Exhibit 99.8
Schedule A
Interim Financial Statements (Unaudited – Internally Prepared)
CHAP MERCANTILE INC.
Six Months Ended February 29, 2004
Schedule A
Page 2
CHAP MERCANTILE INC.
Balance Sheet
As at February 29, 2004
| February 29 | August 31 | |||||
| 2004 | 2003 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| Current | ||||||
| Cash and cash equivalents | $ | 451,841 | $ | 114,862 | ||
| Accounts receivable | - | 187,463 | ||||
| Inventory | - | 270,733 | ||||
| Prepaid expenses | - | 7,071 | ||||
| Current portion of settlement receivable | 7,900 | |||||
| Total current asset | 451,841 | 588,029 | ||||
| Capital assets (note 2) | - | 119,680 | ||||
| 451,841 | 707,709 | |||||
| LIABILITIES AND SHAREHOLDERS EQUITY | ||||||
| Current liabilities | ||||||
| Accounts payable and accrued liabilities | $ | 16,841 | $ | 69,238 | ||
| Current portion of obligations under capital leases | - | 12,475 | ||||
| Total current liabilities | 16,841 | 81,713 | ||||
| Obligations Under Capital Leases (note 5) | - | 38,568 | ||||
| Total liabilities | 16,841 | 120,281 | ||||
| SHAREHOLDERS' EQUITY | ||||||
| Share Capital (note 6) | 945,000 | 945,000 | ||||
| Deficit | (510,000) | (357,572 | ) | |||
| 435,000 | 587,428 | |||||
| $ | 451,841 | $ | 707,709 |
APPROVED BY THE BOARD
| "Geir Liland" | Director | |
| "John Proust" | Director |
Schedule A
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CHAP MERCANTILE INC.
Statements of Loss and Deficit
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||
| February 29 | February 29 | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
| REVENUE | ||||||||||||
| Income | $ | $ | 222,754 | $ | 1,577 | $ | 480,101 | |||||
| EXPENDITURES | ||||||||||||
| Wages and employee benefits | 102,586 | 15,500 | 192,828 | |||||||||
| Material and supplies | 81,269 | - | 169,820 | |||||||||
| General and administrative expenses | 59,944 | 11,200 | 115,731 | |||||||||
| Total Expenditure | 243,799 | 26,700 | 478,379 | |||||||||
| Net income (loss) for the | ||||||||||||
| period | (21,045 | ) | (25,123 | ) | 1,722 | |||||||
| 8,235 | ||||||||||||
| Provision for income taxes | - | (671 | ) | |||||||||
| NET INCOME (LOSS) | (12,810 | ) | (25,123 | ) | 1,051 | |||||||
| Loss on disposal of subsidiary | - | - | (127,305 | ) | - | |||||||
| DEFICIT, BEGINNING OF PERIOD | (220,385 | ) | (357,572 | ) | (234,246 | ) | ||||||
| DEFICIT, END OF PERIOD | $ | $ | (233,195 | ) | $ | (510,000 | ) | $ | (233,195 | ) | ||
| Loss Per Share | $ | $ | $ | $ | ||||||||
| Weighted Average Number of Shares | ||||||||||||
See accompanying notes to interim financial statements.
Schedule A
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CHAP MERCANTILE INC.
Consolidated Statements of Cash Flows
(Unaudited)
| Three Months Ended | Six Months Ended | |||||||||||
| February 29 | February 29 | |||||||||||
| 2004 | 2003 | 2004 | 2003 | |||||||||
| Cash Flows Used for Operating Activities | ||||||||||||
| Loss for the period | $ | $ | (12,810 | ) | $ | (25,123 | ) | $ | 1,051 | |||
| Non-cash item | ||||||||||||
| Change in other non-cash | ||||||||||||
| working capital items related to | ||||||||||||
| operations | 13,205 | 37,102 | 17,793 | |||||||||
| Accounts receivable | ||||||||||||
| Prepaid expenses | ||||||||||||
| Accounts payable and accrued liabilities | ||||||||||||
| Income taxes | - | - | ||||||||||
| Investment Activities | ||||||||||||
| Settlement receivable | (12,100 | ) | - | (12,100 | ) | |||||||
| Cash Flows From Financing Activities | ||||||||||||
| Proceeds on sale of subsidiary (Dial | ||||||||||||
| Locksmith) | - | 325,000 | - | |||||||||
| Decrease in Cash and Cash | ||||||||||||
| Equivalents | (11,705 | ) | 336,979 | 6,744 | ||||||||
| CASH AND CASH EQUIVALENTS, | ||||||||||||
| BEGINNING OF PERIOD | 107,616 | 133,977 | 114,862 | 115,528 | ||||||||
| CASH AND CASH EQUIVALENTS, | ||||||||||||
| END OF PERIOD | $ | $ | 122,272 | $ | 451,841 | $ | 122,272 | |||||
Schedule A
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CHAP MERCANTILE INC.
Notes to Financial Statements
For the six months ended February 29, 2004
ACCOUNTING POLICIES
These financial statements are prepared by management and are prepared consistent with the preceding periods.