SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-QSB (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2002 Or [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to _________ COMMISSION FILE NUMBER: 000-29331 SUTTON TRADING SOLUTIONS, INC. (Exact name of Small Business Issuer as Specified in its Charter) NEVADA 76-0270295 (State or Other Jurisdiction (IRS Employer of Incorporation or Organization) Identification No.) 1000 Woodbury Road, Suite 214, Woodbury, NY 11797 (Address of Principal Executive Offices) (516) 578-5888 Issuer's Telephone Number. Including Area Code Check whether the issuer (1), has filed all reports required to be filed by Section 13 or 15(d) of The Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] State the number of shares outstanding of each of the issuer's classes of common equity as of the latest practicable date: As of September 12, 2002, the registrant had 24,079,520 shares of common stock outstanding. SUTTON TRADING SOLUTIONS, INC. FORM 10-QSB For the Quarter Ended June 30, 2002 Index Page Number PART I FINANCIAL INFORMATION Item 1 Consolidated Condensed Balance Sheets at June 30, 2002 and March 31, 2002 (unaudited for June 30, 2002 period) 3 Consolidated Condensed Statements of Operations for the three months ended June 30, 2002 and 2001 (unaudited) 4 Consolidated Statements of Comprehensive Income for the three Months ended June 30, 2002 and 2001 (unaudited) 5 Consolidated Condensed Statements of Cash Flows for the three months ended June 30, 2002 and 2001 (unaudited) 6 Notes to Consolidated Financial Statements 7 Item 2 Management's Discussion and Analysis or Plan of Operation 10 Item 3 Controls and Procedures 12 PART II Item 1 Legal Proceedings 12 Item 2 Changes in Securities 12 Item 3 Defaults Upon Senior Securities 12 Item 4 Submission of Matters to a Vote of Security Holders 12 Item 5 Other Information 12 Item 6 Exhibits and Reports on Form 8 - K 12 Signature 13 Certifications 14 Exhibit 99.1 16 Exhibit 99.2 17 2 PART I FINANCIAL INFORMATION Item 1 Financial Statements SUTTON TRADING SOLUTIONS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS ------------------------------------- ASSETS ------ March 31, June 30, 2002 2002 ------------ ------------ (Unaudited) (Audited) CURRENT ASSETS: Cash $ 22,286 $ 163,358 Receivables: Trade, net 35,000 114,965 Employees and affiliated company -- 141,020 Other -- 15,916 Prepaid expenses -- 168,918 ------------ ------------ Total current assets 57,286 604,177 ------------ ------------ PROPERTY AND EQUIPMENT, at cost: Computers and equipment 15,000 873,179 Software -- 588,903 Vehicles -- 269,445 Leasehold Improvements -- 9,438 ------------ ------------ Less: accumulated depreciation and amortization -- 1,740,965 -- (407,524) ------------ ------------ -- 1,333,441 ------------ ------------ OTHER ASSETS: Goodwill, net -- 389,905 Other -- 24,275 ------------ ------------ -- 414,180 ------------ ------------ $ 72,286 $ 2,351,798 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY ------------------------------------ CURRENT LIABILITIES: Accounts payable, accrued expenses and other liabilities $ 1,073,618 $ 1,010,697 Capital lease obligation 91,043 91,043 ------------ ------------ Total current liabilities 1,164,661 1,101,740 ------------ ------------ LONG-TERM LIABILITIES: Capital lease obligation 76,125 76,125 ------------ ------------ COMMITMENTS AND CONTINGENCIES SHAREHOLDERS' EQUITY (Note 4): Preferred stock, $.0001 par value, 3,000,000 shares authorized, 2,600,000 (liquidation value $1,300,000) shares issued and outstanding 260 260 Common stock, $.001 par value, 100,000,000 shares authorized, 23,657,298 shares issued and outstanding 23,658 23,758 Additional paid-in capital 9,698,655 9,973,555 Note receivable -- (425,000) Accumulated other comprehensive income 49,322 49,322 Deficit (10,940,395) (8,447,962) ------------ ------------ (1,168,500) 1,173,933 ------------ ------------ $ 72,286 $ 2,351,798 ============ ============ The accompanying notes are an integral part of these statements. 3 SUTTON TRADING SOLUTIONS, INC. CONSOLIDATED CONDENSED ---------------------- STATEMENTS OF OPERATIONS (UNAUDITED) ------------------------------------ Three Months Ended June 30, ----------------------------- 2002 2001 ------------ ------------ REVENUE: Transaction fees $ 206,086 $ 345,512 Data fees 52,327 322,449 ------------ ------------ Total Revenue 258,413 667,961 ------------ ------------ EXPENSES: Clearing costs 42,652 63,696 Trading costs and user fees 54,700 110,235 Salaries and related expenses 79,784 321,051 Technical support 76,186 127,458 Occupancy and equipment 114,629 70,054 Consulting and other professional fees 30,616 20,059 General and administrative 178,803 269,994 ------------ ------------ Total operating expenses 577,370 982,547 ------------ ------------ OTHER INCOME/(EXPENSE) Interest expense -- (57,732) Other 125 8,124 Loss on Asset Disposal (2,173,601) -- ------------ ------------ Total other expense (2,173,476) (49,608) ------------ ------------ NET LOSS $ (2,492,433) $ (364,099) ============ ============ BASIC AND DILUTED LOSS PER COMMON SHARE: Net loss $ (0.11) $ (0.03) ============ ============ WEIGHTED AVERAGE SHARES OUTSTANDING 23,657,298 13,333,333 ============ ============ The accompanying notes are an integral part of these statements. 4 SUTTON TRADING SOLUTIONS, INC. CONSOLIDATED STATEMENTS OF -------------------------- COMPREHENSIVE INCOME (UNAUDITED) -------------------------------- Three Months Ended June 30, ------------------------------ 2002 2001 ----------- ----------- NET LOSS $(2,492,433) $ (364,099) OTHER COMPREHENSIVE INCOME: Unrealized holding loss -- (115,061) ----------- ----------- COMPREHENSIVE LOSS $(2,492,433) $ (479,160) =========== =========== The accompanying notes are an integral part of these statements. 5 SUTTON TRADING SOLUTIONS, INC. CONSOLIDATED CONDENSED ---------------------- STATEMENTS OF CASH FLOWS (UNAUDITED) ------------------------------------ Three Months Ended June 30, -------------------------- 2002 2001 ----------- ----------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $(2,492,433) $ (364,099) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization -- 6,284 Loss on disposal of assets 2,173,601 -- Bad Debt Write-off 46,288 -- Reversal of Common Stock issued for Compensation (275,000) -- Decrease in Other Assets 24,275 -- Decrease (increase) in receivables 113,753 17,871 Increase (decrease) in accounts payable and accrued expenses 62,921 (26,663) ----------- ----------- Net cash used in operating activities (346,595) (220,938) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Decrease (increase) in related party receivables (156,276) 90,154 Acquisition of subsidiary, net of cash acquired -- (16,639) Cash paid on disposal of subsidiary (63,201) -- Purchases of property and equipment -- (518,980) ----------- ----------- Net cash used in investing activities (219,477) (444,444) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Payments on capital lease obligations -- (9,471) Payments received on note receivable 425,000 -- Issuance of common stock -- 800,000 ----------- ----------- Net cash provided by financing activities 425,000 790,529 ----------- ----------- NET (DECREASE) INCREASE IN CASH (141,072) 125,147 CASH, beginning of period 163,358 123,905 ----------- ----------- CASH, end of period $ 22,286 $ 249,052 =========== =========== SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Issuance of common stock for LLC interest $ -- $ 273,542 =========== =========== The accompanying notes are an integral part of these statements. 6 SUTTON TRADING SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ NOTE 1 - ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation - --------------------- On July 2, 2002, Sutton Data Services, s.r.o. ("SDS"), the Company's wholly-owned subsidiary in the Czech Republic, filed for bankruptcy protection because it was unable to meet its obligations and the Company was unable to provide the necessary funding. Due to the bankruptcy filing in the Czech Republic, the Company has not been able to obtain the books and records of SDS for the quarter ended June 30, 2002. SDS is funded substantially all by its parent company in the United States. Accordingly, in order to prepare the quarterly financial statements, the Company used the prior quarter financial statements of SDS and wrote off all of its assets to zero. In addition, the Company recorded expenses for all funds transmitted to SDS for the quarter. The accompanying consolidated financial statements of the Company are unaudited and include, in the opinion of management, all normal recurring adjustments necessary to present fairly the consolidated balance sheet as of June 30, 2002, and the related statements of operations, comprehensive income, shareholders' equity and cash flows for the periods presented. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These consolidated financial statements should be read in conjunction with the Company's fiscal 2001 audited consolidated financial statements and the related notes thereto included in the Company's Form 10-KSB filed with the Commission on August 16, 2002. Organization and Business - ------------------------- Sutton Online, Inc. ("Sutton") was originally organized as a limited liability company in April 1999 and was merged into Sutton Online, Inc. in May 2001. In August 2001, Ikon Ventures, Inc. ("Ikon") approved an exchange of common stock of Ikon for all of the outstanding common stock of Sutton. As a result of this transaction, Sutton became a wholly owned subsidiary of Ikon. The stock exchange between Ikon and Sutton has been considered a reverse acquisition. Under reverse acquisition accounting, Sutton was considered the acquirer for accounting and financial reporting purposes, and acquired the assets and assumed the liabilities of Ikon. Ikon had no assets at acquisition and had liabilities of $76,000. The acquisition was accomplished through the issuance of 2.2222222 shares of Ikon common stock for each share of Sutton, or 15,222,219 shares of Ikon common stock. Subsequent to the reverse acquisition, Ikon changed its name to Sutton Trading Solutions, Inc. The consolidated condensed financial statements include Sutton Trading Solutions, Inc. (formerly Ikon Ventures, Inc.), its wholly owned U.S. subsidiary Sutton Online, Inc., and its wholly owned European subsidiary, SDS (collectively, the "Company"). All significant intercompany balances and transactions have been eliminated in consolidation. The fiscal year end of the Company's European subsidiary is December 31. This subsidiary is included on the basis of closing dates that precede the Company's closing date by three months. The Company offered trade routing and level II software and data for online investors including individuals, hedge funds and money managers, and provided brokerage firms with the necessary tools to offer financial products via the internet. Through its European subsidiary, the Company was developing software to provide a trading platform to customers for the purpose of routing trades in US stocks as well as stocks traded on several European exchanges. The Company's business required it to have a relationship with a securities broker-dealer as well as a clearing organization to clear trades. On July 2, 2002, SDS, the Company's wholly-owned subsidiary in the Czech Republic, filed for bankruptcy protection because it was unable to meet its obligations and the Company was unable to provide the necessary funding. In addition, Sutton, the Company's principal subsidiary, substantially terminated its work force in an effort to conserve cash. As a result, portions of the Company's assets are subject to the bankruptcy. Subsequently, the Company discontinued all operations and began depleting its cash reserves and liquidating its assets which will leave the Company with liabilities, but no assets. The Company is now exploring strategic alternatives, including a sale or merger. The issues above and the Company's working capital deficiency raise substantial doubt about its ability to continue as a going concern. 7 SUTTON TRADING SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ (Continued) NOTE 1 - ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (continued) Use of Estimates - ---------------- The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Cash Equivalents - ---------------- All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. Fair Value of Financial Instruments - ----------------------------------- Financial instruments, including cash, receivables, investments and other assets, are carried at amounts that approximate fair value. Accounts payable, loans and notes payable and other liabilities are carried at amounts that approximate fair value. Software Development Costs - -------------------------- The Company capitalizes software development costs incurred to develop certain of the Company's software for advanced online trading systems that will allow users to buy and sell securities on various worldwide exchanges in accordance with Statement of Position 98-1, "Accounting for the Costs of Computer Software Developed or Obtained for Internal Use." As of this date, the software has not been completed and, accordingly, is not available for use. The software will be amortized over the economic life of the software. Property and Equipment - ---------------------- The Company provides for depreciation of leasehold improvements, furniture, vehicles, computers and equipment using the straight-line method based on estimated useful lives of, generally, three to seven years. Foreign Currency - ---------------- The Company's foreign subsidiary uses the local currency as their functional currency. Accordingly, assets and liabilities of the foreign subsidiary are translated into United States dollars at end-of-period exchange rates. Revenue and expenses are translated at average exchange rates in effect during the period. Gains or losses from foreign currency translation are included in other comprehensive income. Goodwill - -------- Goodwill is amortized on a straight-line basis over a period of fifteen years. Long-Lived Assets - ----------------- The Company reviews its long-lived assets for impairment whenever changes in circumstances indicate that the carrying amount of an asset may not be recoverable. For purposes of evaluating the recoverability of long-lived assets, the recoverability test is performed using undiscounted net cash flows estimated to be generated by the asset. Revenue Recognition - ------------------- The Company recognizes revenue from trade routing on a transaction-by-transaction basis. Revenue from Level II software and data is recognized on a monthly usage basis. 8 SUTTON TRADING SOLUTIONS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ (Continued) NOTE 1 - ORGANIZATION, OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (continued) Stock Split - ----------- On March 22, 2001, Sutton effected a 1 to 2.5 reverse stock split whereby each 2.5 shares were exchanged for one newly issued share. All references to shares and share prices, including retroactive treatment, reflect the split on the basis of the effective ratio. Net Loss Per Share of Common Stock - ---------------------------------- Net loss per share of common stock is based on the weighted average number of shares of common stock outstanding, giving effect to the reverse acquisition and the reverse stock split as discussed above. Common stock equivalents are not included in the weighted average calculation since their effect would be anti-dilutive. Recent Accounting Pronouncements - -------------------------------- In June 1998, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standard No. 133 ("SFAS 133"), "Accounting for Derivative Instruments and Hedging Activities." SFAS 133 establishes accounting and reporting standards for derivative financial instruments and hedging activities related to those instruments, as well as other hedging activities. SFAS 133 has had no impact on the Company. In June 2001, the FASB issued Statement of Financial Accounting Standard No. 142 ("SFAS 142"), "Goodwill and Other Intangible Assets". SFAS 142 addresses the financial accounting and reporting for goodwill and other intangible assets that will no longer be amortized. The provisions of SFAS 142 must be adopted for fiscal years beginning after December 15, 2001, with early application permitted for companies with fiscal years beginning after March 15, 2001. The Company is currently assessing the impact of the implementation of SFAS 142 on its financial position and results of operations. 9 Item 2 Management's Description and Analysis or Plan of Operation. Overview - -------- The Company commenced operations in May 1999, initially focusing on providing direct access software developed by others to retail clients to effect securities transactions online. In November 1999, the Company transitioned to become an application service provider (ASP) of its proprietary platform, GlobalDAT (TM). Through its Sutton Online, Inc. ("Sutton") subsidiary, the Company provided individuals, broker-dealers, and other financial institutions with direct access to global markets via stock exchanges, market participants, and electronic communication networks (ECNs) through a seamless and simple Internet interface. The Company offered two principal software solutions: SONIC 2000 (TM), a third party US direct access trading platform, and GlobalDAT(TM) (Global Direct Access Trading), a proprietary global direct access trading. The Company offered these products in the role of an ASP, allowing business-to-business (B2B) clients to outsource much of their transaction infrastructure on a cost-effective basis, maximizing clients "hard" and "soft" dollar return on investment. The Company's wholly owned subsidiary, Sutton Data Services, s.r.o. ("SDS") was a Prague based software developer that created and maintained the GlobalDAT (TM) platform and was further engaged in providing specialized custom solutions for B2B clients. Revenues were comprised of transaction fees, data fees and software licensing fees that were primarily derived from domestic and international brokerage firms, banks and financial institutions. The Company also entered into interconnectivity agreements, introducing broker dealer agreements, and technical support agreements. All of such agreements were for an initial period of one year, with automatic renewal of one additional year. Transaction fees and technical support fees were billed to the customer on a monthly basis based on volume. Under various service agreements, the Company provided technology support services, including systems administration, internal network support, and support and procurement for clearance and settlement services. In addition, certain clients of the Company provided online access to their customers through use of the Company's electronic trading platform for which the Company received fees. During the three months ended June 30, 2002, the Company's focus was primarily in two areas: the raising of sufficient capital to fund the Company's immediate working capital requirements, and the launch of GlobalDAT (TM). However, in July 2002, in light of the current economic environment, management concluded that it was unable to raise sufficient capital to continue the operations of Sutton, its principal operating company, and therefore substantially terminated all of Sutton's operations and employees in an effort to conserve cash. On July 2, 2002, SDS, the Company's wholly-owned subsidiary in the Czech Republic, filed for bankruptcy protection because it was unable to meet its obligations and the Company was unable to provide the necessary funding. Due to the bankruptcy filing in the Czech Republic, the Company has not been able to obtain the books and records of SDS for the quarter ended June 30, 2002. SDS is funded substantially all by its parent company in the United States. Accordingly, in order to prepare the quarterly financial statements, the Company used the prior quarter financial statements of SDS and wrote off all of its assets to zero. In addition, the Company recorded expenses for all funds transmitted to SDS for the quarter. As a result of the foregoing, a substantial portion of the Company's assets, including its proprietary trading software, is subject to the bankruptcy. The Company has discontinued all operations and begun depleting its cash reserves and liquidating its assets which will leave the Company with 10 liabilities, but no assets. The Company now intends to seek to enter into a business combination with one or more as yet unidentified privately held businesses. Results of Operations - --------------------- During the three months ended June 30, 2002, the Company had revenue of $258,413 and incurred a net loss of $2,250,417. Expenses for this period were related primarily to losses incurred on GlobalDAT development, asset disposal, salaries, occupancy and equipment, general and administrative expenses. Prior to July, 2002, the operations of Sutton and the Company's other subsidiaries constituted substantially all of the Company's operations. In view of the filing of a bankruptcy petition by SDS and the Company's decision to terminate Sutton's operations, management believes that revenue comparisons with the prior periods are not relevant. Liquidity and Capital Resources - ------------------------------- At June 30, 2002, the Company had $22,286 in cash, and had trade accounts payable in the amount of $1,073,618. The Company is negotiating with its vendors to reduce the balances on these accounts. As of September 1, 2002, the Company's principal sources of liquidity consisted of cash of approximately $7,200. The Company has no commitments for any capital expenditure and foresees none. However, the Company will incur routine fees and expenses incident to its reporting duties as a public company and maintenance of its insurance coverage, and it will incur fees and expenses in the event it makes or attempts to make an acquisition. The Company expects no significant operating costs other than insurance expenses and professional fees payable to attorneys and accountants. The Company is seeking to enter into a business combination with one or more as yet unidentified privately held businesses. The Company does not anticipate that funding will be necessary in order to complete a proposed combination, except possibly for fees and costs of the Company's professional advisers. Accordingly, there are no plans to raise capital to finance any business combination, nor does management believe that any combination candidate will expect cash from the Company. The Company hopes to require the candidate companies to deposit with the Company an advance that the Company can use to defray professional fees and costs and travel, lodging and other due diligence costs of management. Otherwise, management would have to advance such costs out of their own pockets, and there is no assurance that they will advance such costs. Management intends to raise capital from both existing and new shareholders and to use the proceeds to pay for routine expenses, such as making required filings with the SEC and office rent and related expenses. There can be no assurance that the Company will be able to find sources of financing on terms acceptable to the Company, if at all. If the Company does not find the sources to finance such activities, it may be unable to timely file the reports required under the Securities Exchange Act of 1934, as amended. This could subject the Company to fines and penalties and make it less desirable to a potential combination candidate. This would make it difficult for the Company to pursue its plans to acquire additional businesses. 11 Item 3 Controls and Procedures. (a) Explanation of Disclosure Controls and Procedures Not applicable because this report cover a period ending prior to August 29, 2002. (b) Changes in Internal Controls There were no significant changes in the Company's internal controls or in other factors that could significantly affect the Company's disclosure controls and procedures subsequent to the date of their evaluation, nor any significant deficiencies or material weaknesses in such disclosure controls and procedures requiring corrective actions. As a result, no corrective actions were taken. PART II OTHER INFORMATION Item 1 Legal Proceedings None Item 2 Changes in Securities None Item 3 Defaults Upon Senior Securities None Item 4 Submission of Matters to a Vote of Security Holders None Item 5 Other Information None Item 6 Exhibits and Reports on Form 8-K (a) Exhibits None (b) Reports on Form 8-K None 12 SIGNATURES In accordance with the requirements of the Securities Exchange Act of 1934 the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized . SUTTON TRADING SOLUTIONS, INC. Dated: September 12, 2002 By: /s/ JONATHAN SIEGEL -------------------------------- Jonathan Siegel Chairman and CEO 13 *CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO 18 U.S.C 1350, AS ADOPTED AND THE REQUIREMENTS OF SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Jonathan Siegel, Chief Executive Officer of Sutton Trading Solutions, Inc. (the "Company") do hereby certify that: 1. I have reviewed this quarterly report on Form 10-QSB of the Company; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; and 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the period presented in this quarterly report. /s/ JONATHAN SIEGEL ------------------------------------ Jonathan Siegel Chairman and Chief Executive Officer September 12, 2002 *Representations 4, 5 and 6 of this certification have been omitted consistent with the transition provisions of SEC Exchange Act Release No. 34-46427 because this quarterly report covers a period ending before the effective date of Rules 13a-14a-14 and 15d-14 of the Exchange Act. 14 *CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO 18 U.S.C 1350, AS ADOPTED AND THE REQUIREMENTS OF SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Leigh Bickel, Chief Financial Officer of Sutton Trading Solutions, Inc. (the "Company") do hereby certify that: 1. I have reviewed this quarterly report on Form 10-QSB of the Company; 2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report; and 3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the period presented in this quarterly report. /s/ LEIGH BICKELL ------------------------------------ Leigh Bickell Chief Financial Officer September 12, 2002 *Representations 4, 5 and 6 of this certification have been omitted consistent with the transition provisions of SEC Exchange Act Release No. 34-46427 because this quarterly report covers a period ending before the effective date of Rules 13a-14a-14 and 15d-14 of the Exchange Act. 15