Consolidated Statement of Cash Flows (unaudited-Prepared by management) March 31 March 31 For the six months ended 2000 1999 Cash provided by (used in): Cash flows from operating activities: Net income $ 1,231,462 $ 1,191,462 Items not involving cash: Deferred income taxes (25,157) (303,844) Depreciation 830,217 679,700 Goodwill amortization 547,323 229,917 Net changes in non-cash working capital balances: Accounts receivable (1,422,065) 1,157,454 Contract work in process (4,927,078) 813,506 Prepaid expenses (181,695) 23,504 Accounts payable and accrued liabilities 3,335,056 (1,808,747) Income taxes payable (2,365,252) 643,162 Deferred revenue 3,751,307 711,478 Net cash provided by (used in) operating activities 774,118 3,337,592 Cash flows from financing activities: Long-term debt 550,000 5,000,000 Long-term debt repayments (1,626,866) (668,871) Issuance of common shares for cash 563,650 531,050 Redemption of common shares - (65,965) Increase in restricted cash (594,823) - Net cash provided by financing activities (1,108,039) 4,796,214 Cash flows from investing activities: Acquisition of subsidiaries (net of cash acquired of nil; 1999 - $5,792,069) (2,186,205) (1,457,701) Purchase of capital assets (1,546,202) (692,998) Net cash used in investing activities (3,732,407) (2,150,699) Change in cash balance due to foreign exchange (76,723) (106,776) (Decrease)/Increase in cash (4,143,051) 5,876,331 Cash, beginning of period 15,300,454 3,120,158 Cash, end of period $ 11,157,403 $ 8,996,489 Supplementary information: Interest paid $ 162,388 $ 172,337 Income taxes paid 2,469,983 71,936 Shares issued for non-cash consideration 2,430,200 3,221,800