Balance Sheet top

ACCELERIZE NEW MEDIA, INC.   BALANCE SHEETS       ASSETS       December 31,     December 31,     2008     2007                 Current Assets:               Cash   $ 252,921     $ 951,317     Accounts receivable, net of allowance for bad debt of $6,857                     and $3,037 at December 31, 2008 and 2007, respectively     177,752       50,499     Prepaid expenses and other assets     30,224       5,487     Domain name rights     20,411       162,740     Deferred tax asset     56,030       80,026       Total current assets     537,338       1,250,069                       Website development costs, net of accumulated amortization of $206,410                    and $210,411 at December 31, 2008 and 2007, respectively     140,075       226,483                       Fixed assets, net of accumulated depreciation of $24,436 and                    $10,689 at  December 31, 2008 and 2007, respectively     17,527       21,380     Goodwill     685,547       580,547        Total assets   $ 1,380,487     $ 2,078,479                     LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                     Current Liabilities:                   Accounts payable and accrued expenses   $ 442,565     $ 214,578     Payable to former member     -       36,315     Deferred revenues- short-term     580,920       550,992     Deferred tax liability     56,030       80,026       Total current liabilities     1,079,515       881,911                       Convertible notes payable and accrued interest, net of debt discount of $156,852     375,787       -     Deferred revenue- long-term     86,110       90,307        Total liabilities     1,541,412       972,218                     Stockholders' Equity (Deficit):                   Preferred stock, $0.001 par value, 2,000,000 shares authorized:                     Series A,  54,000 issued and outstanding at December 31, 2008 and 2007,       respectively     728,567       728,567       Series B, 118,875 issued and outstanding at December 31, 2008 and 2007,       respectively     3,644,563       3,644,563     Common stock; $.001 par value; 100,000,000 shares authorized;                      27,184,854 and 21,779,294 shares issued and outstanding                     at December 31, 2008 and 2007, respectively     27,185       21,779     Additional paid-in capital     6,552,272       2,418,062     Accumulated deficit     (11,113,512 )     (5,706,710 )                        Total stockholders’ equity (deficit)     (160,925 )     1,106,261                          Total liabilities and stockholders’ equity (deficit)   $ 1,380,487     $ 2,078,479

Cash Flow Statement top

ACCELERIZE NEW MEDIA, INC.   STATEMENTS OF CASH FLOWS               Year ended       December 31,       2008     2007                 Cash flows from operating activities:             Net loss   $ (4,991,596 )   $ (2,998,754 ) Adjustments to reconcile net loss to net cash used in                  operating activities:                   Depreciation and amortization     341,219       199,395     Amortization of deferred compensation     71,400       -     Fair value of warrants issued for services     909,908       -     Fair value of warrants issued for TDRG acquisition     174,420       -     Fair value of warrants issued     1,239,204       -     Fair value of options granted     222,528       93,503   Changes in operating assets and liabilities:                   Accounts receivable     (127,253 )     (26,840 )   Prepaid expenses     (24,437 )     (2,912 )   Domain name rights     (25,000 )     (200,000 )   Deferred tax asset     23,996       (80,026 )   Other assets     (300 )     -     Accrued interest     (4,693 )     1,067     Accounts payable and accrued expenses     227,987       (71,907 )   Deferred tax liability     (23,996 )     80,026     Deferred revenues     25,731       223,384                     Net cash used in operating activities     (1,960,882 )     (2,783,064 )                   Cash flows used in investing activities:                   Capital expenditures     (9,894 )     -     Website development costs     (51,137 )     (295,018 )                   Net cash used in investing activities     (61,031 )     (295,018 )                   Cash flows from financing activities: