EXHIBIT 99.2
GELSTAT CORP.
(A Development Stage Company)
Minneapolis, Minnesota
UNAUDITED FINANCIAL STATEMENTS
QUARTER ENDED
MARCH 31, 2003
1
GELSTAT CORP.
(A Development Stage Company)
BALANCE SHEET
MARCH 31, 2003
(Unaudited)
ASSETS
Current Assets
Cash in bank $ 112,313
Inventory 2,991
Unexpired insurance 3,572
---------
Total Current Assets 118,876
---------
Property and Equipment
Office equipment 1,115
Machinery and equipment 191
1,306
---------
Less accumulated depreciation 75
---------
1,231
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Other Assets
Lease deposit 500
Patent, net of amortization of $99 12,075
---------
Total Other Assets 12,575
---------
Total Assets $ 132,682
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LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Note payable $ 450,000
Accounts payable 7,797
Accrued salaries 960
Accrued interest 9,556
---------
Total Current Liabilities 468,313
---------
Stockholders' Deficit
Common stock, $.001 par value, 75,000,000 shares authorized
3,375,000 shares issued and outstanding 3,375
Due from shaeholders (3,375)
Accumulated deficit (accumulated during the development stage) (335,631)
---------
Total Stockholders' Deficit (335,631)
---------
Total Liabilities and Stockholders' Deficit $ 132,682
=========
2
GELSTAT CORP.
(A Development Stage Company)
STATEMENT OF OPERATIONS AND ACCUMULATED DEFICIT
THREE MONTHS ENDED MARCH 31, 2003
(Unaudited)
Revenues $ --
----------
Operating Expenses
Consulting fees 71,000
Salaries 6,935
Health care benefits 7,502
Research and development 26,610
Organization expense 1,538
Office supplies and expense 1,607
Advertising and marketing 35,543
Rent 4,575
Liability insurance 1,429
Travel and entertainment 12,908
Telephone 3,114
Depreciation 45
Amortization 50
Bank charges 12
----------
172,868
----------
Loss from Operations (172,868)
Other Expense
Interest expense 6,192
----------
Net Loss (179,060)
Accumulated Deficit - Beginning of Period (156,571)
----------
Accumulated Deficit - End of Period $ (335,631)
==========
3
GELSTAT CORP.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 2003
(Unaudited)
Cash Flow from Operating Activities
Net Loss $ (179,060)
Adjustments to reconcile net loss to net cash
used in operating activities
Depreciation and amortization 95
Increase in inventory (2,991)
Decrease in unexpired insurance 1,429
Increase in accounts payable 4,105
Increase in accrued expenses 6,192
----------
Net Cash Used by Operating Activities (170,230)
----------
Cash Flow from Investing Activities
Patent acquisition costs (471)
----------
Net Cash Used by Investing Activities (471)
----------
Cash Flow from Financing Activities
Loan proceeds 150,000
----------
Net Cash Provided by Financing Activities 150,000
----------
Decrease in Cash (20,701)
Cash at Beginning of Period 133,014
----------
Cash at End of Period $ 112,313
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