EXHIBIT 99.2 STRATUS SERVICES GROUP, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Allowance for Doubtful Accounts Balance at Charged to Deductions Balance at beginning of bad debt (Write-offs of end of period expense Other (1) bad debts) period September 30: 2001 $ 255,000 $ $661,000 $ 30,000 $ (395,000) $ 551,000 2000 703,000 -- 142,500 (590,500) 255,000 1999 37,000 -- 677,000 (11,000) 703,000 Allowance for Recourse Obligation Balance at Charged to Deductions Balance at beginning of bad debt (Write-offs of end of period expense Other (1) bad debts) period September 30: 2001 $ 30,000 $ -- $ (30,000) $ -- $ -- 2000 50,000 122,500 (142,500) -- 30,000 1999 795,000 595,000 (1,340,000) -- 50,000 Allowance for Investment in Related Party Balance at Charged to Deductions Balance at beginning of bad debt (Write-offs of end of period expense Other (1) bad debts) period September 30: 2001 $ 663,000 $ -- $ -- $ (663,000) $ -- 2000 663,000 -- -- -- 663,000 1999 -- -- 663,000 -- 663,000 Valuation Allowance for Deferred Taxes Balance at Charged to Balance at beginning of costs and end of period expenses (2) Other Deductions period September 30: 2001 $ 598,000 $ 2,316,000 $ -- $ -- $ 2,914,000 2000 1,158,000 (560,000) -- -- 598,000 1999 1,015,000 143,000 -- -- 1,158,000 (1) Transfers between valuation accounts. (2) Reflects the increase (decrease) in the valuation allowance associated with net operating losses of the Company.