| NewJersey                                                     | 13-3901466                          |
|---------------------------------------------------------------|-------------------------------------|
| (State orother jurisdiction of incorporation or organization) | (I.R.S.Employer Identification No.) |
| 148 CentralAvenue, Old Tappan, NJ                             | 07675                               |
| (Address ofprincipal executive offices)                       | (ZipCode)                           |

|   |           | BID PRICES  |
|--------|----------------|-------------|
| YEAR   | PERIOD         | HIGH        | LOW |
| 2001   | First Quarter  | $0.25       | $0.10 |
|   | Second Quarter | $0.25       | $0.10 |
|   | Third Quarter  | $0.33       | $0.08 |
|   | Fourth Quarter | $0.25       | $0.10 |
| 2002   | First Quarter  | $0.12       | $0.10 |
|   | Second Quarter |  $0.10 | $0.07 |
|   | Third Quarter  |  $0.45 | $0.07 |
|   | Fourth Quarter |  $0.45 | $0.20 |

#### **MONMOUTH BEACH, NJ.07750**

|                                                         |                             |                                              |            |                                             |                                                 |                                            | **12/31/02**                                                                          |                                       | **12/31/01** |
|---------------------------------------------------------|-----------------------------|----------------------------------------------|------------|---------------------------------------------|-------------------------------------------------|--------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------|--------------|
| **ASSETS**                                              |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Currentassets:                                          |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |
| Cash                                                    |                             |                                              |            |                                             |                                                 | $      7,815 |                                                                                       | $     51,525 |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Total CurrentAssets                                     |                             |                                              |            |                                             | 7,815                                           |                                            | 51,525                                                                                |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Otherassets:                                            |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |
| Fixed assets(net of accumulated depreciation of $3,982) | 0                           |                                              | 5,539      |
| Advance toshareholder                                   |                             |                                              |            |                                             | 0                                               |                                            | 911                                                                                   |
| Investment instock (at cost)                            |                             |                                              |            | 0                                           |                                                 | 3,300                                      |
| Securitydeposit                                         |                             |                                              |            |                                             |        5,625 |                                            |               0 |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             | Total Assets                                 |            |                                             |                                                 | $   13,440                  |                                                                                       | $    61,275       |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| **LIABILITIES & SHAREHOLDERS' EQUITY**              |                             |                                              |            |                                             |                                                 |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Currentliabilities:                                     |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |
| Short termnotes & advances payable                  |                             |                                              | $1,037,198 |                                             | $1,428,027                                      |
| Accruedexpenses                                         |                             |                                              |            |                                             |       56,291      |                                            |        33,893                                      |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Total CurrentLiabilities                                |                             |                                              |            | 1,093,489                                   |                                                 | 1,461,920                                  |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Long termnotes payable                                  |                             |                                              |            | 213,720                                     |                                                 | 100,000                                    |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| Shareholders'Equity:                                    |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |
| Common stock,$.001 par value; authorized                |                             |                                              |            |                                             |                                                 |
| 40,000,000shares, issued, and outstanding               |                             |                                              |            |                                             |                                                 |
| 20,094,500 atDecember 31, 2002                          |                             |                                              |            | 20,094                                      |                                                 | 21,263                                     |
| Additionalpaid in capital                               |                             |                                              |            |                                             | 1,065,787                                       |                                            | 1,044,468                                                                             |
| Treasurystock, 6,500 shares at cost                     |                             |                                              |            | (6,500)                                     |                                                 | (6,500)                                    |
| Retaineddeficit                                         |                             |                                              |            |                                             |                                                 | (2,373,150)                                |                                                                                       | (2,559,876)                           |
|                                                         | Total shareholders' deficit |                                              |            |                                             | (1,293,769)                                     |                                            | (1,500,645)                                                                           |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             | Total Liabilities & Shareholders' Equity |            | $      13,440 |                                                 | $     61,275      |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
|                                                         |                             |                                              |            |                                             |                                                 |                                            |                                                                                       |                                       |              |
| **See the notes to the financial statements.**          |                             |                                              |            |                                             |                                                 |

|                                                 |  |  |                                             |           |                                                                                                   |                                                  | **12/31/02**                                                                                      |                                            | **12/31/01** |
|-------------------------------------------------|--|--|---------------------------------------------|-----------|---------------------------------------------------------------------------------------------------|--------------------------------------------------|---------------------------------------------------------------------------------------------------|--------------------------------------------|--------------|
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Gross Revenues                                  |  |  |                                             |           |                                                                                                   | $0                                               |                                                                                                   | $0                                         |
| Less cost of revenues                           |  |  |                                             |           | 0                                                                                                 |                                                  | 0                                                                                                 |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Gross profit on revenues                        |  |  |                                             |           | 0                                                                                                 |                                                  | 0                                                                                                 |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| General and administrative expenses:            |  |  |                                             |           |                                                                                                   |                                                  |
| Administrativeexpenses                          |  |  |                                             |           | 114,383                                                                                           |                                                  | 127,819                                                                                           |
| Depreciationexpense                             |  |  |                                             |           |          1,816                                       |                                                  |         3,420                                             |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Total general and administrative expenses       |  |  |       116,199 |           |     131,239                                                                   |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Loss from operations                            |  |  |                                             |           | (116,199)                                                                                         |                                                  | (131,239)                                                                                         |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Other Income (expenses):                        |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |
| Interestexpense                                 |  |  |                                             |           | (120,422)                                                                                         |                                                  | (150,013)                                                                                         |
| Franchisefees                                   |  |  |                                             |           | 0                                                                                                 |                                                  | 30,947                                                                                            |
| Rentalincome                                    |  |  |                                             |           |                                                                                                   |        13,270 |                                                                                                   |       36,360 |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Net loss before income tax provision            |  |  |                                             | (223,351) |                                                                                                   | (213,945)                                        |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Provision for income tax                        |  |  |                                             |           |                0       |                                                  |                 0 |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Net loss before extraordinary item              |  |  |                                             | (223,351) |                                                                                                   | (213,945)                                        |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Extraordinary items:                            |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |
| Gain onrestructuring of debt, net of tax effect |  |  |      410,077       |           |                 0 |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Net Income (Loss)                               |  |  |                                             |           |                                                                                                   | $    186,726                 |                                                                                                   | (  $213,945)                     |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Loss per common share:                          |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |
| Basic & fully diluted:                      |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |
| Net loss fromoperations                         |  |  |                                             |           | ($0.01)                                                                                           |                                                  | ($0.01)                                                                                           |
| Extraordinaryitem                               |  |  |                                             |           |                                                                                                   |   0.02                                 |                                                                                                   |     0.00               |
| Net loss pershare                               |  |  |                                             |           |                                                                                                   | $0.01                                            |                                                                                                   | ($0.01)                                    |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| Weighted average of common shares:              |  |  |                                             |           |                                                                                                   |                                                  |
| Basic & fully diluted                       |  |  |                                             |           | 19,831,081                                                                                        |                                                  | 21,263,500                                                                                        |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
|                                                 |  |  |                                             |           |                                                                                                   |                                                  |                                                                                                   |                                            |              |
| **See the notes to the financial statements.**  |  |  |                                             |           |                                                                                                   |

|                                                            |           |  |                                            |                                                                 |                                       |                                                             | **12/31/02**                                                                          |            | **12/31/01** |
|------------------------------------------------------------|-----------|--|--------------------------------------------|-----------------------------------------------------------------|---------------------------------------|-------------------------------------------------------------|---------------------------------------------------------------------------------------|------------|--------------|
| Operating Activities:                                      |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |
| Net income(loss)                                           |           |  |                                            |                                                                 |                                       | $186,726                                                    |                                                                                       | ($213,945) |
| Adjustments toreconcile net income items                   |           |  |                                            |                                                                 |                                       |
| not requiringthe use of cash:                              |           |  |                                            |                                                                 |                                       |                                                             |
| Depreciation                                               |           |  |                                            |                                                                 |                                       | 1,816                                                       |                                                                                       | 3,420      |
| Amortizationof deferred revenues                           |           |  |                                            | 0                                                               |                                       | (32,013)                                                    |
| Impairmentcharge                                           |           |  |                                            |                                                                 | 11,291                                |                                                             | 11,680                                                                                |
| Gain onrestructuring of short term debt, net of tax effect | (410,077) |  | 0                                          |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Changes in other operating assets andliabilities:          |           |  |                                            |                                                                 |                                       |
| Deposits withbroker                                        |           |  |                                            |                                                                 | 0                                     |                                                             | 193                                                                                   |
| Securitydeposit                                            |           |  |                                            |                                                                 | (5,625)                               |                                                             | 10,000                                                                                |
| Accruedexpenses & accounts payable                     |           |  |       22,398 |                                                                 |     167,935       |
| Net cash used by operations                                |           |  |                                            | (193,471)                                                       |                                       | (52,730)                                                    |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Investing activities:                                      |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |
| Purchase ofequipment                                       |           |  |                                            |                                                                 |      (4,268) |                                                             |               0 |
| Net cash used by investing activities                      |           |  |                                            | (4,268)                                                         |                                       | 0                                                           |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Financing Activities:                                      |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |
| Proceeds ofshort term notes                                |           |  |                                            | 186,118                                                         |                                       | 50,000                                                      |
| Payment oflong term notes                                  |           |  |                                            | (33,000)                                                        |                                       | 0                                                           |
| Advance paidby shareholder                                 |           |  |                                            |           911 |                                       |          (911) |
| Net cash provided by financing activities                  |           |  |                                            |    154,029                                       |                                       |       49,089                  |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Net decrease in cash during period                         |           |  |                                            | (43,710)                                                        |                                       | (3,641)                                                     |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Cash balance at beginning of fiscal year                   |           |  |                                            |      51,525                            |                                       |      55,166                        |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Cash balance at end of fiscal year                         |           |  |                                            | $      7,815                      |                                       | $    51,525                             |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| Supplemental disclosures of cash flowinformation:          |           |  |                                            |                                                                 |                                       |
| Interest paidduring the fiscal year                        |           |  |                                            | $0                                                              |                                       | $0                                                          |
| Income taxespaid during the fiscal year                    |           |  | $0                                         |                                                                 | $0                                    |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
|                                                            |           |  |                                            |                                                                 |                                       |                                                             |                                                                                       |            |              |
| **See the notes to the financial statements.**             |           |  |                                            |                                                                 |                                       |

|                                                |  | Common                                                                                                 |  | Common                                                                               | Paidin |                                                                                                        | Treasury |                                                                                            | Retained |              |  |
|------------------------------------------------|--|--------------------------------------------------------------------------------------------------------|--|--------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------|----------|--------------------------------------------------------------------------------------------|----------|--------------|--|
|                                                |  | Shares                                                                                                 |  | Amount                                                                               |        | Capital                                                                                                |          | Stock                                                                                      |          | Deficit      |  | Total |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Balance at January 1, 2001                     |  | 21,263,500                                                                                             |  | $21,263                                                                              |        | $1,044,468                                                                                             |          | ($6,500)                                                                                   |          | ($2,345,931) |  | ($1,286,700) |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Net loss for fiscal year 2001                  |  |                   |  |                |        |                   |          |                 |          | (213,945)    |  | (213,945) |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Balance at December 31, 2001                   |  | 21,263,500                                                                                             |  | 21,263                                                                               |        | 1,044,468                                                                                              |          | (6,500)                                                                                    |          | (2,559,876)  |  | (1,500,645) |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Shares returned to treasury                    |  | (1,410,000)                                                                                            |  | (1,410)                                                                              |        | 1,410                                                                                                  |          |                                                                                            |          |              |  | 0 |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Debt converted to stock                        |  | 241,000                                                                                                |  | 241                                                                                  |        | 19,909                                                                                                 |          |                                                                                            |          |              |  | 20,150 |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Net income for fiscal year 2002                |  |                   |  |                |        |                   |          |                      |          | 186,726      |  | 186,726 |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| Balance at December 31, 2002                   |  | 20,094,500                                                                                             |  | $20,094                                                                              |        | $1,065,787                                                                                             |          | ($6,500)                                                                                   |          | ($2,373,150) |  | ($1,293,769) |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
|                                                |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |  |  |
| **See the notes to the financial statements.** |  |                                                                                                        |  |                                                                                      |        |                                                                                                        |          |                                                                                            |          |              |

# 

|            |  |          |  | Interest |  | Due                                                                                  |  | Maturing            |  | Maturing            |  | Maturing                                                                             |
|------------|--|----------|--|----------|--|--------------------------------------------------------------------------------------|--|---------------------|--|---------------------|--|--------------------------------------------------------------------------------------|
| Creditor   |  | Face     |  | Rate     |  | onDemand                                                                             |  | 2003                |  | 2004                |  | 2005                                                                                 |
|            |  |          |  |          |  |                                                                                      |  |                     |  |                     |  |                                                                                      |
| Creditor 1 |  | $897,478 |  | 0.00%    |  | $897,478                                                                             |  |                     |  |                     |  |                                                                                      |
| Creditor 2 |  | $8,500   |  | 10.00%   |  |                                                                                      |  |                     |  | $8,500              |  |                                                                                      |
| Creditor 3 |  | $10,000  |  | 10.00%   |  |                                                                                      |  |                     |  | $10,000             |  |                                                                                      |
| Creditor 4 |  | $50,000  |  | 20.00%   |  | $50,000                                                                              |  |                     |  |                     |  |                                                                                      |
| Creditor 5 |  | $105,500 |  | 10.00%   |  |                                                                                      |  |                     |  |                     |  | $105,500                                                                             |
| Creditor 6 |  | $179,440 |  | 9.00%    |  |                |  | $  89,720 |  | $  89,720 |  |                |
|            |  |          |  |          |  |                                                                                      |  |                     |  |                     |  |                                                                                      |
|            |  | Totals   |  |          |  | $947,478                                                                             |  | $  89,720 |  | $ 108,220      |  | $105,500                                                                             |

|  |  |       |  |          |  | **Minimum**                   |
|--|--|-------|--|----------|--|-------------------------------|
|  |  |       |  |          |  | **Lease**                     |
|  |  |       |  | **Year** |  | **Payments**                  |
|  |  |       |  |          |  |                               |
|  |  |       |  | 2003     |  | $23,163                       |
|  |  |       |  | 2004     |  | 23,858                        |
|  |  |       |  | 2005     |  | 24,576                        |
|  |  |       |  | 2006     |  | 25,307                        |
|  |  |       |  | 2007     |  |     2,114 |
|  |  |       |  |          |  |                               |
|  |  |       |  |          |  |                               |
|  |  | Total |  | $99,018  |

| Provision for income taxes is comprised of thefollowing:                                         |  | **12/31/02** |            | **12/31/01**                                                                     |
|--------------------------------------------------------------------------------------------------|--|--------------|------------|----------------------------------------------------------------------------------|
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Net loss before provision for income taxes                                                       |  |              | ($223,351) |                                                                                  | ($213,945) |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Current tax expense:                                                                             |  |              |            |                                                                                  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Federal                                                                                          |  |              |            |                                                                                  |  | $0 |  | $0 |
| State                                                                                            |  |              |            |                                                                                  |  | 0 |  | 0 |
| Total                                                                                            |  |              |            |                                                                                  |  | $0 |  | $0 |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Less deferred tax benefit:                                                                       |  |              |            |                                                                                  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Federal loss carry-forward                                                                       |  |              |            | (164,730)                                                                        |  | (408,602) |
| Allowance for recoverability                                                                     |  |              |            |     164,730                                                  |  |     408,602 |
| Provision for income taxes                                                                       |  |              |            | $             0 |  | $             0 |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| A reconciliation of provision for income taxes at thestatutory rate to provision                 |  |              |
| for income taxes at the Company's effective tax rate is asfollows:                               |  |              |            |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Statutory U.S. federal rate                                                                      |  |              |            | 34%                                                                              |  | 34% |
| Statutory state and local income tax                                                             |  |              | 10%        |                                                                                  | 10% |
| Less timing differences                                                                          |  |              |            |        -44%                                   |  |         -44% |
| Effective rate                                                                                   |  |              |            |                                                                                  |           0% |  |            0% |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Deferred income taxes are comprised of thefollowing:                                             |  |              |            |                                                                                  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Federal loss carry-forward                                                                       |  |              |            | $164,730                                                                         |  | $408,602 |
| Allowance for recoverability                                                                     |  |              |            |  (164,730)                                                                  |  |   (408,602) |
| Deferred tax benefit                                                                             |  |              |            |                                                                                  | $            0 |  | $             0 |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
|                                                                                                  |  |              |            |                                                                                  |  |  |  |  |
| Net operating loss carry-forward tax benefits expire infiscal years 2021 and 2022 and may not be |
| transferable to other tax paying entities under current IRSstatutes.                             |  |              |            |

|                          |     | 31-Dec-01 |         | 31-Dec-01 |
|--------------------------|-----|-----------|---------|-----------|
|                          |     |           |         |           |
| Furniture and equipment  | $0  |           | $7,705  |
| Accumulated depreciation | (0) |           | (2,166) |
|                          |     |           |         |           |
| Net fixed Assets         |     | $0        |         | $5,539    |
|                          |     |           |         |           |

| Name          | Age | Positions                                                | Date became director orexecutive officer |
|---------------|-----|----------------------------------------------------------|------------------------------------------|
| Leon Zapoll   | 51  | President andDirector                                    | July 1996                                |
| Robert Samila | 60  | Chief Financial Officer,Secretary Treasurer and Director | July 1996                                |

| Name andPrincipal Position                                    | Year | Salary  | Bonus | Other AnnualCompen-sation | Restricted StockAwards | Securities Under-lyingOptions/SARs |
|---------------------------------------------------------------|------|---------|-------|---------------------------|------------------------|------------------------------------|
| Leon Zapoll,President                                         | 2002 | 0       | 0     | 0                         | 0                      | 0                                  |
|                                                               | 2001 | 0       | 0     | 0                         | 0                      | 0                                  |
|                                                               | 2000 | 0       | 0     | 0                         | 0                      | 0                                  |
| Robert Samila Chief FinancialOfficer, Treasurer and Secretary | 2002 | 0       | 0     | 0                         | 0                      | 0                                  |
|                                                               | 2001 | $18,720 | 0     | 0                         | 0                      | 0                                  |
|                                                               | 2000 | $22,100 | 0     | 0                         | 0                      | 0                                  |

| Title of Class                       | Name and Address ofBeneficial Owner          | Number ofShares | % ofClass |
|--------------------------------------|----------------------------------------------|-----------------|-----------|
| Common Stock                         | Leon Zapoll36 WescottSt.Old Tappan, NJ 07675 | 18,200,000      | 85.6%     |
| All officers and directors as agroup |                                              | 18,200,000      | 85.6%     |

| Signature                                                     | Title                                        | Date           |
|---------------------------------------------------------------|----------------------------------------------|----------------|
| /s/ LeonZapoll      Leon Zapoll | Chairman of the Board,Treasurer and Director | April 14,2003  |
| /s/ RobertSamila   Robert Samila               | Director, Chief FinancialOfficer             | April 14, 2003 |