<PAGE>

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM 10-KSB/A

[X] Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act
    of 1934

                    FOR THE FISCAL YEAR ENDED MARCH 31, 2000

[ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange
    Act of 1934

              Commission file number: 1-15735

                            ELGIN TECHNOLOGIES, INC.
                              F/K/A Elgin e2, Inc.
                       F/K/A CROSS ATLANTIC CAPITAL, INC.
               (Name of Small Business Registrant In Its Charter)

               DELAWARE                                          95-4581906
        (State or Other Jurisdiction                          (I.R.S. Employer
       of Incorporation or Organization)                    Identification  No.)

                                10 COLUMBIA DRIVE
                                AMHERST, NH 03031
              (Address of Principal Executive Offices and Zip Code)

                                 (603) 598-4700
              (Registrant's telephone Number, Including Area Code)

   Securities registered under to Section 12(b) of the Exchange Act:

                                      NONE

   Securities registered under to Section 12(g) of the Exchange Act:

                              VOTING COMMON STOCK,
                          $.000833 PAR VALUE PER SHARE

         Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES [ ] NO [X]

         Indicate by check mark if disclosure of delinquent filers pursuant to
Item 405 of Regulation S-K is not contained herein, and will not be contained,
to the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-KSB or any
amendment to this Form 10-KSB. [X]




         Registrant's revenues for its most recent fiscal year were $7,423,771.

         The aggregate market value of voting stock held by nonaffiliates of the
Registrant was approximately $7,155,887 as of March 31, 2000, based upon the
closing price on the National Quotation Bureau "Pink Sheets." Shares of Common
Stock held by each executive officer and director and by each person who
beneficially owns more than 5% of the outstanding Common Stock have been
excluded in that such persons may under certain circumstances be deemed to be
affiliates. This determination of executive officer or affiliate status is not
necessarily a conclusive determination for other purposes.

         There were 17,591,601 shares of Common Stock outstanding as of
March 31, 2000.

<PAGE>

                                     PART I
                                     ------

ITEM 1.  DESCRIPTION OF BUSINESS

INTRODUCTION

         The Company was incorporated as Cross Atlantic Capital, Inc. under
the laws of the State of Delaware on May 28, 1986. The Company, since its
incorporation through September 30, 1997, was inactive at which time it
acquired all of the outstanding capital stock of Elgin e2 Inc. in exchange
for 4,167,000 shares of its $.000833 par value common stock. The Company
presently has two major product lines: Telecom Power and Master Lite Ballast
Systems (Master Lite-TM-).


TELECOM POWER
-------------

OVERVIEW

         The telecommunications power market is changing dramatically. This
change is taking place within the central offices of telephone companies and
cellular networks, as a result of the introduction of PCS (or Personal
Communications System) and the development of the "information superhighway".
Overall, the telecommunications power market is moving toward lower power
requirements. The existing central office infrastructure, which consists of very
large power plants, is changing. With telecommunications equipment requiring
less power, many of these power plants are now being downsized to much smaller
plants or are being retired totally. The RBOC's (or Regional Bell Operating
Companies) are also downsizing their power staffing, which requires equipment
that is easier to maintain. With the rapid growth in cellular telecommunication,
smaller power in much higher volume is required. These companies are faced with
not having an abundance of space or large maintenance staffs like the RBOC's.
Cellular companies need compact equipment that is modular in design allowing for
easy maintenance. Requirements include small power supplies that are deployed
throughout the network which power various types of equipment. PCS is the newest
area and is still being defined. The general requirement will be for very small
power supplies and systems. The chart below indicates the range of power
supplies by size and market segment.






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

    48V/24V          CELLULAR          PCS     FIBER        CENTRAL OFFICE
---------------- --------------- ------------ ----------- ------------------
   3AMP/6AMP            X               X        X
---------------- --------------- ------------ ----------- ------------------
   6AMP/12AMP           X               X        X
---------------- --------------- ------------ ----------- ------------------
  12AMP/25AMP           X
---------------- --------------- ------------ ----------- ------------------
  25AMP/50AMP           X
---------------- --------------- ------------ ----------- ------------------
  50AMP/100AMP          X                                               X
---------------- --------------- ------------ ----------- ------------------
    100 AMP                                                             X
---------------- --------------- ------------ ----------- ------------------
  200-400 AMP                                                           X
---------------- --------------- ------------ ----------- ------------------




         The central office ("CO") requires much larger power systems than the
cellular market environment. PCS and fiber require low-level power supplies, and
new technology is pushing the levels lower than indicated on the above chart.
Fiber includes "fiber to the curb" applications, "controlled environment vaults"
and powering of "information network" applications. This market


                                       2

<PAGE>

is made up of individual components and total systems. Components must be
compatible with the individual power system, and each power system must meet the
specifications of the customer's network needs. Many of the small systems are
either incorporated into the customer's system/product or are standalone and
support their remote equipment. These systems include the following: rectifiers,
batteries, monitors/alarms and power distribution devices. Industry trends and
projections point to rapid growth in the cellular, PCS and fiber
telecommunications market over the next decade.

MARKET TRENDS

         A telecommunications power plant is a fully integrated power system
used in telephony applications. It can be located in either the central office,
an outside plant with a controlled environment, or at the point where PBX
service is received at the client site. The DC power boards and DC systems used
in power plants are comprised of several individual components. A typical power
plant consists of five (5) subsystems: AC distribution, rectifiers and
inverters, controllers, batteries and DC distribution. Those components specific
to the business of the Company's Warren Power subsidiary include rectifiers,
converters and inverters. Rectifiers convert the AC voltage into the DC voltage,
DC-to-DC converters take DC input voltage and reduce voltage levels for specific
applications, and inverters convert DC voltage back to AC. A broadband power
plant is similar to a telecommunications power plant in that power condition
equipment is supplied to a central location for broadband communications system.
These systems include CATV, RBOCs, cellular and PCS.

         While the U.S. market for power plants is diminishing at the central
office, it is growing in other areas of the world. As central offices abroad
convert from analog to digital and reorganize power distribution and equipment,
the efficiency of older power plants is in question. In addition, as demand for
power increases, the interest in efficient, compact modular units increases. The
objective is to increase the reliability of the central office by upgrading
analog systems to digital based equipment, increasing power quality and reducing
cable congestion. Market opportunity exists in Latin America and the Far East
and is growing at an annual rate of approximately 20%.

         The greatest growth area for power plants is the PCS industry as this
is the technology of the future in personal communications. CATV and cellular
applications will also be major growth contributors. Currently, CATV providers
entering the telecommunications market must meet the increased demands placed on
telephone companies for reliability. This translates into increased demand for
back-up power provided by power plants. A high level of interest in this
industry is evidenced by the investments made by COX, Comcast, TCI and Time
Warner. Further, the increase in both cellular communication use and product
demand will lead to more complex product offerings and an increased need for
power supplies. The market in Latin America is virtually untapped, indicating a
vast opportunity for growth.

         The U.S. market for converters is $25.5 million while foreign market
penetration has been quite low. In 1995, exports represented just 14% of total
U.S. production. Even though most converters are supplied nationally, these
levels indicate tremendous opportunity if pricing is targeted. Given the fact
that foreign markets offer opportunities to suppliers around the world,
competition is tight. The U.S. market for inverters is growing and is expected
to keep pace with the overall communications power industry. The foreign
opportunity for inverters is similar to that of converters. The U.S. market for
rectifiers is approximately $166.1 million. Here too, there is little foreign
trade. Imports totaled only 10% of production of U.S. consumption. In this case,
foreign


                                       3

<PAGE>

exports provide a greater market potential for suppliers. Currently, U.S.
suppliers are shipping over 30% of their product abroad.

         The U.S. market for these power components is supplied according to a
two-tier system. On the first tier, producers generally ship units to end-users,
distributors, contractors and Value Added Resellers ("VAR's"). The distributor
is the primary point person on the second tier. In this case, the distributor
will ship products to the end-users, contractors and VAR's. On both levels, the
majority of shipments are made directly to defined end-users such as OEM's
manufacturing complete systems or private customers buying components that will
be installed by independent contractors.

PRODUCT OVERVIEW

         The telecom power systems and components of the Company's Warren Power
subsidiary are a composite of products from Elgin and Warren Power Systems with
combined industry brand-name recognition of more than 80 years and are designed
to be integrated into the energy subsystems which power communications systems.
The telecom power business services the OEM, Central Office, Customer
Premise/PBX, Cellular, Microwave, Fiber Optic and Government Telecommunications
markets with four basic product categories.

         PROPRIETARY POWER PRODUCTS include battery chargers, eliminators, key
system power supplies, ringing generations, converters, inverters, rectifiers
and fuse panels. Most communication systems are designed to operate from a
single DC Input or "rectifier", the purpose of which is to provide a continuous
supply of DC power to the system at a highly regulated voltage under a variety
of input and output conditions. The three technologies by which the output
voltage is regulated are: 1) Linear or thyristor, 2) Ferroresonant, and 3)
Switch-Mode. Warren Power offers a number of 48V and 24V Controlled
Ferro-Regulated (CFR) units at a variety of output current levels. Further,
Warren Power has introduced a new Switch-Mode Rectifier (SMR) to meet the rising
demand for higher power densities in telecommunication applications. Key system
power supplies support the business telephone equipment market, i.e. key
telephone system/PBX phone equipment.

         While most telecommunications power plants operate from a single DC
input voltage, auxiliary power requirements exist for other DC voltages as well
as to replace commercial AC power during an outage. The conversion hardware
performing these functions are called converters (i.e., they convert one DC
voltage to another), and inverters (which convert a source of DC power to AC
output). Ringing generators that produce and control the various signaling
sources (i.e. busy signal, dial tone, etc.) are considered part of the telecom
power market. Ringing generators are virtually identical to inverters from a
functional standpoint, being powered from a DC source and producing an AC sine
wave output. Warren Power offers a full line of ringing generators as well as a
combination key telephone power supply and ringing generator system.

         ENGINEERED POWER DISTRIBUTION SYSTEMS include 24V and 48V, 50 to 4000
amp power board systems as well as microprocessor controlled remote monitor and
control systems. Warren Power's standard power boards feature microprocessor
controlled battery chargers and convert AC power to the DC power needed for
telecommunications switching (central office) systems. The systems also provide
other features that monitor and control critical operating parameters in order
to protect the telecommunications switching equipment.


                                       4
<PAGE>

         ACCESS PRODUCTS include voice and data couplers. The access products
consist of a line of protective devices registered with the FCC that are
required when connecting unregistered equipment to a telephone line. The data
couplers are used in conjunction with computers, data terminals and point of
sale ("POS") terminals that send data via modem over telephone lines. The voice
couplers provide the requisite protective functions for unregistered answering
machines, dictation equipment and multi-trade voice recording equipment.

         At the outset of the FCC Equipment Registration Program initiated under
Part 68 of the FCC Rules, the market for such registered couplers was quite
lucrative since equipment manufacturers sought an interim solution that would
permit continued sales of unregistered products. More recently, most OEM's have
incorporated the required protective functions into their products and
registered them with the FCC. Thus, while the market has declined significantly,
there remains a residual demand for the OEM sector as well as a replacement
market in the end-use segment.

         INSTALLATION AND SERVICE. CSC, the Company's engineering and
installation division installs power systems manufactured by Warren Power and
other manufacturers that meet all RBOC standards. The Company's staff of senior
engineers and technicians provides domestic and international installation and
full detailed engineering services.

COMPETITION

         The competition in the power supply segment of the telecom market is
substantial, dominated by large companies such as AT&T, Lucent Technologies,
Northern Telecom and Lorain. These companies have enormous capital resources
that provide them with a substantial advantage over smaller vendors. In
addition, smaller companies such as Power Conversion Products, PECO II, Argus
and LaMarche provide additional direct competition to the Company. Management
believes that the overall size of the market provides substantial opportunities
and that the Company's product offerings and service capabilities will allow it
to successfully define its niche.

         The Company's customer base includes a wide variety of manufacturers of
telecommunications equipment, computers, medical equipment and industrial
controls. The customer list also includes some of the regional telephone
operating companies, defense contractors, U.S. government agencies, public
utilities and independent cellular operators.

         The Company currently has no publicly announced new product or service.

         The Company's business is subject to significant competition. The
Company's products and capabilities are designed to serve two distinct markets.
These are telecommunications power and custom power conversion. The following
sections describe the competitors under each market segment.

TELECOMMUNICATIONS POWER

         As a relatively small company with very large competitors, customer
service is essential to the success of the Company's business plan. The Company
must be able to deliver quality product quickly, provide flexibility to the
customer and maintain a full service offering. The major manufacturers of
telecommunications power equipment engaged in competition within the U.S.


                                       5
<PAGE>


market are AT&T Energy Systems (Mesquite, TX) and Lorain Products (Lorain, OH),
which maintain a combined approximate market share of 60%.

CUSTOM POWER CONVERSION

         The Company's brand names and product lines have been leading elements
of the custom power conversion manufacturing business since the mid 1960's. The
keys to success in this business are the abilities to deliver the
electrical/mechanical design, gain prototype approval and move the product
through production to delivery, all within a minimal lead time. The major
national and regional competitors in the custom power supplies industry are
Zytec (Eden Prairie, MN), ITT Power Systems (Tucson, AZ), Acme Electric (Cuba,
NY), AT&T Energy Systems (Mesquite, TX), Preferred Electronics (Westfield, MA)
and Technipower (Danbury, CT).

         The Company procures electronic components, metal work, sub-assemblies
and other raw materials utilizing a state of the art materials requirement
planning system that ensures timely purchase of materials in order to meet
production schedules and promised customer delivery dates. The Company relies
heavily on external sources of supply and, for most components, has developed
multiple commercial sources, including large and small distributors and OEM's.
Passive electronic components are readily available through any of the large
distributors within short lead times. For active electronic devices,
availability varies, with most items readily available and a limited number of
components available only from a single source of supply due to allocation or
short supply. While delays in delivery of such single sourced critical
components could cause deferment of planned production and delays in shipment of
certain products, the Company attempts to identify acceptable alternate
components or makes purchase arrangements through brokerage firms that
specialize in locating difficult to find electronic items. The Company believes
that the loss of any single source of supply would not materially affect the
Company's business.

MASTER LITE BALLAST SYSTEM (MASTER LITE-TM-)
---------------------------------------------

         The fluorescent lighting products used in today's market have remained
essentially unchanged in the past fifty (50) years. Twenty-five (25) years after
the oil embargo, the United States has given up almost all the gains realized
through energy conservation efforts during the late eighties and early nineties.
The Company's dimmable electronic distributed lighting system (Master Lite-TM-)
may represent the ability for substantial savings for every energy lighting
dollar.

PRODUCT OVERVIEW

         The lamp ballast is a critical element in the efficient operation of a
fluorescent light. Ballasts typically perform two primary tasks in a fluorescent
light: 1) power control conditioning, filtering and voltage transformation and
2) lamp control for both starting and continuous operation. Traditionally, these
tasks have been performed together by a magnetic ballast in an approximately
2" x 12" box weighing about 2 to 6 pounds.

         Magnetic ballasts have been optimized, but at their best they present
serious problems in noise, efficiency and regulation. Furthermore, their poor
power factor limits the ability of the power utility to drive real power. In
recognition of the seriousness of the disadvantages of the magnetic ballasts,
the 1990 National Appliance Energy Conservation Act ("NAECA") required all
ballasts for commercial fluorescent lighting systems to have efficiencies
greater than or equal to those of energy


                                       6
<PAGE>


efficient magnetic ballasts. This legislation effectively banned the use of a
majority of magnetic technology for new lighting applications.

         To fill the void, the ballast industry has replaced the heavy magnetic
ballast with solid state electronic units. This electronic circuitry converts
the input AC voltage to a high voltage DC level using high frequency switching
to boost the voltage while correcting the power factor. The DC is then converted
back to high frequency AC avoiding noise and raising the light emission of the
lamp for a given power input.

         The overall failure rate of existing electronic ballasts is higher than
the rate of core and coil ballasts. This is a result of two factors: 1) hundreds
of dependent components - if one fails, the entire ballast fails; and 2)
attempts to lower total ballast cost through lower grade components (which fail
more readily), increasing ballast failure rates.

         Despite poor reliability, inefficient design, and high cost, electronic
ballast manufacturers have not been able to expand production quickly enough for
demand. Electronic ballasts, despite their failings, have provided significant
value to consumers through low total life cycle costs and enhanced lighting
quality. Lighting engineers, building owners, and newly formed ESCO's have
embraced the technology and are rapidly replacing existing magnetic ballasts
with electronic ballasts.

         The mission of the Company's Logic Labs subsidiary has been to develop
a product that could improve existing ballast designs and become the benchmark
for all future ballast products. After years of diligent research and design,
Logic Labs has not only developed an improvement to existing ballasts, it
believes that it will develop a revolutionary system that may represent a
quantum leap in ballasting. Logic Labs' technology moves away from traditional
ballast design by separating power control and lamp control. The Company
believes that this approach may result in a product that will no longer be
simply a ballast, but a power distribution system which will out-perform every
existing ballast in efficiency, reliability, flexibility and power quality at a
cost below that of core coil magnetic ballasts.

         The Company engaged the Economics Resource Group, Inc. to evaluate the
market potential of the Master Lite-TM- technology in the fluorescent light
industry. The results indicated a major market potential for the Master
Lite-TM- technology and with a favorable report against competition in today's
fluorescent lighting industry.

         Dimming is provided as a standard feature at no additional cost. The
drivers sense the output of the "master" and dim as commanded by the customer's
control of the "master". This unique patented approach requires no additional
wiring other than adjustment control and can be retrofitted into existing
systems.

         Logic Labs is developing innovative features related to energy
management as add-on components to the base Master Lite-TM-. These features
include daylight harvesting, occupancy sensing and in process lamp usage
monitoring. Some "high end" ballasts presently offer these features as separate
components, but at a wholesale price of more than 100% over the cost of the
ballast. The Company believes that Logic Labs' Master Lite-TM- is able to
provide these features at a fraction of the competitors' cost, thereby further
increasing energy savings.


                                       7
<PAGE>


COMPETITION

         Virtually every ballast manufacturer in today's marketplace has built
its business by developing and delivering a large array of ballasts for the
fluorescent lighting industry. The Company plans to make one of the primary
attributes of the Master Lite-TM- technology the ability to address a wide
range of the fluorescent lighting industry's needs with a multi-purpose
distributed dimmable electronic lighting system.

         The present design allows Master Lite-TM- to give the customer the
freedom and flexibility to attain their desired lighting using its distributed
dimmable electronic lighting system. The multi-faceted features of the Master
Lite-TM- allow the customer to realize significant energy savings by utilizing
the dimming and daylight harvesting features of the system; maintain constant
desired lumen outputs per lamp as needed in each workplace environment and
realize low harmonic distortion of less than 3%.

         Historically, fluorescent industry lighting users were required to
select a specific ballast for a specific need or application. When the Master
Lite-TM- distributed dimmable electronic system is fully developed, the Company
believes that the customer may be able to realize all attributes at a market
competitive price with competition's best in class product.

         Logic Labs' competitors vary depending upon specific focus and overall
fluorescent lighting needs. Motorola, Magnetek and Advance Transformer are
primary competitors with Sunpark, SLI and Howard as secondary competitors.

PATENTS

         The Company has developed a network of interrelated patents, which
cover the various configurations of the Master Lite-TM- technology. To date,
the Company has been granted three patents. The Company is in the application
process for two additional patents.

FUTURE OPPORTUNITIES

         The Company plans development efforts, which may include international
expansion, new product launches and product expansions. The Company holds
international patent protection for the Master Lite-TM- in the European
community, Korea and Canada. When fully developed, the Company believes that the
system will be so flexible that it may be able to operate in virtually any
foreign electric system without redesign. The Company projects the foreign
fluorescent lighting market to be ten (10) times the size of the U.S. market.

         The Company also intends to launch as a new product Master Lite-TM-
with integrated energy management. Given the centralized power control of the
Master Lite-TM-, the system could be ideally suited for advanced energy
management and control. The Company has developed a patented approach to dimming
control for light output. Current testing reveals that this feature enables
light output dimming below 40% normal output. Further dimming capability raises
the wholesale cost of the ballast substantially with diminished savings. The
Company expects its dimming control to increase costs by no more than 10% to
20%.


                                       8
<PAGE>


         The Company plans to attempt to expand Master Lite-TM- to applications
outside the fluorescent lighting industry such as the neon lighting industry,
transportation including automotive, avionics and shipbuilding and the high
intensity gas tube lighting market such as metal halide, argon and sodium.

         The Company is also attempting to develop the ability to place the lamp
driver inside the lamp. This technology would allow the Company to provide a
substitute technology for use of compact fluorescents, one of the highest margin
and fastest growing markets in lighting today. Compact fluorescents were
designed to replace inefficient incandescent lights. By placing the lamp driver
inside the lamp, the Company believes that it can significantly increase energy
efficiency and reduce harmonic distortions. Such features could allow the
"inside the lamp" technology to replace incandescent lighting. From an energy
savings standpoint, the Company believes that, when fully developed, Master
Lite-TM- may far exceed core coil magnetic ballast competition.

         Four (4) customers accounted for 52% (15%,14%,13% and 10% respectively)
of accounts receivable as of March 31, 2000. Sales to three (3) major customers
amounted to 45% (18%,14% and 13% respectively) of total sales for the year ended
March 31, 2000. Two (2) customers accounted for 14% and 12% of total sales for
the year ended March 31, 1999.

         The Company's Telecom Power business does not currently own any
patents, trademarks, licenses, concessions or franchises that are of any
material value to its business, now or in the future. The Company is not party
to any royalty or labor agreements.

         Products manufactured by the Company generally do not require any
government approval. Products sold to agencies of the U.S. government (i.e.,
military, FAA, etc.) require adherence to certain specifications in the normal
and ordinary course of manufacture.

         There exists no known current or pending government regulation that
would either impede or enhance the operations of the Company.

         The Company's operations do not use, consume or generate any hazardous
or environmentally dangerous materials. As a result, minimal costs are incurred
in the compliance with Federal, State and local environmental laws.


                                       9
<PAGE>


         As of June 30, 2000, the Company employed a total of fifty-seven (57)
employees, all of which are full time employees. None of these employees is
covered by a collective bargaining agreement. The Company believes that its
labor relations are good.


ITEM 2.  DESCRIPTION OF PROPERTY

         The Company's headquarters and manufacturing facility is located in
Amherst, New Hampshire in a 32,000 sq. ft., single story, brick and mortar
building, maintained in very good condition. Use and occupancy costs are
approximately $15,500 per month.

         The Company relocated from its Hudson, NH facility and entered into a
new lease for the current headquarters on May 1, 2000. The new lease is for five
years having an annual escalator and expires in April 2005. (See Risk
Factors -- Dependence on Major Production Facilities, herein below).

         In addition, the Company maintains a small leased office facility
(approximately 1000 sq. ft.) in Erie, Pennsylvania where certain administrative
functions reside for the monthly rental fee of One Thousand One Hundred Dollars
($1,100). The Company closed this facility and ended its lease in May 2000.

         The Company has also leased a small office in Leesburg, Virginia for
the monthly rental fee of Five Hundred Dollars ($500), on a month-to-month
basis. Research and development of the MSLB product line has been performed at
this facility.

         On February 28, 2000, the Company terminated its obligation to lease a
small office space in Saco, Maine, which had been leased for a monthly rental
fee of Four Hundred Dollars ($400).

         Were funds to become available for investment, it is the opinion of
management that those funds would be conservatively invested in short to medium
range savings vehicles insured by the F.D.I.C. or its equivalent. Purchases of
real estate would be limited to buildings occupied by the Company or its
divisions. The Company has no intention to invest in real estate mortgages,
non-occupied real estate or securities of any nature.

ITEM 3.  LEGAL PROCEEDINGS

ROMEO FEGUNDES & DAWN FEGUNDES V. WARREN POWER SYSTEMS

         This is an action filed in Supreme Court in Kings County, New York in
July 1998 against Warren Power, New York Telephone Company, and Bell Atlantic
seeking damages for personal injuries sustained during an installment by
Comforce Global, Inc., a contractor for Warren Power. Comforce Global, Inc. has
been brought into the case as a third party defendant. The complaint seeks
compensatory damages of $11,000,000 and punitive damages of $3,000,000. The case
involves an injury to a worker on a construction site that was supervised and
controlled by Warren Power. Discovery is complete and the case has been set for
trial. Warren Power has turned the matter over to its liability insurance
carrier that has appointed legal counsel to represent Warren Power.


                                       10
<PAGE>


INVERNESS CORPORATION AND MENOTOMY FUNDING, LLC V. THE COMPANY

         This is an action filed in Middlesex Superior Court in Cambridge,
Massachusetts in June, 1997 against the Company, e2 Electronics, Inc. (f/k/a
Elgin e2 Inc.), EAC Acquisition I Corporation ("EAC") and others, alleging
breach of contract and a variety of other causes of action relating to the
alleged failure of EAC to repay certain loans and the failure of the Company
to honor certain warrants to purchase common stock.

         In late 1996, the Company's investment bankers, Mason Cabot Holdings,
Ltd., formed EAC for the purpose of acquiring the assets of a troubled
corporation located in Billerica, Massachusetts. The parties intended that EAC
would acquire the assets of the business and then manage its operations in an
effort to make it a viable concern. As part of the transaction, Inverness sold
the assets to EAC in return for a short-term note for $1,640,442. During the
negotiation of the loan agreement, Inverness represented that it would provide
working capital of $300,000 pursuant to the Revolving Line of Credit of
$1,780,000 referenced in the loan agreement. As part of the consideration for
the transaction, e2 Electronics issued a warrant to purchase 750,000 shares
of stock in a publicly traded company that would be the survivor of a merger
with e2 Electronics. Neither the Company nor e2 Electronics was ever a party
to the loan transaction, nor did either guarantee the debt of EAC. Mason
Cabot granted to the Company an option to purchase all of the common stock of
EAC.

         The parties anticipated that the short-term note would be paid
through the infusion of new capital from third party investors. However,
after several loan forbearances for which e2 Electronics issued additional
warrants, neither the working capital from Inverness nor any new capital from
investors was forthcoming. By May 1997, EAC ceased to operate. Inverness
filed suit to obtain money damages in the amount of $7,650,000 for the
alleged failure to honor the warrants issued by e2 Electronics in connection
with the transaction. It is the Company's position that the warrants are
invalid because the issuance of the warrants was fraudulently induced and
that the conditions precedent to the exercise of the warrants never occurred.
The Company and EAC have counterclaimed against Inverness for common law
fraud, breach of contract and related claims. The Company and EAC allege they
were fraudulently induced into entering into the loan transaction and issuing
the warrants in exchange for a non-existent operating line of credit based
upon false representations by Inverness that it had the liquidity and ability
to fund the line of credit. The case is presently in the discovery phase and
trial is not expected before the year 2001.

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

         NONE.


                                       11
<PAGE>


                                     PART II
                                     -------

ITEM 5.  MARKET FOR THE COMPANY'S COMMON EQUITY AND RELATED STOCKHOLDER MATTERS.

(a)      MARKET INFORMATION

         The Company's stock was quoted on the OTC Bulletin Board from October
1997 through mid-November 1999 (Symbol: ELGN). As of mid-November 1999, bid and
ask quotations for the Company's stock have been available on the NQB "Pink
Sheets."

         The high and low sales prices of the Company's common stock for each of
the following quarters are:






Quarter Ended                     High/Ask                       Low/Bid
---------------------------- ----------------------- --------------------------

March 31, 2000                        3.00                        .10
---------------------------- ----------------------- --------------------------
December 31, 1999                      .50                        .06
---------------------------- ----------------------- --------------------------
September 30, 1999                   1.875                       .125
---------------------------- ----------------------- --------------------------
June 30, 1999                        3.438                      1.563
---------------------------- ----------------------- --------------------------
March 31, 1999                        3.75                       2.25
---------------------------- ----------------------- --------------------------
December 31, 1998                     6.25                       1.75
---------------------------- ----------------------- --------------------------
September 30, 1998                   8.375                       6.00
---------------------------- ----------------------- --------------------------
June 30, 1998                        10.50                       7.00
---------------------------- ----------------------- --------------------------
March 31, 1998                       10.50                      9.875
---------------------------- ----------------------- --------------------------
December 31, 1997                     9.50                      4.375
---------------------------- ----------------------- --------------------------




Source:  Standard and Poor's Comstock

         These quotations reflect inter-dealer prices, without retail mark-up,
mark down or commission and may not represent actual transactions.

SHAREHOLDERS OF RECORD

         There were 220 holders of record of the Common stock of the Company as
of March 31, 2000.

DIVIDENDS DECLARED

         There are no, nor have there been any, cash dividends declared on the
Voting Common stock of the Company. The Company is not likely to declare and pay
dividends in the foreseeable future.

RECENT SALES OF UNREGISTERED SECURITIES

         From March 1996 through December 1997, the Company raised $1,637,505
through various private placements of convertible notes and cashless warrants to
purchase 409,375 shares of the Company's common stock at a purchase price of
$4.00 per share. These transactions were exempt from registration under Section
4(2) and/or Rule 504 of Regulation D of the Securities Act of 1933, as amended
(the "Securities Act").

                                       12
<PAGE>


         From January 1997 through November 1997, the Company raised $7,300,000
through various private placements of warrants to purchase 7,300,000 of the
Company" common stock at a price of $1 per share. These transactions were exempt
from registration under Section 4(2) and/or Rule 504 of Regulation D of the
Securities Act.

         From December 1997 through March 1998, the Company raised $2,365,301
through various private placements of warrants to purchase 788,434 of the
Company's common stock at a price of $3 per share. These transactions were
exempt from registration under Section 4(2) and/or Rule 504 of Regulation D of
the Securities Act.

         In late 1996 and early 1997, warrants to purchase 1,350,000 shares of
the common stock of the Company were issued to Inverness Corporation in
connection with a loan agreement related to EAC. The validity and exercisability
of these warrants are currently being challenged by the Company, as described in
Part II, Item 2 hereinabove.

         The Company issued 2,000,000 shares of unregistered common stock to
American Compact Lighting in January 1998, in connection with the Company's
purchase of Logic Labs, Inc. These transactions were exempt from registration
under Section 4(2) of the Securities Act.

         In March and April of 1998, the Company sold 2,333,333 shares of common
stock to Horace T. Ardinger, Jr. at a purchase price of $3.00 per share, for a
total of $7,000,000. The transaction was exempt from registration under Section
4(2) and/or Rule 504 of Regulation D of the Securities Act. In connection with
this sale, Mr. Ardinger also received warrants to purchase 100,000 shares of the
Common Stock of the Company for which he paid nominal consideration. Said
warrants are exercisable at $3.00 per share and expire March 10, 2003. In
November, 1998 the Company granted Mr. Ardinger additional rights to avoid
dilution of his ownership of the issued and outstanding or issuable shares of
the Common Stock of the Company.

         In April, 1998 the Company issued one hundred thousand (100,000)
unregistered shares of common stock to Lewis and Judith Kuniegel ("Kuniegel")
pursuant to the Company's Agreement of Merger with Communication Service
Company, a Maine corporation and Kuniegel. These transactions were exempt from
registration under Section 4(2) of the Securities Act.

         In fiscal 1998, the Company issued 30,000 shares of its common stock,
whose fair value was $90,000 at the date of issuance, to its corporate general
counsel in payment of legal services rendered aggregating $90,000.

         During fiscal 1999, the Company's Board of Directors authorized the
issuance of 97,200 shares of its common stock having a fair market value at the
time of issuance of $291,600 to employees of the Company as bonuses for services
rendered.

         Securities are issuable to Mason Cabot, as placement agent in several
of the Company's various private placements, the amount and form of which are
currently under negotiation.


                                       13
<PAGE>


ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS

INTRODUCTION

         The following discussion of the financial condition and results of
operations of the Company should be read in conjunction with the Company's
Consolidated Financial Statements and related notes included herein.

FORWARD LOOKING STATEMENTS AND CERTAIN RISK FACTORS

         The Company cautions readers that certain important factors may affect
the Company's actual results and could cause such results to differ materially
from any forward-looking statements that may be deemed to have been made in this
Form 10-KSB or that are otherwise made by or on behalf of the Company. For this
purpose, any statements contained in the Form 10-KSB that are not statements of
historical fact may be deemed to be forward-looking statements. Without limiting
the generality of the foregoing, words such as "may," "expect," "believe,"
"anticipate," "intend," "could," "estimate," or "continue" or the negative or
other variations thereof or comparable terminology are intended to identify
forward-looking statements. Factors that may affect the Company's results
include, but are not limited to, the Company's lack of profitability, its
dependence on a limited number of customers and key personnel, its ongoing need
for additional financing and its dependence on certain industries. The Company
is also subject to other risks detailed herein or which will be detailed from
time to time in the Company's future filings with the Securities and Exchange
Commission.

RISK FACTORS

OPERATING LOSSES, CASH FLOW SHORTAGES AND GOING CONCERN

         The Company has limited access to available working capital, which
impacts the Company's ability to operate efficiently. As a consequence, results
from operations have been negatively affected and it is expected that they will
continue to be adversely affected. There exists a substantial risk that the
Company will be required to curtail or discontinue its current business
operations.

         Since e2 Electronics commenced operations in 1994, the Company and its
subsidiaries, have produced losses in each year and had an accumulated deficit
of $51,121,000 at March 31, 2000. For the year ending March 31, 2000, the
Company has continued to experience losses of $5,077,000 on revenues of
$7,424,000. The major contributors to the accumulated losses were continued
research and development efforts to bring Master Lite(TM) to market, along with
the capital needed to rebuild the telecom power and conversion businesses,
and the imputed interest charged to operations on the beneficial conversion
features of convertible debt transactions.

         The Company and its subsidiaries have experienced cash flow constraints
throughout their operating history, resulting in lower orders and decreased
margins. The Telecom Power business has been negatively impacted in its efforts
to turnaround and expand, principally by the Company's history of lack of
working capital, restructuring, consolidations and substantial operating losses.
Management is making every effort to reverse these trends by reducing the
operating costs of the Company's existing product lines and seeking to expand
into less costly, more profitable products


                                       14
<PAGE>


and services. These efforts will, however, require increased capital infusion
and Management cautions that there can be no assurances that these efforts will
be successful.

         Even though the Company is in the process of bringing Master Lite-TM-
to market, there can be no assurance that the Company will successfully complete
the product's technology or that the product and technology will gain acceptance
or that the Company will not experience adverse operating results, including,
but not limited to substantial additional losses, in the future.

         The substantial operating losses of the Company's operating segments
incurred through and subsequent to March 31, 2000, and the Company's limited
ability to obtain financing other than from one major investor raises
substantial doubt concerning the ability of the Company to realize its assets
and pay its obligations as they mature in the ordinary course of business.
These conditions, among others, raises substantial doubt among the Company's
independent auditors about the Company's ability to continue as a going
concern. The accompanying consolidated financial statements do not include
any adjustments relating to the recoverability and classification of asset
carrying amounts or the amount and classification of liabilities that might
result should the Company be unable to continue as a going concern.
Management is making every effort to reverse these trends by the hiring of a
new President/CEO and appointing a new Vice President as head of sales to
implement a turnaround of the Company's businesses. New management will
continue efforts to reduce the operating costs of the Company's existing
product lines and seek to expand into less costly, more profitable products
and services. These efforts will, however, require increased working capital
infusions. At present the Company's sole source of financing is from one
major investor. Management cautions that there can be no assurances that
these efforts will be successful or that the investor will continue to
provide financing or that alternative sources of funds will be available for
management to implement its plan.

SUBSIDIARY BANKRUPTCY

         On June 1, 1998, e2 Electronics (the Company's wholly-owned
subsidiary) filed a Chapter 7 bankruptcy petition in the United States
Bankruptcy Court for the Western District of Pennsylvania. In connection with
the bankruptcy, DC&A Partners, e2 Electronics' largest secured creditor,
purchased e2 Electronics' assets from the Bankruptcy Court for $177,000.
DC&A is a company formed by principals of Mason Cabot, the Company's former
investment banking firm. Until the bankruptcy has been concluded, there is a
possibility that the Bankruptcy Court could invalidate certain pre-petition
transactions or make other findings, determinations or rulings that could
have material adverse effects on the Company and/or its properties.

BUSINESS DEVELOPMENT RISKS

         The Company is following a business plan intended to expand its sales
efforts and market penetration along with the continued development and
marketing of the MBLS technology. Implementation of this plan will require
substantial additional capital for product development, marketing and promotion.
No assurance can be given that the Company will be successful in expanding its
current sales or distribution capabilities or developing new products that
result in increased sales and earnings or that its marketing and promotion
activities will have the intended effect of expanding sales and increasing
earnings.

COMPLETION OF TECHNOLOGY DEVELOPMENT; RELIANCE ON NEW PRODUCT INTRODUCTIONS

         The ability of the Company to execute its business plan is
substantially reliant upon the completion of the development of its proprietary
technologies, including but not limited to Master Lite-TM-, and the successful
marketing of products based upon those technologies. There can be no assurance
that the Company will complete this development or that such development will
result in


                                       15
<PAGE>


viable and/or marketable products. The Company's failure to complete the
development of its technologies and/or market products based thereon could have
a material adverse effect on the Company's financial condition and results of
operations.

         Furthermore, as a result of technological changes and developments,
many technologies are successfully marketed for only a short period of time.
There can be no assurance that (i) any of the Company's current or future
products will continue to be accepted for any significant period of time or (ii)
the market will accept the Company's new products, or if such acceptance is
achieved, that it will be maintained for any significant period of time. The
Company's success will be dependent upon the Company's ability to bring existing
products to market and to develop new products and product lines. The failure of
the Company's products and product lines to achieve and sustain market
acceptance and to produce acceptable margins could have a material adverse
effect on the Company's financial condition and results of operations.

NEED FOR ADDITIONAL FINANCING

         The Company currently has only one major investor as its sole financing
source. There can be no assurance that this investor will continue to fund the
Company's operations. Without working capital from this investor or an
alternative financing source, the Company could be required to curtail or
discontinue its current business operations. The Company's business plan is
based upon current assumptions about the costs of its implementation. If these
assumptions prove incorrect or if there are unanticipated expenses, the Company
may be required to seek additional equity and/or debt financing. No assurance
can be given that the Company will be able to obtain such financing upon
favorable terms and conditions. Moreover, no assurance can be given that the
Company will be able to successfully implement any or all of its business plan,
or if implemented, that it will accomplish the desired objectives of product
expansion and increased revenues and earnings.

                             SELECTED FINANCIAL DATA




<TABLE>
<CAPTION>
                                      FOR THE YEARS ENDED
                                            MARCH 31,
                                -------------------------------
                                    2000               1999
                                -----------         -----------
<S>                            <C>                 <C>
Sales                            $7,424,000          $7,218,000
Cost of sales                     6,957,000           7,088,000
                                -----------          ----------
Gross margin (loss)                 467,000             130,000
Operating expenses                3,627,000           4,722,000
                                -----------          ----------
Operating loss                   (3,160,000)         (4,592,000)
Other expenses                    1,917,000          10,956,000
                                ============        ============
Net loss                        ($5,077,000)       ($15,548,000)
                                ============        ============
</TABLE>



                                       16
<PAGE>


SALES

         The Company had sales of $7,424,000 for fiscal 2000 and $7,218,000 for
fiscal 1999. The nominal increase in sales of $206,000 (2.9%) was mainly the
result of regaining stability in the business, which had been interrupted in
1998 as a result of the consolidation of the Company's Erie, Pennsylvania and
Hudson, New Hampshire facilities. In addition, the acquisition of CSC in May,
1998 helped to offset the loss in sales from the filing of Chapter 7 bankruptcy
protection by the Company's subsidiary, e2 Electronics in June, 1998.

COST OF SALES

         The cost of sales for fiscal 2000 and 1999 were $6,957,000 and
$7,088,000 (representing 94% and 98% of sales respectively). Fiscal 2000
reflects the cost reduction benefits implemented during the year. The low volume
levels that the company has experienced in both fiscal years has limited the
margin contribution to fixed manufacturing costs resulting in nominal gross
margins.


OPERATING EXPENSES

         Operating expenses were down $1,095,000 (23%) from $4,722,000 (65% of
sales) in fiscal 1999 to $3,627,000 (49% of sales) in 2000. Cost reductions and
lower legal fees were the major contributors to this reduction. In addition, the
Company reduced spending in R&D by $580,000, as the Master Lite Ballast Systems'
technology transitioned to production. In fiscal 1999 the Company had excess bad
debt reserves resulting in income of $110,000 and in fiscal 2000 the Company
provided $72,000 in reserves for bad debt resulting in an increase in spending
of $182,000. Also in fiscal 1999 the Company issued stock to employees at a cost
of $292,000. Fiscal 1999 included net intangible write-offs and amortization of
$330,000. This increase is attributable to a charge to operations for the
goodwill associated with an acquisition at the time of purchase. The Company
abandoned property assets of $14,000 in 1999.


OTHER EXPENSES

         Other expenses decreased $9,039,000 (82%) from $10,956,000 (151% of
sales) to $1,917,000 (26% of sales) in fiscal 1999 and 2000, respectively.
Interest expense on the loan agreement increased by $706,000 due to increased
borrowings from an affiliate. Imputed interest resulting from the beneficial
conversion features on convertible debt transactions was $800,000 in fiscal 2000
as compared to $10,545,454 in fiscal 1999. This reduction was primarily due to
the instances of conversion strike prices exceeding the fair values of the
Company's common stock during fiscal 2000.


EXECUTIVE OFFICERS AND KEY MANAGERS

         On January 25, 2000, the Company's President and Chief Executive
Officer, William Mosconi resigned. From January 25, 2000 to February 21, 2000,
Michael J. Smith, a member of the Company's board of directors, served as
President, Interim Chief Executive Officer and Interim Chief Financial Officer.
On February 21, 2000, the Company entered into an employment agreement with
Jonathan Scott Harris, to serve as President and Chief Executive Officer for an
initial term of two years. Mr. Smith continues as a member of the Company's
board of directors, and as the Company's Chief Financial Officer and Executive
Vice President.

         On February 28, 2000, the Company terminated the employment of Lewis W.
Kuniegel for cause. Mr. Kuniegel served as Vice President of the Installation
and Servicing of Tele-


                                       17
<PAGE>


communications Products Division (CSC). The Company has yet to name a successor
to Mr. Kuniegel's position.

INFLUENCE BY CHAIRMAN; STOCKHOLDERS AGREEMENT

         The Company's Chairman, Primo Ianieri, beneficially owns 3,315,685
shares of Common Stock, representing 18.8% of the Company's issued and
outstanding stock, and rights to purchase stock. As a result, Mr. Ianieri could
influence most matters requiring approval of the stockholders of the Company.
Furthermore, the Company, Mr. Ianieri and other significant stockholders of the
Company are parties to a Stockholders Agreement dated as of September 28, 1997
that provides, inter alia, that:

         The Company's Board of Directors shall consist of seven (7) seats;
         Three (3) of said Directors shall be selected by Mr. Ianieri and one of
         which shall be Mr. Peter Bordes, Sr.
         The three (3) Directors selected by Mr. Ianieri shall comprise an
             Executive Committee of the Board of Directors, which shall
             have veto power over any proposed acquisition, merger,
             offering or sale of equity securities, borrowings or other
             issuances of debt securities.

Copies of said Stockholders Agreement are available from the Company and the
Placement Agent.

INFLUENCE BY INVESTOR; SUBSTANTIALLY ALL ASSETS PLEDGED; CONTINUED DILUTION

         In connection with a Secured Revolving Credit Agreement, Secured Note
Paybale, Stock Pledge Agreement and Security Agreements between the Company and
Horace T. Ardinger, Jr. dated as of November 13, 1998 and subsequent amendments
thereto, (the "Ardinger Credit Documents") as well as credit agreements with
others, the Company has pledged substantially all of its assets as security for
the performance of its obligations. In the event that the Company was to default
on the payment of any amounts owed under the agreements, the lenders would have
the ability to satisfy the obligations by selling or causing the sale of some or
all of the assets of the Company.

         Under the terms of the Ardinger Credit Documents, as of March 31, 2000,
Mr. Ardinger beneficially owns or has the right to acquire 31,346,151 shares of
the Company's common stock which is 68.36% of the total amount of beneficially
owned common stock of the Company (see Item 4 hereinbelow). As a result, Mr.
Ardinger would be able to greatly influence most matters requiring approval of
the stockholders of the Company, including the election of the majority of the
Board of Directors. Pursuant to a Voting Agreement dated as of April 1, 1998,
(see Exhibit 9.2), Mr. Ardinger is entitled to either be elected to the
Company's Board of Directors or have his designee so elected. Mr. Ardinger's
current designee to the Company's Board of Directors is Michael Smith, who also
currently serves as the Company's Chief Financial Officer and Executive Vice
President. Mr. Ardinger has also been granted a license in California, Texas and
Florida in certain proprietary technology of Logic Labs and rights of first
refusal to potential future licensing of certain related technology pursuant to
a License Agreement dated as of April 1, 1998 (see Exhibit 10.4). Furthermore,
as a result of ongoing capital contributions by Mr. Ardinger, his beneficial
ownership of the Company's common stock is likely to increase and may result in
continued substantial dilution to the current holdings of the other
stockholders.


                                       18
<PAGE>


DEPENDENCE ON MAJOR PRODUCTION FACILITIES

         One hundred (100%) percent of the Company's production is located at
its facility in Amherst, New Hampshire. An interruption of that production or
transportation to and from the production facilities, by natural disasters or
other causes, would materially and adversely affect the Company's business and
results of operations.

LIMITATION ON DIRECTORS' LIABILITIES UNDER DELAWARE LAW

         Under Delaware law, directors of the Company are not liable to the
Company or its stockholders for monetary damages for breach of fiduciary duty,
except for liability in connection with a breach of duty of loyalty for acts or
omissions not in good faith or which involve intentional misconduct or a knowing
violation of law, for dividend payments or stock repurchases illegal under
Delaware law or any transaction in which a director has derived an improper
personal benefit.

ABSENCE OF DIVIDENDS

         The Company has paid no cash dividends on its Common Stock since
inception. The Company currently intends to retain earnings, if any, for use in
its business and does not anticipate paying any cash dividends in the
foreseeable future.


                                       19
<PAGE>


ITEM 7.  FINANCIAL STATEMENTS

                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                                 MARCH 31, 2000





                                    I N D E X

<TABLE>
<CAPTION>
                                                                             Page No.
                                                                             --------

FINANCIAL STATEMENTS:
<S>   <C>                                                                   <C>

       Independent Accountants' Report ......................................     F-2


       Consolidated Balance Sheet as at March 31, 2000 ......................     F-3


       Consolidated Statements of Operations
         For the Years Ended March 31, 2000 and 1999 ........................     F-4


       Consolidated Statements of Changes in Capital Deficiency
         For the Years Ended March 31, 2000 and 1999 ........................     F-5


       Consolidated Statements of Cash Flows
         For the Years Ended March 31, 2000 and 1999 ........................  F-6 - F-7


       Notes to Consolidated Financial Statements ...........................  F-8 - F-32
</TABLE>

                                     F-1

<PAGE>

                      WEINICK SANDERS LEVENTHAL & CO., LLP
                          CERTIFIED PUBLIC ACCOUNTANTS
                       1515 BROADWAY NEW YORK, N.Y. 10036

                          INDEPENDENT AUDITORS' REPORT




To the Stockholders and Board of Directors
Elgin Technologies, Inc.


We have audited the accompanying consolidated balance sheet of Elgin
Technologies, Inc. (formerly Cross Atlantic Capital, Inc.) and subsidiaries as
at March 31, 2000, and the related statements of operations, cash flows, and
capital deficiency for the two years then ended. These financial statements are
the responsibility of the Company's management. Our responsibility is to express
an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amount and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Elgin
Technologies, Inc. (formerly Cross Atlantic Capital, Inc.) and subsidiaries as
at March 31, 2000, and the results of their operations and their cash flows for
each of the two years ended March 31, 2000, in conformity with generally
accepted accounting principles.

The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. As shown in the financial statements,
the Company has a working capital deficiency of $11,272,070 and liabilities
exceed assets by $11,070,149 at March 31, 2000 and, in addition, the Company has
incurred losses since inception. These conditions, among others, raise
substantial doubt about the Company's ability to continue as a going concern.
Management's plan in regard to this matter is discussed in Note 1. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.


                                      /s/ WEINICK SANDERS LEVENTHAL & CO., LLP


New York, N. Y.
May 25, 2000, except for the
second paragraph of Note 2,
as to which the date is
March 2, 2001

                                      F-2

<PAGE>



                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                           CONSOLIDATED BALANCE SHEET

                                 MARCH 31, 2000


<TABLE>
<CAPTION>
                                                A S S E T S
                                                -----------

<S>                                                                                           <C>                <C>
Current assets:
  Cash                                                                                       $    144,839
  Accounts receivable, less allowances for
    doubtful accounts and customer deductions                                                   1,194,315
  Inventories, at cost, reserve for obsolescence,
    excess quantities and valuation                                                             1,603,391
  Prepaid expenses and other current assets                                                        77,747
                                                                                               ----------
        Total current assets                                                                                       $  3,020,292

Property assets, net of accumulated depreciation                                                                         53,818

Other assets:
  Deferred financing costs, net                                                                    59,395
  Deposits and other assets                                                                        88,708
                                                                                               ----------
        Total other assets                                                                                             148,103
                                                                                                                    ----------

                                                                                                                   $ 3,222,213
                                                                                                                   ===========

                       LIABILITIES AND CAPITAL DEFICIENCY
                       ----------------------------------

Current liabilities:
  Secured Note Payable                                                                       $  6,725,000
  Current maturities of long-term debt                                                          2,206,663
  Due to affiliates                                                                             1,141,273
  Accounts payable                                                                              1,549,619
  Pre-petition liabilities                                                                      1,012,000
  Accrued expenses and other current liabilities                                                1,657,807
                                                                                               ----------
        Total current liabilities                                                                                  $ 14,292,362

Long-term debt                                                                                  2,206,663
Less:  Current maturities                                                                       2,206,663
                                                                                               ----------
        Total long-term debt                                                                                                  -

Capital deficiency:
  Common stock, $.000833 par value
    Authorized - 60,000,000 shares
    Issued - 17,591,601 shares                                                                     14,653
  Additional paid-in capital                                                                   40,035,886
  Accumulated deficit                                                                         (51,120,688)
                                                                                               ----------

        Total capital deficiency                                                                                    (11,070,149)
                                                                                                                     ----------

                                                                                                                   $  3,222,213
                                                                                                                   ============
</TABLE>



                 See notes to consolidated financial statements.


                                      F-3

<PAGE>

                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                      CONSOLIDATED STATEMENTS OF OPERATIONS

<TABLE>
<CAPTION>
                                                      For the Years Ended
                                                           March 31,
                                                ------------       ------------
                                                    2000               1999
<S>                                             <C>                <C>
Net sales                                       $  7,423,771       $  7,217,586
Cost of sales                                      6,956,921          7,087,955
                                                ------------       ------------
Gross margin                                         466,850            129,631
                                                ------------       ------------

Operating expenses:
  Selling                                            896,965            577,515
  Research and development                           826,680          1,407,048
  General and administrative                       1,742,406          2,504,030
  Bad debts                                           71,656           (110,300)
  Amortization of financing costs                     89,091             29,697
  Write-off of intangibles                              --              300,000
  Abandonment of property assets                        --               14,038
                                                ------------       ------------
Total operating expenses                           3,626,798          4,722,028
                                                ------------       ------------

Loss from operations                              (3,159,948)        (4,592,197)

Other expenses:
  Interest                                         1,916,646         10,955,953
                                                ------------       ------------

Net loss                                        ($ 5,076,594)      ($15,548,350)
                                                ============       ============

Net loss per common share                       ($      0.29)      ($      1.16)
                                                ============       ============

Weighted average number of
  shares outstanding                              17,425,303         13,440,850
                                                ============       ============
</TABLE>

                 See notes to consolidated financial statements.


                                      F-4
<PAGE>


                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

            CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL DEFICIENCY

                   FOR THE YEARS ENDED MARCH 31, 2000 AND 1999


<TABLE>
<CAPTION>
                                                             Common Stock
                                                    -------------------------
                                                      Number                     Additional                          Total
                                                        of                        Paid-In        Accumulated        Capital
                                                      Shares          Amount       Capital         Deficit         Deficiency
                                                    ----------      ---------    -----------     -----------     -------------

<S>                                                 <C>         <C>            <C>             <C>             <C>
 <C>
Balance at April 1, 1998                             7,130,333   $      5,940   $ 21,188,374    ($30,495,744)   ($ 9,301.430)
Purchase of redeemable common stock for cash
  and issuance of cashless warrants for debt              --             --          268,376            --           268,376
Net proceeds from sale of securities                 2,163,334          1,802      5,966,381            --         5,968,183
Common stock issued in partial payment
  of acquisition of subsidiary                         100,000             83        299,917            --           300,000
Common stock issued in settlement of litigation         16,800             14         50,386            --            50,400
Common stock issued as employee compensation            97,200             81        291,519            --           291,600
Debt converted into common stock and warrants          105,950             88        625,924            --           626,012
Conversion of warrants into common stock             6,859,434          5,714         (5,714)           --              --
Interest on convertible debt                              --             --       10,545,454            --        10,545,454
Net loss for year                                         --             --               --     (15,548,350)    (15,548,350)
                                                  ------------   ------------   ------------    ------------    ------------
Balance at March 31, 1999                           16,473,051         13,722     39,230,617     (46,044,094)     (6,799,755)
Conversion of warrants into stock                    1,117,000            930           (930)           --              --
Conversion of debt into common stock                     1,550              1          6,199            --             6,200
Interest on convertible debt                              --             --          800,000            --           800,000
Net loss for the year                                     --             --             --        (5,076,594)     (5,076,594)
                                                  ------------   ------------   ------------    ------------    ------------
Balance at March 31, 2000                           17,591,601   $     14,653   $ 40,035,886    ($51,120,688)   ($11,070,149)
                                                  ============   ============   ============    ============    ============
</TABLE>



                 See notes to consolidated financial statements.


                                      F-5

<PAGE>

                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>

                                                                                            For the Years Ended
                                                                                                  March 31,
                                                                                     ----------------------------------
                                                                                          2000                 1999
                                                                                     ------------         -------------
<S>                                                                                 <C>                  <C>
Cash flows from operating activities:
  Net loss                                                                           ($5,076,594)         ($15,548,350)
                                                                                      ----------           -----------
  Adjustments to reconcile net loss to
      cash used in operating activities:
    Accrued interest on Affiliate's Secured Note Payable                                 823,312               204,749
    Depreciation and amortization                                                        224,712                80,889
    Abandonment of property assets                                                            -                 14,038
    Provision for inventory obsolescence                                              (3,250,592)           (1,615,950)
    Interest on convertible debt                                                         800,000            10,545,454
    Provision for doubtful accounts                                                       14,500              (110,000)
    Common stock issued for
      Litigation settlement                                                                   -                 50,400
      Services rendered                                                                       -                291,600
    Write-off of intangibles                                                                  -                300,000
    Changes in assets and liabilities:
      Accounts receivable                                                                320,354              (896,078)
      Inventories                                                                      2,481,330             1,508,931
      Prepaid expenses and
        other current assets                                                             (32,794)               29,800
      Deposits and other assets                                                          (85,348)               13,400
      Accounts payable                                                                   281,243            (1,250,739)
      Accrued expenses and other
        current liabilities                                                             (109,347)             (399,688)
                                                                                      ----------           -----------
                                                                                       1,467,370            (8,766,806)
                                                                                      ----------           -----------

Net cash used in
  operating activities                                                                (3,609,224)           (6,781,544)
                                                                                      ----------           -----------

Cash flows used in investing activities:
  Property assets                                                                        (16,497)                   -
                                                                                      ----------           -----------

Cash flows from financing activities:
  Proceeds from sale of securities                                                            -              5,968,183
  Purchase of redeemable securities                                                           -               (141,624)
  Proceeds from (repayment of)
    affiliates debt                                                                    2,436,080             4,104,826
  Proceeds from (repayment of)
    Affiliate's Secured Note Payable                                                    (250,000)           (1,512,635)

  Deferred financing costs                                                                   -                (178,183)
                                                                                      ----------           -----------
Net cash provided by
  financing activities                                                                 2,186,080             8,240,567
                                                                                      ----------           -----------

Net increase (decrease) in cash                                                       (1,439,641)            1,459,023

Cash at beginning of period                                                            1,584,480               125,457
                                                                                      ----------           -----------

Cash at end of period                                                                 $  144,839           $ 1,584,480
                                                                                      ==========           ===========
</TABLE>


                 See notes to consolidated financial statements.

                                      F-6

<PAGE>



                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

<TABLE>
<CAPTION>
                                                              For the Years Ended
                                                                    March 31,
                                                           ----------------------------
                                                            2000                 1999
                                                           ------              --------
<S>                                                     <C>                  <C>
Supplemental Disclosures of
    Cash Flow Information:
  Cash payments made for:

    Interest                                             $ 128,071            $    74,869
                                                         =========            ===========

    Income taxes                                         $    -               $      -
                                                         =========            ===========


Supplemental Schedule of
    Non-Cash Financing and
    Investing Activities:

  Conversion of debt to equity                           $   6,200            $   626,012
                                                         =========            ===========

  Common stock issuances for
    Litigation settlement                                $   -                $    50,400
                                                         =========            ===========
  Interest on convertible debt                           $ 800,000            $10,545,454
                                                         =========            ===========
    Services rendered                                    $   -                $   291,600
                                                         =========            ===========
</TABLE>



                 See notes to consolidated financial statements.


                                      F-7

<PAGE>

                    ELGIN TECHNOLOGIES, INC. AND SUBSIDIARIES
                     (Formerly Cross Atlantic Capital, Inc.)

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

              As at March 31, 2000 and for the Two Years Then Ended

NOTE  1 -  REALIZATION OF ASSETS - GOING CONCERN.

                    The accompanying consolidated financial statements have
            been prepared in conformity with generally accepted accounting
            principles, which contemplate continuation of the Company as a going
            concern. The Company has incurred substantial operating losses in
            each of its segments for the two years ended March 31, 2000.
            Management on June 1, 1998 placed its contract engineering division
            of its telecommunications segment originally located at Erie,
            Pennsylvania into voluntary liquidation when management caused a
            filing under Chapter 7 of Title 11 of the United States Bankruptcy
            Code for its wholly-owned subsidiary, e2 Electronics, Inc. ("e2
            Electronics"). The Court appointed a trustee who is liquidating
            the assets of e2 Electronics for the benefit of its creditors.

                    The accompanying consolidated financial statements reflect a
            working capital deficiency of $11,272,000 at March 31, 2000, of
            which $1,012,000 is attributable to the net obligations of e2
            Electronics. Upon the conclusion of the liquidation of e2
            Electronics, the capital deficiency at March 31, 2000 will decrease
            by the forgiveness of the net indebtedness of e2 Electronics of
            $1,012,000. The Company's segments, lighting manufacturing and
            telecom power system equipment manufacturing, incurred losses
            from operations of $2,415,000 and $745,000, respectively, and in
            fiscal 2000 and in fiscal 1999 incurred operating losses of
            $3,321,000 and $1,271,000, respectively. In fiscal 2000 and 1999,
            these segments had a combined negative cash flow from operating
            activities of $3,609,000 and $6,782,000. The Company's primary
            source of cash has been the sale of its securities to and loans
            from a stockholder.

                    As described in Note 12, e2 Electronics, the Company and/or
            its continuing subsidiaries are defendants in a number of legal
            actions, some of which, should the plaintiffs prevail, would have
            a serious adverse effect on the Company's financial condition.

                    The substantial operating losses of the Company's operating
            segments incurred through and subsequent to March 31, 2000, and the
            Company's limited ability to obtain financing other


                                      F-8
<PAGE>

NOTE  1 -  REALIZATION OF ASSETS - GOING CONCERN.  (Continued)

            than from a stockholder raises substantial doubt concerning the
            ability of the Company to realize its assets and pay its obligations
            as they mature in the ordinary course of business. These conditions,
            among others, raise substantial doubt about the Company's ability to
            continue as a going concern. The accompanying consolidated financial
            statements do not include any adjustments relating to the
            recoverability and classification of asset carrying amounts or the
            amount and classification of liabilities that might result should
            the Company be unable to continue as a going concern. Management is
            making every effort to reverse these trends by the hiring of a new
            President/CEO and appointing a new Vice President as head of sales
            to implement a turnaround of the Company's businesses. New
            management will continue efforts to reduce the operating costs of
            the Company's existing product lines and seek to expand into less
            costly, more profitable products and services. These efforts will,
            however, require increased working capital infusions. At present the
            Company's sole source of financing is from a stockholder. Management
            cautions that there can be no assurances that these efforts will be
            successful or that the stockholder will continue to provide
            financing or that alternative source of funds will be available for
            management to implement its plan.

                    The new management team believes that it is possible to turn
            around the Company's financial performance and has begun
            implementing its business plan. This plan calls for focusing on two
            main performance areas, which are: 1) overhead reduction and 2)
            revenue/margin improvement.

              Overhead reduction.

                    Since the new management team came on board, the Company has
            reduced its overhead and will continue to look for overhead
            reduction opportunities in the future. Benefits have been realized
            by consolidating all facilities and moving headquarters to a lower
            cost facility, reducing staffing by streamlining operations and
            closing facilities, and by implementing other outsourcing strategies
            to limit the Company's overhead structure.

              Revenue/margin improvement.

                    The Company has a 60-year history of providing quality
            products to the industry, and management has repositioned its
            marketing of its products to focus on that history. Management has
            implemented new strategies to improve margins by streamlining its


                                      F-9
<PAGE>

NOTE  1 -  REALIZATION OF ASSETS - GOING CONCERN.  (Continued)

            product offerings by focusing on those items in its product lines
            that have higher margins and have strong market demand. By narrowing
            its product offerings and purchasing more efficiently, the Company
            is able to reduce its raw materials cost component thereby adding to
            margin improvement. Management also intends to overhaul its
            marketing efforts and restructure its sales department to strengthen
            these strategies.

                    In addition, the Company is completing its beta site testing
            of its Master Light fluorescent product line. It is anticipated that
            the Company will be able to generate revenues from this product line
            in 2001.


NOTE 2 -   BANKRUPTCY PROCEEDINGS - CHAPTER 7.

                    On June 1, 1998, management filed a petition for its wholly
            owned subsidiary, e2 Electronics, Inc. ("e2 Electronics"), under
            Chapter 7 of Title 11 (a liquidation) of the United States
            Bankruptcy Code in the Western District of Pennsylvania of the
            United States Bankruptcy Court (the "Court"). The Petitioner sought
            to have the court liquidate its assets and disburse the proceeds
            therefrom to its creditors for which the Court appointed a Trustee.
            The accompanying financial statements include the results of
            operations of e2 Electronics up to the date of the Chapter 7 filing.
            The results of operations of e2 Electronics, after the filing, are
            not included in the accompanying financial statements because
            operations were conducted by the Court-appointed Trustee and all
            of e2 Electronics' records were transferred to the Trustee,
            and were not available for audit.

                    On May 30, 2000, the Bankruptcy Trustee for e2 Electronics
            filed a Complaint to Avoid Fraudulent Transfer, to Obtain Turnover
            of Property of the Estate, Equitable Subordination and Injunctive
            Relief in the Bankruptcy Court against Warren Power Systems, Inc.,
            the Company and DC&A Partners, Inc. However, the deadline for the
            defendants to answer the Complaint has been continued generally to
            give the parties an opportunity to negotiate for a cost-effective
            resolution of the Complaint by compromise and settlement, if
            possible. To that end, the Trustee propounded discovery requests,
            including interrogatories and requests for the production of
            documents, which defendants Warren Power Systems, Inc. and the
            Company have answered in detail. After the Trustee completes his
            due diligence with respect to a possible settlement, the parties
            will negotiate in earnest. The next status conference with the
            Bankruptcy Court is scheduled to be held on May 21, 2001.


                                      F-10
<PAGE>

NOTE  2 -  BANKRUPTCY PROCEEDINGS - CHAPTER 7.  (Continued)

                    Several years before e2 Electronics' Chapter 7 bankruptcy
            filing in June of 1998, e2 Electronics issued a secured promissory
            note to Star Bank, N.A., an institutional lender. The note was
            secured by, inter alia, certain assets of e2 Electronics having an
            aggregate historical cost value of $915,000. In early 1998, the
            Star Bank note was approaching maturity. The principal and interest
            due under the note at that time totaled $528,000. The Company did
            not want e2 Electronics to fully pay and discharge Star Bank's
            secured note because it wanted to maintain the validity of the
            security interest so that other creditors of e2 Electronics
            could not establish senior liens over the assets. Similarly, the
            Company did not want to purchase the Star Bank note itself because
            it was concerned that such a purchase by the parent company of the
            debtor would allow a third party creditor to challenge the validity
            of the security interest. Accordingly, the Company proposed to its
            investment bankers that they purchase the Star Bank note and
            security interest over e2 Electronics' assets. Accordingly,
            the investment bankers, who had a substantial investment and
            interest in the Company, caused DC&A Partners, Ltd., a corporation
            that they controlled, to purchase the Star Bank note and related
            security interest from Star Bank at par, making DC&A the holder of
            the secured lien.

                     Subsequent to the Chapter 7 filing, DC&A paid the trustee a
            non-refundable fee of $10,000 for a license to operate the business
            of e2 Electronics in order to preserve the value of e2 Electronics'
            assets. DC&A then moved for a court ordered sale, pursuant to which
            it would pay $100,000 for the assets. A condition of the trustee's
            agreement to this motion was that the $100,000 would be carved out
            of DC&A's secured claim, i.e., these funds would be available for
            the unsecured creditor's pool. At the hearing on the motion for
            court ordered sale, another interested party was present and bid on
            the assets. DC&A ultimately won the bidding at a price of $177,000.
            The court carved the first $100,000 out of DC & A's secured claim as
            stated above, but allowed DC&A to recover the additional $77,000 in
            partial satisfaction of its secured claim.

                    DC&A subsequently sold the assets to Warren Power Systems,
            Inc., a subsidiary of the Company in consideration of the
            forgiveness by the Company of certain monies that it had loaned to
            DC&A.

                    The assets and liabilities of e2 Electronics, Inc. at the
            date of the filing petition is as follows:


            <TABLE>
            <CAPTION>
            <S>                                           <C>
            Accounts receivable                           $  210,000
            Rent deposits                                     23,000
            Property assets                                   20,000
            Investments                                       71,000
            Inventories net of reserve
              for obsolescence of $1,560,000                  13,000
                                                         -----------
            Total assets                                     337,000
                                                         -----------
            Accounts payable - trade                         951,000
            Accrued expenses and other
              current liabilities                            214,000
            Loan payable - DC&A Partners Ltd.                600,000
                                                         -----------
                                                           1,765,000
                                                         -----------
            Net liabilities                              ($1,428,000)
                                                         ===========
            </TABLE>


                    During the seven months ended December 1998 the rent
            deposit was utilized by the landlord for rent, which was charged
            to operations in the second quarter of fiscal 1999.  The
            collection of the receivable resulted in the issuance of discounts
            and allowances of $28,000 which was charged to operations in the
            second quarter of 1999.  The investments, management believes,
            are presently in the charge of the Trustees.  The inventory,
            certain property and $100,000 in cash were given to DC&A in partial
            satisfaction of its secured loan.  Since that time, management has
            not been able to obtain from the Trustees what, if any, additional
            changes to the assets and liabilities have occurred.


                    Based upon the information supplied to management by the
            Trustees, the prepetition liabilities net of the assets at
            March 31, 2000 are as follows:


            <TABLE>
            <CAPTION>
            <S>                                 <C>
            Cash                                 $   82,000
            Investments                              71,000
                                                -----------
            Total assets                            153,000
                                                -----------
            Accounts payable - trade                951,000
            Accrued expenses and other
              current liabilities                   214,000
                                                -----------
                                                  1,165,000
                                                -----------
                                                ($1,012,000)
                                                ===========
            </TABLE>



                                      F-11
<PAGE>

NOTE  3 -  DESCRIPTION OF BUSINESS.

                    The Company was incorporated as Cross Atlantic Capital,
            Inc. ("CROA") under the laws of the State of Delaware on May 28,
            1986.  CROA, since its incorporation through September 30, 1997,
            was inactive at which time it acquired all of the outstanding
            capital stock of e2 Electronics, Inc. (f/k/a Elgin e2, Inc.) in
            exchange for 4,167,000 shares of its $.000833 par value common
            stock.  Prior to the acquisition, CROA had issued and outstanding
            600,000 shares of its common stock.  The merger was treated as a
            recapitalization.  In January 1998, CROA changed its name to
            Elgin e2, Inc. and, in June 1998, to Elgin Technologies, Inc.
            (the "Company").  In January 1998, e2 Electronics, Inc. changed
            its name from Elgin e2, Inc. to its current name.

                    The effects of this recapitalization are as follows:

<TABLE>
<CAPTION>
                                               Date           Par Value    Shares
                                               ----           ---------    ------
<S>                                    <C>                     <C>       <C>
Initial issue of common stock
  to original CROA                          May 28, 1986       $.000833    600,000

Equivalent number of shares issued
  to stockholders of Elgin e2 in
  exchange for the share of Elgin e2
  to reflect the recapitalization          September 30, 1997  $.000833  4,167,000
                                                                         ---------

Total shares issued and outstanding
  after giving effect to merger treated
  as a recapitalization                                                  4,767,000
                                                                         =========
</TABLE>

                    e2 Electronics was incorporated in Delaware in April 1994
            as a provider of contract manufacturing services and custom power
            equipment to original equipment manufacturers in the industrial
            process control, medical instrumentation and telecommunications
            industries. e2 Electronics commenced operations in April 1994 with
            its acquisition of the net assets of Charter Technologies, Inc. from
            a United States Bankruptcy Court


                                      F-12
<PAGE>

NOTE  3 -  DESCRIPTION OF BUSINESS.  (Continued)

            appointed Trustee. e2 Electronics also acquired certain net assets
            from two other entities in fiscal 1995. These three acquisitions
            resulted in the recording of $1,018,000 in goodwill.

                    e2 Electronics on July 10, 1996 acquired all of the capital
            stock of Ascom Warren, Inc. ("Warren") in a transaction accounted
            for as a purchase. e2 Electronics, then merged Warren into
            itself. The purchase price of $2,298,000 for the Company's power
            system manufacturing segment was paid in cash of $1,298,000 plus the
            issuance of a $1,000,000 promissory note (10% interest, payable in
            four annual installments of $250,000). The Company was contingently
            liable for additional payments to seller in the amount of 3% of net
            sales that exceeded $10,000,000 in each of the three fiscal years
            ended March 31, 1999. The segment did not achieve the requisite
            sales level in any of the periods and no additional liability is due
            to the seller of Warren.

                    In December 1997, the Company acquired all of the capital
            stock of Logic Laboratories, Inc. ("Logic") for 2,000,000 shares
            of its common stock (valued at $3.00 per share) plus a
            conditional payment of an additional 500,000 shares of the
            Company's common stock, if and when Logic achieves $10,000,000 in
            sales in any one fiscal year, in a transaction accounted for as a
            purchase.  Logic had insignificant revenues, no saleable products
            and no tangible assets at the date of the acquisition.  Logic had
            sales of $35,000 through March 31, 2000 and $84,000 in
            identifiable assets at March 31, 1999.  Sales for the nine months
            ended December 31, 2000 were $11,000 and its identifiable assets
            were $50,000.  As the sales criterion was not met, the additional
            contingent consideration is not owned.  If the conditional shares
            of the Company's common stock were issued (upon Logic achieving
            the sales target), the purchase price of Logic would be increased
            in accordance with EITF 95-8 and adjusted at the then current
            fair value of the Company's common stock in accordance with
            Accounting Principles Board of Opinion No. 16.

                    On April 24, 1998, the Company acquired all of the assets
            and liabilities of Communication Service Company ("CSC") which
            installs power systems for 100,000 shares of its common stock
            (valued at $3.00 per share) plus the cash and accounts receivable of
            CSC on the date of acquisition. The transaction is being accounted
            for as a purchase in the accompanying financial statements. The fair
            value of the consideration paid to the sellers of CSC exceeded the
            fair value of the remaining net assets acquired by $300,000 and
            initially was recorded as goodwill. The goodwill was charged to
            operations on the acquisition date do the uncertainty of the
            Company's ability to continue as a going concern.

                    Management determined the purchase price for Logic and CSC
            to be valued at $3.00 per share, in accordance with EITF 95-19,
            which requires the shares issued to be valued at the time of tender.
            In addition, the $3.00 per share valuation was based on recent
            private placement sales of the Company's stock to investors.

                    The accompanying consolidated financial statements as at
            March 31, 2000 and for the two years then ended include the
            accounts of the Company and its wholly-owned subsidiaries except
            for e2 Electronics whose accounts are included from April 1,
            1998 to the date of the filing of its bankruptcy proceedings on
            June 1, 1998. Upon


                                      F-13
<PAGE>

NOTE  3 -  DESCRIPTION OF BUSINESS.  (Continued)

            the filing of the bankruptcy petition, the assets and liabilities
            are being liquidated by the Trustee of the Court. The accompanying
            financial statements reflect the acquisitions of CSC, Logic, Warren
            and the net assets of Charter Technologies, Inc. from their
            respective dates of their purchase through March 31, 2000, in
            accordance with Accounting Principles Board Opinion No. 43 and Item
            310 of Regulation S-B.


NOTE  4 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.

            (a)   Revenue Recognition:

                    The Company recognizes revenues in accordance with generally
            accepted accounting principles in the period in which it performs
            its installation services. In addition, the Company recognizes
            product revenues when they are shipping to the respective customers.
            The Company records expenses in the period in which they are
            incurred, in accordance with generally accepted accounting
            principles.

            (b)   Use of Estimates:

                    The preparation of financial statements in conformity with
            generally accepted accounting principles requires management to make
            estimates and assumptions that affect certain reported amounts and
            disclosures. Accordingly, actual results could differ from those
            estimates.

            (c)   Cash and Cash Equivalents:

                    The Company considers all highly liquid debt instruments
            purchased with a maturity of three months or less to be cash
            equivalents.

            (d)   Concentrations of Credit Risk:

                    Financial instruments that potentially subject the Company
            to significant concentrations of credit risk consist principally of
            cash and trade accounts receivable. The Company places its cash with
            high credit quality financial institutions that at times may be in
            excess of the FDIC insurance limit.

                    Agencies of the U.S. government accounted for 13% and 14%
            sales in fiscal 2000 and 1999, respectively. Another customer
            accounted for 14% and 13% of sales in fiscal 2000 and 1999,
            respectively. A third customer who accounted for 18% of sales in
            2000 was less than 2% in


                                      F-14
<PAGE>

NOTE  4 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.  (Continued)

            fiscal 1999. Although concentrations of credit risk with respect to
            trade accounts receivable of the Company's segments are limited due
            to the wide number of their customers, Three customers at March 31,
            2000 accounted for 15%, 14%, and 13% of accounts receivable. At
            March 31, 1999, agencies of the U.S. government accounted for 24%
            (3% at March 31, 2000) and another customer accounted for 33% (10%
            at March 31,2000) of accounts receivable. Additionally, the
            Company's segments have an allowance for doubtful accounts of
            $90,000, $90,000 and $100,000 as at March 31,2000, 1999 and 1998,
            respectively. The Company's discontinued contracting operations
            required an allowance for doubtful accounts of $100,000 at March 31,
            1998. With the filing of the e2 Electronics, Inc.'s bankruptcy
            proceedings, the receivables of this subsidiary were placed in the
            custody of the Trustee who is responsible for their liquidation.

            (e)   Inventories:

                    Inventories are valued at the lower of cost (first-in,
            first-out method) or market. The financial statements reflect an
            allowance for obsolescence and disposal of inventory of $1,980,000
            $5,231,000, and $6,847,000 at March 31, 2000, 1999, and April 1,
            1998, respectively.

            (f)   Property and Equipment:

                  (i)   The cost of property and equipment is depreciated over
                        the estimated useful lives of the related assets of 5 to
                        10 years. The cost of leasehold improvements is
                        amortized over the lessor of the length of the related
                        leases or the estimated useful lives of the assets.
                        Depreciation is computed on the straight-line method for
                        financial reporting purposes. Repairs and maintenance
                        expenditures, which do not extend original asset lives,
                        are charged to income as incurred.

                  (ii)  The Company adopted Statement of Financial Accounting
                        Standards No. 121 "Accounting for the Impairment of
                        Long-Lived Assets and for Long-Life Assets to be
                        Disposed of". The statement required that the Company
                        recognizes and measures impairment losses of long-lived
                        assets to be disposed of. At March 31, 1999 and December
                        31, 1999, the carrying value of the Company's other
                        assets approximate their estimated fair value.


                                      F-15
<PAGE>

NOTE  4 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.  (Continued)

            (f)   Goodwill:

                    The cost in excess of the fair value of the assets acquired
            had previously been recorded as goodwill and had been amortized over
            a 10-year period. Management continually reviewed the results of the
            business operations of its acquisitions and in March 1997 determined
            that certain goodwill arising from those acquisitions was
            permanently impaired. Management determined that these business
            operations could not recover the cost associated with the goodwill
            in the foreseeable future and charged the unamortized portion of the
            goodwill to operations at the date it became impaired. The goodwill
            associated with the acquisition in April 1998 of Community Services
            Company was charged to operations at the purchase date because
            management was unable to determine if such costs would be recovered
            in the future primarily due to the continuing uncertainty of the
            Company's ability to continue as a going concern.Research and
            Development Costs:

            (h)   Research and Development Costs:

                    The Company charges to operations all research and
            development costs as incurred. Purchased in-process research and
            development represents the value assigned in a purchase business
            combination to research and development projects of the acquired
            business that were commenced but not yet completed at the date of
            the acquisition and which, if unsuccessful, have no alternative
            future use in research and development activities or otherwise. In
            accordance with Statement of Financial Accounting Standards No. 2
            "Accounting for Research and Development Costs", as interpreted by
            FASB Interpretation No. 4, amounts assigned to purchased in-process
            research and development meeting the above criteria must be charged
            to expense at the date of consummation of the purchase business
            combination.

                    The acquisition of Logic Labs centered on the development of
            lighting products based on an application of a DC power supply
            (versus standard AC power) to drive industrial systems, this system
            is call Master Lite. At the time of the acquisition, Logic had filed
            initial patent applications and had initial laboratory prototypes of
            the product for a fluorescent system. The Company valued the
            acquisition at $7,901,000 ($3.00 per share of the Company's stock
            plus Logic's net worth) based upon management's assessment of the
            market potential for the then existing prototype application and of
            the potential for future product offerings based upon its designs as
            applied to lighting categories. Upon the acquisition of Logic,
            management determined that the product would require significant
            engineering and design expenditures and would


                                      F-16
<PAGE>

NOTE  4 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.  (Continued)

            require several years of development. During the development
            process, several design iterations have been generated and the
            Company has filed and received patents for these improvements to the
            original design. Due to these improvements and post acquisition
            developments in the lighting market, the Company has modified its
            original market concept. In addition, due to delays in regulatory
            review, the Company has modification its original view as to the
            value of the original designs purchased from Logic. Accordingly, the
            acquired net worth was deemed by management to have little or not
            future value and was written off to operations in fiscal 1998.

            (g)   Deferred Financing Costs:

                    Direct costs incurred in connection with obtaining financing
            have been capitalized and were being amortized over the term of the
            respective financing agreements. Amortization of deferred financing
            costs aggregating $89,000 and $30,000 in 2000 and 1999 was charged
            to operations. In fiscal 1999 $65,000 of financing costs
            attributable to indebtedness included in the bankruptcy proceedings
            were charged to operations as incurred.

            (h)   Income Taxes:

                    The Company complies with Statement of Financial Accounting
            Standards No. ("SFAS 109"), "Accounting for Income Taxes," which
            requires an asset and liability approach to financing accounting and
            reporting for income taxes. Deferred income tax assets are computed
            for differences between financial statement and tax basis of assets
            and liabilities that will result in future taxable or deductible
            amounts, based on the enacted tax laws and rates in the periods in
            which differences are expected to affect taxable income. The
            principal asset and liability differences are depreciation and
            amortization of property and intangible assets, valuation allowances
            of accounts receivable and inventories, and utilization of the
            Company's tax loss carryforwards. Management has fully reserv-ed the
            net deferred tax assets as its is not more likely than not that the
            deferred tax asset will be utilized in the future.

            (i)   Loss Per Common Share:

                    Loss per common share is based on the weighted average
            number of common shares outstanding. In March 1997,the Financial
            Accounting Standards Broad issued Statement No. 128 ("SFAS 128"),
            "Earnings Per Share," which requires dual presentation of basic and


                                      F-17
<PAGE>

NOTE  4 -  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES.  (Continued)

             diluted earnings per share on the face of the statements of
            operations which the Company has adopted. Basic loss per share
            excludes dilution and is computed by dividing income available to
            common stockholders by the weighted-average common shares
            outstanding for the period. Diluted loss per share reflects the
            potential dilution that could occur if convertible debentures,
            options and warrants were to be exercised or converted or otherwise
            resulted in the issuance of common stock that then shared in the
            earnings of the entity.

                    Since the effect of outstanding options, warrant and
            convertible debenture conversions are antidilutive in all periods
            presented, it has been excluded from the computation of loss per
            common share.

            (j)   Significant Adjustments:

                    In the opinion of management, all significant adjustments,
            estimates and disclosures have been recorded and are an integral
            component of its financial statements.

            (k)   Fair Value of Financial Instruments:

                    The Company adopted Statement of Financial Accounting
            Standards No. 121 ("SFAS No. 121"), "Accounting for the Impairment
            of Long-Lived Assets and for Long-Lived Assets to be Disposed of."
            The statement requires that the Company recognize and measure
            impairment losses of long-lived assets to be disposed of. The
            Company reviews long-lived assets and certain identifiable
            intangibles held and used for possible impairment whenever events or
            changes in circumstances indicate that the carrying amount of an
            asset may not be recoverable. Since the Company has been unable to
            generate funds from its operations to meet its obligations as they
            mature and management believes there is uncertainty as to the
            Company's remaining a going concern, management in April 1998
            evaluated the goodwill recorded with the acquisition of CSC.
            Management determined that it could not be reasonably assured that
            the Company would ever recover the excess of the cost of these net
            assets acquired over their fair value. Accordingly, management
            wrote-off this goodwill and charged operations for $300,000 in 1999.
            Management has continued to evaluate its long-lived assets and does
            not believe any other assets have incurred any impairment and the
            amounts stated in the accompanying financial statements approximate
            their fair value.


                                      F-18
<PAGE>

NOTE 5 - INVENTORIES.

                    The components of the inventories in determining the cost of
            sales are as follows:

<TABLE>
<S>                                                <C>
                Raw materials                      $ 2,290,000
                Work-in-process                        740,000
                Finished goods                         553,000
                                                   -----------
                                                     3,583,000
                Allowance for obsolescence
                  and disposal                       1,980,000
                                                   -----------

                                                   $ 1,603,000
                                                   ===========
</TABLE>

                    In May 1999, the power systems segment sold for $10,000 part
            of its obsolete raw material and work-in-process inventories whose
            cost was approximately $1,517,000. Management estimates that the
            remaining $1,980,000 allowance for obsolescence at March 31, 2000 is
            sufficient for the continuing operating segments to dispose of its
            obsolete and excess inventory and that this allowance reflects the
            sustained and measurable loss incurred due to the obsolescence of
            and the excess inventories.

                    During fiscal 1999, the Trustee liquidated e2 Electronics,
            Inc.'s operations inventory and the proceeds from such liquidation,
            if any, are being held by the Trustee for distribution to the e2
            Electronics, Inc.'s creditors.



                                      F-19
<PAGE>

NOTE 5 - INVENTORIES. (continued)


                        The components of the inventories used in determining
            the cost of sales of e2 Electronics' operations are as follows:

<TABLE>
<CAPTION>
                                                    March 31,          April 1,
                                                      1998               1997
                                                   ----------         ----------
<S>                                                <C>                <C>
                Raw materials                      $1,765,000         $3,514,000
                Work-in-process                          --              442,000
                Finished goods                           --                 --
                                                   ----------         ----------
                                                    1,765,000          3,956,000
                Allowance for obsolescence
                  and disposal                      1,752,000          3,925,000
                                                   ----------         ----------

                                                   $   13,000         $   31,000
                                                   ==========         ==========
</TABLE>

                    During fiscal 1999, the Trustee liquidated this operation's
            inventory and the proceeds from such liquidation, if any are being
            held by the Trustee for distribution to e2 Electronics' creditors.


                                      F-20
<PAGE>

NOTE  6 -  PROPERTY ASSETS.

                    Property assets consist of the following:

<TABLE>
<S>                                                      <C>
               Machinery and equipment                   $ 59,000
               Furniture and fixtures                     101,300
               Leasehold improvements                     157,000
                                                         --------
                                                          317,300
                 Less: Accumulated depreciation           263,500
                                                         --------

                                                         $ 53,800
                                                         ========
</TABLE>

                    Depreciation charged to operations in fiscal 2000 and 1999
            was $135,600 and $51,000, respectively. During the year ended March
            31, 2000, the Company's landlord terminated the lease for its
            premises in Hudson, N.H. resulting in the write-off of its
            unamortized leasehold costs of $109,000. Management and the landlord
            subsequently agreed to allow the Company to remain in its facility
            until April 2000 at which time the Company moved to its new leased
            facility in Amherst, N.H. (See Note 11).


NOTE 7 - FINANCING.

            (a)   Revolving Lines of Credit:

                    In November 1998, the Company entered into a revolving line
            of credit with a major stockholder. At March 31, 1999, $4,225,000
            was outstanding under this facility. Through March 31, 2000, the
            stockholder advanced an additional $2,500,000 under the facility
            which aggregates $6,725,000 outstanding at March 31, 2000. Since the
            Company has not made the required monthly stated interest payments
            of 10%, the rate by the terms of the agreement is automatically
            increased to 15%. Accrued interest of $973,000 and $179,000 is
            outstanding at March 31, 2000 and March 31, 1999, respectively,
            which is included in due to affiliates in the accompanying financial
            statements. The average outstanding debt under the facility was
            $6,325,000 and $1,317,000 during fiscal 2000 and 1999, respectively.
            Interest charged to operations was $794,000 in fiscal 2000 and
            $179,000 in fiscal 1999 at an average interest rate of 15%. The
            outstanding principal and accrued interest thereon are
            collateralized by all of the Company's assets. Warren and Logic have
            guaranteed this indebtedness and have pledged their assets as
            collateral for the outstanding principal and accrued interest
            outstanding. Additionally, at the holder's option, the principal
            outstanding indebtedness is convertible into the Company's common
            stock at $0.55 per share for the first $4,225,000 of the obligation,
            $0.20 per share for the next $1,050,000 of the obligation, and $0.10
            per share for the excess over $5,275,000.


                                      F-21
<PAGE>

NOTE  7 -  FINANCING.  (Continued)

                    The beneficial conversion features of the above
            convertible debt transactions resulted in a charge to operations
            of imputed interest and a corresponding increase in additional
            paid-in capital of $800,000 and $10,545,454 for the years ended
            March 31, 2000 and 1999, respectively.

                    The convertibility of that portion of the convertible debt
            which could result in the issuance of shares of common stock that
            would exceed the number of shares authorized pursuant to the
            Company's Certificate of Amendment, is subject to and conditioned
            upon the amendment to the Certificate of Incorporation to authorize
            the issuance of such shares of common stock.

            (b)   Long-Term Debt:

                    Long-term debt is comprised of the following:

<TABLE>
<S>                                                         <C>
          Acquisition note payable in annual indebtedness
            of $250,000 plus interest at 10%                $  250,000

          Commonwealth of Pennsylvania
              Department of Commerce Bonds (i):
            Machinery and equipment                            359,000
            Capital loan fund                                   29,000

          Subordinated notes (ii)                              919,000

          Convertible subordinated notes (iii)                 256,000

          Other notes payable                                  394,000
                                                            ----------

                                                            $2,207,000
                                                            ==========

          Portion currently payable                         $2,207,000
                                                            ==========
</TABLE>

            (i)   In 1995, a subsidiary, which is in bankruptcy (see Note 2),
                  entered into two loan agreements for an aggregate of $700,000
                  which was used to acquire property assets. The Company has
                  assumed these obligations payable to the Commonwealth of
                  Pennsylvania and certain of the assets which the funds were
                  used to acquire.

            (ii)  Commencing in February 1996 through October 1996, e2
                  Electronics, Inc. ("e2 Electronics") sold securities in a
                  private placement consisting of 10% interest bearing
                  subordinated notes and warrants to acquire shares of the e2
                  Electronics' common stock at $4.00 per share. No value was
                  assigned to the warrants. Upon the recapitalization by the
                  Company of e2 Electronics, the subordinated debt became
                  obligations of the Company and the warrants were issued
                  for shares in the Company's common stock. The Company
                  received $1,637,500 in proceeds from the offering before
                  costs related to the offering. Certain note holders
                  converted their debt into the Company's common


                                      F-22
<PAGE>

NOTE  7 -  FINANCING.  (Continued)

                  stock in the amount of $6,200 for 1,550 common shares
                  during 2000. The holders of the notes, aggregating $919,000
                  at March 31, 2000, are due interest aggregating $625,000
                  at March 31, 2000.

            (iii) In December 1997, a subsidiary issued two convertible
                  subordinated notes aggregating $256,000 to a corporate
                  stockholder of the Company. The 10% interest bearing notes,
                  which were due and payable in December 1998, remain
                  outstanding at March 31, 2000. The notes and accrued interest
                  thereon aggregating $59,000 (March 31, 2000) $34,000 (March
                  31, 1999) are collateralized by all of this subsidiary's
                  assets and, at the holder's option, are convertible into the
                  Company's common stock at $3.00 per share. The noteholder also
                  paid $65,000 for warrants to acquire 32,500 shares of the
                  Company's common stock for no additional consideration.

                  The Company is in violation of several covenants of its
            various debt agreements at March 31, 2000 and 1999. Under the terms
            of the debt agreements, the covenant violations accelerate principal
            repayment and the entire amounts outstanding are due and payable
            immediately. Some of the debt holders had commenced actions against
            the Company seeking payment. The actions were resolved by the
            Company agreeing to make installment payments to the creditors.


NOTE  8 -  ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES.

                  Accrued expenses and other current liabilities are comprised
            of the following:

<TABLE>
<S>                                             <C>
Payroll and commissions                         $  413,000
Vacation pay                                       122,000
Payroll taxes and fringe benefits                   95,000
Professional fees                                  177,000
Interest                                           690,000
Warranty reserve                                    35,000
Other                                              126,000
                                                ----------

                                                $1,658,000
                                                ==========
</TABLE>


                                      F-23
<PAGE>

NOTE  9 -  INCOME TAXES.

                    The components of the provision (benefit) for income taxes
            are as follows:

<TABLE>
<CAPTION>
                                            For the Years Ended
                                                  March 31,
                                             2000         1999
                                           --------     --------
<S>                                        <C>          <C>
               Currently payable:
                 Federal                   $   --       $   --
                 State and local             10,000        8,000
                                           --------     --------
                                           $ 10,000     $  8,000

               Deferred:
                 Federal                   $   --       $   --
                 State and local            (10,000)      (8,000)
                                           --------     --------
                                           ($10,000)    ($ 8,000)

               Total provision             $   --       $   --
                                           ========     ========
</TABLE>

                    The deferred tax benefit results from differences in
            recognition of expenses for tax and financial statement purposes and
            for minimum tax provision of the various state and local taxing
            authorities where the Company and its subsidiaries are subject to
            tax. The Company has deferred tax assets consisting of the following
            temporary differences:

<TABLE>
<CAPTION>
                                                            MARCH 31,
                                                  ----------------------------
                                                      2000            1999
                                                  ------------    ------------
<S>                                               <C>             <C>
               Net operating loss carryforward    $  8,993,000    $  6,809,000
               Inventory obsolescence allowance        614,000       1,751,000
               Allowance for doubtful accounts         299,000         294,000
               Intangible assets                       963,000       1,017,000
               Other                                    47,000          47,000
                                                  ------------    ------------
                                                    10,916,000       9,918,000

               Less:  Valuation allowance          (10,916,000)     (9,918,000)
                                                  ------------    ------------

               Net deferred tax asset             $       --      $       --
                                                  ============    ============
</TABLE>

                    In light of the continuing losses incurred by the Company
            since its inception, management estimates that it is more likely
            than not that the benefits from the deferred tax assets will not be
            realized and, accordingly, the entire tax asset has been fully
            reserved.


                                      F-24
<PAGE>

NOTE  9 -  INCOME TAXES.  (Continued)

                    The difference between income taxes computed using the
            statutory federal income tax rate and the rate shown in the
            financial statements are summarized as follows:

<TABLE>
<CAPTION>
                                                FOR THE YEARS ENDED MARCH 31,
                                ----------------------------------------------------------
                                    2000            %             1999             %
                                -----------    ------------    -----------    ------------

<S>                             <C>                  <C>      <C>                  <C>
Loss before income taxes        ($5,076,000)                  ($15,548,000)
                                ===========                    ===========

Computed tax benefit
  at statutory rate             ($1,777,000)          (35.0)   ($5,442,000)          (35.0)

Non-deductible portion
  of compensatory element of
  common stock issuances:
    Research and development           --              --             --              --
    Compensation for services          --              --          102,000              .6
  Goodwill                             --              --          105,000              .7
  Finance charges                    31,000             0.6         10,000             0.1
  Interest on convertible debt      280,000             5.5      3,691,000            23.7

Other                                 5,000             0.1         16,000             0.1

Reserve for operating loss
  carryforward tax asset          1,461,000            28.8      1,518,000             9.8
                                -----------    ------------    -----------    ------------

Income tax benefit              $      --              --      $      --              --
                                ===========    ============    ===========    ============
</TABLE>

                    The net operating loss carryforwards at March 31, 2000
            expire as follows:

<TABLE>
<S>                      <C>              <C>
                         2010             $   905,000
                         2011               1,959,000
                         2012               1,676,000
                         2013               7,444,000
                         2014               6,164,000
                         2015               7,546,000
                                          -----------

                                          $25,694,000
                                          ===========
</TABLE>

                    The Tax Reform Act of 1986 enacted a complex set of rules
            limiting the utilization of net operating loss carryforwards to
            offset future taxable income following a corporate ownership change.
            Among other things, the Company's ability to utilize its operating
            loss carryforwards is limited following a change in ownership in
            excess of fifty percentage points in any three-year period.
            Additionally, the net operating loss will be reduced to the extent
            of the amount of indebtedness extinguished, if


                                      F-25
<PAGE>

NOTE  9 -  INCOME TAXES.  (Continued)

            any, under the bankruptcy liquidation proceedings of one of the
            Company's subsidiaries. The effects, if any, of the potential
            bankruptcy proceeding's debt extinguishment and the change in
            ownership are not reflected in the foregoing tables.


NOTE 10 - CAPITAL.

            (a)   Redeemable Common Stock:

                    As part of the purchase agreement for the acquisition of
            the net assets of Charter Technologies, Inc., certain creditors of
            Charter were holders of redeemable common stock of the Company,
            valued at $419,000. In 1998 the Company settled with these creditors
            for $141,000 in cash, warrants to acquire 303,043 shares of the
            Company's common stock for no consideration (all of which are
            outstanding at December 31, 1999), and warrants to acquire 95,000
            shares of the Company's common stock at $3.00 per share (all of
            which are outstanding at December 31,1999) as full payment for the
            Company's redeemable common stock.


            (b)   Common Stock:

                    In March 5, 1998, an individual acquired 333,333 shares of
            the Company's common stock for cash of $3.00 per share. In April
            1998, this individual purchased additional shares and warrants to
            acquire the Company's common stock for $6,000,000 in cash before
            offering costs. Of the 2,163,334 common shares acquired in April
            1998, 163,333 are to be issued to a consultant for his advisory
            services in connection with the sale of the securities. The
            purchaser also received warrants to acquire an additional 100,000
            common shares at $3.00 per share. In November 1998, the Company gave
            this individual additional rights to avoid dilution of his ownership
            of the issued and outstanding or issuable shares of the Company's
            common stock. This individual had loaned the Company $6,725,000 at
            March 31, 2000 (see Note 7). This person has the option to convert
            the debt outstanding at March 31, 2000 into approximately 27,432,000
            shares of the Company's common stock.

                    In April 1998, the Company issued 100,000 shares of its
            common stock whose fair market value at date of issuance was
            $300,000, or $3.00 per share, as partial consideration for the
            purchase of Communication Service Company.

                    During fiscal 1999, the Company's Board of Directors
            authorized the issuance of 97,200 shares of its common stock having
            a


                                      F-26
<PAGE>

NOTE 10 -  CAPITAL.  (Continued)

            fair market value at the time of issuance of $291,600, or $3.00 per
            share, to employees of the Company as bonuses for services rendered.

                    In fiscal 1999, the Company issued 16,800 of its common
            shares having a fair market value of $50,400, or $3.00 per share, as
            settlement of a lawsuit.

                    Pursuant to the convertible notes conversion option, certain
            holders of the Company's subordinated convertible debentures (See
            Note 7) converted their outstanding loans and accrued interest into
            105,950 shares (during fiscal 1999) and 1,550 shares (during fiscal
            2000) of the Company's common stock.

            (c)   Warrants:

                    In fiscal 1997, warrants to acquire 1,350,000 shares of the
            Company's common stock were issued to Inverness Corporation and
            Menotomy Funding, LLC in connection with a loan agreement. The
            exercisability and validity of these warrants are currently being
            challenged by the Company. Inverness Corporation and Menotomy
            Funding, LLC have initiated an action against the Company and others
            (See Note 11).

                    In fiscal 1997, 1998 and 1999, the Company sold 7,300,000
            warrants at $1.00 each and 788,434 at $3.00 each aggregating
            $9,665,000 prior to related offering costs. Each warrant allowed the
            holder to convert the warrant into a like number of the Company's
            common shares for no additional consideration. Through March
            31,2000, 7,976,434 warrants have been converted into a like number
            of the Company's common shares.

                    In fiscal 1996 and 1997, the Company raised $1,638,000
            before offering costs through private placements of its convertible
            notes of $1,638,000 and cashless warrants to acquire 409,395 common
            shares at $4.00 per share. Through March 31, 2000, $719,000 of
            convertible debentures and accrued interest have been converted into
            179,700 shares of the Company's common stock.

                    The Company employed the services of placement agents,
            consultants and investment bankers to assist in and to render advise
            with respect to the sale of its common stock and warrants. One of
            the consultants agreed to accept 163,333 shares of the Company's
            common stock as compensation for its services. Although those shares
            have not actually been issued, they are reflected in accompanying
            financial statements as issued and outstanding.


                                      F-27
<PAGE>

NOTE 10 -  CAPITAL.  (Continued)

                    An investment banker was granted, but not issued, for its
            financial services rendered, warrants to acquire (i) 718,000 shares
            of the Company's common stock at $1.00 per share, (ii) 71,000 shares
            of common stock at $3.00 per share and (iii) 405,000 shares of the
            Company's common stock for no additional consideration. Through
            March 31, 2000 warrants to acquire 44,000 common shares for no
            consideration were the only warrants issued as well as exercised.
            The remaining warrants for 1,150,000 common shares remain
            outstanding at March 31, 1999 and March 31, 2000. The financial
            statements reflect the common shares underlying the warrants for
            405,000 shares at no additional consideration as issued and
            outstanding at the beginning of all periods presented. Current
            management is presently in negotiations with this investment banker
            to reduce, eliminate, cancel or change the terms, number, and
            exercise prices of the outstanding warrants. The exact number of
            warrants or common shares that will be issued to this investment
            banker, if any, is not presently determinable.


NOTE 11 -  COMMITMENTS AND CONTINGENCIES.

            (a)   Leases:

                    As of March 31, 20000, the Company was a lessee under an
            operating real property lease for its manufacturing, warehouse and
            office facility in Hudson, N.H. The Company was delinquent in
            remitting its rental payments. The landlord commenced an action in
            1999 in state court to evict the Company. The court found for the
            landlord. Subsequent to the landlord receiving its judgement,
            negotiations between the parties have resulted in the Company's
            being allowed to remain in the premises essentially on a month to
            month bases until April 2000, at which time the Company moved to its
            new leased facilities in Amherst, N.H. The new lease is for five
            years expiring in April 2005. The Company also leases office
            facilities on a month to month basis in Erie, PA and Leesburg, VA
            whose aggregate monthly rentals are $1,600. The Erie, PA site was
            vacated in May 2000.


                                      F-28
<PAGE>

NOTE 11 -  COMMITMENTS AND CONTINGENCIES.  (Continued)

                    Minimum future rental commitments under the noncancellable
            operating lease at March 31, 2000 are as follows:

<TABLE>
<CAPTION>
                           Year Ending
                            March 31,
                           -----------
<S>                                                   <C>
                               2001                   $147,310
                               2002                    168,065
                               2003                    176,100
                               2004                    184,135
                               2005                    192,170
                            Thereafter                  16,070
                                                      --------

                       Total minimum future
                         rental payments              $883,850
                                                      ========
</TABLE>

            (b)   Year 2000:

                    The Company recognized the need to insure its operations
            will not be adversary affected by year 2000 software failures. The
            Company communicated with its suppliers, customers and others with
            which it does business to coordinate year 2000 conversion. The costs
            of achieving compliance were immaterial. Management believes that
            its software is presently compliant and the Company has not
            experienced any problems associated with year 2000 issues.

            (c)   Litigation:

                  (i)   A subsidiary of the power manufacturing segment is one
                        of several defendants in an action for personal injuries
                        sustained by an individual. The plaintiff's alleged
                        injuries were allegedly incurred as a result of the
                        negligence of a contractor employed by the subsidiary to
                        install a power system at the plaintiff's workplace. The
                        plaintiff and his spouse are seeking damages of
                        $14,000,000. The Company's insurance carrier has
                        appointed counsel to represent the subsidiary and such
                        counsel as well as management is unable to render an
                        opinion on the ultimate outcome of the lawsuit.

                  (ii)  The Company, e2 Electronics, two former officers, a
                        stockholder of the Company, the Company's investment
                        bankers and its general corporate counsel as well as
                        other parties are named


                                      F-29
<PAGE>

NOTE 11 -  COMMITMENTS AND CONTINGENCIES.  (Continued)

                        defendants in a lawsuit filed in Middlesex Superior
                        Court in Cambridge, Mass. in June 1997 by Inverness
                        Corporation and Menotomy Funding, LLC. The plaintiffs
                        allege breach of contract and a variety of other causes
                        of action relating to the alleged failure of the Company
                        to honor certain stock warrants. In late 1996 a
                        defendant, EAC Acquisition I Corporation ("EAC"), was
                        formed by the Company's investment bankers for the sole
                        purpose of acquiring assets of a troubled corporation
                        located in Billerica, Mass. The parties intended that
                        EAC, whose President was a former officer of the Company
                        would acquire the assets of the business and then manage
                        its operations in an effort to make it a viable concern.
                        As part of the transaction, plaintiffs sold the entire
                        assets to EAC for a short-term note aggregating
                        $1,640,442.

                        During the negotiation of the loan agreement, the
                        plaintiffs represented that they would provide working
                        capital of $300,000 pursuant to the revolving line of
                        credit of $1,780,000 referenced in the loan agreement.
                        As part of the consideration for the transaction, the
                        Company issued a warrant to purchase 750,000 shares of
                        warrant stock in a publicly traded company (CROA) that
                        would be the survivor of a merger with the Company.
                        The Company was never a party to the loan transaction
                        and did not guarantee the debt of EAC.

                        The parties anticipated that the short-term note would
                        be paid through the infusion of new capital from third
                        party investors. However, after several loan
                        forbearances for which the Company issued additional
                        warrants, neither the working capital from the
                        plaintiffs nor any new capital from investors was
                        forthcoming. By May 1997, the plaintiffs foreclosed on
                        their security interest in EAC's assets, thereby forcing
                        EAC to cease operations.

                        Plaintiffs filed suit to obtain money damages in the
                        amount of $7,650,000 for the alleged failure to honor
                        the warrants issued by the Company in connection with
                        the transaction. It is the Company's position that the
                        conditions precedent to the exercise of the warrants
                        never occurred. The Company and EAC have counterclaimed
                        against the Plaintiffs for common law fraud, breach of
                        contract and related claims. The Company and EAC allege
                        they were fraudulently induced into entering into


                                      F-30
<PAGE>

NOTE 11 -  COMMITMENTS AND CONTINGENCIES.  (Continued)

                        the loan transaction and issuing the warrants in
                        exchange for a non-existent operating line of credit
                        based upon false representations by plaintiffs that it
                        had the liquidity and ability to fund the line of
                        credit. The case is presently in the discovery phase and
                        trial is not expected before the latter part of the year
                        2000. Management is unable to determine the ultimate
                        resolution of this action and what effect, if any, the
                        resolution would have on the Company's financial
                        condition.

                  (iii) The Company and/or its subsidiaries are named defendants
                        or co-defendants in numerous actions with its subsidiary
                        in bankruptcy, e2 Electronics. These cases, in the
                        opinion of counsel, will be resolved through the
                        bankruptcy proceedings. The ultimate aggregate
                        resolutions of the lawsuits, in management's opinion,
                        will not have a material adverse effect on the Company's
                        financial condition.

                        The results of legal proceeding cannot be predicted with
                        certainty; however, in the opinion of management, the
                        Company does not have a potential liability related to
                        any legal proceedings and claims that would have a
                        material adverse effect on its financial condition or
                        results of operations.


                                      F-31
<PAGE>

NOTE 12 -  SEGMENT INFORMATION.

                    The Company's operations are comprised of its lighting
            manufacturing and power system equipment manufacturing segments. Set
            forth below are sales, operating losses, research and development
            costs, depreciation and identifiable assets of the segments in
            thousands.

                                                          Power         Total
                                          Lighting       Systems       Company
                                          --------       -------       -------

For the year ended March 31, 2000:
  Net sales                                 $  35         $7,389        $7,424
  Net loss                                    745          2,415         3,160
  Depreciation                                 -             136           136
  Research and development                    516            300           816
  Identifiable assets                          84          3,138         3,222

For the year ended March 31, 1999:
  Net sales                                    -           7,218         7,218
  Net loss                                  4,303         11,245        15,548
  Depreciation                                 -              51            51
  Research and development                  1,114            293         1,407
  Identifiable assets                          -           4,318         4,318




                                      F-32
<PAGE>

ITEM 8.  CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS

         During the fiscal years ended March 31, 1999, 1998, and 1997 there were
no disagreements with Weinick Sanders Leventhal & Co., LLP and during the years
ended March 31, 1996 and 1995 there were no disagreements with Grant Thornton on
any matter of accounting principles or practices, financial statement
disclosure, or auditing scope or procedure, which if not resolved to the
satisfaction of the firm, would have caused them to make reference to the
subject matter of such disagreements in their reports on such financial
statements. On July 28, 1998 the Company's previous independent auditors, Grant
Thornton LLP, tendered a letter of resignation to the Company. At July 28, 1998
Grant Thornton had not served as the Company's independent auditors for two
years. In September 1998 the Company's Board of Directors selected Weinick
Sanders Leventhal & Co., LLP as its independent auditors.

                                    PART III
                                    --------

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

The directors and executive officers of the Company are as follows:

<TABLE>
<CAPTION>
                                                                                                DATE
                                                                                TERM OF      DIRECTORSHIP
         NAME                        POSITION                          AGE     DIRECTORSHIP  COMMENCED
         ----                        --------                          ---     ------------  ------------
<S>                                <C>                                <C>     <C>            <C>
         Primo Ianieri               Director (Chairman)
                                     & Secretary                        65         (1)       April 1994

         Peter Bordes, Jr.           Director                           37         (1)       July 1995

         Jonathan Scott Harris       President and Chief                43
                                     Executive Officer

         Michael J. Smith            Director, Chief Financial
                                     Officer and Executive Vice         40         (1)       July 1999
                                     President

         Robert Smallwood            Director                           57         (1)       December 1997

----------------------------------------------------------------------------------------------------------
</TABLE>


All members of the Board of Directors serve for a one (1) year term or until
their successors shall have been appointed.

         Set forth below is a brief background of the executive officers and
directors of the Company, based on information supplied by them.

PRIMO IANIERI, 65, co-founded the Company in April 1994. He is the founder and
sole owner of Key International, Inc., and the Chairman of the Boards of
Directors of both the Company and Key International, Inc. He is a graduate of
Lehigh University where he received a Bachelor of Science degree in engineering
and business. He received a Masters Degree in Marketing from Farleigh Dickinson
University. In 1968, Mr. Ianieri and a partner formed Key International, Inc. to
fulfill a


                                       20


<PAGE>


need in the pharmaceutical and food industries whereby process equipment could
be offered on a short cycle time in order for these companies to enter the
market on an accelerated basis.

PETER BORDES, JR., 37, became a director of the Company in 1995. In 1995, Mr.
Bordes became Principal of Mason Cabot, LLC, an investment banking and research
boutique. From November, 1994 through December 1995, Mr. Bordes was employed at
Stires and O'Donnell, Inc. Mr. Bordes also serves as a director of other
publicly held companies.

JONATHAN SCOTT HARRIS, 43, became President and Chief Executive Officer of the
Company in February 2000. Mr. Harris has extensive management and supervisory
experience in the technology sector, including oversight of marketing and sales
divisions and cost and inventory control programs. Mr. Harris is a graduate of
the Air Force Academy where he received a Bachelor of Science degree in
Electrical Engineering. Mr. Harris also holds a Masters in Business
Administration from Purdue University. Previously, Mr. Harris served as Director
of Operations for Bell Atlantic and as Vice President of Operations for Mastec,
a telecommunications and utility contractor.

MICHAEL J. SMITH, 40, became a director of the Company in March 1999, and Chief
Financial Officer and Executive Vice President in February 2000. From January
25, 2000 to February 21, 2000, Mr. Smith served as President, Interim Chief
Executive Officer and Interim Chief Financial Officer. Mr. Smith has over
fourteen years of experience in the securities industry specializing in finance
for middle market and emerging growth companies. Previously, Mr. Smith served as
an investment banker for Brill Securities, a New York investment firm, as
President of Stanhope Capital, Inc., a New York venture capital firm, and as
Managing Director of Condor Ventures, Inc. a Connecticut based venture capital
firm. In addition, Mr. Smith has served as an outside business consultant to
numerous private emerging growth companies.

ROBERT C. SMALLWOOD, 57, joined Elgin as Director of Research and Development in
December 1997 when the Company acquired his company, Logic Laboratories. Mr.
Smallwood was President of Logic Laboratories and is the inventor of the Master
Lite Ballast System-TM-. He holds a number of patents and is well known
throughout the ballast industry. A computer programmer and specialist since the
late 1960's, Mr. Smallwood has been an international entrepreneur and inventor.
He has founded, developed and sold businesses on both U.S. coasts. In the early
1980's, he was a prime mover in the original electronic ballast development and
has close associations in international manufacturing as a result.


                                       21
<PAGE>


ITEM 10. EXECUTIVE COMPENSATION

         The following table sets forth certain summary information with respect
to the compensation paid to the Company's President and Chief Executive Officer
and top compensated officers of the Company for services rendered in all
capacities to the Company for the fiscal years ended March 31, 1998, 1999 and
2000:

Summary Compensation Table:

<TABLE>
<CAPTION>
                                                    FISCAL                                                   ALL OTHER
    NAME AND                                      YEAR ENDED     SALARY            BONUS                   COMPENSATION
    PRINCIPAL POSITION                             MARCH 31,       ($)                ($)         OPTIONS        ($)
    ------------------                           -----------   ----------        ----------      -------    -----------
<S>                                             <C>            <C>              <C>             <C>        <C>
         Scott Harris(1).................           2000       $  15,577         None            None         None
              President & Chief Executive
               Officer

         William Mosconi(2)..............           2000         126,346         None            None         None
                                                    1999         180,000         None            None         None
              Chief Executive Officer,              1998         141,923(3)      None            None         None
              President & Chief Financial
              Officer

         Robert Smallwood.............              2000         115,384         None            None         None
                                                    1999         119,581         None            None         None
              Director                              1998          20,769         None            None         None

         Gerard Mosconi(4)...........               2000          87,692         None            None         None
                                                    1999         120,000         None            None         None
              Vice President of                     1998          94,154         None            None         None
              Operations, Warren Power
              Systems, Inc.
</TABLE>


----------------
         The Company had no other executive officers whose total annual salary
and bonus exceeded $100,000 for such fiscal years.


(1) Mr. Harris commenced employment with the Company on February 21, 2000.
    Pursuant to that certain employment contract between the Company and
    Mr. Harris, Mr. Harris is to receive an annual base salary of $150,000 to
    be augmented by certain bonus provisions.  In addition, Mr. Harris will be
    granted 200,000 options to purchase shares of Common Stock on or about
    March 5, 2001 and on each anniversary thereafter. The options will vest
    incrementally over a three year period subsequent to the date of each
    grant.  For the full text of the contract, please see the Company's
    Form 10-SB filed March 9, 2000.
(2) Mr. William Mosconi resigned as of January 2000.
(3) Pursuant to his resignation agreement, Mr. Mosconi released the Company from
    $128,077 of accrued but unpaid salary for the years 1997 and 1998.
(4) The Company terminated Gerard Mosconi's employment as of November 1, 1999.


                                       22
<PAGE>

ITEM 11.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

(a)   Security ownership of certain beneficial owners and management.

      The following table sets forth as of March 31, 2000; information
concerning the names, addresses, amount and nature of beneficial ownership and
percent of such ownership with respect to (1) each person, or group known to the
Company to be the beneficial owner of more than five percent (5%) of the
Company's Common Stock; (2) each officer and director of the Company; and (3)
all officers and directors of the Company as a group.

      Two companies affiliated with each other claim to hold warrants to
purchase 1,350,000 shares of the Company's Common Stock at an exercise price of
$2.01 per share. The Company disputes the validity of the warrants and is
litigating the matter. (see Legal Proceedings herein below and Note 11 to
Financial Statements)

<TABLE>
<CAPTION>
                                     Amount and
                                     Nature of
                                     Beneficial
Name and Address                     Ownership              Percent of Class
----------------                     ----------             ----------------
<S>                                <C>                    <C>
Peter Bordes, Jr..................   2,250,000                   12.8%
140 West 79 Street
Apartment 4B
New York, NY  10004

Jonathan Scott Harris.............           0(1)                   *
c/o Elgin Technologies, Inc.
12 Executive Drive
Hudson, NH 03051

Primo Ianieri.....................   3,315,685(2)(3)             18.6%(4)
c/o Key International, Inc.
480 Route 9
Englishtown, NJ  07726

Robert C. Smallwood................  1,406,695                    8.0%
751 Miller Drive, S.E.
Leesburg, VA  22075

Michael Smith......................     10,000                       *
c/o Elgin Technologies, Inc.
12 Executive Drive
Hudson, NH 03051

All Officers and Directors
 as a Group (5 persons)............  6,982,380(2)                39.1%(4)
</TABLE>


                                       23

<PAGE>

<TABLE>
<S>                                <C>                         <C>
Horace T. Ardinger, Jr............. 31,349,151(2)(5)             68.4%(6)
9040 Governor's Row
Dallas, TX 75356
</TABLE>

-------------------
* Less than 1%

(1)  Pursuant to the terms of Mr. Harris' employment agreement, Mr. Harris will
be granted 200,000 options to purchase shares of Common Stock on or about March
5, 2001 and on each anniversary thereafter. The options will vest incrementally
over a three year period subsequent to the date of each grant.

(2)  In accordance with the rules of the Securities and Exchange Commission,
amount includes shares of common stock issuable upon the exercise of warrants
and/or other convertible securities currently exercisable, or exercisable or
convertible within sixty (60) days.

(3)  Includes warrants to purchase 225,000 shares of the Company's Common Stock
for nominal consideration which were granted to Mr. Ianieri in connection with
the conversion of $108,000 of debt owed to him by the Company for loans and
services by him to the Company.
     Includes 95,586 shares owned by Mr. Ianieri's children.
     Includes 299,510 shares Mr. Ianieri holds in nominee for William Mosconi.

(4)  Percentage is based on 17,816,601 shares of Common Stock which would
be the total number of shares outstanding upon the conversion by Mr.
Ianieri of certain warrants.  Mr. Ianieri's present ownership of Common
Stock issued and outstanding is 3,090,685 shares or 17.6%.

(5)  Includes 250,000 shares owned by Mr. Ardinger's wife.
     Includes a Secured Note Payable (as amended) (the "Note") issued by the
Company, which as of March 31, 2000 totaled $6,725,000. $4,225,000 of the Note
is convertible at any time at the equivalent price of $0.55 per share for a
total of 7,681,818 shares; $1,050,000 of the Note is convertible at any time at
the equivalent price of $0.20 per share for a total of 5,250,000 shares and
$1,450,000 of the Note is convertible at the equivalent price of $0.10 per share
for a total of 14,500,000 shares.

     In connection with loans he has made to the Company, Mr. Ardinger holds
534,000 warrants to purchase shares of the Company's Common Stock at $0.55 per
share and 300,000 warrants to purchase shares of the Company's Common Stock at
an exercise price of $3.00 per share.

(6)  Percentage is based on 45,857,419 shares of Common Stock which would be the
total number of shares outstanding upon the conversion by Mr. Ardinger of
certain warrants, as well as the full conversion of that certain Secured Note
Payable. Mr. Ardinger's present ownership of Common Stock issued and outstanding
is 3,083,333 shares or 17.5%.


(b)   Changes in Control.

      NONE


                                       24

<PAGE>

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED PARTIES

(a)      RELATED TRANSACTIONS

         As discussed under Part I, Items 2 and 4, and Part II, Item 4, Horace
T. Ardinger is currently the chief source of operating capital for the Company.
He has invested in the Company through a number of loans and stock purchases. In
connection with these loans and investments, the Company has entered into the
Ardinger Credit Documents pursuant to which Mr. Ardinger has, as of March 31,
2000, the ability to convert the principal sum of Seven Million Seven Hundred
Twenty Five Thousand Dollars ($7,725,000) in debt into equity, which would
result in his beneficial ownership of 68.4% of the outstanding shares of the
Company's common stock. As discussed elsewhere in this Form 10-KSB, Mr. Ardinger
holds security interests in substantially all the assets of the Company.  Mr.
Ardinger also has the right to have himself or his designee elected to one (1)
seat on the Board of Directors of the Company.

         Peter Bordes, Jr., a director of the Company, is a principal in Mason
Cabot Holdings, Ltd., an investment banking firm which has arranged a series of
private placements of subordinated debt through convertible notes and cashless
warrants by the Company which raised a total of Eleven Million, Two Hundred
Three Thousand Dollars ($11,203,000). The Company is currently negotiating with
Mason Cabot Holdings, Ltd. with respect to the amount and kind of compensation
which may be payable to that firm as a result of those activities.

         The Company presently owes $106,000 to Key International, Inc. in
connection with loans and services rendered to the Company. Primo Ianieri, the
Chairman of the Board of Directors of the Company, is President and Chief
Executive Officer of Key International, Inc.

(b)      FAMILY RELATIONSHIPS

         William Mosconi, who until January 2000 was the President and Chief
executive of the Company, is the son-in-law of Primo Ianieri, the Chairman of
the Board of Directors of the Company. William Mosconi is the brother of Gerard
Mosconi who until January 2000 held the position of Vice President of Operations
and General Manager of a subsidiary of the Company.


                                       25
<PAGE>


                                     PART IV
                                     -------

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

         (a) Items Filed as Part of Report:

                  1.  Financial Statements

                  The financial statements of the Company as set forth in the
                  Index to Consolidated Financial Statements under Part II, Item
                  8 of this Form 10-KSB are hereby incorporated by reference.

                  2.  Financial Statement Schedule

                  The financial statement schedule of the Company as set forth
                  in the Index to Consolidated Financial Statements under Part
                  II, Item 8 of this Form 10-KSB is hereby incorporated by
                  reference.

                  3.  Exhibits

                  The exhibits listed under Item 14(c) are filed as part of this
                  Form 10-KSB.

         (b) Reports on Form 8-K

                  NONE

         (c) Exhibits





             EXHIBIT
             NUMBER  NOTES*   DESCRIPTION


              3.1    10-SB    Articles of Incorporation and amendments
                              thereto

              3.2    10-SB    By-Laws

              9.1    10-SB    Stockholders Agreement dated as of October
                              10, 1997 by and among Primo Ianieri, Richard
                              L. Audet, Dianne Toner, Michael Ianieri,
                              Deborah Antipin and Valerie Ianieri.

              9.2    10-SB    Voting Agreement dated as of April 1, 1998
                              by and among Elgin e2, Inc., Mason Cabot
                              Holdings, Inc., Horace T. Ardinger, Jr.,
                              Primo Ianieri, Peter Bordes and their
                              spouses.

              10.1   10-SB    Assumption, Payment Agreement and Amended
                              and




                                 26
<PAGE>

                              Restated Royalty Agreement dated as of
                              January 25, 1996 by and between Robert C.
                              Smallwood and American Compact Lighting,
                              L.L.C.

              10.2   10-SB    Amendment to Royalty Agreement executed by
                              Robert C. Smallwood on April 1, 1998 by and
                              between Robert C. Smallwood and American
                              Compact Lighting, L.L.C.

              10.3   10-SB    Employment Agreement dated as of December 1,
                              1997 by and between Robert Smallwood and
                              Logic Laboratories, Inc.

              10.4   10-SB    License Agreement dated as of April 1, 1998
                              by and between Horace T. Ardinger, Jr.
                              ("Licensee"), Logic Laboratories, Inc. and
                              Elgin e2, Inc.

              10.5   10-SB    Employment Agreement dated as of April 1,
                              1998 by and between Lewis Kunigel and Warren
                              Power Systems, Inc. (terminated for cause by
                              the Company on February 28, 2000).

              10.6   10-SB    Secured Revolving Credit Agreement dated as
                              of November 13, 1998 by and between Elgin
                              Technologies, Inc. and Horace T. Ardinger,
                              Jr.

              10.7   10-SB    Convertible Revolving Promissory Note dated
                              as of November 13, 1998, made by Elgin
                              Technologies, Inc. in favor of Horace T.
                              Ardinger, Jr.

              10.8   10-SB    Amendment, dated as of December 31, 1999, to
                              Convertible Revolving Promissory Note by
                              Elgin Technologies, Inc. and in favor of
                              Horace T. Ardinger, Jr.

              10.9   10-SB    Agreement dated as of January 25, 2000 by
                              and between William Mosconi and Elgin
                              Technologies, Inc., e2 Electronics, Inc.,
                              Logic Laboratories, Inc., Warren Power
                              Systems, Inc., and William Mosconi,
                              concerning the resignation of William
                              Mosconi.

              10.10  10-SB    Employment Agreement dated as of February
                              21, 2000 by and between Jonathan Scott
                              Harris and Elgin Technologies, Inc.

              21              List of Subsidiaries of the Registrant.

              27              Financial Data Schedule.

*SEE Form 10SB12G filed with the Securities and Exchange Commission
March 9, 2000.




                                 27
<PAGE>


                                   SIGNATURES

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

ELGIN TECHNOLOGIES, INC.
    (Registrant)


Date: July 3, 2001


By:   /s/ MICHAEL J. SMITH
      --------------------
       Name:  MICHAEL J. SMITH
       Title:  EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER

                                       28