United States Securities and Exchange Commission 
  Washington, D.C. 20549

Form 10-QSB/A

[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
  EXCHANGE
  ACT OF 1934

For the quarterly period ended December 31, 2002

[   ] TRANSITION REPORT UNDER SECTION 13 OR
  15 (d) OF THE EXCHANGE ACT
  For the transition period from _________ to __________________

Commission File Number: 000-29925

Surge Technologies Corp. (Name of Small Business Issuer in its charter)

|Nevada                          | 95-4784883                
|------------------------------- | --------------------------
|(state or other jurisdiction of | (I.R.S. Employer I.D. No.)
|incorporation or organization)  |                           

#14  700 58thAvenue
  S.W., Calgary, Alberta, Canada T2H 2E2 
  (Address of principal executive offices)

(403) 250 - 2442 
  Issuers telephone number

Boundless Vision Incorporated 
  Former name, former address, and former fiscal year, if changed since last report

Check whether the registrant (1) filed all reports required to be filed by sections 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 [X] No [   ]

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

Check whether the registrant 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 [   ]   NO [   ]   N/A

APPLICABLE ONLY TO CORPORATE ISSUERS

State the number of shares outstanding of each of the issuers classes of common equity, as of the latest practicable date:

As of February 14, 2003, the registrants outstanding common stock consisted of 16,561,352 shares.

Transitional Small Business Disclosure Format (Check one): YES [  
  ]      NO [X]

---

TABLE OF CONTENTS

|                                             | PAGE
|-------------------------------------------- | ----
|PART I- FINANCIAL INFORMATION                |     
|                                             |     
|Item 1. Financial Statements                 | 3   
|                                             |     
|Item 2. Managements Discussion and Analysis | 16  
|                                             |     
|Item 3. Controls and Procedures              | 17  
|                                             |     
|PART II- OTHER INFORMATION                   |     
|                                             |     
|Item 1. Legal Proceedings                    | 18  
|                                             |     
|Item 2. Changes in Securities                | 18  
|                                             |     
|Item 3. Defaults Upon Senior Securities      | 18  
|                                             |     
|Item 4. Submission of Matters to a Vote of   |     
|Security Holders                             | 18  
|                                             |     
|Item 5. Other Information                    | 18  
|                                             |     
|Item 6. Exhibits and Report on Form 8-K      | 19  
|                                             |     
|SIGNATURES                                   | 19  
|                                             |     
|Section 302 Certification                    | 20  
|                                             |     
|Exhibit 99.1                                 | 22  

2

---

PART I- FINANCIAL INFORMATION





Item 1. Financial Statements





Surge Technologies Corp. and Subsidiaries (formerly known as Boundless Vision Incorporated)





Third Quarter Interim Consolidated Financial Statements 
  For the nine month period ended December 31, 2002 and 2001 (unaudited prepared
  by management) 
  And the year ended March 31, 2002.







3

---

Surge Technologies Corp. and Subsidiaries (formerly known as Boundless Vision Incorporated)

Consolidated Balance Sheets 
  (Unaudited)

|                                                                       |   |              |   |   |              |   |   |           |  
|---------------------------------------------------------------------- | - | ------------ | - | - | ------------ | - | - | --------- | -
|                                                                       |   | December 31, |   |   | December 31, |   |   | March 31, |  
|                                                                       |   | 2002         |   |   | 2001         |   |   | 2002      |  
|                                                                       |   |              |   |   |              |   |   |           |  
|ASSETS                                                                 |   |              |   |   |              |   |   |           |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Current                                                                |   |              |   |   |              |   |   |           |  
|Cash and cash equivalents                                              | $ | 28,094       |   | $ | 17,541       |   | $ | 1,093     |  
|Trade accounts receivable                                              |   | 160,800      |   |   | 290,951      |   |   | 295,842   |  
|Inventory (Note 4)                                                     |   | 218,706      |   |   | 116,955      |   |   | 202,618   |  
|Prepaid expenses                                                       |   | 61,554       |   |   | 40           |   |   | 1,583     |  
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       |   | 469,154      |   |   | 425,487      |   |   | 501,136   |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Property, plant and equipment(Note 5)                                  |   | 112,388      |   |   | 95,864       |   |   | 92,114    |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Intangible assets(Note 6)                                              |   | 2,673        |   |   | 3,197        |   |   | 2,852     |  
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       | $ | 584,215      |   | $ | 524,548      |   | $ | 596,102   |  
|                                                                       |   |              |   |   |              |   |   |           |  
|LIABILITIES AND SHAREHOLDERS DEFICIENCY                               |   |              |   |   |              |   |   |           |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Current                                                                |   |              |   |   |              |   |   |           |  
|Accounts payable and accrued liabilities                               | $ | 579,097      |   | $ | 535,532      |   | $ | 644,167   |  
|Accounts payable - related parties (Note
      10)                     |   | 51,644       |   |   | 55,786       |   |   | 50,742    |  
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       |   | 630,741      |   |   | 591,318      |   |   | 694,909   |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Due to related parties(Note 7)                                         |   | 291,729      |   |   | 426,041      |   |   | 208,049   |  
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       |   | 922,470      |   |   | 1,017,359    |   |   | 902,958   |  
|                                                                       |   |              |   |   |              |   |   |           |  
|Shareholders deficiency                                               |   |              |   |   |              |   |   |           |  
|Capital stock (Note 8)                                                 |   |              |   |   |              |   |   |           |  
|Authorized                                                             |   |              |   |   |              |   |   |           |  
|25,000,000
      of common shares with par value of $ 0.001            |   |              |   |   |              |   |   |           |  
|Issued and outstanding                                                 |   |              |   |   |              |   |   |           |  
|December
      31, 2002  15,654,000 common shares                     |   |              |   |   |              |   |   |           |  
|December
      31, 2001  1,167,971 common shares                      |   |              |   |   |              |   |   |           |  
|March
      31, 2002  9,002,435 common shares                         |   | 15,654       |   |   | 1,167        |   |   | 9,002     |  
|Additional paid in capital                                             |   | 412,880      |   |   | 22,884       |   |   | 257,814   |  
|Share subscriptions received in advance
      (Note 16)                |   | 211,352      |   |   | -            |   |   | -         |  
|Equity adjustments from foreign currency
      translation             |   | 5,566        |   |   | 13,037       |   |   | 6,183     |  
|Excess of liabilities assumed over assets
      acquired, net (Note 3) |   | (8,556       | ) |   | -            |   |   | -         |  
|Deficit, accumulated during the development
      stage                |   | (975,151     | ) |   | (529,899     | ) |   | (579,855  | )
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       |   | (338,255     | ) |   | (492,811     | ) |   | (306,856  | )
|                                                                       |   |              |   |   |              |   |   |           |  
|                                                                       | $ | 584,215      |   | $ | 524,548      |   | $ | 596,102   |  
|                                                                       |   |              |   |   |              |   |   |           |  

Nature of Operations and Going Concern (Note 1)

Acquisition of Surge Technologies Inc.(Note 3)

Commitments (Note 11)

Economic Dependence(Note 14)

Subsequent Event(Note 16)

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

4

---

|Surge Technologies Corp. and Subsidiaries          
|---------------------------------------------------
|(formerly known as Boundless Vision Incorporated)
|Consolidated Statements of Operations and Deficit  
|(Unaudited)                                        

|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|--------------------------------------------- | - | ------------ | - | - | ------------ | - | - | ------------ | - | - | ------------ | -
|                                              |   | For the      |   |   | For the      |   |   | For the      |   |   | For the      |  
|                                              |   | three month  |   |   | three month  |   |   | nine month   |   |   | nine month   |  
|                                              |   | period ended |   |   | period ended |   |   | period ended |   |   | period ended |  
|                                              |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |  
|                                              |   | 2002         |   |   | 2001         |   |   | 2002         |   |   | 2001         |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|SALES                                         | $ | 352,291      |   | $ | 439,761      |   | $ | 1,217,576    |   | $ | 1,297,090    |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|COST OF SALES                                 |   | 285,208      |   |   | 383,436      |   |   | 1,040,279    |   |   | 1,111,129    |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|GROSS PROFIT                                  |   | 67,083       |   |   | 56,325       |   |   | 177,297      |   |   | 185,961      |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|EXPENSES                                      |   |              |   |   |              |   |   |              |   |   |              |  
|Amortization of intangible asset              |   | 433          |   |   | 363          |   |   | 1,156        |   |   | 1,091        |  
|Depreciation of property and equipment        |   | 4,547        |   |   | 3,957        |   |   | 15,443       |   |   | 9,880        |  
|Consulting                                    |   | 100,724      |   |   | 2,320        |   |   | 139,620      |   |   | 14,476       |  
|Consulting  related parties (Note
      10)  |   | 45,724       |   |   | 20,694       |   |   | 65,574       |   |   | 41,388       |  
|General and administrative                    |   | 35,383       |   |   | 18,834       |   |   | 112,107      |   |   | 33,312       |  
|Interest                                      |   | 2,157        |   |   | 9,194        |   |   | 16,602       |   |   | 25,882       |  
|Operating                                     |   | 21,502       |   |   | 17,110       |   |   | 64,258       |   |   | 73,700       |  
|Rent  related parties rent (Note
      10)   |   | 4,901        |   |   | 8,717        |   |   | 9,803        |   |   | 17,434       |  
|Research and development costs (Note
      9) |   | 1,181        |   |   | 2,171        |   |   | 11,735       |   |   | 3,514        |  
|Wages and benefits                            |   | 45,498       |   |   | 33,026       |   |   | 136,295      |   |   | 211,931      |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   | 194,113      |   |   | 116,386      |   |   | 572,593      |   |   | 432,608      |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|Net loss for the period                       |   | (127,030     | ) |   | (60,061      | ) |   | (395,296     | ) |   | (246,647     | )
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|Deficit, beginning of period                  |   | (848,121     | ) |   | (469,838     | ) |   | (579,855     | ) |   | (283,252     | )
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|Deficit, end of period                        | $ | (975,151     | ) | $ | (529,899     | ) | $ | (975,151     | ) | $ | (529,899     | )
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|                                              |   |              |   |   |              |   |   |              |   |   |              |  
|Basic loss per share(Note 2)                  | $ | (0.008       | ) | $ | (0.051       | ) | $ | (0.032       | ) | $ | (0.243       | )
|                                              |   |              |   |   |              |   |   |              |   |   |              |  

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

5

---

|Surge Technologies Corp. and Subsidiaries          
|---------------------------------------------------
|(formerly known as Boundless Vision Incorporated)
|Consolidated Statements of Cash Flows              
|(Unaudited)                                        

|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|------------------------------------------- | - | ------------ | - | - | ------------ | - | - | ------------ | - | - | ------------ | -
|                                            |   | For the      |   |   | For the      |   |   | For the      |   |   | For the      |  
|                                            |   | three month  |   |   | three month  |   |   | nine month   |   |   | nine month   |  
|                                            |   | period ended |   |   | period ended |   |   | period ended |   |   | period ended |  
|                                            |   | December 31, |   |   | December 31, |   |   | December 31, |   |   | December 31, |  
|                                            |   | 2002         |   |   | 2001         |   |   | 2002         |   |   | 2001         |  
|Cash flows from operating activities        |   |              |   |   |              |   |   |              |   |   |              |  
|Net loss for the period                     | $ | (127,030     | ) | $ | (60,061      | ) | $ | (395,296     | ) | $ | (246,647     | )
|Adjustments to reconcile
      loss to      |   |              |   |   |              |   |   |              |   |   |              |  
|net cash used by operating
      activities |   |              |   |   |              |   |   |              |   |   |              |  
|Translation
      gain (loss)               |   | (4,664       | ) |   | 7,700        |   |   | (617         | ) |   | 3,211        |  
|Depreciation
      of property, plant       |   |              |   |   |              |   |   |              |   |   |              |  
|and
      equipment                         |   | 4,547        |   |   | 3,957        |   |   | 15,443       |   |   | 9,880        |  
|Amortization
      of intangible assets     |   | 433          |   |   | 363          |   |   | 1,156        |   |   | 1,091        |  
|Issuance
      of common shares for         |   |              |   |   |              |   |   |              |   |   |              |  
|services
      (Note 13)                    |   | 26,000       |   |   | -            |   |   | 81,000       |   |   | -            |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   | (100,714     | ) |   | (48,041      | ) |   | (298,314     | ) |   | (232,465     | )
|Changes in operating assets and liabilities |   |              |   |   |              |   |   |              |   |   |              |  
|(Increase) decrease
      in trade accounts |   |              |   |   |              |   |   |              |   |   |              |  
|receivable                                  |   | 88,500       |   |   | (24,401      | ) |   | 135,042      |   |   | (57,448      | )
|(Increase) decrease
      in inventory      |   | 29,730       |   |   | 43,673       |   |   | (16,088      | ) |   | 44,812       |  
|(Increase) decrease
      in prepaid        |   |              |   |   |              |   |   |              |   |   |              |  
|expenses                                    |   | (51,093      | ) |   | -            |   |   | (59,771      | ) |   | 6,692        |  
|Increase (decrease)
      in accounts       |   |              |   |   |              |   |   |              |   |   |              |  
|payable                                     |   | (101,444     | ) |   | 8,968        |   |   | (66,434      | ) |   | 100,309      |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   | (135,021     | ) |   | (19,801      | ) |   | (305,565     | ) |   | (138,100     | )
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|Cash flows from investing activities        |   |              |   |   |              |   |   |              |   |   |              |  
|Purchase of intangible
      assets         |   | (466         | ) |   | (20          | ) |   | (977         | ) |   | (20          | )
|Purchase of property,
      plant, and      |   |              |   |   |              |   |   |              |   |   |              |  
|equipment                                   |   | (6,785       | ) |   | (17,741      | ) |   | (35,917      | ) |   | (22,571      | )
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   | (7,251       | ) |   | (17,761      | ) |   | (36,894      | ) |   | (22,591      | )
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|Cash flows from financing activities        |   |              |   |   |              |   |   |              |   |   |              |  
|Increase (decrease)
      in amounts due    |   |              |   |   |              |   |   |              |   |   |              |  
|to
      shareholders                       |   | (44,581      | ) |   | 289          |   |   | 80,390       |   |   | 121,988      |  
|Share subscriptions
      received in       |   |              |   |   |              |   |   |              |   |   |              |  
|advance                                     |   | 211,352      |   |   | -            |   |   | 211,352      |   |   | -            |  
|Issue of share capital
      for cash       |   | -            |   |   | 1,124        |   |   | 77,718       |   |   | 23,737       |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   | 166,771      |   |   | 1,413        |   |   | 369,460      |   |   | 145,725      |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|Increase (decrease) in cash and cash        |   |              |   |   |              |   |   |              |   |   |              |  
|equivalents                                 |   | 24,499       |   |   | (36,149      | ) |   | 27,001       |   |   | (14,966      | )
|Cash and cash equivalents,                  |   |              |   |   |              |   |   |              |   |   |              |  
|beginning of period                         |   | 3,595        |   |   | 53,690       |   |   | 1,093        |   |   | 32,507       |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  
|Cash and cash equivalents,                  |   |              |   |   |              |   |   |              |   |   |              |  
|end of period                               | $ | 28,094       |   | $ | 17,541       |   | $ | 28,094       |   | $ | 17,541       |  
|                                            |   |              |   |   |              |   |   |              |   |   |              |  

Supplemental Disclosures with respect to Cash Flows(Note 13)

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

6

---

|Surge Technologies Corp. and Subsidiaries                     
|--------------------------------------------------------------
|(formerly known as Boundless Vision Incorporated)           
|Consolidated Statements of Changes in Shareholders Deficiency
|(Unaudited)                                                   
|                                                              

|                             |  |            |  |   |           |  |   |            |  |   | Accumulated |   |   |             |   |   | Excess of    |   |   |               |  
|---------------------------- |  | ---------- |  | - | --------- |  | - | ---------- |  | - | ----------- | - | - | ----------- | - | - | ------------ | - | - | ------------- | -
|                             |  |            |  |   |           |  |   |            |  |   | Foreign     |   |   |             |   |   | Liabilities  |   |   |               |  
|                             |  | Number     |  |   |           |  |   | Additional |  |   | Currency    |   |   |             |   |   | Assumed over |   |   |               |  
|                             |  | Of Shares  |  |   | Par-value |  |   | Paid-in    |  |   | Translation |   |   | Accumulated |   |   | Assets       |   |   | Shareholders |  
|                             |  | Issued     |  |   | Amount    |  |   | Capital    |  |   | Adjustments |   |   | Deficit     |   |   | Acquired     |   |   | Deficiency    |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at April 1, 2001     |  | 10,453     |  | $ | 10        |  | $ | 304        |  | $ | 9,826       |   | $ | (283,252    | ) | $ | -            |   | $ | (273,112      | )
|Shares issued for cash       |  | 1,157,518  |  |   | 1,157     |  |   | 22,580     |  |   | -           |   |   | -           |   |   | -            |   |   | 23,737        |  
|Translation gain (loss)      |  | -          |  |   | -         |  |   | -          |  |   | 3,211       |   |   | -           |   |   | -            |   |   | 3,211         |  
|Net loss for the period      |  | -          |  |   | -         |  |   | -          |  |   | -           |   |   | (246,647    | ) |   | -            |   |   | (246,647      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at December 31, 2001 |  | 1,167,971  |  | $ | 1,167     |  | $ | 22,884     |  | $ | 13,037      |   | $ | (529,899    | ) | $ | -            |   | $ | (492,811      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at April 1, 2001     |  | 10,453     |  | $ | 10        |  | $ | 304        |  | $ | 9,826       |   | $ | (283,252    | ) | $ | -            |   | $ | (273,112      | )
|Shares issued for cash       |  | 1,342,683  |  |   | 1,342     |  |   | 38,450     |  |   | -           |   |   | -           |   |   | -            |   |   | 39,792        |  
|Shares issued for debt       |  | 7,649,299  |  |   | 7,650     |  |   | 219,060    |  |   | -           |   |   | -           |   |   | -            |   |   | 226,710       |  
|Translation gain (loss)      |  | -          |  |   | -         |  |   | -          |  |   | (3,643      | ) |   | -           |   |   | -            |   |   | (3,643        | )
|Net loss for the period      |  | -          |  |   | -         |  |   | -          |  |   | -           |   |   | (296,603    | ) |   | -            |   |   | (296,603      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at March 31, 2002    |  | 9,002,435  |  | $ | 9,002     |  | $ | 257,814    |  | $ | 6,183       |   | $ | (579,855    | ) | $ | -            |   | $ | (306,856      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at April 1, 2002     |  | 9,002,435  |  | $ | 9,002     |  | $ | 257,814    |  | $ | 6,183       |   | $ | (579,855    | ) | $ | -            |   | $ | (306,856      | )
|Shares issued for cash       |  | 2,997,565  |  |   | 2,998     |  |   | 74,720     |  |   | -           |   |   | -           |   |   | -            |   |   | 77,718        |  
|Shares issued for services   |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|(Note 13)                    |  | 654,000    |  |   | 654       |  |   | 80,346     |  |   | -           |   |   | -           |   |   | -            |   |   | 81,000        |  
|Share subscriptions received |  |            |  |   |           |  |   |            |  |   |             |   |   | -           |   |   | -            |   |   |               |  
|in advance                   |  | -          |  |   | -         |  |   | 211,352    |  |   | -           |   |   | -           |   |   | -            |   |   | 211,352       |  
|Acquisition of Boundless     |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Vision Incorporated          |  | 3,000,000  |  |   | 3,000     |  |   | -          |  |   | -           |   |   | -           |   |   | (8,556       | ) |   | (5,556        | )
|Translation gain (loss)      |  | -          |  |   | -         |  |   | -          |  |   | (617        | ) |   | -           |   |   | -            |   |   | (617          | )
|Net loss for the period      |  | -          |  |   | -         |  |   | -          |  |   | -           |   |   | (395,296    | ) |   | -            |   |   | (395,296      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  
|Balance at December 31, 2002 |  | 15,654,000 |  | $ | 15,654    |  | $ | 624,232    |  | $ | 5,566       |   | $ | (975,151    | ) |   | (8,556       | ) | $ | (338,255      | )
|                             |  |            |  |   |           |  |   |            |  |   |             |   |   |             |   |   |              |   |   |               |  

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

7

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|Surge Technologies Corp. and Subsidiaries          
|---------------------------------------------------
|(formerly known as Boundless Vision Incorporated)
|                                                   
|Notes to Consolidated Financial Statements         
|(Unaudited)                                        
|December 31, 2002                                  
|                                                   

|1. | Nature of Operations and Going Concern
      Surge Technologies Corp. (formerly Boundless Vision
        Incorporated) (the Company) was incorporated under the
        laws of the State of Nevada, United States of America, on January 31,
        2000. Initially, the business of the Company was to prognosticate trends,
        including business and economic trends, business cycles, demographics
        and related areas. The Company, through the acquisition of Surge Technologies
        Inc. on September 3, 2002, commenced the production and sales of electronic
        communication equipment (Note 3).
      The consolidated financial statements presented are
        those of Surge Technologies Corp., and its subsidiaries Surge Technologies
        Inc. (Surge), a Canadian company, and Surge Acquisition Corp.
        (Surge Nevada), a company incorporated in the State of Nevada
        (collectively, the Company). References to Boundless
        relate to transactions of Boundless Vision Incorporated prior to the merger
        with Surge and Surge Nevada discussed in Note 3. References to Surge and
        Surge Nevada relate to transactions of Surge and Surge Nevada respectively
        prior to the merger discussed in Note 3. All significant inter-company
        balances and transactions have been eliminated in consolidation.
      The consolidated condensed interim financial statements
        presented herein have been prepared by the Company, without audit, pursuant
        to the rules and regulations of the Securities and Exchange Commission
        (SEC). Certain information and footnote disclosures normally
        included in financial statements prepared in accordance with generally
        accepted accounting principles have been condensed or omitted pursuant
        to such rules and regulations, although the Company believes the disclosures
        are adequate to make information presented not misleading.
      These statements reflect all adjustments, consisting
        of normal recurring adjustments, which, in the opinion of management,
        are necessary for fair presentation of the information contained therein.
        For further information, refer to the audited financial statements and
        notes included in the Companys Form 10-KSB filing for December 31,
        2001. The Company follows the same accounting policies in preparation
        of interim reports.
      Results of operations for the interim period are not
        necessarily indicative of the results that may be expected for the year
        ended March 31, 2003.
      The Companys financial statements at December
        31, 2002 and for the three and nine month periods then ended have been
        prepared on a going concern basis, which contemplates the realization
        of assets and the settlement of liabilities and commitments in the normal
        course of business. The Company has a loss of $127,030 for the three month
        period ended December 31, 2002 (December 31, 2001 - $60,061), and has
        a working capital deficit of $161,587 at December 31, 2002 (December 31,
        2001 - $165,831).
      Management cannot provide assurance that the Company
        will ultimately achieve profitable operations or become cash flow positive,
        or raise additional debt and/or equity capital. However, based on its
        prior demonstrated ability to raise capital, management believes that
        the Companys capital resources should be adequate to continue operating
        and maintain its business strategy during fiscal 2003. However, if the
        Company is unable to raise additional capital in the near future, due
        to the Companys liquidity problems, management expects that the
        Company will need to curtail operations, liquidate assets, seek additional
        capital on less favorable terms and/or pursue other
|-- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

8

---

|       | remedial measures. These financial statements do not include any adjustments
      relating to the recoverability and classification of assets or the amounts
      and classification of liabilities that might be necessary should the Company
      be unable to continue as a going concern.                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|**2.** | Summary of Significant Accounting Policies
      Cash and cash equivalents
      Cash and cash equivalents include highly liquid investments with original
        maturities of three months or less.
      Inventory
      Inventory of raw materials and supplies are valued at
        the lower of actual cost and replacement cost. Inventory of work in process
        and finished goods are valued at the lower of cost and net realizable
        value.
      Property, plant and equipment
      Property, plant and equipment are stated at cost. Depreciation
        is provided over the estimated useful life of each asset using the following
        annual rates, with half the rate being applied in the year of acquisition.

| | Equipment                     | 30%     | declining balance
| | ----------------------------- | ------- | -----------------
| | Injection moulds              | 10 year | straight-line    
| | Leasehold improvements        | 5 year  | straight-line    
| | Manufacturing license         | 5 year  | straight-line    
| | Office furniture and fixtures | 20%     | declining balance
| | Tools                         | 100%    |                  

| | The cost of normal maintenance and repairs is charged
        to operating expenses as incurred. Material expenditures, which increase
        the life of an asset, are capitalized and depreciated over the estimated
        remaining useful life of the asset. The cost of properties sold, or otherwise
        disposed of, and the related accumulated depreciation or amortization
        are removed from the accounts, and any gains or losses are reflected in
        current operations.
      Intangible assets
      Intangible assets are amortized using the straight-line
        method over their estimated period of benefit. Management of the Company
        periodically evaluates the recoverability of intangible assets and takes
        into account events or circumstances that warrant revised estimates of
        useful lives or that indicate that an impairment exists.
      Net loss per common share
      The Company has adopted Statement of Financial Accounting
        Standards (SFAS) No. 128 which establishes standards for computing
        and presenting earnings per share (EPS) for entities with
        publicly held common stock. The standard requires presentation of two
        categories of EPS  basic EPS and diluted EPS. Basic EPS excludes
        dilution and is computed by dividing income available to common shareholders
        by the weighted-average number of common shares outstanding for the year.
        Diluted EPS reflects the potential dilution that could occur if securities
        or other contracts to issue common stock were exercised or converted into
        common stock or resulted in the issuance of common stock that then shared
        in the earnings of the Company. The Company had no potentially dilutive
        securities at December 31, 2002 or 2001 and, as a result, basic and fully
        diluted EPS are the same amount in each of the above periods. The EPS
        calculation for the three and nine month periods ended December 31, 2002
        and 2001 has been performed assuming the historical 4,907,728 shares
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

9

---

| | outstanding for Surge as at September 3, 2002 were
        converted into the 12,000,000 Boundless shares issued on the acquisition
        of Surge on a pro rata basis over the period April 1, 2000 to the date
        of the acquisition on September 3, 2002.
      For the three month period ended December 31, 2002,
        the weighted average number of common shares outstanding was 15,647,460
        (December 31, 2001  1,167,718). For the nine month period ended
        December 31, 2002, the weighted average number of common shares outstanding
        was 12,307,684 (December 31, 2001  1,014,699).
      Revenue recognition
      Revenues from the sale of products are recorded when
        the product is shipped, title and risk of loss have transferred to the
        purchaser, payment terms are fixed or determinable and payment is reasonably
        assured. Revenues from service contracts are recognized when performance
        of the service is complete or over the term of the contract.
      Income taxes
      The Company provides for income taxes using the asset
        and liability method as prescribed by SFAS No. 109, Accounting for Income
        Taxes. Under the asset and liability method, deferred tax assets and liabilities
        are recognized for the future tax consequences attributable to differences
        between the financial statement carrying amount of existing assets and
        liabilities and their respective tax bases. Deferred tax assets and liabilities
        are measured using enacted tax rates expected to apply to taxable income
        in the years in which those temporary differences are expected to be recovered
        or settled. Under SFAS No. 109, the effect on deferred tax assets and
        liabilities of a change in tax rates is recognized in income in the period
        that includes the enactment date.
      Use of estimates
      The preparation of financial statements, in conformity
        with generally accepted accounting principles, requires management to
        make estimates and assumptions that affect the amounts reported in these
        financial statements and the accompanying notes. Actual results could
        differ from those estimates.
      Financial instruments
      The carrying value of financial instruments potentially
        subject to valuation risk, consisting principally of cash and cash equivalents,
        accounts receivable, accounts payable and notes payable approximates fair
        value, because of the short-term maturity of these instruments or actual
        interest rates that approximated the Companys effective borrowing
        rate.
      Comprehensive income
      Components of comprehensive income are net income and
        all other non-owner changes in deficiency. SFAS No. 130 requires an enterprise
        to (a) classify items of other comprehensive income by their nature in
        a financial statement, and (b) display the accumulated balance of other
        comprehensive income separately from deficit and additional paid-in capital
        in the deficiency section of a statement of financial position. The Company
        has no items of comprehensive income for the three and nine month periods
        ended December 31, 2002 or 2001.
      Foreign currency
      The accounts of subsidiaries, which are integrated operations,
        are translated using the temporal method. Under this method, monetary
        assets and liabilities are translated at the year end exchange rates.
        Non-monetary assets and liabilities are translated using historical rates
        of exchange. Revenues and expenses are translated at the rates of exchange
        prevailing on the dates such items are recognized in earnings. Exchange
        gains and losses are included in income for the year.
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10

---

|   | The accounts of subsidiaries which are
        self-sustaining operations are translated using the current rate method.
        Under this method, assets and liabilities are translated at the year end
        exchange rates. Revenues and expenses are translated at the rates of exchange
        prevailing on the dates such items are recognized in earnings. Exchange
        gains and losses are included in a separate component of shareholders
        deficiency under cumulative translation adjustment.
      Financial statements of self-sustaining subsidiaries
        operating in hyper-inflationary economies are translated using the temporal
        method, until these subsidiaries economies are no longer hyper-inflationary.
      Transaction amounts denominated in foreign currencies
        are translated into the local functional currency at exchange rates prevailing
        at transaction dates.
      Research and development costs
      Research and development costs are expensed as incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|3. | Acquisition of Surge Technologies Inc.
      On September 3, 2002, Boundless completed a business
        combination with Surge, a company incorporated in the Province of Alberta,
        Canada, and Surge Nevada which is incorporated in the State of Nevada.
        Surge manufactures and sells electronic communications equipment. Surge
        Nevada is essentially an inactive company with no operations or assets.
      Boundless issued 12,000,000 common shares to the former
        shareholders of Surge in exchange for 100% of the issued and outstanding
        capital stock of Surge which totaled 4,907,728 shares. The shares issued
        constitute 80% of the common stock of the Company after completion of
        the merger, and have been valued at $12,000, the par value of the common
        shares issued by Boundless on the date of closing. The issue of 80% of
        the common stock of Boundless to the former shareholders of Surge, the
        right of such shareholders to appoint a majority of the directors of Boundless,
        and the continuation of the Surge management team is deemed to constitute
        a change of control of Boundless.
      On September 3, 2002, Boundless purchased 100% of the
        shares of Surge Nevada for $1.
      As a result of the change in control discussed above,
        for financial reporting purposes, the acquisition of Surge by Boundless
        has been treated as a reverse acquisition. Surge is the continuing entity
        for financial reporting purposes and as a result of the Boundless
        plan to cease its operations at the time of the merger, the acquisition
        has been treated as a recapitalization of the Company. Accordingly, no
        goodwill has been recorded as a result of the acquisition.
      The net assets of Boundless acquired in the transaction
        are recorded at their historical recorded value, which approximates their
        fair market value. This resulted in the recording of liabilities in excess
        of assets of $8,556 as a deficit in the equity section of the financial
        statements. The historical financial statements prior to the acquisition
        are the financial statements of Surge. For legal purposes, Boundless will
        remain the surviving entity.
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|4. | Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

| |                                   |   | December 31, |  |   | December 31, | 
| | --------------------------------- | - | ------------ |  | - | ------------ | 
| |                                   |   | 2002         |  |   | 2001         | 
| |                                   |   |              |  |   |              | 
| |                                   |   |              |  |   |              | 
| | Finished goods                    | $ | 68,041       |  | $ | 12,436       | 
| | Raw materials and work in process |   | 150,665      |  |   | 104,519      | 
| |                                   |   |              |  |   |              | 
| |                                   |   |              |  |   |              | 
| |                                   | $ | 218,706      |  | $ | 116,955      | 
| |                                   |   |              |  |   |              | 

11

---

|5. | Property, Plant and Equipment
|-- | -----------------------------

| |                                    |   |         |  |   |              |  |   | December 31, |  |   | December 31, | 
| | ---------------------------------- | - | ------- |  | - | ------------ |  | - | ------------ |  | - | ------------ | 
| |                                    |   |         |  |   |              |  |   | 2002         |  |   | 2001         | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 
| |                                    |   |         |  |   | Accumulated  |  |   | Net book     |  |   | Net book     | 
| |                                    |   | Cost    |  |   | amortization |  |   | value        |  |   | value        | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 
| | Equipment                          | $ | 29,847  |  | $ | 10,065       |  | $ | 19,782       |  | $ | 16,873       | 
| | Injection moulds, dies and tooling |   | 102,454 |  |   | 15,402       |  |   | 87,052       |  |   | 74,253       | 
| | Leasehold improvements             |   | 2,595   |  |   | 259          |  |   | 2,336        |  |   | 1,992        | 
| | Office furniture and fixtures      |   | 4,351   |  |   | 1,133        |  |   | 3,218        |  |   | 2,746        | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 
| |                                    | $ | 139,247 |  | $ | 26,859       |  | $ | 112,388      |  | $ | 95,864       | 
| |                                    |   |         |  |   |              |  |   |              |  |   |              | 

|6. | Intangible Assets
|-- | -----------------

| |                       |   |       |  |   |              |  |   | 2002     |  |   | 2001     | 
| | --------------------- | - | ----- |  | - | ------------ |  | - | -------- |  | - | -------- | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 
| |                       |   |       |  |   | Accumulated  |  |   | Net book |  |   | Net book | 
| |                       |   | Cost  |  |   | amortization |  |   | value    |  |   | value    | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 
| | Manufacturing license | $ | 4,305 |  | $ | 2,511        |  | $ | 1,794    |  | $ | 3,197    | 
| | Website               |   | 950   |  |   | 71           |  |   | 879      |  |   | -        | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 
| |                       | $ | 5,255 |  | $ | 2,582        |  | $ | 2,673    |  | $ | 3,197    | 
| |                       |   |       |  |   |              |  |   |          |  |   |          | 

| | The Company has recorded amortization of intangible
        assets in the amount of $1,156 and $1,091 for each of the nine month periods
        ended December 31, 2002 and 2001. Estimated amortization of intangible
        assets over the next five years is estimated as follows:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|2003 | $ | 360   | 
|---- | - | ----- | 
|2004 |   | 1,889 | 
|2005 |   | 95    | 
|2006 |   | 95    | 
|2007 |   | 95    | 
|     |   |       | 
|     |   |       | 
|     | $ | 2,534 | 
|     |   |       | 

|7. | Due to Related Parties
      Amounts due to related parties are due to shareholders and directors
        of the Company.
      A total of $120,685 (December 31, 2001 - $303,532) bears
        interest at 10% per annum compounded annually, is unsecured and has no
        fixed terms of repayment. During the three month period ended December
        31, 2002, the Company paid or accrued interest of $6,393 (December 31,
        2001 - $21,102) on this amount.
      A total of $171,044 (December 31, 2001 - $122,509) is
        non-interest bearing, unsecured and has no fixed terms of repayment. This
        amount will be paid when the Company has the necessary financial resources
        as determined by the Board of Directors.
|-- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|8. | Capital Stock
      The authorized capital stock of the Company consists of 25,000,000 common
        shares with a par value of $0.001.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       

12

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|9.  | Research and Development Costs
      The Company incurred research and development costs in
        the amount of $11,735 during the nine month period ended December 31,
        2002 (December 31, 2001  $3,514). This amount has been recognized
        as an expense.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|10. | Related Party Transactions
      During the nine month period ended December 31, 2002,
        the Company paid or accrued $47,508 (December 30, 2001 - $26,358) to directors
        and officers of the Company for management services.
      During the nine month period ended December 31, 2002,
        the Company paid or accrued $18,066 (December 31, 2001 - $15,030) to directors
        and officers of the Company for consulting services.
      The Company entered into a sub-lease agreement for warehouse
        space from a shareholder, commencing July 1, 2000 and expiring June 30,
        2002 and the Company bears a pro-rata share of rent, utilities and property
        tax which aggregated $2,898 (December 31, 2001 - $5,591) and which represents
        managements estimate of the fair market value of the rental and
        occupancy costs of the property. Included in accounts payable at December
        31, 2002 is an amount of $2,971 (December 31, 2001 - $1,718) due to the
        shareholder. This amount is unsecured and non-interest bearing. Commencing
        on April 1, 2001, this amount bears interest at 10% per annum.
      The Company has a sub-lease agreement for office space
        with a company, related by way of a shareholder in common, expiring June
        30, 2002. The pro-rata share of rent, utilities and property tax aggregated
        $6,095 (December 31, 2001 - $11,843) representing managements estimate
        of the fair market value of the rental and occupancy costs of the property.
        Included in accounts payable at December 31, 2002 is an amount of $48,673
        (December 31, 2001 - $54,068) payable to the related company. This amount
        is unsecured and has no fixed terms of repayment. Commencing April 1,
        2001, these amounts bore interest at 10% per annum. During the nine month
        period ended December 31, 2002, interest expense in the amount of $4,653
        (December 31, 2001 - $4,116) was recorded related to this obligation.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|11. | Commitments
      The Company is committed to the following minimum annual
        base rent payments for the sublease of its office and warehouse and operating
        leases for office equipment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

| | 2003 | $ | 31,058 
| | ---- | - | -------
| | 2004 |   | 64,032 
| | 2005 |   | 66,110 
| | 2006 |   | 69,531 
| | 2007 |   | 68,279 
| | 2008 |   | 17,458 
| |      |   |        
| |      | $ | 316,468
| |      |   |        

| | The above includes the basic rent payments for a new
        lease agreement for office, production and warehouse premises entered
        into by the Company, commencing July 1, 2002 and ending June 30, 2007.
      The Company has entered into four separate employment
        contracts with various senior employees each providing for an annual salary
        of $37,528 for two year terms ending March 31, 2004. The contracts may
        be renewed at the employees option.
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

13

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|**12.** | Income Taxes
      The Companys deferred tax assets consist of the following as at
        December 31, 2002:
|------- | --------------------------------------------------------------------------------------------------------------

| | Tax effect of loss carry forwards                                       | $ | 375,000  |  
| | ----------------------------------------------------------------------- | - | -------- | -
| | Tax effect of property, plant and equipment and intangible
      assets |   | (56,000  | )
| | Valuation allowance                                                     |   | (319,000 | )
| |                                                                         |   |          |  
| |                                                                         |   |          |  
| | Net deferred tax asset                                                  | $ | -        |  
| |                                                                         |   |          |  

| | A full valuation allowance has been provided against
        all the Companys deferred tax assets, as it cannot determine if
        it is not more likely than not that the assets will be realized.
      The Companys effective tax rate of zero in 2002 differs from the
        federal tax rate of 34% because of the following:
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | Federal statutory rate          | (34% | )
| | ------------------------------- | ---- | -
| | Effect of state taxes           | (0%  | )
| | Increase in valuation allowance | 34%  |  
| |                                 |      |  
| |                                 |      |  
| | Effective tax rate              | 0%   |  
| |                                 |      |  

|13. | Supplemental Disclosures with respect to Cash Flows
|--- | ---------------------------------------------------

| |                                            |   |        |  |   |        | 
| | ------------------------------------------ | - | ------ |  | - | ------ | 
| |                                            |   | 2002   |  |   | 2001   | 
| |                                            |   |        |  |   |        | 
| |                                            |   |        |  |   |        | 
| | Cash paid during the year for interest     | $ | 16,602 |  | $ | 25,882 | 
| |                                            |   |        |  |   |        | 
| |                                            |   |        |  |   |        | 
| | Cash paid during the year for income taxes | $ | Nil    |  | $ | Nil    | 
| |                                            |   |        |  |   |        | 

|    | On September 3, 2002, the Company completed
        a business combination with Surge by issuing 12,000,000 common shares
        of the Company for 100% of the issued and outstanding common shares of
        Surge. This transaction has been treated as a reverse acquisition (Note
        3).
      During the three month period ended December 31, 2002,
        the Company issued 654,000 common shares of the Company for consulting
        services valued at $81,000.
      During the year ended March 31, 2002, the Company issued
        7,649,299 common shares in payment of $220,710 due to shareholders of
        the Company.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|14. | Economic Dependence
      As at December 31, 2002, two customers accounted for
        74% (December 31, 2001  42%) of the Companys accounts receivable
        balance. Sales to two customers accounted for 90% of the Companys
        total sales for the period ended December 31, 2002 (December 31, 2001
         88%).                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|15. | Segmented Information
      The Company operates in the United States of America and Canada within
        the telecommunications sector.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

14

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| | Geographic information |   | Sales based on location of |  |   | Net book value of capital assets | 
| | ---------------------- | - | -------------------------- |  | - | -------------------------------- | 
| |                        |   | customer                   |  |   | based on location of assets      | 
| |                        |   |                            |  |   |                                  | 
| |                        |   | December 31,               |  |   | December 31,                     | 
| |                        |   | 2002                       |  |   | 2001                             | 
| |                        |   |                            |  |   |                                  | 
| |                        |   |                            |  |   |                                  | 
| | Canada                 | $ | 858,391                    |  | $ | 998,759                          | 
| | United States          |   | 359,557                    |  |   | 298,331                          | 
| |                        |   |                            |  |   |                                  | 
| |                        |   |                            |  |   |                                  | 
| |                        | $ | 1,217,576                  |  | $ | 1,297,090                        | 
| |                        |   |                            |  |   |                                  | 

|16. | Subsequent Event
      Subsequent to December 31, 2002, the Company issued 907,352 common shares
        for cash proceeds of $226,838.        
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                
|17. | Comparative Figures
      Certain of the prior periods figures have been reclassified to
        conform to the current periods presentation.

15

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Item 2. Managements Discussion and Analysis

The following discusses our financial condition and results
  of operations based upon our consolidated financial statements which have been
  prepared in accordance with generally accepted accounting principles. It should
  be read in conjunction with our financial statements and the notes thereto and
  other financial information included in this Form 10 QSB for the quarter ended
  December 31, 2002.

Overview

On March 10, 2000 the Company filed a Registration Statement
  on Form 10-SB with the United States Securities and Exchange Commission. The
  Registration Statement went effective on May 9, 2000.

The business of the Company is to prognosticate trends, including
  business and economic trends, business cycles, demographics and related areas.

The Company, which has no employees, is a development stage
  enterprise. From inception to date the Company has had no revenues.

The Company's management is seeking funding from a variety
  of sources. However, there can be no assurance management will be successful
  in these endeavors. For the remainder of calendar 2002, and the first half of
  calendar 2003 absent other funding being obtained, the Company's primary funding
  source will be its investors group who will provide funding for corporate expenses.

As of September 3, 2002 the company merged with Surge Technologies
  Inc. of Calgary, Alberta Canada by way of a reverse merger. Surge is an integrated
  company that researches, designs, manufactures, markets and distributes a number
  of generic and special application electrical surge protection devices. The
  primary product focus is electrical surge limiting terminals that combine easy
  field line installation with protection from transient voltage, lightning, induction
  or electronic discharge. The Companys ability to quickly research, design,
  and produce specialty products, has allowed Surge to develop a market niche
  supplying custom built products to prominent telecommunication companies in
  both Canada and the US.

Results of Operation

For the nine months ended December 31, 2002 compared to December 31, 2001

Revenues for the nine months ended December 31, 2002 were
  $1,217,576, a decrease of 6.1% as compared to revenues of $1,297,090 for the
  nine months ended December 31, 2001. The decrease in revenues was primarily
  due the down turn in the telecom sector. The revenues for the three-month period
  ending December 31, 2002 was $352,291, a decrease of 19.8% as compared to revenues
  of $439,761 for the same period ending December 31, 2001.

The cost of goods sold as a percentage of sales was 85% for
  the nine months ended December 31, 2002, as compared to 85.7% for the nine months
  ended December 31, 2001. To improve margins we are changing the product mix
  and using multiple vendors. This will ensure input costs are better managed
  and result in increased margins. We have also focused on selling higher margin
  products to increase profits.

Gross profit for the nine months ended December 31, 2002 was
  $177,297, a decrease of 4.7%, as compared to the gross profit of $185,961 for
  the nine month period ended December 31, 2001. The decrease was due to lower
  revenues for the three-month period ended December 31, 2002.

Selling, general and administrative expenses were $572,593
  for the nine months ended December 31, 2001, an increase of 32.4%, as compared
  to $432,608 for the nine months ended December 31, 2001. As a percentage of
  revenues, selling, general and administrative cost were 47% for the nine months
  ended December 31, 2002, as compared to 33% for the same period in 2001. The
  increase in cost was due to costs associated with the company filing its registration
  statement on Form SB-2.

16

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Interest expense declined by 38.8% from $25,882 for the nine-months
  ending December 31, 2001 to the $16,602 incurred for the nine-months ending
  December 31, 2002. This decrease resulted from a shareholder converting a portion
  of the loan into share capital.

Depreciation expense increased for the nine-month period ended
  December 31, 2002 when compared to the nine-months ended December 31, 2001 by
  $5,563 to $15,443. This increase resulted from the purchase of additional capital
  property and the corresponding depreciation as well as the increase in intangible
  assets.

Research and development cost were $11, 735 during the nine
  months ended December 31, 2002. This is an increase of 234% compared to research
  and development costs of $3,514 for the nine months ended December 31, 2001.
  The increase in costs was due to development of new products for foreign markets.

Net income for the nine months ended December 31, 2002 was
  a loss of $395,296 or $0.032 per share as compared to the same period the previous
  year of $246,647 or $0.243 per share.

Liquidity and Capital Resources

We do not have an operating line of credit or a term loan
  from a financial institution consequently bank indebtedness at December 31,
  2002 and December 31, 2001 is nil. We did have monies on deposit of $28,094
  on December 31, 2002 and $17,541on December 31, 2001.

The accompanying financial statements have been prepared on
  a going concern basis, which contemplates the realization of assets and the
  settlement of liabilities and commitments in the normal course of business.
  We incurred a loss of $296,603 for the year ended March 31, 2002 and had a working
  capital deficit of $193,773 at March 31, 2002 which produced a current ratio
  of 0.73 to 1.0.

Investing activities consist of the acquisition of property
  and equipment and the development of new products (intangibles). For the nine-months
  ended December 31, 2002 we invested $35,917 in property and equipment. For the
  same period ending December 31, 2001 we invested $22,571 in property and equipment.

We have funded business operations from product sales, equity
  investment, loans from related parties and working capital. Operations were
  funded through share subscriptions in advance of $211,352, issue of share capital
  for cash in the amount of $77,718 and loans from related parties of $80,390
  for the nine month period ended December 31, 2002.

Our Corporate plans for the next twelve months is to increase
  sales in Canada though our existing customer base by providing a wider selection
  of products. Our mandate is also to increase sales volumes in the United States
  by having a corporate presence there and increasing our distributor base. We
  intend to pursue new tenders both in Canada and the United States and start
  Internet Online sales through our corporate website.

We will also pursue new distribution channels for our products,
  increase research and development of new product lines, increase sales and marketing
  effort and produce our own moulds for certain components. This will be funded
  by internal cash flows and equity offerings. If we are successful in securing
  $750,000 in equity financing we will use the proceed as follows:

|Sales and Marketing      | $ | 100,000 | 
|------------------------ | - | ------- | 
|Research and Development | $ | 150,000 | 
|Moulds                   | $ | 200,000 | 
|Tooling                  | $ | 50,000  | 
|Inventory                | $ | 50,000  | 
|Working Capital          | $ | 200,000 | 
|                         |   |         | 
|Total:                   | $ | 750,000 | 
|                         |   |         | 

We expect to achieve break-even operations in the next year
  and fund operations from positive cash flows. Our business plan contemplates
  an equity financing of up to $750,000 for development and marketing of our

17

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electrical surge devices. If we are not successful at raising
  this amount, we will have to reduce expenses associated with all operations
  in order to avoid continued losses. The ability to raise the financing is subject
  to market conditions, which currently do not favour investments in the telecom
  sector. A reduction in expenses would jeopardize our ability to carry out our
  new business strategy and consequently reduce or eliminate future growth, which
  would adversely affect the value of an investment in our company.

To date we have not invested in derivative securities or any
  other financial instruments that involve a high level of complexity or risk.
  We plan to invest any excess cash in investment grade interest bearing securities.

We believe we will meet working capital requirements for the
  next 12 months from invested capital and operating activities. The expected
  growth of the business will have to be partially funded by additional equity
  to support the higher inventory and accounts receivable levels. There can be
  no assurance additional financing will be available on acceptable terms, if
  at all. If adequate funds are not available, we may be unable to develop or
  enhance our products, take advantage of future opportunities or respond to competitive
  pressures.

Our only material commitments as at December 31, 2002 are
  a supply agreement with a major national Canadian telecommunications provider
  and our lease for our building premises. The annual base rent payment for the
  next 12 months is $31,058. This includes the basic rent payments, production
  and warehouse premises.

There are no known trends or uncertainties that will have
  a material impact on revenues.

Item 11. Controls and Procedures

The Company maintains disclosure controls and procedures that
  are designed to ensure that information required to be disclosed in the Companys
  reports filed pursuant to the Securities Exchange Act of 1934 are recorded,
  processed, summarized and reported within the time periods specified in the
  rules and forms promulgated under such Act, and that such information is accumulated
  and communicated to the Companys management, including its Chief Executive
  Officer, as appropriate, to allow timely decisions regarding required disclosure.

Within 90 days prior to the date of this report, the Companys
  management carried out an evaluation, under the supervision and with the participation
  of the Companys management, including the Companys Chief Executive
  Officer and Chief Financial Officer, of the effectiveness of the design and
  operation of the Companys disclosure controls and procedures pursuant
  to Exchange Act Rule 13a-14. Based upon the foregoing, the Companys Chief
  Executive Officer and Chief Financial Officer concluded that the Companys
  disclosure controls and procedures are effective in connection with the filing
  of this Quarterly Report on Form 10-QSB for the quarter ended September 30,
  2002.

There were no significant changes in the Companys internal
  controls or in other factors that could significantly affect these controls
  subsequent to the date of their evaluation, including any significant deficiencies
  or material weaknesses of internal controls that would require corrective action.

18

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PART II- OTHER INFORMATION

Item 1. Legal Proceedings

The Company is not a party to any pending legal proceeding.
  Management is not aware of any threatened litigation, claims or assessments.

Item 2. Changes in Securities

On September 3, 2002 we issued shares from treasury as part
  of a merger with Surge Technologies Inc., a company incorporated in Alberta
  (Surge). Pursuant to the Merger Agreement we acquired 85% of Surge
  Class A Common Stock in exchange for 10,186,323 newly issued shares of our common
  stock from the former Surge shareholders, an additional 15% of Surge Class A
  Common Stock in exchange for 825,930 newly issued shares of our common stock,
  100% of the Class B Surge Common Stock in exchange for 807,745 newly issued
  shares of our common stock, 100% of the Class E Common Stock in exchange for
  180,000 newly issued shares of our common stock, collectively representing 100%
  of the issued and outstanding share capital of Surge.

On September 3, 2002 we issued 550,000 shares of common stock
  from treasury as a finders fee in connection with the acquisition of Surge.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Submission of Matters to a Vote of Security Holders

None.

Item 5. Other Information

None.

19

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Item 6. Exhibits and Reports on Form 8-K

Exhibits

99.1 Certification(s) Pursuant to section 906
  of the Sarbanes Oxley Act.

Reports on Form 8-K

On October 9, 2002 the company filed on form 8-K stating effective
  October 3, 2002, the Registrant dismissed its principal auditors, Friedman,
  Minsk, Cole & Fastovsky and appointed James Stafford Chartered Accountants,
  at Suite 300, 555 West Georgia Street, Vancouver, BC V6B 1Z6 to act as the independent
  accountant to audit the companys financial statements.

On November 19, 2002, the company filed an amended Form 8-K
  respecting the change in control resulting from the acquisition of Surge Technologies
  Inc. (Alberta) and disclosing an amendment to the share acquisition agreement.

SIGNATURES

In accordance with the requirements of the Exchange Act, the
  Registrant caused this report to be signed on its behalf by the undersigned,
  thereunto duly authorized.

|                              | Surge Technologies Corp.           
|----------------------------- | -----------------------------------
|                              |                                    
|                              | /s/ Gordon McPhedran               
|Dated: March 14, 2003         | -----------------------------      
|----------------------------- | Gordon McPhedran                   
|                              | President & Chief Executive Officer

20

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SECTION 302 CERTIFICATION

|I, Gordon McPhedran, certify that:
|----------------------------------
|                                  
|1.                                
|                                  
|2.                                
|                                  
|3.                                
|                                  
|4.                                
|                                  
|5.                                
|                                  
|6.                                

|By:/s/ Gordon McPhedran                   | Date: March 14, 2003
|----------------------------------------- | --------------------
|Gordon McPhedran, Chief Executive Officer |                     

21

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SECTION 302 CERTIFICATION

|I, Thom Eggerston, certify that:
|--------------------------------
|                                
|1.                              
|                                
|2.                              
|                                
|3.                              
|                                
|4.                              
|                                
|5.                              
|                                
|6.                              

|By: /s/ Thom Eggerston                  | Date: March 14, 2003
|--------------------------------------- | --------------------
|Thom Eggerston, Chief Financial Officer |                     

22

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