Stream Communications Network & Media 6-K Stream Communications 6K

FS 30 June 2003

Schedule A
Stream Communications Network, Inc.
Consolidated Financial Statements
For the six months ended June 30, 2003
Stream Communications Network, Inc.
Consolidated Balance Sheets
June 30, 2003 and December 31, 2002
(in Canadian dollars)
					June 30, 2003	December 31, 2002
ASSETS
	Current Assets
		Cash and cash equivalents			$241,407	$394,234
		Accounts receivable			297,134	221,346
		Inventory			10,026	14,373
		Prepaid expenses and advances			64,080	74,330
					612,647	704,283
	Deposits				155,473	188,493
	Property, plant and equipment (note 3)				7,475,110	9,201,575
	Intangibles - (note 4)				4,396,357	5,469,354
	Deferred charges - (note 5)				2,370,495	2,019,261
					$15,010,082	$17,582,966
LIABILITIES
	Current Liabilities
		Accounts payable and accrued liabilities (note 7)			$4,150,527	$4,611,418
		Deferred revenue			141,024	187,672
		Current portion of long-term debt (note 6)			55,027	108,825
					4,346,578	4,907,915
	Long-term debt (note 6)				20,305	52,975
	Non-controlling interest				772,600	888,259
					5,139,483	5,849,149
SHAREHOLDERS' EQUITY
	Capital stock
	Authorized
	150,000,000 common shares of no par value
	Issued and fully paid (note 8)				32,464,374	31,229,685
	Contributed surplus				96,041	96,041
	Warrants				2,397,425	2,740,669
	Cumulative translation account				(254,453)	1,437,814
	Deficit				(24,832,788)	(23,770,392)
					9,870,599	11,733,817
					$15,010,082	$17,582,966
		signed by "Stan Lis"		signed by "Casey Forward"
		President		Chief Financial Officer
Stream Communications Network, Inc.
Consolidated Statements of Operations and Deficit
For the six months ended June 30
(in Canadian dollars)
			For the three months ended June 30, 2003	For the three months ended June 30, 2002	For the six months ended June 30, 2003	For the six months ended June 30, 2002
Revenues			$950,163	$944,791	$1,966,135	$1,856,158
	Administration and services		146,524	293,744	428,059	540,414
	Cost of sales		214,121	660,028	520,292	1,000,310
	Legal and accounting		76,171	112,971	238,697	234,506
	Management costs		254,058	70,141	447,762	368,640
	Programming		203,131	194,809	413,641	373,760
	Sales and marketing		132,488	62,448	280,003	110,379
			1,026,493	1,394,141	2,328,454	2,628,009
Loss before undernoted items			(76,330)	(449,350)	(362,319)	(771,851)
Amortization of property, plant and equipment			188,147	161,388	388,216	389,287
Amortization of intangibles and goodwill			113,576	-	184,337	-
			301,723	161,388	572,553	389,287
Loss before other items			(378,053)	(610,738)	(934,872)	(1,161,138)
Other items
	Interest income		6,759	(4,177)	(2,815)	(6,461)
	Financial expenses		109,911	17,993	157,117	219,421
			116,670	13,816	154,302	212,960
Loss from continuing operations before non-controlling interest			(494,723)	(624,554)	(1,089,174)	(1,374,098)
Non-controlling interest			(32,076)	(7,123)	(26,778)	(29,263)
Loss from continuing operations for the period			(462,647)	(617,431)	(1,062,396)	(1,344,835)
Loss from discontinued operations (note 2)			-	(48,250)	-	(2,397,985)
Net loss for the period			(462,647)	(665,681)	(1,062,396)	(3,742,820)
Deficit, beginning of period			(24,370,141)	(20,858,329)	(23,770,392)	(17,781,190)
Deficit, end of period			$(24,832,788)	$(21,524,010)	$(24,832,788)	$(21,524,010)
Loss per share, basic and diluted
	Continuing operations		$(0.02)	$(0.03)	$(0.04)	$(0.06)
	Discontinued operations		-	-	-	(0.11)
	Loss per share		$(0.02)	$(0.03)	$(0.04)	$(0.17)
Weighted average number of shares
		Basic and diluted	29,029,598	21,797,545	29,029,598	21,797,545
Stream Communications Network, Inc.
Consolidated Statements of Cash Flows
For the six months ended June 30
(in Canadian dollars)
			For the three months ended June 30, 2003	For the three months ended June 30, 2002	For the six months ended June 30, 2003	For the six months ended June 30, 2002
Operating Activities
	Net loss from continuing operations		$(462,647)	$(617,431)	$(1,062,396)	$(1,344,835)
	Items not involving cash
		Amortization	301,723	161,388	572,553	389,287
		Non-controlling interest	(32,076)	(7,123)	(26,778)	(29,263)
	Change in non-cash working capital		(193,000)	(463,166)	(516,621)	(984,811)
		Accounts receivable	(92,549)	18,745	(116,824)	40,182
		Inventory	1,768	2,893	2,244	6,228
		Prepaid expenses and advances	151,097	34,196	863	(5,389)
		Accounts payable and accrued liabilities	40,846	1,086,213	33,804	840,475
		Deferred revenue	(9,150)	(25,170)	(18,314)	91,016
	Net cash used in operating activities		(100,988)	653,711	(614,848)	(12,299)
	Net cash provided (used) by discontinued operating activities		-	(33,844)	-	(265,195)
	Net cash provided (used) by operating activities		(100,988)	619,867	(614,848)	(277,494)
Financing Activities
	Issuance of shares for cash		891,445	811,946	891,445	2,748,674
	Share subscription		(506,970)	-	-	-
	Long-term debt		(15,912)	-	(66,006)	-
	Net cash provided from continuing financing activities		368,563	811,946	825,439	2,748,674
	Net cash provided from discontinued financing activities		-	-	-	-
	Net cash provided from financing activities		368,563	811,946	825,439	2,748,674
Investing Activities
	Purchase of property, plant and equipment		(16,865)	(60,349)	(96,039)	(75,828)
	Acquisition of subsidiary		-	(220,460)	-	(945,168)
	Deferred charges		(191,618)	(829,808)	(361,656)	(914,076)
	Net cash used in continuing investing activities		(208,483)	(1,110,617)	(457,695)	(1,935,072)
	Net cash used in discontinued investing activities		-	(60,583)	-	-
	Net cash used in investing activities		(208,483)	(1,171,200)	(457,695)	(1,935,072)
Foreign exchange effect on cash			102,422	(442,079)	94,277	(508,110)
Change in cash and cash equivalents			161,514	(181,466)	(152,827)	27,998
Cash and cash equivalents at beginning of period			79,893	424,737	394,234	215,273
Cash and cash equivalents at end of period			$241,407	$243,271	$241,407	$243,271