THE SAINT JAMES COMPANY
Balance Sheet
- ---------------------------------------------------------------
Three Months Six Months
Year Ended Ended Ended
December 31, March 31, June 30,
1998 1999 1999
- ---------------------- ------------ ------------ ------------
Assets
- ---------------------- ------------ ------------ ------------
Current Assets
- ---------------------- ------------ ------------ ------------
Property
Plant
Equipment 0 0 0
- ---------------------- ------------ ------------ ------------
Total Assets 0 0 0
====================== ============ ============ ============
Liabilities and
Shareholders' Equity
- ---------------------- ------------ ------------ ------------
Current Liabilities
- ---------------------- ------------ ------------ ------------
Accrued Interest
Payable 1,115.67 278.92 557.84
- ---------------------- ------------ ------------ ------------
Total Current
Liabilities 1,115.67 278.92 557.84
- ---------------------- ------------ ------------ ------------
Interest Payable 6,392.06 7,507.73 7,507.73
- ---------------------- ------------ ------------ ------------
Judgments Payable 11,156.78 11,156.78 11,156.78
- ---------------------- ------------ ------------ ------------
Total Long Term
Liabilities 17,548.84 18,664.51 18,664.51
- ---------------------- ------------ ------------ ------------
Total Liabilities 18,664.51 18,943.43 19,222.35
- ---------------------- ------------ ------------ ------------
Shareholders' Equity
- ---------------------- ------------ ------------ ------------
Common Stock 9,977 9,977 9,977
- ---------------------- ------------ ------------ ------------
Paid-In Capital
In Excess of Par Value 3,460,568.00 3,460,568.00 3,460,568.00
- ---------------------- ------------ ------------ ------------
Sub-Total 3,461,567.00 3,461,567.00 3,461,567.00
- ---------------------- ------------ ------------ ------------
Retained Earnings
- ---------------------- ------------ ------------ ------------
Retained Earnings,
Restricted (11,156.75) (11,156.75) (11,156.75)
- ---------------------- ------------ ------------ ------------
Retained Earnings,
(Deficit) (3,469,074.73)(3,469,353.65)(3,469,632.57)
- ---------------------- ------------ ------------ ------------
Total Retained
Earnings (3,480,231.48)(3,480,510.40)(3,480,789.32)
- ---------------------- ------------ ------------ ------------
Total Shareholders'
Equity (18,664.48) (18,943.40) (19,222.32)
====================== ============ ============ ============
$0 $0 $0
- ---------------------- ------------ ------------ ------------
*See report and footnotes following tables.
THE SAINT JAMES COMPANY
Income Statement
- ---------------------------------------------------------------------
Year Ended Three Months Six Months
December 31, Ended March 31, Ended June 30,
1998 1999 1999
- ------------------ --------------- --------------- ---------------
Revenues 0 0 0
- ------------------ --------------- --------------- ---------------
Operating Expenses
- ------------------ --------------- --------------- ---------------
Interest Expense 1,115.67 278.92 278.92
- ------------------ --------------- --------------- ---------------
Total Operating
Expense 1,115.67 278.92 278.92
- ------------------ --------------- --------------- ---------------
Net Income (Loss) (1,115.67) (278.92) (278.92)
- ------------------ --------------- --------------- ---------------
Earnings Per Share Nil Nil Nil
- ---------------------------------------------------------------------
*See report and footnotes following tables.
THE SAINT JAMES COMPANY
Cash Flow Statement
- ------------------------------------------------------------------------
Year Ended Three Months Six Months
December 31, Ended March 31, Ended June 30,
1998 1999 1999
- --------------------- --------------- --------------- ---------------
Cash Flows from
Operating
Activities
- --------------------- --------------- --------------- ---------------
Net Income (Loss) (1,115.67) (278.92) (278.92)
- --------------------- --------------- --------------- ---------------
Adjustment to
Reconcile
Net Income (Loss)
to Net Cash
Provided by
Operating
Activities 0 0 0
- --------------------- --------------- --------------- ---------------
Cash Flow
Provided from
Operating
Activities (1,115.67) (278.92) (278.92)
- --------------------- --------------- --------------- ---------------
Cash Flows From
Investing
Activities 0 0 0
- --------------------- --------------- --------------- ---------------
Cash Flow From
Financing
Activities
- --------------------- --------------- --------------- ---------------
Interest Payable 1,115.67 278.92 278.92
- --------------------- --------------- --------------- ---------------
Cash Flow
Provided From
Financing
Activities 0 0 0
- --------------------- --------------- --------------- ---------------
Net Increase
(Decrease) to Cash 0 0 0
- --------------------- --------------- --------------- ---------------
Cash at the
Beginning of
The Period 0 0 0
- --------------------- --------------- --------------- ---------------
Cash at the End of
the Period 0 0 0
- --------------------- --------------- --------------- ---------------
* See reports and footnotes following tables.
THE SAINT JAMES COMPANY
Retained Earnings Statement
- --------------------------------------------------------------------------
Year Ended Three Months Six Months
December 31, Ended March 31, Ended June 30,
1998 1999 1999
- ----------------- ----------------- ----------------- -----------------
Balance Beginning
of Period, Before
Restricted (3,467,959.06) (3,469,074.73) (3,469,353.65)
- ----------------- ----------------- ----------------- -----------------
Net Income (Loss) (1,115.67) (278.92) (278.92)
- ----------------- ----------------- ----------------- -----------------
Sub-total (3,469,074.73) (3,469,353.65) (3,469,632.57)
- ----------------- ----------------- ----------------- -----------------
Retained Earnings
Restricted (11,156.75) (11,156.75) (11,156.75)
- ----------------- ----------------- ----------------- -----------------
Balance End of
Period (3,480,231.48) (3,480,789.32) (3,480,789.32)
- ----------------- ----------------- ----------------- -----------------
* See report and footnotes following tables.
THE SAINT JAMES COMPANY
Notes to Financial Statements
Note A: Summary of Significant Accounting Policies
Nature of Operations
--------------------
The principal purpose of the company is to design, manufacture, sell and
service equipment and systems for the treatment of contaminated insoluble
organic solid materials. The Company has developed and marketed ozone
technologies.
Property, Plant and Equipment
-----------------------------
Property, plant and equipment have been recorded at cost and/or development
cost. Components which were no longer used in testing and marketing processes
were removed from property, plant and equipment and written off as a loss.
Depreciation
------------
Depreciation was computed on the straight line method for financial
statement purposes and the accelerated method for income tax purposes over the
estimated useful lives of the assets.
Research and Development Costs
------------------------------
Research and development costs were expensed as incurred.
Income Taxes
------------
No provision for income taxes, either accrued or deferred, have been
reported in the financial statements because the Company has incurred only net
operating losses.
Earnings (losses) Per Share
---------------------------
The weighted average of shares outstanding method is used in calculating
earnings (losses) per share.
Note B: Organization of Company
Chem-Waste Corporation was incorporated on January 10, 1984, under the laws
of the State of North Carolina. The charter authorized 20,000,000 share of
common stock with a par value of $1.00 per share.
On July 19, 1984, the name of the Company was changed to Radiation Disposal
Systems, Inc., by amendment to the Charter of Incorporation in the State of
North Carolina.
On September, 13, 1984, the Company was authorized by amendment to the
Articles of Incorporation 1,500,000 preferred stock, nonvoting, noncumulative,
$.50 par value per share, 10% noncumulative dividend, callable at 105% of par
value, and convertible into common stock on a share for share basis. The
amendment of articles granted the issuance of warrants.
On October 9, 1984, the Company was authorized by amendment to the Articles
of Incorporation to change the par value of the common stock from $1.00 per
share to $.001 per share.
In January 1985, the Company conducted a public offering of 2,700,000
common shares for $1.25 per share. The underwriter was given warrants which are
exercisable over a four year period beginning June 1986, to purchase 270,000
common stock shares at $1.50 per share.
In June 1987, 100,000 preferred stock shares were converted to common stock
shares on a share for share basis.
In August 1987, 550,000 preferred stock shares were converted to common
stock shares on a share for share basis.
On July 1, 1988, the articles were amended for denial of presumptive
rights, "The Shareholders of the Corporation shall have no presumptive rights to
acquire additional or treasury shares of the Corporation."
In July and September 1988, the warrants were exercised at $1.50 per share
for common stock.
On July 14, 1990, the Articles of Incorporation of the Company were amended
by adding a new Article designed as Article X, to read as follows:
Article X
To the fullest extent permitted by the North Carolina Business
Corporation Act as it exists or may hereafter be amended, a
director of the Company shall not be personally liable to the
Company, its shareholders or otherwise for monetary damages for
breach of his duty as a director. Any repeal or modification of
this Article X shall be prospective only and shall not adversely
affect any limitation on the personal liability of a director of
the Company existing at the time of such repeal of modification.
On September 21, 1998, 10,000,000 shares of Radiation Disposal
Systems, Inc., were traded for 1,000,000 authorized shares of
Asset Technology International, Inc. The shares of Technology
International, Inc., were canceled. At the time of the stock
exchange, Technology International, Inc., had no assets,
liabilities or capital. The company was completely dormant.
On October 13, 1998, The Saint James Company was incorporated under the
laws of the State of Delaware. The purpose of the Corporation shall be to engage
in any lawful activities.
In November 1998, Radiation Disposal Systems, Inc., exchanged all of its
outstanding shares with The Saint James Company. The effect is to change the
name of Radiation Disposal Systems, Inc., into The Saint James Company, and to
change the domicile from the State of North Carolina to the State of Delaware.
On November 19, 1998, Radiation Disposal Systems, Inc., was granted an
increase from 20,000,000 common shares par value $.001 authorized to 50,000,000
common shares when authorized par value $.001.
On November 19, 1998, the Articles of Incorporation were amended to allow
for a 20-1 reverse split of the common stock for Radiation Disposal Systems,
Inc.
Note C: Accrued Interest Payable and Interest Payable
The Company has two judgments against it (See Note D) that require interest
to be paid on those judgments. The accrued interest payable represents the
current year or period interest owed. The interest payable represents interest
owed from prior years that has not been paid.
Note D: Judgments Payable (Litigation)
Thomas Publishing Company holds a consent judgment dated May 5, 1995. The
date of the interest as stated in the judgment is to start December 13, 1993.
Sum of Judgment, 18% per annum $ 3,265.00
Interest prior to December 13, 1993 $ 1,450.00
Collection cost, 8% per annum $ 1,178.78
-------------------------------------------------------------
Total $ 5,893.78
McKinney & Moore, Inc., on February 13, 1993, received a judgment against
the Company.
Judgment, 10% per annum $ 3,802.00
Attorney's fees, 10% per annum $ 1,250.00
Prejudgment, 10% per annum $ 211.00
Total $ 5,263.00
-------------------------------------------------------------
Total of judgments $11,156.78
Note E: Capital Stock
December 31, 1998 and March 31, 1999 and June 30, 1999
- --------------------------------- ---------------------------------
Preferred Stock, $.01 par
value per share, 500,000
shares authorized. No shares
issued and outstanding. 0
- --------------------------------- ---------------------------------
Common Stock, authorized
50,000,000 shares with par
value of $.001 per share,
9,977,495 common shares
issued and outstanding $9,977
- --------------------------------- ---------------------------------
Note F: Retained Earnings Restricted
Retained earnings restricted represents the total judgments held against
the Company. See Note D.
Note G: Prior Period Adjustments
Prior period adjustments as shown on the statement of cash flows and the
retained earnings statement represents changes to financial statements provided
by the Company for audit.
Note H: Going Concern
As shown on the financial statements, the Company has incurred losses of
$3,467,959 from inception to June 30,1999. The ability of the Company to
continue as a going concern is dependent upon the success of the plan to raise
capital by a merger with another profitable company. The financial statements do
not include any adjustments that might be necessary should the Company be unable
to continue as a going concern.