EXHIBIT 99.2
ALTERNATE ENERGY CORPORATION
FINANCIAL STATEMENTS
June 30, 2002
ALTERNATE ENERGY CORPORATION
INDEX
JUNE 30, 2002
PAGE
AUDITORS' REPORT 1
FINANCIAL STATEMENTS
Balance Sheet - Statement I 2
Statement of Loss and Deficit - Statement II 3
NOTES TO FINANCIAL STATEMENTS 4 - 5
AUDITORS' REPORT
TO THE SHAREHOLDERS OF
ALTERNATE ENERGY CORPORATION
We have audited the balance sheet of ALTERNATE ENERGY CORPORATION as at June 30,
2002 and the statement of loss and deficit, for the year then ended. These
financial statements are the responsibility of the Corporation's management. Our
responsibility is to express an opinion on these financial statements based on
our audit.
We conducted our audit in accordance with Canadian generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
In our opinion, these financial statements present fairly, in all material
respects, the financial position of the company, as at June 30, 2002, and the
results of its operations for the year then ended, in accordance with Canadian
generally accepted accounting principles.
NORTH YORK, ONTARIO
JULY 8, 2002 CHARTERED ACCOUNTANTS
Page 1
ALTERNATE ENERGY CORPORATION STATEMENT I
BALANCE SHEET
As at June 30, 2002
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2002
- --------------------------------------------------------------------------------
ASSETS
CURRENT
Cash $ 265
Patents and technology 99,871
- --------------------------------------------------------------------------------
$ 100,136
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LIABILITIES
CURRENT
Due to related party (note 2) $ 388
- --------------------------------------------------------------------------------
SHAREHOLDER'S DEFICIENCY
CAPITAL STOCK (note 3) 99,871
(DEFICIT) - Statement II (123)
- --------------------------------------------------------------------------------
99,748
- --------------------------------------------------------------------------------
$ 100,136
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ON BEHALF OF THE BOARD:
_____________________________ DIRECTOR
_____________________________ DIRECTOR
{SEE ACCOMPANYING NOTES.} Page 2
ALTERNATE ENERGY CORPORATION STATEMENT II
STATEMENT OF LOSS AND DEFICIT
For the Year Ended June 30, 2002
- --------------------------------------------------------------------------------
2002
- --------------------------------------------------------------------------------
REVENUE $ --
EXPENSES
Bank charges 123
- --------------------------------------------------------------------------------
NET (LOSS) AND (DEFICIT), for the year $ (123)
================================================================================
{SEE ACCOMPANYING NOTES.} Page 3
ALTERNATE ENERGY CORPORATION
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2002
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1. NATURE OF BUSINESS
------------------
The company was incorporated on March 22, 2000 in Wilmington, Delaware
U.S.A. and commenced active business operations on October 26, 2001.
FOREIGN CURRENCY TRANSLATION
Assets and liabilities denominated in foreign currency are translated
into Canadian currency at exchange rates prevailing at the balance sheet
date. Expenses are translated at the average rates prevailing during the
year.
PATENTS AND TECHNOLOGY
Patents and technology are stated at cost. The company is currently not
amortizing these assets.
ACCOUNTING 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 revenues and expenses
during the reporting period. Actual results may differ from these
estimates.
2. DUE TO RELATED PARTY
--------------------
The amounts due to Environmental Products Group Inc. are non-interest
bearing, with no fixed terms of repayment and are due upon demand.
Page 4
ALTERNATE ENERGY CORPORATION
NOTES TO THE FINANCIAL STATEMENTS
June 30, 2002
- --------------------------------------------------------------------------------
3. CAPITAL STOCK
-------------
AUTHORIZED
150,000,000 Common shares with a
par value of $0.001
2002
----
ISSUED
99,870,715 Common shares $99,871
========
4. RELATED PARTY TRANSACTION
-------------------------
During the year, the company purchased patents and technology from
Environmental Products Group Inc. at a cost of $99,871 through issuance
of common shares. The value of the patents have not been evaluated to
determine if an impairment in value exists.
5. STATEMENT OF CASH FLOWS
-----------------------
A statement of cash flows has not been presented as it would not provide
any additional meaningful information.
Page 5