[DESCRIPTION] EXHIBIT 99.2
Exhibit 99.2
WITI CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31
1999
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ASSETS
Current Assets:
Cash and cash equivalents $ 340,904
Accounts receivable 3,415
Costs in excess of billings 212,120
Prepaid expenses and other 26,407
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Total current assets 582,846
Equipment, net 252,818
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Total assets $ 835,664
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LIABILITIES AND STOCKHOLDER'S DEFICIENCY
Current liabilities:
Accounts Payable
Related parties $ 568,150
Other 259,294
Note payable related party 100,000
Billings in excess of costs -
Deferred revenue 6,453
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Total current liabilities 933,897
Long-term debt related party 743,234
Stockholders' deficiency
Series A Convertible preferred 3,500
Series B Preferred stock 10
Common stock 1,033
APIC 50,635
Accumulated deficit (896,645)
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Total stockholders' deficiency (841,467)
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Total liabilities and stockholders' $ 835,664
deficiency ==============
WITI CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM FINANCIAL STATEMENTS
The unaudited interim financial statements of WITI Corporation and subsidiaries
("WITI") for the three month periods ended December 31, 1999 and 1998 do not
provide all disclosures included in the annual financial statements. These
interim financial statements should be read in conjunction with the annual
audited financial statements and the footnotes thereto. Results for the interim
periods are not necessarily indicative of the results for the fiscal year ending
September 30, 2000. In the opinion of management, the accompanying interim
financial statements reflect all adjustments (consisting only of normal
recurring accruals) necessary for a fair presentation of the financial position
and results of operations of WITI.
WITI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three-months Three-months
ended ended
December 31 December 31
1999 1998
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Operating Revenue
Consulting services $ 449,055 $ 95,800
Cost of operating revenue
Consulting services 238,934 74,236
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Gross Margin 210,121 21,564
Operating Expenses 313,407 239,408
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Loss from Operations (103,286) (217,844)
Interest Income (Expense) (14,504) (9,337)
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Net Loss $(117,790) $(227,181)
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WITI Corporation and Subsidiaries
Consolidated Statement of Cash Flows
Three months Three months
Ended Ended
December 31, 1999 December 31, 1998
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CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $(117,790) $(227,181)
Adjustments to reconcile net loss to net cash used in operating activities-
Depreciation 18,709 16,047
Net changes in operating assets and liabilities:
Accounts receivable 199,721 17,203
Costs and estimated earnings in excess of billings on uncompleted contracts (212,120)
Prepaid and other currents assets (20,461) (19,210)
Accounts payable and other current liabilities 175,182 69,305
Billings in excess of cost and estimated earnings on uncompleted contracts (135,423) --
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Net cash used in operating activities (92,182) (143,836)
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CASH FLOWS FROM INVESTING ACTIVITIES - Purchase of equipment (132,865) (6,864)
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CASH FLOWS FROM FINANCING ACTIVITIES:
Dividends paid (250)
Borrowings under related party notes payable 25,000
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Net cash provided by (used in) financing activities 25,000 (250)
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NET DECREASE IN CASH AND CASH EQUIVALENTS (200,047) (150,950)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 540,951 318,622
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 340,904 $ 167,672
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