[DESCRIPTION] EXHIBIT 7.2
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Exhibit 99.1
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WITI CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31 December 31
1999 1998
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ASSETS
Current Assets:
Cash and cash equivalents $ 340,904 $ 167,672
Accounts receivable 3,415 -
Costs in excess of billings 212,120 -
Prepaid expenses and other 26,407 152,167
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Total current assets 582,846 319,839
Equipment, net 252,818 54,361
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Total assets $ 835,664 $ 374,200
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LIABILITIES AND STOCKHOLDER'S DEFICIENCY
Current liabilities:
Accounts Payable
Related parties $ 568,150 $ 637,270
Other 259,294 127,313
Note payable related party 100,000 -
Billings in excess of costs - 6,909
Deferred revenue 6,453 7,898
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Total current liabilities 933,897 779,390
Long-term debt related party 743,234 -
Stockholders' deficiency
Series A Convertible preferred 3,500 3,500
Series B Preferred stock 10 10
Common stock 1,033 1,033
APIC 50,635 50,885
Accumulated deficit (896,645) (460,618)
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Total stockholders' deficiency (841,467) (405,190)
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Total liabilities and stockholders' $ 835,664 $ 374,200
deficiency ============== ============
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WITI CORPORATION AND SUBSIDIARIES
UNAUDITED INTERIM FINANCIAL STATEMENTS
The unaudited interim financial statements of WITI Corporation and subsidiaries
("WITI") as of December 31, 1999 and for the three month periods ended
December 31, 1999 and 1998 do not provide all disclosures included in the annual
financial statements. These interim financial statements should be read in
conjunction with the annual audited financial statements and the footnotes
thereto. Results for the interim periods are not necessarily indicative of the
results for the fiscal year ending September 30, 2000. In the opinion of
management, the accompanying interim financial statements reflect all
adjustments (consisting only of normal recurring accruals) necessary for a fair
presentation of the financial position and results of operations of WITI.
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WITI CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
Three-months Three-months
ended ended
December 31 December 31
1999 1998
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Operating Revenue
Consulting services $ 449,055 $ 95,800
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Total Operating Revenue 449,055 95,800
Cost of operating revenue
Consulting services 238,934 74,236
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Total Costs & Expenses 238,934 74,236
Gross Margin 210,121 21,564
Operating Expenses 313,407 239,408
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Loss from Operations (103,286) (217,844)
Interest Income (Expense) (14,504) (9,337)
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Net Loss $(117,790) $(227,181)
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