Stage Company)
Condensed Consolidated Statements of Operations
For the Three Months Ended September 30, 2005 and 2004 and Cumulative
Amounts from Inception September 16, 1996 through September 30, 2005
(Unaudited)
                                                  

               
Cumulative
 
   
Three Months Ended Sept 30,
   
Amounts From
 
   
   
   
Inception
 
                   
Revenues
  $     $     $  
General and administrative expenses
    69,638       56,229       4,535,375  
Loss before other income (expense)
    (69,638 )     (56,229 )     (4,535,375 )
                         
Other income (expense):
                       
Other income
    -       -       8,902  
Gain on settlement of debt
    -       -       189,024  
Gain on decrease in fair value of warrants and stock purchase rights liabilities
            7,000       475,510  
Interest expense, net
    (15,471 )     (28,599 )     (360,232 )
                         
Net income (loss)
    (85,109 )     (77,828 )     (4,222,171 )
                         
Beginning of period accumulated deficit
    (4,137,062 )     (3,726,894 )     -  
                         
End of period accumulated deficit
  $ (4,222,171 )   $ (3,804,722 )   $ (4,222,171 )
                         
Loss per share: Basic and diluted
  $ (0.002 )   $ (0.002 )        
                         
Weighted average number of shares outstanding: Basic and diluted
    35,069,898       35,069,898          

The accompanying notes are an integral part of these unaudited consolidated financial statements

 

 
TransWorld Benefits International, Inc. and Subsidiary
(Development Stage Company)
Condensed Consolidated Statements of Cash Flows
For the Three Months Ended September 30, 2005 and 2004 and Cumulative
Amounts from Inception September 16, 1996 through September 30, 2005
(Unaudited)
 
                   
   
Three Months Ended September 30,
   
Cumulative
Amounts from
 
   
   
   
Inception
 
Cash flows from Operating Activities:
                 
Net (loss)
  $ (85,109 )   $ (77,828 )   $ (4,222,171 )
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
                       
Amortization of deferred financing costs
    7,153       20,841       184,417  
Stocks and warrants issued for services and debt
    -       -       1,763,309  
(Gain) on settlement of debt
    -       -       (202,024 )
Subscription receivable exchanged for services
    -       -       20,000  
(Gain) on decrease in value of warrants and stock purchase rights liabilities
    -