Exhibit 99.1 (b) 3
ARCLIGHT SYSTEMS LLC
Statements of Operations
Year ended December 31, 2002 and Period from April 1, 2001
(date of inception of operations) to December 31, 2001
2002 | 2001 | |||||||
Revenues | $ | 4,281,649 | $ | 2,543,120 | ||||
Operating expenses: | ||||||||
Cost of revenues | 4,842,537 | 3,387,055 | ||||||
Selling and marketing | 2,969,963 | 1,446,226 | ||||||
Product development | 15,016,009 | 4,022,836 | ||||||
Loss from disposal and sale of assets | 550,682 | — | ||||||
General and administrative | 4,698,984 | 2,680,227 | ||||||
Total operating expenses | 28,078,175 | 11,536,344 | ||||||
Loss from operations | (23,796,526 | ) | (8,993,224 | ) | ||||
Other income (expense): | ||||||||
Interest expense | (163,833 | ) | (112,983 | ) | ||||
Interest income | 634,597 | 30,731 | ||||||
Total other income (expense) | 470,764 | (82,252 | ) | |||||
Net loss from continuing operations | (23,325,762 | ) | (9,075,476 | ) | ||||
Discontinued operations: | ||||||||
Income from discontinued operations (including gain on sale of $77,877,708 in 2002) | 78,862,837 | 3,272,883 | ||||||
Net income (loss) | $ | 55,537,075 | $ | (5,802,593 | ) | |||
See accompanying notes to financial statements.