RESCON TECHNOLOGY CORPORATION
[A Development Stage Company]
Pro Forma Financial Statements
June 30, 2002
RESCON TECHNOLOGY CORPORATION
[A Development Stage Company]
Pro Forma Balance Sheet
June 30, 2002
(Unaudited)
<Table>
<Caption>
Pro Forma
Giving
Effect to
GIT RESCON Reorganization
Securities Technology June 30,
Corp Corporation Adjustments 2002
-------------------------------------------------
Current Assets:
Receivables $ 111,663 $ 0 $ 0 $ 111,663
-------------------------------------------------
Total Current Assets 111,663 0 0 111,663
Property and Equipment - net 16,515 0 0 16,515
Other assets 142,529 0 0 142,529
-------------------------------------------------
TOTAL ASSETS $ 270,707 $ 0 $ 0 $ 270,707
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Bank overdraft balance $ 11,695 $ 0 $ 0 $ 11,695
Accounts payable and accrued 23,614 0 0 23,614
-------------------------------------------------
Total Current Liabilities 35,309 0 0 35,309
Stockholders' Equity:
Common stock 10 402 715 1,127
Additional Paid-in Capital 234,774 4,503,156 (4,504,273) 233,657
Retained Earnings 614 (4,503,558) 4,503,558 614
-------------------------------------------------
Total Stockholders' Equity 235,398 0 0 235,398
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 270,707 $ 0 $ 0 $ 270,707
=================================================
</Table>
See accompanying notes
RESCON TECHNOLOGY CORPORATION
[A Development Stage Company]
Pro Forma Statement of Operations
For the Year Ended December 31, 2001
(Unaudited)
<Table>
<Caption>
Pro Forma
Giving
Effect to
GIT RESCON Reorganization
Securities Technology December 31,
Corp Corporation Adjustments 2001
-------------------------------------------------
Revenues $ 384,727 $ 0 $ 0 $ 384,727
General and Administrative
Expenses 385,981 2,537 0 388,518
-------------------------------------------------
Net Loss Before Income Taxes (1,254) (2,537) (3,791)
Current Year Provision for
Income Taxes 0 0 0 0
-------------------------------------------------
Net Loss $ (1,254) $ (2,537) $ 0 $ (3,791)
=================================================
Loss Per Share $ (6.27) $ (0.01) $ (0.01)
=================================================
Average Shares Outstanding 200 3,860,869 7,250,022 11,111,091
=================================================
</Table>
See accompanying notes
RESCON TECHNOLOGY CORPORATION
[A Development Stage Company]
Pro Forma Statement of Operations
For the Six Months Ended June 30, 2002
(Unaudited)
<Table>
<Caption>
Pro Forma
Giving
Effect to
GIT RESCON Reorganization
Securities Technology December 31,
Corp Corporation Adjustments 2001
-------------------------------------------------
December 31, 2001
Revenues $ 834,796 $ 0 $ 0 $ 834,796
General and Administrative
Expenses 833,454 633 0 834,087
-------------------------------------------------
Net Income from Operations 1,342 (633) 709
Other Income/(Expense)
Interest Income 525 0 525
-------------------------------------------------
Net Income/(Loss) Before Taxes 1,867 (633) 0 1,234
Current Year Provision for
Income Taxes 0 0 0 0
-------------------------------------------------
Net Loss $ 1,867 $ (633) $ 0 $ 1,234
=================================================
Loss Per Share $ 9.34 $ (0.01) $ 0.00
=================================================
Average Shares Outstanding 200 3,864,449 7,250,022 11,114,671
=================================================
</Table>
See accompanying notes
RESCON TECHNOLOGY CORPORATION
[A Development Stage Company]
Notes to Pro Forma Financial statements
June 30, 2002
(Unaudited)
Note 1 AGREEMENT AND PLAN OF REORGANIZATION
------------------------------------
ResCon Technology Corporation was organized as a Wyoming
corporation and spent many years (since 1976) in the business of
manufacturing and selling chemicals and related products for the
permanent repair and protection of concrete and steel structures.
However, the Company liquidated all assets prior to 1994 and has
had no business activity since. In July of 1999, the Company
merged with and into ResCon Technology Corporation, a Nevada
corporation. The merger was effected for the purpose of changing
the corporate domicile to Nevada, and to provide for the exchange
of 1 share of the Nevada corporation to the stockholders for each
7,000 shares of the Wyoming corporation.
On July 12, 2002, ResCon Technology Corporation entered an
Agreement and Plan of Reorganization (the Agreement) with Radical
Technologies, Inc., a New York corporation (Radical) and its
wholly owned subsidiary, GIT Securities Corporation, a Nevada
corporation (GIT). GIT is a New York based, registered
broker/dealer providing discount and full service brokerage
services to certain targeted ethnic groups of customers in the
United States, including Russians, Bulgarians and Armenians,
among others. Pursuant to the Agreement, the Company shall
essentially issue 11,000,000 shares of common stock to Radical in
exchange for 100% or 200 common shares of GIT.
As a registered NASD broker/dealer, GIT must obtain approval from
the NASD when a change in beneficial ownership exceeds 25%. As
of the date of this report, NASD approval is still pending.
As part of the Agreement, certain shareholders of ResCon are
tendering certificates representing 3,749,778 of the pre-
reorganization outstanding 4,022,869 common shares for
cancellation. At the conclusion of all the transactions
contemplated in the Agreement, Radical shall own 11,000,000
shares of total outstanding shares of 11,273,091, or 97.6 %.
The survivor in the aforementioned combination is ResCon.
However, the combination of these two entities has been accounted
for as a reverse purchase.
Also, as part of the agreement, Radical agreed to pay $315,000
and ResCon agreed to issue warrants to purchase up to 200,000
restricted common shares at a strike price of $2.00 per share, to
certain consultants and others as consideration for
representations, covenants, and warranties set forth in the
Agreement.
The Pro Forma financial statements reflect all of the
transactions contemplated by the Agreement. Specifically, the
accumulated deficit of ResCon was eliminated against paid-in
capital of ResCon; the cancelled common stock was reclassified as
paid-in capital; the new shares were recorded as common stock
with the offset to paid-in capital all to reflect the
recapitalization of GIT in the reverse merger.