SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   FORM 10-KSB

     [X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE ACT
OF 1934. For the fiscal year ended DECEMBER 31, 2001.

     [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES  EXCHANGE
ACT OF 1934. For the transition period from ________________ to ________________

                          Commission File No. 2-96392-A

                             TANGENT SOLUTIONS, INC.
                 (Name of small business issuer in its charter)

            Delaware                                          65-0952956
  (State  or other  jurisdiction                            (IRS Employer
of  incorporation  or organization)                         Identification)

                 6801 Powerline Road, Fort Lauderdale, FL 33309
               (Address of principal executive offices) (Zip Code)

     Issuer's telephone number, including area code: (954) 935-8100

Securities  registered  pursuant to Section 12(b)
     of the Exchange Act:                          None

Securities  Registered  pursuant to Section  12(g)
     of the Exchange  Act:                         Common Stock, $.001 Par Value
                                                   (Title of Each Class)

(Name of Each Exchange on which Registered):       None

Check  whether the issuer (1) filed all reports  required to be filed by Section
13 or 15(d) of the  Exchange  Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports),  and (2) has been
subject to such filing requirements for the past 90 days. Yes [ ] No [X]

Check if there is no disclosure of delinquent  filers in response to Item 405 of
Regulation  S-B is not  contained  in  this  form,  and no  disclosure  will  be
contained,  to the  best of  registrant's  knowledge,  in  definitive  proxy  or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ X ]

Issuer's revenues for the fiscal year ended December 31, 2001 were $1,675,409.

The new stock of the Company has not yet begun to trade, as of June 20, 2002.

The number of shares  outstanding of the Issuer's common stock,  par value $.001
per share, as of June 20, 2002, was 15,510,286.

Transitional Small Business Disclosure Format (check one):  Yes [  ]  No [X]

Documents  incorporated by reference:  Certain exhibits listed in Part III, Item
14 of this Annual Report on Form 10-KSB are  incorporated  by reference from the
Registrant's  Current  Reports on Form 8-K filed with the Commission on December
12, 2000,  January 30, 2001,  April 16, 2001, April 20, 2001, June 1, 2001, June
6, 2001, September 20, 2001, and February 6, 2002.

Check  whether the issuer has filed all  documents  and  reports  required to be
filed by Section 12, 13 or 15(d) of the Exchange Act after the  distribution  of
securities under a plan confirmed by a court. Yes [X] No [ ]


<PAGE>


                             Tangent Solutions, Inc.

                                Table of Contents

                                                                            Page

Part I

Item 1. Business...............................................................3
Item 2. Properties.............................................................9
Item 3. Legal Proceedings.................................................... 10
Item 4. Submission of Matters to a Vote of Security Holders...................10


Part II

Item 5. Market for Registrant's Common Equity and
            Related Stockholder Matters.......................................10
Item 6. Management's Discussion and Analysis of Financial Condition and
            Results of Operations ............................................11
Item 7. Financial Statements..................................................15
Item 8. Changes In and Disagreements With Accountants on Accounting and
            Financial Disclosure..............................................16


Part III

Item 9. Directors and Executive Officers of the Registrant....................16
Item 10.Executive Compensation................................................17
Item 11.Security Ownership of Certain Beneficial Owners and Management........19
Item 12.Certain Relationships and Related Transactions........................20


Item 13.Exhibits, Financial Statement Schedules and Reports on Form 8-K.......20

Signatures....................................................................22


<page>



PART I



Item 1.  BUSINESS


Overview

Tangent Solutions, Inc. ("Tangent"), a Delaware corporation, is the new name for
Electronic  Business  Services,  Inc. The change was effective July 27, 2001 and
symbolizes the Company's  transformation  under new management and new ownership
into  a  strong  competitor  in  its  core  businesses.  Through  its  operating
subsidiaries (collectively with the subsidiaries, the "Company"), Tangent create
software primarily for, and provides services primarily to, the mortgage lending
and  credit  agency   industries.   The  Company  also  fulfills  requests  from
independent  membership  clubs  for  credit  information  products.  All  of the
Company's business operations are conducted through Engineered Business Systems,
Inc. ("EBS"),  Quick CREDIT Corp. ("QCC") and Consumer  Guardian,  Inc. ("CGI").
EBS,  acquired by the  Company in  December  1996,  develops  and sells  quality
assurance software products and services for the mortgage banking industry.  QCC
is a wholly  owned  corporation  formed by the Company in February  1998,  which
compiles information provided by credit repositories,  organizes the information
in the form of  reports  and  sells  the  comprehensive  credit  reports  to its
customers. CGI is another wholly owned corporation and was formed by the Company
in August 2001 to specialize in membership club services and consumer credit.


Reorganization

On May 1, 2001 (the  "Effective  Date"),  the  United  States  Bankruptcy  Court
confirmed the Company's  Amended  Joint Plan of  Reorganization  dated March 12,
2001 (the "Plan"). As of the Effective Date of the Plan, the Company consummated
several transactions, as follows:

-- cancelled all the existing Capital Stock of the Company that existed prior to
May 1, 2001, including all Common and Preferred Stock, Options and Warrants;

-- issued 11,992,069 shares of Common Stock to Unsecured Creditors, Employees of
the Company,  DIP investors upon conversion of the Line of Credit and to service
provider professionals during the Chapter 11 Bankruptcy proceedings; and

--  completed a $685,000  private  offering by selling  2,714,005  shares of its
common stock.



The Reorganized Company

Although the reorganization significantly reduced the debt of the Company, there
were still substantial obligations and debt service requirements. The ability of
the Company to meet the debt service  obligations and other obligations  depends
on a number of factors,  including the Company's  ability to maintain  operating
cash  flow  from its  revenue  and its  ability  to  raise  funds  from  private
offerings.



Recent Developments

New name and stock Symbol:  On September 19, 2001, the Company  changed its name
to Tangent Solutions, Inc. from Electronic Business Services, Inc. The Company's
stock symbol changed from AEBS to TSII. Through May 15, 2001 the Company's stock
traded on the OTC Bulletin  Board under the old symbol AEBS. The Company has not
started trading under the new symbol TSII as of June 20, 2002.

Reverse Stock Split: On February 11, 2002, the Company  affected a reverse stock
split of its Common  Stock.  All  holders of Common  Stock of the  Company  will
receive three (3) shares of new Common Stock for every ten (10) shares currently
owned. The new CUSIP number is 875463 20 0.

The Subsidiaries

ENGINEERED BUSINESS SYSTEMS, INC.

EBS designs,  develops,  markets and supports a family of software  products for
the credit  reporting and mortgage  banking  industries.  EBS software  products
include (i) the Automated  Compliance and Evaluation System (ACES(TM)) a quality
control  system for  mortgage  lenders,  (ii) the EBS  Xchange(R),  an automated
merged infile system with electronic data interchange (EDI) capabilities,  (iii)
the CRIS(R) Mortgage  Reporting System,  credit reporting software and (iv) DESC
(Data Evaluation and Selection Criteria module),  statistical  sampling software
for the mortgage banking industry.

In 1999, EBS  introduced a new 32-bit  version of ACES(TM) 98 v2.0,  followed by
ACES(TM)  2000  with  Business  Intelligence   Reporting  which  incorporated  a
third-party  software  product into  ACES(TM) and  substantially  increased  the
program's reporting capabilities.


Products and Services

The Automated Compliance and Evaluation System (ACES(TM))

Since 1994,  Engineered  Business Systems,  Inc. has been a provider of mortgage
quality  control  software and services  for U.S.  and  multi-national  mortgage
bankers.  EBS is  the  developer  of  ACES(TM),  the  Automated  Compliance  and
Evaluation  System,  and DESC(TM),  the Data  Evaluation and Selection  Criteria
statistical  sampling  software.  This  software is used by mortgage  bankers to
reduce the time and cost  associated with  conducting  mortgage  quality control
audits.  Users have reported  reductions in the average time to conduct an audit
by more than 50%,  compared to manual  auditing,  allowing  mortgage  bankers to
maintain or reduce quality control labor costs while increasing loan origination
volume.

The  result  of an  initial  $5  million  development  project,  and  subsequent
investment in further  development,  the  Automated  Compliance  and  Evaluation
System  (ACES(TM))  continues  to be the most  advanced  and  complete  mortgage
quality control software system for mortgage  bankers.  ACES(TM)  eliminates the
need for  mortgage  bankers  to  develop  far more  costly  in-house  systems or
frequently upgrade third-party "off the shelf" modules.

ACES(TM) is a customizable  system and multi-user  platform that performs on any
32-bit Windows desktop environment.  The system can be installed on a LAN or WAN
servers,  and can be maintained by end-users  with little or no IT  involvement.
The recent change in ACES(TM) makes the system compatible with a wide variety of
databases,  making the  product  "universally"  installable.  Built-in  security
features  provide mortgage bankers with full control over individual user access
to each system function, providing an additional level of security protection of
non-public consumer information (NPI).

A single installation of ACES(TM) may also be stratified to provide individually
definable  levels of the system  allowing  users to segregate  various  types of
mortgage  audits,  such as  pre-funding  mortgage  audits or EPD  audits,  or to
provide  additional  automation  for consumer  and/or  commercial  divisions for
banks.  The  system's  import and export  capabilities  enable  off-site  branch
auditing or pre-acquisition loan portfolio analysis.

In the first  quarter  of 2002,  EBS  finished  the  development  of its  newest
versions of the software,  ACES(TM)  Silver.  This version is compatible  with a
wide variety of databases,  and enables the user to request and retrieve  credit
reports from the credit reporting agencies securely over via the Internet,  with
two-way  128-bit  encryption.  ACES(TM)  Silver was  designed for use by low- to
medium-volume mortgage bankers with basic reporting needs.


Data Evaluation and Selection Criteria (DESC(TM))

The Data Evaluation and Selection Criteria software (DESC(TM)) was introduced in
1998.  DESC(TM)  is  licensed  for  use  by  mortgage  bankers  to  compute  the
statistical   samples  in  order  to  more   accurately   comply  with  investor
requirements  for  conventional  and government  loans  reviews,  and to provide
comparative statistical evaluations of loan aspects.  DESC(TM) is a tool to more
accurately  calculate  loan sample sizes than the  alternative  percentage-based
sampling,   while  eliminating  the  need  for  mortgage  bankers  to  employ  a
Statistical Analyst to perform these calculations.

DESC(TM) meets the needs of mortgage  bankers  seeking to quickly and accurately
determine  the loan sample size  needed for quality  control  reviews as well as
assess the  degree to which the  institution  as a whole is  meeting  investors'
compliance requirements.  Statistical sampling is a way for mortgage bankers who
produce a high volume of  investor-acceptable  mortgage loans to ease the burden
on their Quality Control  departments by reducing the number of loans needed for
review.  Mortgage bankers with moderate-to-high loan origination volumes and low
error rates  benefit  from a  substantial  reduction in the number of loans that
must be reviewed for compliance purposes.

In addition, DESC(TM) provides the ability to stratify predetermined risk groups
(i.e.,  loans by investor type or by type of originator) for sampling  purposes.
The software calculates investor- required confidence levels and precision rates
in combination with the institution's  loan volume and the error rate associated
with each risk  group or loan type.  Known as  "stratification,"  this  function
allows  mortgage  bankers to validate  risk  assumptions  based on any number of
factors, verifying the overall quality of the mortgage loans being sold into the
secondary  market.  This methodology  supports the mortgage  bankers' ability to
maximize  the  information  obtained  from the quality  control  process,  while
minimizing the actual number of mortgage files to be reviewed.

To develop DESC(TM),  Engineered Business Systems,  Inc. employed  professionals
with PhDs in Applied  Statistics  and  experience  in the mortgage and technical
manufacturing  industries,  to  provide  the  mathematical  foundation  for  the
program.  Certified  mortgage  quality  managers  and business  risk  management
professionals provided the logic behind the mathematical formulations as applied
to the loan quality assurance function.

In  addition  to  calculating  loan  sample  sizes,  DESC(TM) is used to provide
printed  documentation  of the  statistical  calculations,  and produce  graphic
reports that can be included as part of the quality control audit  documentation
for investor compliance or management reviews,  providing  substantiation of the
calculations used for determining sample sizes.


CRIS(R)

CRIS(R)  software has been  created,  developed and sold by EBS to assist Credit
agencies in compiling comprehensive credit reports for their customers. To date,
over 350 mortgage  credit  agencies have  purchased the personal  computer based
CRIS(R)  program,  each of which have also entered  into a software  maintenance
agreement with the Company.  The CRIS(R) program enables credit agencies through
its built-in  communication  software to access information from all three major
credit information repositories,  Experian, Equifax and Trans-Union. The CRIS(R)
program then  automatically  consolidates the credit  information  obtained from
these sources and creates a simplified, comprehensive credit report. The program
can then generate, upon demand, letters requesting an explanation of information
in the report that requires  clarification.  In addition,  CRIS(R) also provides
credit  agencies with an accounts  receivable and billing system to charge their
customers for reports generated by the CRIS(R) program.

CRIS(R)  is  installed  by  EBS  on  a  customer's  personal  computer  or  sold
pre-packaged on new computer hardware.


EBS Xchange (R) -- iXchange (R)

At the heart of the EBS Data  Center  is the EBS  Xchange(R)  application.  This
software  handles all of the credit  report  requests from users of EBS software
systems with appropriate built-in credit reporting  interfaces.  It communicates
credit  information  requests  directly  to the  credit  repositories,  receives
individual credit reports information from the credit  repositories,  merges and
eliminates duplicate data, produces and transmits the final merged credit report
to the requesting end user. This product has been moved to the IBM iSeries, with
the help of the IBM Development  Group in Rochester,  MN, and is currently being
tested on that platform.  This transition  will provide the company's  operating
systems with unlimited  growth potential by increasing the reliability and speed
of  the  system.   This  transition  further  enables  the  delivery  of  secure
information over the Web with the most secure server in the industry.


QuickINFO for Windows

QuickINFO ("QI") for Windows is the Company's newest product.  QI is a Microsoft
Windows based  communications  software system that is used to initiate and send
credit report requests via modem or the Internet (TCP/IP).  QI includes advanced
features  such as 128-bit SSL  encryption  for security as well as a new graphic
print output. Users include mortgage companies,  property management  companies,
credit card companies, real estate agencies,  finance companies and local credit
reporting agencies.  QI is extremely  flexible,  supporting and interfacing with
many popular loan origination systems.

The Company  currently uses  server-based  technology to communicate and deliver
the  needs  of the  club  members  of the  subsidiary  Companies.  However,  the
conversion of the PC-based technology to IBM's iSeries (formerly known as AS400)
technology is in process to provide extreme reliability, scalability and endless
expansion  capability.  Regardless of the size and/or number of membership clubs
QCC or Consumer Guardian serves,  this new technology will have full scalability
for all of the Company's needs.

This technology transformation is scheduled for completion in 2002.

The  Company  currently  uses  Microsoft  Windows NT servers and  Microsoft  SQL
database  technology in its existing system for club  membership.  In process is
the move of all back-end  processes to the IBM iSeries using the UDB2  database,
integrating these processes with a new ERP system,  and resulting in the highest
reliability  and scalability in the industry using best of breed software (IBM's
UDB, Apache 2 Web Server,  Websphere and Visual Age C++, and Java).  The Company
is now an IBM business partner and has been working with IBM's  development labs
to accelerate its plan.

The  Company  is under a  three-year  contract  with  TruSecure  (ICSA) for full
security  certification.  This  ensures  not only  that it is  using  all of the
necessary  security  measures  now,  but also that it will stay  current  in the
future. This covers every aspect of security,  including, but not limited to the
physical  site,  internal  procedures,  passwords,  and  encryption.  All of the
information  residing  on,  being sent to, or sent from the  Company's  computer
systems is safe and secure from intrusion and theft.  In addition to the initial
Internet port scans and intrusion  detection by the ICSA,  this is repeated on a
regular basis with  notification  given to EBS of any changes that must be made.
The Company's  firewall is on the ICSA approved  list. The new facility has been
customized  to  provide an ICSA  secure  server  environment.  The  Company  has
received ICSA certification as a "secure facility".

Computer backups are made on a daily, weekly, and monthly basis, currently using
high-speed DLT tape drives that are stored in a fireproof safe.


EBS Sales and Marketing

In order to service its customers,  the Company presently employs an experienced
sales and marketing  manager who is accomplished in sales and in the development
of national marketing programs.  Two sales representatives work on a salary plus
commission basis and are responsible for the sales of ACES(TM) and DESC software
products.  The department is responsible for direct  marketing of these products
to  prospective  Licensees  via  demonstrations  of these  products  to mortgage
bankers,  savings and loan associations,  credit unions and other lenders.  This
sales  and  marketing  effort  will be  supplemented  by (i)  additional  sales,
marketing and  advertising,  including a national  Certified  Reseller  and/or a
Channel Sales Program,  the formation of strategic alliances within the industry
including:  outsourcing  companies,  mortgage banking  associations and mortgage
banking industry investors and (ii)  strategically  placed advertising in select
industry  publications,  the review of the Company's  quality  control  software
products by respected  industry  publications,  national  investors  and for the
purpose  of  forming  "total  solution"  partnership  with IBM.  The  department
includes a sales support person who works closely with upper  management as well
as the Company's technical support, IT and programming staff.

EBS derives  revenue  from its CRIS(R) and EBS  Xchange(R)  products  based upon
licensing of software, sales of hardware,  annual software maintenance agreement
payments, and monthly transactional fees.


QuickCREDIT CORP.

QCC was formed by the Company as a wholly owned  subsidiary in February 1998 for
the purpose of acquiring, consolidating and operating credit-reporting agencies.
In April and May 1998, QCC acquired three  mortgage  credit-reporting  agencies.
QCC operates its business by using EBS's  QuickINFO  software to compile  credit
information from  credit-repositories,  creating an in-file and then selling the
report.

QCC sales and marketing is headed by an  experienced  credit sales and marketing
professional  who also doubles as the Credit  Compliance  Officer,  and leads an
all-new team that has begun to market our brand-new  QuickINFO  software package
that replaces the aging QuickCREDIT software.  The main features of QuickINFO is
its ability to be accessed by way of the Internet  (TCP/IP),  and its "new look"
output that the  industry  has  accepted  extremely  favorably.  This  QuickINFO
software  release  was  rolled-out   immediately   following  our  "ICSA  Secure
Certification".

During the second quarter of 2002, the Company entered into an agreement to sell
its QCC client list to a competitor.  This had been  contemplated for some time,
but  became  necessary  when one of the  major  credit  repositories  terminated
services to the Company.

Consumer Guardian

Consumer Guardian (CGI) currently services only one client, to alert subscribers
to changes in their credit status.  CGI invested  significant time and resources
in 1999 to develop the fulfillment center software  application,  which supports
the delivery and  management  of these  products and services and is believed by
CGI management to create a significant barrier to competition. CGI has recruited
and trained  dedicated  customer  service  representatives  to  national  credit
repository standards for these products.


Backlog

At December 31, 2001, the Company had no contract backlog. Revenue from software
sales is recorded upon software delivery,  hardware delivery,  and training. The
Company has entered into one to two year  contracts  for services  that obligate
customers to specific minimum transactions with the Company.


Employees

The Company's total workforce consisted of approximately 17 employees,  of which
15 are full time at May 20, 2002. Of the  approximately  17 people employed with
the Company as of the date of this  report,  three (3) are engaged in  marketing
and sales, eight (8) are engaged in product development and support and customer
service and seven (7) are  involved in finance and  administration.  None of the
employees are union members and none are covered under any collective bargaining
agreements.


Patents and Trademarks

The EBS  Xchange(R)  and  QuickCREDIT(R)  trademarks  have  been  registered  in
International  Class 9 in the United States Patent and Trademark  Office ("PTO")
and the Company has several  applications for  registration  pending in the PTO.
Through the  Company's  five (5) year long use of the ACES(TM)  trademark in the
United  States in  connection  with  computer  software,  the  Company  has also
acquired common law trademark rights in the ACES(TM) trademark.  There can be no
assurance,  however,  that the Company will be able to effectively obtain rights
in the Company's mark throughout all the countries of the world.  The failure of
the Company to protect such right from unlawful and improper  appropriation  may
have a material adverse effect on the Company's  business,  financial  condition
and results of operation.

Insurance

The Company maintains insurance with respect to its properties and operations in
such  form,  in such  amounts  and with such  insurers  as is  customary  in the
businesses in which the Company is engaged. The Company believes that the amount
and form of its insurance coverage are adequate at the present time.

Research and Development

During 2001, the Company expensed $79,042 of research and development costs. The
development  activities  were  primarily  focused  on  upgrading  the EBS  ACES,
Xchange,  QuickINFO and Consumer  Guardian  software.  The Company estimates the
spending for development for the fiscal year 2002 to be approximately $450,000.

Competition

The market for the  Company's  products is  intensely  competitive.  The Company
expects  competition to increase and the Company's market share to remain stable
as  other  companies  introduce   additional  and  more  competitive   Microsoft
Windows(R)-based  products in this market segment. Many of the Company's present
or anticipated  competitors have  substantially  greater  financial,  technical,
marketing and sales resources than the Company. Many  credit-reporting  agencies
have other  software  programs that  generate  credit  reports from  information
supplied by the credit information repositories. As a result, CRIS(R), QuickINFO
and Xchange(R) have significant competition.  There can be no assurance that the
Company will be able to compete successfully in the future.


Item 2.  PROPERTIES

Until June 30, 2001, the Company leased a facility in Fort  Lauderdale,  Florida
consisting of approximately  6,000 square feet of office space at a base monthly
rental of approximately $9,000 per month.

The  Company  moved  to new  facilities  as of July 1,  2001  and has  signed  a
five-year  lease that commenced on August 1, 2001 at 6801 Powerline  Road,  Fort
Lauderdale,  Florida  33309  consisting of  approximately  10,000 square feet of
office and  research and  development  space.  The lease  provides for a monthly
rental  during the first year of $8,333 per month in addition to all  provisions
of a net net  lease.  The  facilities  have been  customized  to provide an ICSA
secure server environment.


Item 3.  LEGAL PROCEEDINGS

From time to time, various claims,  charges, and litigation have been and may be
asserted  or  commenced  against  the  Company  arising  from,  or  related  to,
contractual matters,  intellectual property, personal injury, insurance coverage
and  personnel  and  employment  disputes.  The  Company may be involved in some
litigation  that,  while the outcome  cannot be predicted  with  certainty,  the
Company does not expect to have a material or adverse effect on the consolidated
financial position.


Item 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

During the Company's  fourth fiscal quarter of the year ended December 31, 2001,
no matters were submitted to a vote of security holders of the Company.


<page>


PART II


Item 5.  MARKET FOR  REGISTRANT'S  COMMON  EQUITY AND  RELATED  STOCKHOLDER
         MATTERS


Prior to the  Effective  Date of the Plan,  prices for the  common  stock of the
Company were traded on the OTC Bulletin Board (the  "Bulletin  Board") under the
trading symbol "AEBS".  The common stock was regularly  quoted and traded on the
Bulletin Board.

As of June 20, 2002, there was no closing bid price for the Company's old common
stock as they were  cancelled  on May 15,  2001  effective  with the  Bankruptcy
Confirmation.  The new common  stock of the  Company was not trading on June 20,
2002.

The following table sets forth, on a per share basis for the periods  indicated,
the high and low closing prices for the Company's  common stock ("AEBS") for the
two year period ending December 31, 2001 based upon information  supplied by the
Bulletin Board. Prices represent  quotations between dealers without adjustments
for retail  markups,  markdowns or  commissions,  and may not  represent  actual
transactions.

--------------------------------------------------------------------------------
                                                HIGH ($)     LOW ($)
--------------------------------------------------------------------------------

          Calendar 2001

          January 1 through March 31            0.001         0.001
          April 1 through May 15                0.001         0.001
          May 16 through June 30*                N/A           N/A
          July 1 through September 30*           N/A           N/A
          October 1 through December 31*         N/A           N/A

          Calendar 2000

          January 1 through March 31            0.59          0.25
          April 1 through June 30               0.50          0.09
          July 1 through September 30           0.16          0.03
          October 1 through December 31         0.03          0.01

--------------------------------------------------------------------------------
*The common stock of the Company was not trading during this period
--------------------------------------------------------------------------------

Holders.  As of June 20,  2002,  there were no shares of old common stock issued
and outstanding.  As of June 20, 2002, there were 15,510,286 of new common stock
issued and outstanding with approximately 192 holders of record of the Company's
common stock.

Dividends.  During  fiscal  2001,  the Company did not pay any  dividends on its
shares of capital  stock and does not  anticipate  paying any  dividends  on its
common stock in the foreseeable  future.  The future dividend policy will depend
on the Company's earnings,  capital requirements,  financial condition and other
factors considered relevant to the Company's ability to pay dividends.


Item 6.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

Statements in this "Management's  Discussion and Analysis of Financial Condition
and Results of Operations"  and elsewhere in this document as well as statements
made in press releases and oral statements that may be made by the Company or by
officers,  directors or employees of the Company acting on the Company's  behalf
that are not  statements  of  historical  or current  fact  constitute  "forward
looking  statements"  within the  meaning of the Private  Securities  Litigation
Reform Act of 1995.  Such forward looking  statements  involve known and unknown
risks,  uncertainties  and other  unknown  factors  that could  cause the actual
results of the Company to be materially different from the historical results or
from any future results expressed or implied by such forward looking statements.
In  addition  to   statements   which   explicitly   describe   such  risks  and
uncertainties,  readers are urged to consider  statements labeled with the terms
"believes",  "belief",  "expects",  "intends",  "anticipates  or  plans"  to  be
uncertain forward looking statements.  The forward looking statements  contained
herein are also  subject  generally  to other risks and  uncertainties  that are
described from time to time in the Company's reports and registration statements
filed with the Securities and Exchange Commission.

This section presents a review of the Company's  financial condition and results
of operations and should be read in conjunction with the consolidated  financial
statements of the Company and the notes included elsewhere in this Report.

For purposes of comparative analysis,  the twelve months ended December 31, 2001
include  the  results  of the  period  from  January  1, 2001 to April 30,  2001
(pre-confirmation date) and for the period from May 1, 2001 through December 31,
2001 (post-confirmation date).


Twelve Months Ended December 31, 2001 vs. Twelve Months Ended December 31, 2000

Consolidated


The Company's Joint Plan of Reorganization  (the "Plan") under Chapter 11 of the
Bankruptcy  Code was confirmed by the United States  Bankruptcy  Court on May 1,
2001,  and the Order was signed on May 12, 2001.  In order to end the Chapter 11
Bankruptcy,  two  essential  tasks had to take place,  and did.  The first was a
tough, but interesting discipline to reduce expenses to a point that made sense,
while operations continued.  This included reducing payroll and eliminating many
unnecessary  positions.  It also  required the  elimination  of many  contracts,
negotiating essential services and finding new, more affordable  suppliers.  The
Company received its Final Decree from the Court on January 15, 2002. All of the
pre-petition unsecured creditors of the Company were fully paid by year-end 2001
in accordance with the Plan.

The next task was to obtain  the  required  funding  for the  Company.  This was
accomplished with a $685,000 equity private placement in June of 2001. The money
raised was used for  eliminating  debt to the creditors of the Company,  for the
development of new products and for the  rebuilding of the basic  infrastructure
and relocation of the Company, which included new IBM iSeries hardware and a VAI
Enterprise  Software  Solution.  The balance of the funding was used for general
working capital.

A large  expenditure  was for  the  relocation  of the  general  offices  of the
Company,  which  took  place on July 1,  2001.  In  addition  to  moving  costs,
construction  costs  included the  building of a "secure"  computer  room,  with
magnetic locks and solid-core doors for added security. These expenditures, plus
the  fees  we  paid  to the  "ICSA",  resulted  in  the  Company  receiving  its
certification  as a  "secure  facility".  The  result of this  action  gives the
Company the ability to deliver sensitive  information securely over the web. The
move also  resulted  in a gain of over 50% more  usable  space and a savings  in
monthly rental expenses.

Phase I of the EBS product improvement program is nearly complete. The EBS Users
Conference  took  place  February  20-22,  2002.  At the Users  Conference,  EBS
introduced its Silver  version of ACES with TCP/IP  technology  with  biometrics
security as an option.

The QCC  subsidiary  continued to be  unprofitable  during the entire year.  New
sales were being  offset by the loss of  customers  to former  employees  of the
Company,  whose  non-compete  clauses  had  run  out,  and  also to  newer  more
technologically  advanced companies offering more complimentary  services.  Even
though,  the  Company  continued  to  improve  its  products.  QCC is using  the
QuickInfo  software  developed by EBS.  This new program  contains many advanced
features,  including TCP/IP  connectivity and an advanced  cosmetically  correct
output for easy viewing.

In the second  quarter,  the  Company  ceased all  operations  of QCC due to the
sudden  discontinuance  of services by a major  credit  repository.  The Company
immediately  sold its customer list to a competitor  for payments to be received
over a 13-month period based on total usage of service by those  customers.  QCC
has been a continuing drain on earnings for several years.

In an attempt to renew the Company,  not only did we build a new  foundation for
the Company to grow on, which included relocation of the Company's headquarters,
adding the new IBM/VAI,  ERP infrastructure and redesigned existing products and
services,  but, we also  incorporated  Consumer Guardian and changed the name of
the Company to reflect its new image.  During  2001,  the Company  succeeded  in
improving the  reputation of the Company.  Just when the Company hoped new sales
would ramp up, the Company, along with the rest of the country,  encountered the
terror and tragedies of September  11.  Spending in the US almost came to a halt
and the  Company  felt it also.  Sales  today are  visibly  better than the past
twelve months, as is the respect the Company is seeing from the customer base.

The Company has become an IBM Business  Partner in the ASP Development  Program.
The Company now offers IBM's leasing services to our mortgage banking  customers
when they purchase our software licenses combined with IBM's hardware.  This new
arrangement removes yet another barrier in the sales process.

The  aforementioned  Consumer Guardian was incorporated to create the separation
of the  mortgage  services  businesses  from  the  consumer  services  business.
Consumer  Guardian  offers  various  credit  services to consumers and is in the
process of creating its own  membership  club.  This club will offer credit card
protection  for its members.  Additional  services will include  Identity  Theft
Protection  and Identity  Theft  Prevention.  These  services have been met with
great excitement from other professionals in the industry, and are being used as
a springboard to raising capital for the Company.

The Company revolves around its EBS-Xchange  Program, as all merge services flow
through the EBS-Xchange. The new EBS-Xchange on the IBM iSeries is more than 90%
complete and will offer all of the modern  communication  devices,  security and
all  information  delivered by way of the World Wide Web. We are, at most, a few
weeks away from  launching  this new  technology  that will  advance us to be as
competitive as anyone in the industry. When completed, a new CRIS System will be
developed (if the Company has the resources)  and  introduced  before the end of
2002.  CRIS is the software  system that  launched  this Company in 1989.  These
newly  introduced  systems will allow the Company,  and its  subsidiaries,  many
cross-selling  opportunities.  The  Company  will  attempt to market this "merge
technology"  service to the entire  credit-granting  marketplace,  offering  low
price, speed, reliability and scalability beyond what is available today

In the continuance of its new image  building,  the Company has launched its new
web sites.  You may visit at  www.tangent-solutions.com.  The other web sites of
the  Companies  wholly  owned  subsidiaries  are  linked on the home page of the
Tangent web site and may be reached by a simple mouse click.

The Company is negotiating two separate Strategic  Alliance  Agreements that may
significantly  improve its  position  in the market  place,  and add  additional
services to its existing customers.  Although management is confident, there can
be no assurances that these Agreements will be executed.

The Company's new stock is expected to trade shortly on the NASD Bulletin  Board
after the filing of this 10KSB. The Company has cooperated fully with its market
maker in  responding  with timely  disclosure  for  submission  to the NASD.  No
assurances can be made however, that the stock of the Company will trade.

Sales for the  twelve  months  ended  December  31,  2001 were  $1,695,619  or a
decrease of 50% from the  $3,422,745 in sales for the period ended  December 31,
2000.  Management believes that a major factor that contributed to the Company's
reduction in sales was due to the disposition of its ACES  Outsourcing  Division
by previous  management.  Management also believes that, since the filing of the
Chapter 11  Bankruptcy  Petition  on  September  1, 2000,  sales were  adversely
affected due to lack of  confidence  in the Company to operate as a viable going
concern by potential and existing clients.

The  cost of  sales  during  2001  was  $713,702,  representing  a  decrease  of
$1,496,943 from the cost of sales of $2,210,645, a decrease of 68%, for the same
period last year.  The decrease in cost of sales is due largely to the reduction
of its sales force and service  personnel.  Gross  profit,  as a  percentage  of
revenue, has increased to 58% for the year 2001 from 35% for the year 2000.

Selling,  general and  administrative  ("SG&A") expenses were $2,301,335 for the
year ending December 31, 2001  representing an increase of 4% from SG&A expenses
of $2,215,232  for the year ending  December 31, 2000.  New  management has been
able to curtail SG&A expenses.

Product development expenses during the year were $79,042 compared with $364,134
for the same period in 2000,  a reduction  of 78%.  Development  costs  incurred
during the year were mainly  associated with the development of new products for
resale to consumers and for the  development of QuickINFO.  Management  believes
that  investment  in these  products is  essential to the  Company's  growth and
product  diversification.  Management  believes that the Company must expand its
sources of revenue into areas that are less  interest  rate  sensitive to reduce
the impact of interest rate fluctuations that may be unfavorable to the mortgage
industry, and thus unfavorable to the Company's business.

The Company's  loss from  operations  for the year ending  December 31, 2001 was
$1,440,762. This loss represents a decrease of $2,952,330, or 67%, from the loss
from  operations of $4,393,092  for the prior year ending  December 31, 2000 for
the  reasons  stated  above.  Net income was  $3,228,689  for the period  ending
December 31, 2001, compared to a loss of $4,862,342 for the same period in 2000.
The difference of $8,091,031 was largely due to the forgiveness of debt relating
to the Company's emergence from bankruptcy.

Engineered Business Systems, Inc.

Sales for EBS accounted  for $955,521 or 56% of the Company's  total revenue for
the year ended  December 31, 2001 compared to $1,847,474 or 54% of the Company's
total revenue for the year ended December 31, 2000.  The revenue  decrease was a
result of a disposition of its ACES Outsourcing  Division by previous management
and the continued  decline of the revenue  generated  from the CRIS product line
due to the  consolidation  of the CRIS  client  base.  Cost of sales  during the
period ending December 31, 2001, was approximately $61,702,  compared to cost of
sales of $1,209,645  for the same period in 2000. The difference was a result of
software sales, which have a significantly low direct cost.

Quick CREDIT Corp.

Total QCC revenues for the twelve months ended  December 31, 2001 were $740,098,
or 44%,  compared to $1,575,271,  or 46%, for the period December 31, 2000. Cost
of sales during the period ending December 31, 2001 was  approximately  $653,000
compared to cost of sales of  approximately  $1,001,000 that was recorded during
the same period in 2000.  Gross profit as a  percentage  of revenues was 58% for
the period  ending  December  31,  2001  compared  to 35% for the period  ending
December 31, 2000. The difference was a result of lower revenue generated by the
Consumer Guardian Division of QCC in 2001.

Liquidity and Capital Resources

The Company has funded its working capital and capital expenditures requirements
with cash provided from operations, the private sale of the Company's stock, and
debt and other equity  financing.  In 2000,  the primary source of cash receipts
was from payments for software and services. Management believes that cash flows
from  the  issuance  of  equity  and debt  financing  will be  required  to fund
day-to-day  operational   expenditures,   planned  expansion  and  research  and
development  in the  immediate  future.  The cash  available  to the Company was
sufficient  to satisfy all of its working  capital  needs  through  fiscal 2001,
although no assurances  can be given that working  capital will be sufficient to
meet the capital requirements of the Company during fiscal 2002.



Recent Developments

Management  arranged for the completion of its "Debtor In Possession"  financing
in the form of a  convertible  "line of  credit".  The total  amount  raised was
$700,000 as of May 1, 2001,  the  Confirmation  Date.  The Debtor in  Possession
converted the entire $700,000 into common shares of the Company.  The funds were
used for operations related to the Company and its subsidiaries while in Chapter
11 Bankruptcy.  Much of this funding was used to settle negotiated  amounts with
key vendors of the Company.  Without  these key vendors,  the Company  could not
operate.  These  essential  vendors include the credit  repositories,  equipment
vendors,  and  telecommunication  providers.  The funds were also used to settle
outstanding  obligations  with secured  creditors  of the  Company.  During this
reorganization  period, the Company, in accordance with Bankruptcy law, rejected
numerous  contracts.  These contract  rejections resulted in substantial initial
savings to the  Company  and has  reduced  the  financial  burden of the Company
significantly.  Management  submitted,  on behalf of the "Debtor In  Possession"
lenders,  a  "Joint  Plan of  Reorganization",  subsequently  amended,  that was
accepted by the United States Bankruptcy Court and confirmed by the Court on May
1, 2001.

Highlights of the "Plan"  included:  (1) the cancellation of all of the existing
Capital Stock of the Company,  including all Common and Preferred Stock, Options
and Warrants; (2) the issuance of new Common Stock to (a) unsecured creditors of
the Company (2%),  (b) employees of the Company (2%),  (c) DIP  investors,  upon
conversion of the "line of credit" and (d) to "service  provider  professionals"
during the Chapter 11 Bankruptcy  proceedings.  Upon  confirmation  of the Joint
Plan of  Reorganization,  the DIP  investors  converted  their  entire  "line of
credit" into 11,589,584 New Common Shares of the Company.  Additionally,  all of
the unsecured  creditors will be paid in  installments  an amount equal to 5% of
their unsecured filed claims. See also Item 1. BUSINESS  Reorganization and Item
3. LEGAL PROCEEDINGS.

Following  the  confirmation  of the Joint Plan of  Reorganization,  the Company
raised $685,000 before offering costs by selling  2,740,005 shares of its common
stock pursuant to a private  placement under Regulation D of the Securities Act.
Net funds were used for general  working capital and were sufficient to meet the
working capital needs.

Management  believes  that the Company is  positioned  well towards  meeting its
business  objectives  as  it  embarks  on  a  post  bankruptcy  stratagem.  Most
importantly,  the Company was  successful in emerging out of bankruptcy on terms
significantly  favorable to the Company.  The Company has taken every precaution
in assuring  that  expenses  are kept at a minimum,  and as  indicated  earlier,
salaries have been kept at a modest level and expenses  have been  reduced.  The
Company is encouraged by the research and development of the past year that will
be the  foundation  for  additional  R&D to improve and upgrade its  proprietary
software in the  marketplace.  The Company  believes  that all the above factors
have  collectively  contributed to a positive outlook for the Company and better
opportunities for it to meet its business goals.  However,  additional financing
will be necessary to roll out new products and services and to expand marketing.


Item 7.  FINANCIAL STATEMENTS

The  financial  statements  required  by  Item 7 are  included  in  this  report
beginning on page F-1.



Item 8.  CHANGES IN AND  DISAGREEMENTS  WITH  ACCOUNTANTS  ON ACCOUNTING AND
         FINANCIAL DISCLOSURE


None


<page>


PART III



Item 9.  DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS;
         COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT

The following  table sets forth  certain  information  concerning  the Company's
directors  and executive  officers  during the 2001 fiscal year. On December 31,
2001, the directors and officers of the Company consisted of the following:


--------------------------------------------------------------------------------
Name                    Age   Position(s) with the Company
--------------------------------------------------------------------------------
Vito Bellezza (1)       64    Chairman of the Board, Chief Executive Officer
                                  and President
Charles M. Moche (2)    53    Secretary and Director
Thomas Secreto (3)      51    Director and Chief Information Officer
--------------------------------------------------------------------------------

1. Mr. Bellezza was appointed  Chairman of the Company on November 24, 2000. The
   resignation of all prior directors and officers immediately followed.

2. Mr. Moche was appointed as a Director on January 19, 2001 and elected as an
   officer on April 24, 2001.  Mr.  Moche has resigned as the Chief  Financial
   Officer on March 20, 2002.

3. Mr. Secreto was elected as an officer on November 24, 2001 and appointed as a
   Director on April 24, 2001.
--------------------------------------------------------------------------------


Officers and directors are elected on an annual basis. The present term for each
director will expire at the next annual meeting of  shareholders or at such time
as a successor is duly elected. Officers serve at the discretion of the Board of
Directors.

Directors are not paid any fees for  membership  on the Board of Directors,  but
are reimbursed for out-of-pocket  expenses incurred in connection with attending
meetings.  Presently,  there  are no  family  relationships  between  any of the
officers or directors.

The  following  is a  biographical  summary of the  business  experience  of the
directors and executive officers of the Company:


Vito Bellezza

Vito  Bellezza  has  served as a  director  and the CEO of the  Company  and its
subsidiaries  since November 2000, as well as for at least four years  preceding
April 1999. During the period from April 1999 through October 2000, Mr. Bellezza
served as Chairman of the Investment Managers National Conference and Exposition
and as a consultant.  Mr. Bellezza  previously served on the board of two NASDAQ
companies.


Charles M. Moche

Charles M. Moche was with the auditing  department at Coopers & Lybrand and with
the  tax  department  at  Price  Waterhouse  when he  began  his  career  in the
accounting  profession.  He was the Chief Financial  Officer of a public company
from January 1994 through May 1996.  He has  practiced  accounting in New Jersey
with a concentration  on tax planning and consulting  since June 1996. Mr. Moche
holds an Advanced Professional  Certificate in Taxation from New York University
Graduate  School of  Business,  an MBA in  Accountancy  from  Bernard M.  Baruch
Graduate School of Business and a BA in Economics from Yeshiva University. He is
a member of the American Institute of Certified Public Accountants, the New York
State Society of CPA's and the Board of  Accountancy  of the State of New Jersey
Consumer Affairs Division.


Thomas Secreto

Thomas  Secreto has 30 years of experience in the  technology  industry.  For at
least five years prior to November 2000 when he joined the Company,  Mr. Secreto
served as a consultant  in the  technology  industry.  From  November 1992 until
October 1998, Mr. Secreto served as President of TriMax Systems Corp., a systems
integration and software consulting company. From May 1985 to November 1992, Mr.
Secreto  served as Chairman and CEO of the  Triangle  Group,  a publicly  traded
technology company. From 1981 through 1985, he served as Information  Technology
Director for the United States subsidiary of TDK Electronics Corporation.


<page>


Item 10.  EXECUTIVE COMPENSATION

Summary Compensation Table

The following  table shows all the cash  compensation  paid or to be paid by the
Company to the Chief Executive Officer,  and all officers who received in excess
of $100,000 in annual salary and bonus,  for the fiscal years ended December 31,
2000, 1999 and 1998:


<table>

                                                                                                  Long Term Compensation
                                                                                         -----------------------------------------
                                                        Annual Compensation                Awards                    Payouts
                                            -------------------------------------------- ----------- ---------- ------------------
         (a)             (b)       (c)         (d)              (e)             (f)         (g)         (h)            (i)
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
                                                                             Restricted                LTIP         All Other
       Name and                                            Other Annual        Stock      Options/    Payouts     Compensation
  Principal Position     Year   Salary($)    Bonus($)    Compensation ($)      Awards     SARs(#)       ($)            ($)
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------

                      <c>    <c>            <c>              <c>             <c>         <c>        <c>            <c>
   Vito A. Bellezza,     2001   $ 74,750       -0-              -0-             -0-         -0-         -0-            -0-
   CEO and President     2000   $ 85,977       -0-              -0-             -0-         -0-         -0-            -0-
          (1)            1999   $156,000       -0-              -0-             -0-         -0-         -0-            -0-
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
 Thomas Secreto, CIO     2001   $ 49,894       -0-              -0-             -0-         -0-         -0-            -0-
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
Charles M. Moche, CFO    2001   $ 34,208       -0-              -0-             -0-         -0-         -0-            -0-
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
  Harold S. Fischer,     2001      -0-         -0-              -0-             -0-         -0-         -0-            -0-
  CEO and President      2000   $ 97,500       -0-              -0-             -0-         -0-         -0-            -0-
       Resigned          1999   $156,000       -0-              -0-             -0-       700,000       -0-            -0-
         (2)
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
  John M. Campbell,      2001      -0-         -0-              -0-             -0-         -0-         -0-            -0-
   Vice President        2000   $ 66,750       -0-              -0-             -0-         -0-         -0-            -0-
      Resigned
----------------------- ------- ----------- ----------- -------------------- ----------- ----------- ---------- ------------------
   William C. Grose,     2001      -0-         -0-              -0-             -0-         -0-         -0-            -0-
   Vice President        2000   $ 83,500       -0-              -0-             -0-         -0-         -0-            -0-
       Resigned
----------------------------------------------------------------------------------------------------------------------------------

1. Mr.  Bellezza's  employment  with the  Company  terminated  in March 1999 and resumed in November, 2000.

2. Such options were cancelled in March 1999.

--------------------------------------------------------------------------------

</table>


The  following  table sets forth  certain  information  with  respect to options
granted during the last fiscal year to the Company's Executive Officers named in
the above Summary Compensation Table.


<table>

                     Option/SAR Grants in Last Fiscal Year
-----------------------------------------------------------------------------------
   (a)                   (b)                 (c)             (d)            (e)
-----------------------------------------------------------------------------------
                                          % of Total
                  Number of Securities   Options/SARs
                      Underlying          Granted to      Exercise or
                     Options/SARs        Employees in      Base Price    Expiration
Name                  Granted (#)         Fiscal Year      (# Shares)       Date
-----------------------------------------------------------------------------------

                       <c>                 <c>              <c>           <c>
Vito Bellezza             0                   --               0             --
-----------------------------------------------------------------------------------
Charles M. Moche          0                   --               0             --
-----------------------------------------------------------------------------------
Thomas Secreto            0                   --               0             --
-----------------------------------------------------------------------------------


</table>


The  following  table sets forth  certain  information  with  respect to options
exercised  during the fiscal year ended  December  31,  2000,  by the  Company's
Executive Officers named in the Summary  Compensation Table, and with respect to
unexercised  options  held by such  person at the end of the  fiscal  year ended
December 31, 2000.


--------------------------------------------------------------------------------
               Aggregate Option/SAR Exercises In Last Fiscal Year
                     And Fiscal Year-End Option/SAR Values
--------------------------------------------------------------------------------
      (a)          (b)        (c)             (d)                   (e)
--------------------------------------------------------------------------------
                                      Number of Securities  Value of Unexercised
                                     Underlying Unexercised     In-the-Money
                                          Options/SARs          Options/SARs
                   Shares     Value        at FY-End (#)         at FY-End
                Acquired on  Realized      Exercisable/          Exercisable/
     Name       Exercise (#)   ($)        Unexercisable        Unexercisable (1)
--------------------------------------------------------------------------------
Vito Bellezza       0           0              0                     0
--------------------------------------------------------------------------------
Charles M. Moche    0           0              0                     0
--------------------------------------------------------------------------------
Thomas Secreto      0           0              0                     0
--------------------------------------------------------------------------------

All options were cancelled as of May 1, 2001 with the Bankruptcy Confirmation.

--------------------------------------------------------------------------------


Employment Agreements

Neither the Company nor its subsidiaries  has employment  agreements with any of
its officers or employees and each serves at the will of the Company.


<page>


Item 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following  table sets forth certain  information,  as of April 15, 2002 with
respect to the beneficial  ownership of the outstanding  Common Stock by (i) any
holder of more than five (5%) percent;  (ii) each of the Company's  officers and
directors; and (iii) the directors and officers of the Company as a group:


--------------------------------------------------------------------------------
   Name and Address of              Shares of Common Stock
   Beneficial Owner (1)               Beneficially Owned        Percent of Class
--------------------------------------------------------------------------------
   Vito A. Bellezza                      9,800,111 (1)               63.18%
   Charles Moche                            30,751                    0.20%
   Thomas Secreto                          471,600 (2)                3.04%

   All Officers and Directors
   As a Group (3 persons)               10,302,462                   66.42%
--------------------------------------------------------------------------------
Total number of shares outstanding at April 15, 2002 was 15,510,286.
--------------------------------------------------------------------------------
(1)  Includes shares owned directly by Vito Bellezza (3,468,143), his wife
     Judith Bellezza (632,169).  Also includes shares owned by a corporation
     (300,000) and other persons,  trusts or entities (5,400,000) over which
     Mr. Bellezza has voting control.

(2)  Includes shares directly owned by Thomas Secreto (231,600), his wife Marie
     Secreto (210,000) and his daughters (30,000).
--------------------------------------------------------------------------------


<page>


ITEM 12.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

During 2000, the Company borrowed  $200,000 in the form of bridge loans from its
former president and his children. Promissory notes were issued bearing interest
at ten  percent  (10%)  per  annum.  The  claim was  settled  in the  bankruptcy
proceedings  in cash payments at five percent 5% of the total,  two percent (2%)
was paid at  distribution  date and the balance in seven  monthly  payments  and
pro-rata  stock  payments of free trading shares of the new equity in accordance
with the Joint Plan of Reorganization.

Amounts due to the current  president of the Company,  in the amount of $307,700
pursuant to a settlement  agreement dated in April 1999, was settled pursuant to
the Joint Plan of  Reorganization at five percent (5%) of the total, two percent
(2%)  was  paid  at   distribution   date  and  the  balance  in  seven  monthly
installments.  He also  received a pro-rata  stock  payment of shares of the new
equity.

In 2000, the Company raised funds in the form of DIP financing through a company
in which  the  current  president  of the  Company  has a  beneficial  ownership
interest.  In 2000,  the Company  raised a total of $700,000 by May 1, 2001, the
Bankruptcy  Confirmation  Date.  The  principal  amount of the loan and  accrued
interest  was  converted  into  shares  of the new  equity on May 1,  2001,  the
Effective Date of the Joint Plan of Reorganization.



ITEM 13.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K

(a) Exhibits

Exhibit
Number        Description of Exhibit

3.1*          Certificate of Incorporation
3.2*          Bylaws
10.2*         Certificate of Ownership and Merger between @ebs, inc. and
                   Electronic Business Services, Inc.
10.3*         Articles of Merger between @ebs, inc. and Electronic Business
                   Services, Inc.
10.4**        Joint Product Sales and Marketing Agreement dated
                   December 23, 1999 between QuickCREDIT Corp. and
                   BrandDirect Marketing, Inc.
16.1a***      Letter regarding change in certifying accountants dated
                   February 21, 2000
16.1b***      Letter regarding change in certifying accountants dated
                   June 5, 2001
21.0          Subsidiaries of the Issuer Engineered Business Systems
                   a Delaware Corporation and QuickCredit Corp, a Delaware
                   corporation.
23.1          Consent of Radin Glass and Co

*Incorporated  by reference  to the current Report on Form 8-K filed with the
Commission on October 25, 1999.

**Incorporated  by  reference  to the Current Report on form 8-K filed with the
Commission on December 23, 1999.

***Incorporated  by reference  to the Current Report on form 8-K filed with the
Commission on February 22, 2000.

(b) Reports on Form 8-K

None


<PAGE>


                                   Signatures


Pursuant to the  requirements of Section 13 or 15(d) of the Securities  Exchange
Act of 1934,  the  registrant  has duly  caused  this report to be signed on its
behalf by the undersigned, thereunto duly authorized.

Dated:   Fort Lauderdale, Florida
June 21, 2002



                                              TANGENT SOLUTIONS, INC.

                                              By: /s/ Vito Bellezza
                                                 _______________________________
                                                 Vito Bellezza
                                                 President and Director


Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed  below by the  following  persons in the  capacities  and on the
dates indicated.



Signature                        Title                            Date


/s/ Vito Bellezza         Chief Executive Officer,           June 21, 2002
____________________       President and Director
   Vito Bellezza



/s/ Charles M. Moche      Director                           June 21, 2002
____________________        (Chief Accounting Officer)
  Charles M. Moche



/s/ Tom Secreto           Director                           June 21, 2002
____________________
    Tom Secreto



<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                        CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000
                                       AND
                              REPORT OF INDEPENDENT
                          CERTIFIED PUBLIC ACCOUNTANTS



<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                        CONSOLIDATED FINANCIAL STATEMENTS



                                TABLE OF CONTENTS


                                                                          Page

     Report of Independent Certified Public Accountants                    F-3

     Consolidated Balance Sheet                                            F-4

     Consolidated Statements of Operations                                 F-5

     Consolidated Statement of Changes in Stockholders' Deficit            F-7

     Consolidated Statements of Cash Flows                                 F-8

     Notes to Consolidated Financial Statements                           F-10


<page>


               REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS


The Board of Directors
Tangent Solutions, Inc.

We have audited the consolidated  balance sheet of Tangent  Solutions,  Inc. and
subsidiaries,  formerly Electronic  Business Services,  Inc., as of December 31,
2001,  and the  related  consolidated  statements  of  operations,  consolidated
changes in  stockholders'  deficit,  and  consolidated  cash flows for the years
ended December 31, 2001 and 2000. These  consolidated  financial  statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted
in the  United  States of  America.  Those  standards  require  that we plan and
perform the audits to obtain reasonable assurance about whether the consolidated
financial  statements  are free of  material  misstatement.  An  audit  includes
examining,  on a test basis,  evidence supporting the amounts and disclosures in
the  consolidated  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.  We believe that our
audits provide a reasonable basis for our opinion.

In our opinion, the consolidated  financial statements referred to above present
fairly, in all material respects, the consolidated financial position of Tangent
Solutions,  Inc. and  subsidiaries as of December 31, 2001, and the consolidated
results of its  operations  and cash flows for the years ended December 31, 2001
and 2000, in conformity  with  accounting  standards  generally  accepted in the
United States of America.

The accompanying  consolidated  financial statements have been prepared assuming
that the Tangent Solutions,  Inc. will continue as a going concern. As discussed
in  Note  3 to the  consolidated  financial  statements,  suffered  losses  from
operations and has a net capital  deficiency that raises substantial doubt about
its  ability to  continue as a going  concern.  Management's  plans in regard to
these  matters  are  also  described  in  Note  3.  The  consolidated  financial
statements do not include any adjustments  that might result from the outcome of
this uncertainty.





                                                     Sweeney, Gates & Co.


June 7, 2002
Fort Lauderdale, Florida


<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                           CONSOLIDATED BALANCE SHEET
                                DECEMBER 31, 2001

ASSETS
    Current assets:
      Cash and cash equivalents .................................   $    96,890
      Accounts receivable, net of allowance for doubtful accounts
        of $182,957 .............................................        85,961
      Other current assets ......................................         5,577
                                                                    ------------

         Total current assets ...................................       188,428

    Property, plant and equipment, net ..........................        51,598
                                                                    ------------

         Total assets ...........................................   $   240,026
                                                                    ============

LIABILITIES AND STOCKHOLDERS' DEFICIT
    Current liabilities:
      Accounts payable and accrued expenses .....................   $   396,287
      Deferred revenue ..........................................       134,380
      Current maturities of long term obligations ...............       215,534
                                                                    ------------

         Total current liabilities ..............................       746,201

    Long term obligations, less current maturities ..............       205,428
                                                                    ------------

         Total liabilities ......................................       951,629
                                                                    ------------

    Stockholders' deficit:
      Common stock, par value $.001; 100,000,000 shares
           authorized; 15,510,286 issued and outstanding ........        15,510
      Additional paid-in capital ................................     8,296,640
      Accumulated deficit .......................................    (9,023,753)
                                                                    ------------

         Total stockholders' deficit ............................      (711,603)
                                                                    ------------

              Total liabilities and stockholders' deficit .......   $   240,026
                                                                    ============


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       F-4

<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

                                                     2001           2000
                                                ------------   -------------

Sales ........................................   $ 1,695,619    $ 3,422,745
Cost of sales ................................       713,702      2,210,645
                                                 ------------   ------------

    Gross profit .............................       981,917      1,212,100
                                                 ------------   ------------

Operating expenses:
    Selling, general and administrative ......     2,301,335      2,215,232
    Product development ......................        79,042        364,134
    Impairment loss ..........................          --        3,033,843
    Depreciation and amortization ............         8,700        323,123
                                                 ------------   ------------

      Total operating expenses ...............     2,389,077      5,936,332
                                                 ------------   ------------

                                                  (1,407,160)    (4,724,232)
                                                 ------------   ------------
Other income and (expense):
    Interest expense .........................       (33,602)      (155,396)
    Other income .............................          --           11,536
    Gain from lawsuit settlement .............          --          475,000
                                                 ------------   ------------

         Total other income and (expense) ....       (33,602)       331,140
                                                 ------------   ------------

              Loss before reorganization items
                   and extraordinary item ...... $(1,440,762)   $(4,393,092)
                                                 ------------   ------------

(Continued)

The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       F-5

<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                      CONSOLIDATED STATEMENTS OF OPERATIONS
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000



                                                     2001           2000
                                                ------------   -------------
Reorganization items:
    Professional fees ......................   $   (128,366)   $    (78,243)
    Stock issued to employees ..............        (55,437)           --
    Adjustment of pre-petition liabilities
         to claim amounts ..................      1,020,416          44,890
                                               -------------   -------------

      Total reorganization items ...........        836,613         (33,353)
                                               -------------   -------------

              Loss before extraordinary item       (604,149)     (4,426,445)

Preferred dividends ........................           --          (435,897)
                                               -------------   -------------

Net loss available to common stockholders ..       (604,149)     (4,862,342)

Extraordinary item:
    Gain on forgiveness of debt ............      3,832,838            --
                                               -------------   -------------

Net income (loss) available to
        common stockholders ................   $  3,228,689    $ (4,862,342)
                                               ============    =============

  Loss per share (basic and diluted) before
     extraordinary items ...................   $      (0.05)   $      (1.05)
  Income (loss) per share (basic and
     diluted) -- extraordinary item ........           0.34            --
                                               -------------   -------------

  Income (loss) per share (basic and
     diluted) ..............................   $       0.29    $      (1.05)
                                               ============    =============

     Weighted average shares outstanding ...     11,383,509       4,641,890
                                               ============    =============


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                       F-6

<page>


<table>

                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTONIC BUSINESS SERVICES, INC.)
           CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

------------------------------------------------------------------------------------------------------------------------------------
                                                                                               Common
                                             Common stock        Additional                    stock
                                       ------------------------    paid-in        Deferred    subject to   Accumulated
                                         Shares         Amount     capital      compensation     put         deficit       Total
------------------------------------------------------------------------------------------------------------------------------------


                                    <c>         <c>          <c>           <c>          <c>           <c>           <c>
Balance  January  1, 2000              4,201,243   $     4,201  $  6,859,907  $   (27,600) $ (1,230,000) $ (7,825,997) $ (2,219,489)
  Charge  for  warrants  issued  in
    connection  with  refinance
    of  convertible  note                   --            --           8,500          --           --            --           8,500
Issuance of stock for  commissions        13,500            14        22,486          --           --            --          22,500
  Issuance of stock for  preferred
    dividends                            427,146           427       284,337          --           --            --         284,764
  Preferred dividends accreted
    and/or paid                             --            --        (435,897)         --           --            --        (435,897)
  Amortization of deferred
    compensation                            --            --            --          27,600         --            --          27,600
  Net loss                                  --            --            --            --           --      (4,426,445)   (4,426,445)
                                       ---------   -----------  ------------  ------------  ------------  ------------  ------------
Balance December 31, 2000              4,641,889         4,642     6,739,333          --     (1,230,000)  (12,252,442)   (6,738,467)

    Cancellation  of existing
      stock through bankruptcy
      proceedings                     (4,641,889)       (4,642)        4,642          --      1,230,000          --       1,230,000
    Issuance  of stock to
      investors                       11,589,584        11,590       688,410          --           --            --         700,000
    Issuance  of stock  for
      preferred  stock                   124,145           124        30,912          --           --            --          31,036
    Issuance of stock to
      vendors upon emergence
      from  bankruptcy                   278,340           278        69,307          --           --            --          69,585
    Issuance of stock to
      employees upon  emergence
      from  bankruptcy                   221,748           222        55,216          --           --            --          55,438
    Issuance  of stock for
      private placement                2,914,005         2,914       613,586          --           --            --         616,500
    Issuance of stock for
      services                           382,464           382        95,234          --           --            --          95,616
    Net  profit                             --            --            --            --           --       3,228,689     3,228,689
                                      ----------   -----------  ------------  ------------  ------------  ------------  ------------

Balance,  December 31, 2001           15,510,286   $    15,510  $  8,296,640  $       --   $       --    $ (9,023,753) $   (711,603)
                                      ==========   ===========  ============  ============  ============  ============  ============

------------------------------------------------------------------------------------------------------------------------------------
The  accompanying  notes are an integral  part of these  consolidated  financial statements.
------------------------------------------------------------------------------------------------------------------------------------

</table>


                                       F-7


<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000

                                                  2001           2000
                                               -----------    ------------

Cash flows from operating activities:
   Net profit (loss) .......................   $ 3,228,689    $(4,426,445)
   Adjustments to reconcile net loss
       to net cash used in
       operating activities:
   Gain on forgiveness of debt .............    (3,832,838)          --
   Depreciation and amortization ...........         8,700        323,123
   Reorganization expenses paid through
       issuance of stock ...................       128,366           --
   Reorganization stock issued
       to employees ........................        55,437           --
   Adjustment of pre-petition liabilities
       to claims amounts ...................    (1,020,416)          --
   Impairments .............................          --        3,033,843
   Deferred compensation ...................          --           27,600
   Option charge ...........................          --            8,500
   Stock based compensation ................          --           22,500
   Accounts receivable .....................        36,944        389,360
   Other current assets ....................          --            7,600
   Accounts payable and accrued expenses ...       172,894        254,766
   Deferred revenues .......................       (51,244)      (140,937)
                                               ------------   ------------
       Net cash used by
          operating activities .............    (1,273,468)      (500,090)
                                               ------------   ------------

Cash flows provided by investing activities:
   Other assets ............................          --           96,784
   Development and purchase
       of software .........................          --          (18,163)
   Purchase of property and equipment ......       (41,814)        (7,248)
                                               ------------   ------------
       Net cash provided (used)
          by investing activities ..........   $   (41,814)   $    71,373
                                               ------------   ------------


(Continued)


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.

                                       F-8


<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                 FOR THE YEARS ENDED DECEMBER 31, 2001 AND 2000


                                                         2001           2000
                                                     ------------   ------------

Cash flows provided from financing activities:
   Investment in common stock ....................   $   700,000    $      --
   Private placement .............................       665,000           --
   Increase in notes payable .....................       137,034           --
   Increase in notes payable to
       claims amounts ............................          --          224,197
   Funds provided by new financing ...............          --          778,447
   Repayment of debt .............................      (102,172)      (679,284)
                                                     ------------   ------------
      Net cash provided by
         financing activities ....................     1,399,862        323,360
                                                     ------------   ------------

      Net decrease in cash .......................        84,580       (105,357)

Cash, beginning of period ........................        12,310        117,667
                                                     ------------   ------------

Cash, end of period ..............................   $    96,890    $    12,310
                                                     ============   ============

Supplemental disclosures of cash flow information:
    Cash paid for interest .......................   $    33,602    $   155,396
                                                     ============   ============

    Income taxes paid during the year ............   $      --      $      --
                                                     ============   ============

Non-cash financing and investing activities:
    Payment of finder's fee through
        issuance of stock ........................   $    43,500    $      --
                                                     ============   ============
    Accretion of preferred stock discount ........   $      --      $   163,897
                                                     ============   ============
    Issuance of options and
        warrants for services ....................   $      --      $     8,500
                                                     ============   ============
    Preferred stock dividends
        paid in common stock .....................   $      --      $   284,764
                                                     ============   ============


The  accompanying  notes are an integral  part of these  consolidated  financial
statements.


                                      F-9


<PAGE>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


1.  THE COMPANY AND BASIS OF PRESENTATION

Tangent Solutions, Inc. (the "Company"),  formerly Electronic Business Services,
Inc.,  was  incorporated  under the laws of the State of Delaware  in 1999.  The
Company owns three  subsidiary  corporations,  Engineered  Business  System Inc.
("EBS"),  Quick Credit  Corporation  ("QCC") and Consumer  Guardian  Corporation
("CGI").  EBS  designs,   develops  and  sells  software  systems  and  provides
maintenance  contracts for the software for the mortgage quality control and the
credit reporting industries. QCC was formed on February 27, 1998 for the purpose
of providing credit reports to the retail residential  mortgage  industry.  CGI,
was formed to provide  credit  services  directly  to  consumers  and to service
membership clubs. This Company had no operations as of December 31, 2001.

On September  1, 2000,  (the "Filing  Date"),  the Company and its  subsidiaries
filed a voluntary  petition  for relief  under  Chapter 11 of the United  States
Bankruptcy Code, in the United States Bankruptcy Court for the Southern District
of Florida (the  "Bankruptcy  Court").  From September 1, 2000 through April 30,
2001,  the  Company   operated  its  business  and  managed  its  affairs  as  a
debtor-in-possession.  The United States  Bankruptcy  Court  confirmed the joint
Plan of Reorganization  (the "Plan") on May 1, 2001 (the  "Confirmation  Date").
The final decree from the  Bankruptcy  Court was issued on January 15, 2002. All
of the common and preferred stock that was outstanding on the Confirmation  Date
was cancelled and new shares of common stock were issued in accordance  with the
Plan. A creditor stock pool was established,  which held two percent (2%) of the
new equity in accordance  with the Plan that was used for pro-rata  distribution
of stock payments. The holders of allowed unsecured claims, including employees,
received a stock  payment  of free  trading  shares of the new  equity  from the
creditor stock pool. Additionally, a two percent (2%) stock pool was established
as an incentive for employees who stayed with the Company through bankruptcy and
thereafter. The Company may, at its discretion, issue the shares to employees up
to the maximum of two percent (2%).  The employee  shares vest in four quarterly
amounts commencing with the Confirmation Date.

Majority holders of the Company's voting shares before Confirmation received the
majority of voting shares after Confirmation. Therefore, a change of control did
not occur. The Company continued its basis of accounting and did not adopt fresh
start accounting which would apply if there was a change in control.


2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of consolidation -- The consolidated financial statements include the
accounts  of the  Company  and  its  wholly  owned  subsidiaries.  All  material
intercompany accounts and transactions have been eliminated.

Cash and cash equivalents -- The Company considers all unrestricted deposits and
highly  liquid  investments,  readily  convertible  to  known  amounts,  with an
original maturity of three months or less, to be cash equivalents.

Property  and  equipment  -- Property and  equipment  are stated at cost.  Major
renewals and  improvements are  capitalized,  while  maintenance and repairs are
expensed when  incurred.  The cost and  accumulated  depreciation  for equipment
sold,  retired,  or otherwise  disposed of are relieved from the  accounts,  and
resulting gains or losses are reflected in income. Depreciation is provided over
the  estimated  useful lives of the  respective  assets using the  straight-line
method.  During  the year  ended  December  31,  2000,  the  Company  recognized
impairment expenses.


<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Impairment of long-lived assets -- The Company  evaluates the  recoverability of
its property and  equipment,  and other assets in accordance  with  Statement of
Financial  Accounting  Standards  Board  ("SFAS") No. 121,  "Accounting  for the
Impairment of Long-Lived Assets to be Disposed of" which requires recognition of
impairment of  long-lived  assets in the event the net book value of such assets
exceeds the estimated future undiscounted cash flows attributable to such assets
or the business to which such intangible assets relate.

Revenue recognition -- Revenue is recognized when the product is shipped,  title
and risk transfers to the customer and collection of the resulting receivable is
reasonably  assured.  Revenue from software sales is generally  recognized  upon
execution of a sales  contract,  the delivery of the software and  completion of
the  major  portion  of  the  contract  requirement.  Revenue  from  maintenance
contracts is amortized over the term of the agreements.

Product  development  expenses -- Product  development  expenses  are charged to
expense  as  incurred.  These  costs  primarily  consist  of  salaries  paid  to
programmers.  Product development costs for the twelve months ended December 31,
2001 and 2000 were $79,042 and $364,134, respectively.

Income taxes -- The Company  accounts for income taxes on an asset and liability
approach to financial accounting. Deferred income tax assets and liabilities are
computed for the  difference  between the  financial  statement and tax bases of
assets and liabilities that will result in taxable or deductible  amounts in the
future,  based on enacted tax laws and rates  applicable to the periods in which
the differences are expected to affect taxable income. A valuation  allowance is
recognized if, based on the weight of available evidence, it is more likely than
not that some  portion  or all of the  deferred  asset  will not be  recognized.
Income tax expense is the tax  payable or  refundable  for the  period,  plus or
minus the change during the period in deferred tax assets and liabilities.

Income (loss) per share -- The Company accounts for earnings per share according
to Financial  Accounting  Standards No. 128,  "Earnings per Share" ("SFAS 128"),
which  requires  presentation  of basic and diluted  earnings or loss per share.
There were no dilutive  securities or options  outstanding at December 31, 2001.
Since  the  Company  experienced  losses,  no  diluted  earnings  per  share are
presented  for the year ended  December 31, 2000.  Earnings or loss per share is
computed by dividing net income or loss by the weighted average number of shares
outstanding during the period.

Use of estimates -- The  preparation of financial  statements in conformity with
accounting  principles  generally  accepted  in the  United  States  of  America
requires  management to make estimates and assumptions  that affect the reported
amount of assets  and  liabilities  and  disclosure  of  contingent  assets  and
liabilities at the date of the financial statements,  and the reported amount of
revenue and expenses  during the reporting  period.  Actual results could differ
from those estimated.

Fair value of  financial  instruments  -- The carrying  amounts  reported in the
balance sheet for cash and accounts receivables  approximate fair value based on
the short-term maturity of the instruments involved.

Concentration of credit risks -- Financial  instruments that potentially subject
the Company to  concentrations  of credit  risk  consists  principally  of trade
accounts receivable.


<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

2.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

Segment  reporting -- The Company reports its segment  information  according to
Statement of Financial  Accounting  Standards Board No. 131,  "Disclosures about
Segments of an Enterprise and Related  Information"  ("SFAS 131").  The segments
are reported based on management's  approach for making operating  decisions and
addressing  performance.  SFAS 131 also requires  disclosures about products and
services, geographic areas, and major customers.

Recent  accounting  pronouncements  -- In  June  2001,  Statement  of  Financial
Accounting  Standards No. 142,  "Goodwill and Other  Intangible  Assets"  ("SFAS
142") was issued,  which  establishes  standards  for financial  accounting  and
reporting for intangible  assets acquired  individually or with a group of other
assets and for the reporting of goodwill and other intangible assets acquired in
a business acquisition subsequent to initial accounting under SFAS 141. SFAS 142
supercedes APB Opinion No. 17, "Intangible Assets" and related  interpretations.
SFAS 142 is effective for fiscal years  beginning  after  December 15, 2001. The
Company will adopt SFAS 142 for its fiscal year commencing  January 1, 2002, and
the Company has not  concluded  the  effect,  if any,  SFAS 142 will have on its
consolidated financial statements.

In June 2001,  Statement of Financial  Accounting Standards No. 143, "Accounting
for Asset Retirement  Obligations"  ("SFAS 143") was issued,  which  establishes
standards  for  reporting  the  obligations  associated  with the  retirement of
tangible  long-lived  assets and associated asset retirement  costs. SFAS 143 is
effective for financial  statements issued for fiscal years beginning after June
15, 2002. Earlier application is encouraged.  The Company will adopt SFAS 143 no
later than its fiscal year  commencing  January 1, 2003, and the Company has not
concluded the effect,  if any, SFAS 143 will have on its consolidated  financial
statements.

In August 2001, Statement of Financial Accounting Standards No. 144, "Accounting
for the  Impairment or Disposal of Long-Lived  Assets"  ("SFAS 144") was issued,
which  addresses  financial  accounting  and  reporting  for the  impairment  of
long-lived  assets  and for  long-lived  assets  to be  disposed  of.  SFAS  144
supercedes in part FASB  Statement No. 121,  "Accounting  for the  Impairment of
Long-Lived  Assets and for Long-Lived  Assets to be Disposed of" and APB Opinion
No. 30, "Reporting the Results of  Operations-Reporting  the Effects of Disposal
of a Segment of a Business and Extraordinary, Unusual and Infrequently Occurring
Events and Transactions." Further, it amends ARB No. 51, "Consolidated Financial
Statements."  SFAS 144 is effective for financial  statements  issued for fiscal
years beginning after December 15, 2001. The Company will adopt SFAS 144 for its
fiscal year  commencing  January 1, 2002,  and the Company has not concluded the
effect, if any, SFAS 144 will have on its consolidated financial statements.

In April of 2002,  Statement of Financial  Accounting  Standards  No. 145 ("SFAS
145") was issued,  which rescinded SFAS Statements No. 4, 44 and 64, amended No.
13 and contained technical corrections.  Under SFAS 4, all gains and losses from
extinguishment  of  debt  were  required  to be  aggregated,  and  if  material,
classified as an  extraordinary  item, net of related income tax. As a result of
SFAS 145, gains and losses from  extinguishment  of debt should be classified as
extraordinary items only if they meet the criteria in APB Opinion No. 30, namely
that they are  unusual  and  infrequent  and not part of an  entity's  recurring
operations.  The Company  has  applied  SFAS 145, as it relates to SFAS 4 to its
financial  statements  for the year ended  December 31,  2001.  The Company will
adopt the remainder of SFAS 145 for its fiscal year commencing  January 1, 2002,
and the Company has not concluded the effect,  if any, SFAS 145 will have on its
consoldiated financial statements.


<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


3.  UNCERTAINTY -- GOING CONCERN

The Company's continued existence is dependent upon its ability to implement its
business plan after  emerging from  bankruptcy on May 1, 2001.  The Company must
resolve its liquidity  problems,  principally  by obtaining  equity,  increasing
sales and achieving  profitable  operations.  The Company experienced losses for
the year ended December 31, 2000,  and an operating  loss before  reorganization
items and extraordinary item of $1,440,762 for the year ended December 31, 2001,
and has a working  capital  deficit of $557,774 as of December 31,  2001.  These
factors raise  substantial  doubt about the  Company's  ability to continue as a
going concern.

Management's  plans in regards to this matter are to create additional  products
and  refine  existing  products,   much  of  which  is  completed  and  awaiting
introduction  to the  marketplace.  It also  plans to expand  its  sales  force,
increase its market  penetration  and volume of sales and to further  reduce its
operating costs to generate positive cash flow.  Additionally,  the Company must
raise equity in order to finance its expansion, to improve liquidity and sustain
operations.  The financial  statements do not include any adjustments that might
result from the outcome of this uncertainty.


4.  BANKRUPTCY PROCEEDINGS

On the Confirmation Date the Company emerged from bankruptcy.  The Plan provided
for the following:

Secured Debt --

The  Company's  $425,000 of secured  debt was  exchanged  for $40,000 cash and a
$385,000 secured note, payable in monthly installments of $12,243, commencing on
May 1, 2001 through April 1, 2004, with interest at nine percent per annum.  The
note is secured by the assets and stock of EBS.

The  Company's  secured  line of credit of $25,101 was  exchanged  for a $24,000
secured note,  payable in monthly  installments  of $879, with interest at eight
percent per annum commencing May 1, 2001 through November 1, 2003.
The note is secured by the assets of QCC.

The Company's secured liability due a commercial factor of $33,000 was exchanged
for a secured note in the amount of $10,980,  payable in monthly installments of
$366,  with interest at eight percent per annum  commencing  May 1, 2001 through
November 1, 2003.  The note is secured by the accounts  receivable  and contract
rights of QCC.

Priority Tax Claims --

The Broward County Department of Finance's claim of $53,640 will be paid in full
with interest at ten percent,  commencing  June 1, 2001 through May 1, 2003. The
claim is secured by the assets of the Company.

Unsecured notes payable --

The Company's note due a stockholder  totaling $307,700,  was exchanged for cash
of $15,385 and 23,663  shares of common stock valued at market value of $.25 per
share totaling $5,616.


<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


4.  BANKRUPTCY PROCEEDINGS (continued)

The Company's note payable due related parties totaling $392,057,  was exchanged
for cash of $19,603 and 30,149  shares of common stock valued at market value of
$.25 per share totaling $7,537.

The Company's related party promissory note due a stockholder  totaling $54,899,
was  exchanged  for cash of $2,745 and 4,222  shares of common  stock  valued at
market value of $.25 per share, totaling $1,056.

QCC Puts Payable -- The Company's puts payable of $1,276,750 were reduced by the
bankruptcy  court to an unsecured claim of $750,000.  The Company  satisfied the
claim of  $750,000,  by paying  $6,790 on May 19,  2001,  and  entering  into an
unsecured non-interest bearing note payable for $30,710 commencing June 19, 2001
through December 19, 2001, payable $4,387 per month.

Trade and Other Unsecured Claims --

The holders of approximately  $2,163,000 of trade and other miscellaneous claims
received  approximately $122,000 of which approximately $84,000 was paid in cash
and approximately  $38,000 is recorded in accounts payable at December 31, 2001,
which represented  approximately five percent of the unsecured debt, and 248,340
shares of common stock, which represented approximately two percent of the newly
issued common stock of the Company,  valued at market of $.25 per share totaling
$62,085.

Preferred Stock --

The  Company's   preferred  stock  totaling  $1,730,381  was  cancelled  on  the
Confirmation  Date. The bankruptcy court approved an unsecured claim of $750,000
for the preferred  stock.  The Company  satisfied  the claim by issuing  124,145
shares of common stock to the holder of the  preferred  stock valued at a market
value of $.25 per share totaling $31,036.

Common Stock --

All of the  Company's  common stock issued  prior to the  Confirmation  Date was
cancelled.  On that same date the  Company  issued  11,589,584  of new shares in
return for an investment of $700,000.

Employees -- A pool of common stock representing  approximately two percent (2%)
of the Company's new common stock, as of the Confirmation  Date, was established
to be issued to  employees of the Company who remained  through  bankruptcy  and
thereafter.  As of December  31,  2001,  the  Company  had issued  approximately
221,700 of the shares, valued at market of $.25 per share totaling $55,425.


5.  EXTRAORDINARY ITEM

As a result of the Company's  emergence from bankruptcy and the elimination of a
majority of the Company's debt, the Company recorded an  extraordinary  item for
the forgiveness of debt of approximately  $3,800,000.  The forgiveness  resulted
from the following items of debt being forgiven:


<page>




                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


5.         EXTRAORDINARY ITEM (continued)

--------------------------------------------------------------------------------

                  Notes payable         $ 1,100,000
                  Accounts payable        2,000,000
                  Preferred stock           700,000
                                        -----------
                                        $ 3,800,000

--------------------------------------------------------------------------------

Forgiveness of debt was accounted for as an extraordinary item under APB Opinion
30, because it was considered infrequent and unusual.


6.  PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2001:

--------------------------------------------------------------------------------
                                                                    Estimated
                                                                   Useful lives
                                                                 ---------------
           Computer equipment                     $  884,140         5 years
           Furniture and equipment                   206,637        5-7 years
           Leasehold improvements                     30,444         5 years
                                                 -----------
                                                   1,121,221
           Less:  accumulated depreciation         1,069,623
                                                 -----------
                                                  $   51,598

--------------------------------------------------------------------------------
Depreciation  expense for the twelve months ended December 31, 2001 and 2000 was
$8,700 and $123,679, respectively.
--------------------------------------------------------------------------------


7.  IMPAIRMENT EXPENSE

In December 2000, as a result of continued and increasing  operating  losses and
the bankruptcy  filing,  the Company  determined that all recorded  goodwill was
impaired. Therefore, the Company recorded an impairment charge of $1,742,791.

During the year ending  December 31, 2000, the Company  reviewed its capitalized
software  to  determine  if the net book value  exceeded  the  estimated  future
discounted  cash flows  attributable to these assets.  The Company's  evaluation
resulted in the determination  that the recoverability of all software costs was
uncertain and, therefore, an impairment expense of $977,268 was recognized.




                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


7.  IMPAIRMENT EXPENSE (continued)

The Company also evaluated the recoverability of its leasehold  improvements and
deposits and, because the Company was planning to move its offices,  recorded an
impairment charge of $181,692 for all leasehold improvements and deposits.

Additionally, after evaluation of the expected future cash flows for other fixed
assets, an impairment charge of $132,092 was recorded.


8.  DEFERRED REVENUE

At December  31, 2001 and 2000,  deferred  revenue was  $134,380  and  $185,624,
respectively, which represents the unearned portion of sales related to software
maintenance   agreements.   Deferred  revenue  is  recognized  as  income  on  a
straight-line basis over the service contract terms that are generally renewable
for twelve-month periods.


9.  NOTES PAYABLE

The following are the notes payable at December 31, 2001:

--------------------------------------------------------------------------------

    Note payable due two individuals, 9% interest,
       Due March 31, 2004, payable $12,243 per month                 $ 308,162

    Note payable due a factor company, 8% interest,
       Due November 1, 2003, payable $366 per month                      8,052

    Note payable due county, 10% interest,
       Due May 1, 2003, payable $2,235 per month                        53,640

    Note payable due venture capital firm, 8% interest
       Due October 1, 2003, payable $869 per month                      17,898

    Note payable due venture capital firm, 8% interest,
       Due December 31, 2001, payable $4,387 per month                  30,710

    Note payable due financial institution, non-interest
       bearing with Imputed interest at 8%,
       Due January 1, 2002, payable $2,500 per month                     2,500
                                                                    ----------
                                                                       420,962

    Less current maturities of long-term obligations                   215,534
                                                                    ----------
                                                                     $ 205,428

--------------------------------------------------------------------------------
See Note 4 for a description of collateral applicable to the notes payable.
--------------------------------------------------------------------------------



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


9.  NOTES PAYABLE (continued)

The Company had not paid its note payable due a venture  capital  firm  totaling
$30,710,  as of December 31, 2001 according the terms of the note.  Although the
note is in default,  the venture  capital firm has taken no action in regards to
the delinquency.

Interest  expense for the twelve  months  ended  December  31, 2001 and 2000 was
$33,602, and $155,396, respectively.

The following are future payments due on the notes payable:

                       2002          $   215,534
                       2003              160,354
                       2004               45,074
                                     -----------
                                     $   420,962


10.  EQUITY

On February 11,  2002,  the Company  declared a three for ten stock  split.  All
shares presented have been restated to reflect the stock split.

All the common stock,  preferred stock, stock options and warrants issued by the
Company  and  outstanding,  prior  to the  Confirmation  Date of the  Plan  were
cancelled on the Confirmation Date.

On May 1,  2001,  the  Company  issued  11,589,584  shares  of  common  stock to
investors for $700,000.  Further, the Company issued 278,340 shares to unsecured
creditors,  61,323  shares to  employees  and  124,145  shares to the  preferred
stockholder in accordance  with the  Bankruptcy  Plan and recorded an expense of
$115,952  valued  at a market  value of $.25 per  share in  accordance  with the
bankruptcy plan.

During June 2001, the Company completed a private placement  totaling  $616,500,
net of offering  costs of  $68,500,  and issued  2,914,005  shares of its common
stock.  The shares of stock in the  private  placement  were  valued at $.25 per
share.  As part of the private  placement,  the Company issued 174,000 shares of
common stock as a finder's fee, which are included above.  The Company  recorded
an offering cost of $43,500 for the finder's fee as part of the offering costs.

Subsequent to the Confirmation Date, the Company issued 160,425 shares of common
stock to employees of the Company as part of the employee  pool  established  as
part of the Plan and recorded an expense of $40,106, valued at a market value of
$.25 per share.

Subsequent to the Confirmation Date, the Company issued 382,464 shares of common
stock in exchange for services rendered and recorded an expense of $95,616 based
upon a share price of $.25 per share.





                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


11.  INCOME TAXES

The Company had  available at December  31, 2001 and 2000,  net  operating  loss
carry-forwards  for federal and state tax purposes of approximately  $13,600,000
and  $10,500,000,  respectively  that could be applied against taxable income in
subsequent  years from 2002 to 2021. The tax effect of the net operating loss is
approximately  $3,950,000,  and $5,100,000,  and a full valuation  allowance has
been recorded against each, since realization is uncertain.

There  were no  significant  temporary  differences  for book and tax  reporting
purposes as of the twelve months ended December 31, 2001 and 2000. Components of
the Company's deferred income taxes are as follows at December 31:

                                                     2001             2000
   ---------------------------------------------------------------------------
      Net deferred tax asset                    $ 3,950,000      $ 5,100,000
   ---------------------------------------------------------------------------
      Less valuation allowance                   (3,950,000)      (5,100,000)
   ---------------------------------------------------------------------------
      Net deferred tax asset                    $        --      $        --
   ---------------------------------------------------------------------------

The net change in the valuation  allowance for the twelve months ended  December
31, 2001 and 2000, was an decrease of $1,150,000,  and a increase of $2,500,000,
respectively.

Due  to  the  bankruptcy,  the  Company's  carry  forwards  may  be  subject  to
limitations on annual utilization  because there was an "equity structure shift"
or "owner shift" involving five percent (5%) stockholders, the terms are defined
in Section 382 of the Internal Revenue Code. The annual limitation, if any, will
be based on the value of the Company as of the  Confirmation  Date multiplied by
the applicable federal long term tax exempt bond rate.

Reconciliation  of the differences  between income taxes computed at the federal
and state  statutory  rates and the  provision  for income  taxes for the twelve
months ended December 31, 2001 and 2000 is as follows:


                                                        2001             2000
--------------------------------------------------------------------------------
Income tax loss at federal statutory tax rate         (34.00)%         (34.00)%
State taxes, net of federal benefit                    (3.63)%          (3.63)%
Change in valuation allowance                          37.63 %          37.63 %
--------------------------------------------------------------------------------
Provision for income taxes                                -- %             -- %
--------------------------------------------------------------------------------


12.  COMMITMENTS AND CONTINGENCIES

The Company  entered into a lease  commitment for office  facilities  commencing
June 12,  2001.  The term of the lease is five years with future  minimum  lease
payments as follows:


<page>



                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


12.  COMMITMENTS AND CONTINGENCIES (continued)


                            Year                   Amount
                        ------------           ------------
                            2002                 $  99,996
                        ------------           ------------
                            2003                   104,166
                        ------------           ------------
                            2004                   112,504
                        ------------           ------------
                            2005                   117,669
                        ------------           ------------
                            2006                    70,000
                        ------------           ------------
                                                 $ 504,335
                                               ============


The Company  intends to issue  employees more stock from the employee  incentive
stock pool  established by the Bankruptcy  Court during the year ending December
31, 2002.



13.  SEGMENT INFORMATION

The Company's two reportable segments are recorded by each subsidiary's  records
(credit  reporting  "QCC"  and  software  sales  and  maintenance   "EBS").  The
accounting  policies  of the  segments  are the same as those  described  in the
summary of significant  accounting  policies.  Segment information for the years
ended December 31, 2001 and 2000 is as follows:

--------------------------------------------------------------------------------
                                           EBS      QCC       Other       Total
--------------------------------------------------------------------------------
                                                     December 31, 2001
                                                      (in thousands)
--------------------------------------------------------------------------------
Sales                                    $ 955    $ 741     $    --     $ 1,696
Gross margin                               894       88          --         982
Operating income (loss)                    (77)    (323)     (1,007)     (1,407)
Depreciation and amortization               --       --           9           9
Total assets                                62       33       1,026       1,121
Capital expenditures                        --       --          46          46
--------------------------------------------------------------------------------
                                                     December 31, 2000
                                                      (in thousands)
--------------------------------------------------------------------------------
Sales                                    1,848      1,575        --       3,423
Gross margin                               638        574        --       1,212
Operating income (loss)                 (1,045)      (324)   (3,057)     (4,426)
Depreciation and amortization              132         52       139         323
Total assets                               112         54        (7)        159
Capital expenditures                        --         18         7          25
--------------------------------------------------------------------------------



<page>


                    TANGENT SOLUTIONS, INC. AND SUBSIDIARIES
                  (FORMERLY ELECTRONIC BUSINESS SERVICES, INC.)
             NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)


14.  SUBSEQUENT EVENTS

During May 2002, the Company decided to cease operating its QCC subsidiary.  The
Company  subsequently  sold the  customer  list of QCC and  received  an initial
payment of $10,000.  The Company will receive in the future  twelve (12) monthly
payments based upon a formula of the business generated from the customer list.