Balance Sheet and Cash FlowThe Company had $8.6 million in cash and cash equivalents as of June 30, 2012, compared to $10.7 million as of December 31, 2011, working capital of $28.8 million, compared to $27.0 million as of December 31, 2011, and a current ratio of 4.1 to 1 compared 4.5 to 1 as of December 31, 2011. Total shareholders' equity of ChinaNet was $42.5 million at June 30, 2012 compared to $41.7 million at December 31, 2011. The Company had positive cash flow from operations of $1.1 million for the first six months of 2012. Guidance for 2012 Management forecasts full year 2012 revenues to be at least $42 million and net income of at least $2.8 million. Business Updates ChinaNet attended the 13 th Annual Beijing Franchise Expo from May 11 to May 13, 2012. Management met dozens of prospective small business customers and promoted its advertising and brand management and sales channel expansion services to entrepreneurs. On June 4, 2012, the Company entered into a strategic agreement with the China Youth Employment and Entrepreneurship Foundation to help college graduates prepare for their professional careers. College graduates from leading universities such as Beijing University of Science and Technology and China University of Political Science and Law will have access to ChinaNet's online platforms, Chuangye.com, Liansuo.com and 28.com, to look for business investments and job opportunities, formulate a career plan and learn about starting a new business. Chuangye.com, the Company's website for entrepreneurial social networking services, become the most searched entrepreneurship term on Baidu.com and Sina Corporation's popular social networking service Weibo.com during May 2012. Chuangye.com continues to refine its search engine marketing, optimization and social networking strategies to promote its website and related services. ChinaNet COO George Chu attended Baidu's launch of its mobile app – Fengchao - on July 17, 2012. ChinaNet and Baidu will collaborate on integrating ChinaNet's advertising and marketing services solutions with Baidu's online and mobile services, including Fengchao.