Document:

ELECTRONIC SENSOR TECHNOLOGY, L .P.

                                      INDEX
                                                               Page Number
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM           F - 2

CONSOLIDATED FINANCIAL STATEMENTS:

       Balance Sheet                                              F - 3

       Statements of Operations                                   F - 4

       Statements of Changes in Partners' Deficit                 F - 5

       Statements of Cash Flows                                   F - 6

       Notes to Financial Statements                            F-7 - F-12

<PAGE>

             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders
Electronic Sensor Technology, L.P.

      We have audited the accompanying balance sheet of Electronic Sensor
Technology, L.P. as of December 31, 2004 and the related consolidated statements
of operations, partners' deficit and cash flows for the years ended December 31,
2004 and 2003. 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 audit.

      We conducted our audit in accordance with the standards of the Public
Company Accounting Oversight Board (United States). 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 amounts 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
audit provides a reasonable basis for our opinion.

      In our opinion, the financial statements referred to above present fairly,
the consolidated financial position of Electronic Sensor Technology, L.P., as of
December 31, 2004 and the consolidated results of its operations and its cash
flows for the years ended December 31, 2004 and 2003 in conformity with
accounting principles generally accepted in the United States of America.

                                               /s/  Sherb & Co., LLP
                                               ---------------------------------
                                                    Sherb & Co., LLP
                                                    Certified Public Accountants

New York, New York
March 31, 2005

                                       F-2

<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, L.P.

                                  BALANCE SHEET

                                DECEMBER 31, 2004

                                     ASSETS

CURRENT ASSETS:
    Cash and cash equivalents                                       $    26,205
    Accounts receivable, net of allowance for
      doubtful  accounts of $28,923                                      30,687
    Prepaid expenses                                                     14,257
    Inventories                                                         480,648
                                                                    -----------
        TOTAL CURRENT ASSETS                                            551,797

PROPERTY AND EQUIPMENT                                                   51,199

SECURITY DEPOSITS                                                        12,957
                                                                    -----------

                                                                    $   615,953
                                                                    ===========

                        LIABILITIES AND PARTNERS' DEFICIT

CURRENT LIABILITIES:
    Line of credit                                                  $ 1,969,137
    Accounts payable and accrued expenses                               212,802
    Notes payable - related parties                                   1,272,000
    Due to related party                                                 60,000
    Partners' loans payable                                           1,308,630
    Interest payable                                                    333,455
    Accrued compensation due to partners                                934,957
    Other current liabilities                                            35,665
                                                                    -----------
        TOTAL CURRENT LIABILITIES                                     6,126,646

PARTNERS' DEFICIT                                                    (5,510,693)
                                                                    -----------

                                                                    $   615,953
                                                                    ===========

                       See notes to financial statements

                                      F-3
<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, L.P.

                            STATEMENTS OF OPERATIONS

                                                            Year Ended
                                                            December 31,
                                                     --------------------------
                                                         2004           2003
                                                     -----------    -----------

REVENUES                                             $ 1,268,416    $ 1,242,296

COST OF SALES                                          1,039,280      1,143,350
                                                     -----------    -----------

       GROSS PROFIT                                      229,136         98,946
                                                     -----------    -----------

OPERATING EXPENSES:
   Compensation                                           81,734         80,601
   Selling                                               161,546        114,124
   General and administrative                            282,305        219,646
                                                     -----------    -----------
             TOTAL OPERATING EXPENSES                    525,585        414,371
                                                     -----------    -----------

LOSS FROM OPERATIONS                                    (296,449)      (315,425)
                                                     -----------    -----------

OTHER INCOME AND EXPENSE:
   Other income                                           57,076            264
   Gain (loss) on sale of property and equipment          (7,710)         1,182
   Interest expense                                     (164,133)       (80,418)
                                                     -----------    -----------
             TOTAL OTHER INCOME AND EXPENSE             (114,767)       (78,972)
                                                     -----------    -----------

NET LOSS                                             $  (411,216)   $  (394,397)
                                                     ===========    ===========

                       See notes to financial statements

                                      F-4
<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, L.P.

                    STATEMENT OF CHANGES IN PARTNERS' DEFICIT

BALANCE - December 31, 2002                                         $(4,968,854)

      Net loss                                                         (394,397)
                                                                    -----------

BALANCE - December 31, 2003                                          (5,363,251)

      Sale of Partnership interest  - Class C                           200,000
      Net loss                                                         (411,216)
      Note Payable related party - interest waived                       63,774
                                                                    -----------

BALANCE - December 31, 2004                                         $(5,510,693)
                                                                    ===========

                 See notes to consolidated financial statements.

                                      F-5
<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, L.P.

                            STATEMENTS OF CASH FLOWS

                                                                Year Ended
                                                               December 31,
                                                         ----------------------
                                                            2004         2003
                                                         ---------    ---------

CASH FLOWS FROM OPERATING ACTIVITIES:
  Net loss                                               $(411,216)   $(394,397)
  Adjustments to reconcile net loss to net
    cash used in operating activities:
       Depreciation and amortization                        11,223       10,467
       Note payable related party - interest waived         63,774           --
  Changes in assets and liabilities:
    Accounts receivable                                    363,042     (320,678)
    Inventories                                            (87,544)       6,768
    Prepaid expenses                                         2,312        2,040
    Due to related party                                   (40,910)     125,000
    Accounts payable and accrued expenses                  (66,120)      96,029
    Interest payable                                         4,364       31,048
    Other current liabilities                               (6,773)      (9,216)
                                                         ---------    ---------

NET CASH USED IN OPERATING ACTIVITIES                     (167,848)    (452,939)
                                                         ---------    ---------

CASH FLOWS FROM INVESTING ACTIVITIES:
    Purchase of property and equipment                     (35,113)     (51,233)
    Proceeds from the sale of property and equipment        12,198       13,302
                                                         ---------    ---------
  NET CASH USED IN INVESTING ACTIVITIES                    (22,915)     (37,931)
                                                         ---------    ---------

CASH FLOWS FROM FINANCING ACTIVITIES:
    Increase to line of credit                              17,000      644,038
    Proceeds from partners' loans                               --      498,689
    Payment of partners' loans                            (120,000)          --
    Sale of Partnership Interest - Class C                 200,000           --
    Private placement in escrow                                 --     (531,889)
                                                         ---------    ---------
  NET CASH PROVIDED BY FINANCING ACTIVITIES                 97,000      610,838
                                                         ---------    ---------

NET (DECREASE) INCREASE IN CASH                            (93,763)     119,968

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR             119,968           --
                                                         ---------    ---------

CASH AND CASH EQUIVALENTS AT END OF YEAR                 $  26,205    $ 119,968
                                                         =========    =========

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
  Cash paid during the year for:
     Interest                                            $  87,284    $  80,418
                                                         =========    =========

                 See notes to consolidated financial statements.

                                      F-6
<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, L.P.
                          Notes to Financial Statements
                           December 31, 2004 and 2003

(1)   Nature of Business and Summary of Significant Accounting Policies

      (a)   Nature of Business

      Electronic Sensor Technology L.P. (Partnership) is a California limited
      partnership formed on April 1, 1995. The partnership develops and
      manufactures electronic devices used for vapor analysis.

      In November 2004, Electronic Sensor Technology L.P. sold 200,000 class C
      units of Partnership Interest for $200,000. The Purchasers shall be able
      to exchange their Partnership Units into Bluestone Ventures, Inc. (see
      Subsequent Events Footnote for further discussion) common stock and
      warrants such that each Partnership Unit shall be exchanged for one share
      of common stock and a warrant to purchase one share of common stock at
      $1.00 per share for three years. (See Subsequent Events Footnote for
      further discussion).

      The Partnership has authorized 960,000 Class A units and 40,000 Class B
      units, all of which are outstanding as of December 31, 2004. The
      differences between Class A and B units relate to the allocation of
      profits and losses. The allocation of profits is based on each partner's
      respective ownership interest in the Partnership. Allocation of losses,
      credits and deductions is computed in the same manner as the allocation of
      profit except no net loss shall be allocated to any limited partner with a
      negative capital account balance or if such allocation would create a
      negative capital balance. The excess losses will be allocated to the
      general partner, who shall thereafter be entitled to 100% of net income to
      the extent of such prior excess loss allocations.

      The ownership interests of the partners as of December 31, 2004 and 2003
      are as follows:

                                                                2004      2003

           General partner (Class A unit holder)                42.5%      51%
           Limited partners (Class A, B and C unit holders)     57.5%      49%
                                                                --------------
                                                                 100%     100%
                                                                ==============

      (b)   Cash and Cash Equivalents

      The Partnership considers highly liquid financial instruments with
      maturities of three months or less at the time of purchase to be cash
      equivalents. The Company did not have any cash equivalents at December 31,
      2004 and 2003.

      (c)   Revenue Recognition

      The Partnership records revenue from direct sales of products to end-users
      when the products are shipped, collection of the purchase price is
      probable and the Company has no significant further obligations to the
      customer. Costs of remaining insignificant Company obligations, if any,
      are accrued as costs of revenue at the time of revenue recognition. Cash
      payments received in advance of product or service revenue are recorded as
      deferred revenue.

                                      F-7
<PAGE>

      (d)   Concentrations of Credit Risk

      The Partnership had sales to two significant customers constituting 20%
      and 10% of sales in 2004. Additionally, these customers comprised 65% and
      less than 1% of accounts receivable at December 31, 2004. The Partnership
      had sales to one significant customer constituting 15% of sales in 2003.
      This customer comprised 48% of accounts receivable at December 31, 2003.

      (e)   Shipping and Handling

      The Partnership accounts for shipping and handling costs as a component of
      "Cost of Sales".

      (f)   Property and Equipment

      Property and equipment are stated at cost, net of accumulated
      depreciation. Depreciation is computed using the straight-line method over
      the estimated useful lives of five years.

      (g)   Inventories

      Inventories are comprised of raw materials, work in process, and finished
      goods. Inventories are stated at the lower of cost or market and are
      determined using the first-in, first-out method.

      (h)   Income Taxes

      The Partnership is not subject to income taxes as the results of
      operations flows through to the respective individual partner's tax
      returns. Accordingly, no provision for income taxes has been recorded in
      the accompanying financial statements.

      (i)   Use of Estimates

      The preparation of the financial statements in conformity with generally
      accepted accounting principles requires management to make estimates and
      assumptions that affect the reported amounts of assets and liabilities and
      disclosures of contingent assets and liabilities at the date of the
      financial statements and the recorded amounts of revenues and expenses
      during the reporting period. Actual results could differ from those
      estimates.

      (j)   Fair Value of Financial Instruments

      The fair value of certain financial instruments, including accounts
      receivable, accounts payable and accrued liabilities, approximates their
      carrying value due to the short maturity of these instruments.

      (k)   Long-lived Assets

      The Partnership reviews long-lived assets, such as property and equipment,
      to be held and used or disposed of, for impairment whenever events or
      changes in circumstances indicate that the carrying amount of an asset may
      not be recoverable. If the sum of the expected cash flows, undiscounted
      and without interest, is less than the carrying amount of the asset, an
      impairment loss is recognized as the amount by which the carrying amount
      of the asset exceeds its fair value At December 31, 2004 no assets were
      impaired.

                                      F-8
<PAGE>

      (l)   Recent Accounting Pronouncements

      In November 2004, the FASB issued Statement of Financial Accounting
      Standards No. 151, "Inventory Costs - an amendment of ARB No. 43, Chapter
      4". This Statement amends the guidance in ARB No. 43, Chapter 4,
      "Inventory Pricing", to clarify the accounting for abnormal amounts of
      idle facility expense, freight, handling costs, and wasted material
      (spoilage). This Statement requires that those items be recognized as
      current-period charges regardless of whether they meet the criterion of
      "so abnormal". In addition, this Statement requires that allocation of
      fixed production overheads to the costs of conversion be based on the
      normal capacity of the production facilities. The Company does not have
      inventory costs and therefore does not expect to be impacted by SFAS 151
      or be required to make additional disclosures.

      In December 2004, the FASB issued Statement of Financial Accounting
      Standards No. 152, "Accounting for Real Estate Time-Sharing Transactions -
      an amendment of FASB Statements No. 66 and 67". This Statement amends SFAS
      66, "Accounting for Sale of Real Estate", to reference the financial
      accounting and reporting guidance for real-estate time-sharing
      transactions that is provided in AICPA Statement of Position 04-2,
      "Accounting for Real Estate Time-Sharing Transactions". This Statement
      also amends SFAS 67, "Accounting for Costs and Initial Rental Operations
      of Real Estate Projects", to state that the guidance for (a) incidental
      operations and (b) costs incurred to sell real estate projects does not
      apply to real estate time-sharing transactions. The accounting for those
      operations and costs is subject to the guidance in SOP 04-2. The Company
      does not expect to be impacted by the adoption of SFAS 152, which will be
      effective for financial statements for fiscal years beginning after June
      15, 2005.

      In December 2004, the FASB issued Statement of Financial Accounting
      Standards No. 153, "Exchanges of Non monetary Assets - an amendment of APB
      Opinion No. 29". This Statement amends Opinion 29 to eliminate the
      exception for non monetary exchanges of similar productive assets and
      replaces it with a general exception for exchanges of non monetary assets
      that do not have commercial substance. A non monetary exchange has
      commercial substance if the future cash flows of the entity are expected
      to change significantly as a result of the exchange. The adoption of SFAS
      153 did not impact the Company's financial position or results of
      operations.

      In December 2004, the FASB revised Statement of Financial Accounting
      StandardsNo. 123, "Accounting for Stock-Based Compensation". This
      Statement supersedes APB Opinion No. 25, "Accounting for Stock Issued to
      Employees". This Statement establishes standards for the accounting for
      transactions in which an entity exchanges its equity instruments for goods
      and services. It also addresses transactions in which an entity incurs
      liabilities in exchange for goods and services that are based on the fair
      value of the entity's equity instruments or may be settled by the issuance
      of those equity instruments. This Statement focuses primarily on
      accounting for transactions in which an entity obtains employee services
      in share-based payment transactions. The Company is in the process of
      assessing the effect of the revised SFAS 123 and does not expect its
      adoption will have a material effect on the Company's financial position
      or results of operations.

      Management does not believe that any recently issued, but not yet
      effective accounting pronouncements if currently adopted would have a
      material effect on the accompanying consolidated financial statements.

                                      F-9
<PAGE>

(2)   Property and Equipment

      Property and equipment consisted of the following at December 31, 2004:

                                                       2004
                                                    ---------
                  Machinery and equipment           $ 671,555
                  Office equipment                    143,301
                  Furniture and fixtures               52,909
                  Leasehold improvements               39,499
                  Rental equipment                     39,645
                                                    ---------
                                                      946,909
                  Accumulated depreciation           (895,710)
                                                    ---------
                  Property and equipment, net       $  51,199
                                                    =========

      Depreciation and amortization expense for the years ended December 31,
      2004 and 2003 was $11,223 and $10,467, respectively.

(3)   Inventories

      Inventories at December 31, 2004 represent costs associated with the
      partnership's proprietary vapor sensor systems and consisted of:

                                                        2004
                                                      --------
                  Raw materials                       $184,229
                  Work in progress                     168,352
                  Finished goods                       128,067
                                                      --------
                                                      $480,648
                                                      ========

(4)   Line of Credit

      In September 2004, the partnership renewed its revolving line of credit
      agreement for borrowings up to $1,975,000 payable on March 31, 2005.
      Borrowings under this agreement bear interest at prime (5.25% at December
      31, 2004), are guaranteed by certain related parties and are
      collateralized with the assets of the Partnership. At December 31, 2004
      the total amount outstanding under this revolving line of credit was
      $1,969,137. The Partnership has available borrowings under this line of
      credit of $6,000 at December 31, 2004. On March 31, 2005 the Line of
      Credit was renewed by Bluestone (now known as Electronic Sensor
      Technology, Inc.). (See subsequent events footnote for further
      discussion).

(5)   Notes Payable - related parties

      On September 12, 1999, the Partnership issued convertible promissory notes
      to its general and limited partners' in consideration of $1,000,000. The
      convertible promissory notes are due September 12, 2005 and are
      convertible at the election of the holder into Class A Units or Class A
      Equivalents at a conversion price of $2, on or after the maturity date.
      The notes bear interest at a rate of 5% per annum. At December 31, 2004
      interest due under these notes was $265,000. Interest on this note for the
      year ended December 31, 2004 was forgiven due to cash flow problems. The
      expense was recorded against additional paid-in capital. These notes were
      converted into shares in February 2005. (See subsequent events footnote
      for further discussion).

      The Partnership entered into notes payable to the general partner
      amounting to $272,000 for the year ended December 31, 2004. The notes bear
      interest at 5% per annum. At December 31, 2004 interest due under these
      notes was $48,000. Interest on this note for the year ended December 31,
      2004 was forgiven due to cash flow problems. These notes are due upon the
      successful closure of a private placement of ownership interests. These
      notes were converted into shares in January 2005. (See Subsequent events
      footnote for further discussion).

                                      F-10
<PAGE>

(6)   Partners' loans payable

      The Partnership has entered into short-term loans with three partners' of
      the partnership. The notes were non-interest bearing and due on demand.
      The outstanding balance at December 31, 2004 was $1,198,630. The loans are
      due upon successful closure of a private placement of new ownership
      interests. These loans were subsequently converted into stock. (See
      Subsequent Events footnote for further discussion).

      In September 2004, three partners' lent additional funds to the
      Partnership. The agreements were for borrowings up to $100,000, from each
      partner, payable on March 31, 2005. Borrowings under these agreements bear
      interest at prime (4.75% at December 31, 2004) and are guaranteed by the
      officers. At December 31, 2004 the total amount outstanding for these
      loans was $110,000. The loans were paid off in March 2005.

(7)   Due to related party

      The Partnership received funds from Amerasia Technolgy, Inc, a related
      party, for various purposes during the normal course of business. The
      amount due to Amerasia as of December 31, 2004 was $60,000. The amounts
      are non-interest bearing and due on demand.

(8)   Accrued compensation due to Partnership officers

      Three officers employed by the Partnership have agreed to defer a portion
      of their salaries until such time as the Partnership is financially able
      to meet these financial obligations. The Partnership has recorded deferred
      compensation payable to officers at December 31, 2004 of $934,957. In
      January 2005 these amounts were contributed into equity.

(9)   Commitments and Contingencies

      Leases

      The Company rents office space in Newbury Park, California. The lease
      expired in March 2004. The Company now rents space on a month to month
      basis.

      Rent expense for the years ended December 31, 2004 and 2003, was $155,581
      and $158,627, respectively.

(10)  Retirement savings plan

      The Partnership sponsors a 401(k) retirement savings plan (the plan) which
      covers most full-time employees of the Partnership. Employees may elect to
      contribute a percentage of their compensation to the Plan. Matching
      contributions by the Partnership equal 50% of the eligible participant's
      tax-deferred contribution percentage for each payroll period of up to a
      maximum election of 6% per payroll period. During 2004 and 2003, the
      partnership contributed $9,982 and $10,250, respectively, to the Plan.

(11)  Subsequent Events

      (a)   Mergers and Acquisitions

      Bluestone Ventures, Inc. ("Bluestone") executed an Agreement and Plan of
      Merger ("Merger Agreement") by and among Bluestone, Amerasia Technology,
      Inc., ("Amerasia"), holder of approximately 55% of the partnership
      interests of Electronic Sensor Technology, L.P., ("EST"), L & G Sensor
      Technology, L.P., ("L&G"), holder of approximately 45% of the partnership
      interests of EST, Amerasia Acquisition Corp., ("AAC") a wholly-owned
      subsidiary of Bluestone, and L & G Acquisition Corp., ("LAC") a wholly
      owned subsidiary of Bluestone on January 31, 2005. Under the Merger
      Agreement (i) AAC merged with and into Amerasia such that Amerasia became
      a wholly-owned subsidiary of Bluestone, (ii) LAC merged with and into L&G
      such that L&G became a wholly-owned subsidiary of Bluestone, (iii) as a
      result of the merger of (i) and (ii), Bluestone indirectly acquired all of
      the partnership interests of EST and (iv) Bluestone issued 20,000,000
      shares of its common stock to the shareholders of Amerasia and L&G. This
      merger has been treated as a purchase only on the partnership interests.

                                      F-11
<PAGE>

      For accounting purposes, the transaction will be treated as a
      recapitalization of EST and accounted for as a reverse acquisition.

      Bluestone also entered into various Subscription Agreements with certain
      investors on January 31, 2005. Under these Subscription Agreements,
      Bluestone intended to issue 3,985,000 shares of its common stock
      ("shares") and warrants to purchase 3,985,000 shares at $1.00 per share to
      certain investors for gross proceeds of $3,985,000. Bluestone received the
      gross proceeds of the sale of these shares on February 1, 2005. Bluestone
      received net proceeds of approximately $3,941,000 less legal fees,
      including counsel fees for the investors and EST of approximately
      $163,000.

      By virtue of the Mergers, all shares of common stock of Amerasia were
      converted into the right to receive shares of common stock of Bluestone at
      an exchange ratio of 4.6223537 shares of Bluestone common stock for each
      share of Amerasia common stock and all shares of common stock L&G were
      converted into the right to receive shares of common stock of Bluestone at
      an exchange ratio of 90 shares of Bluestone common stock for each share of
      L&G common stock. In addition, all 200,000 Class C limited partnership
      units were automatically converted into 200,000 shares of Bluestone common
      stock.

      The purchase price for the Mergers was 20,000,000 shares of Bluestone
      common stock. The closing of the mergers occurred on February 1, 2005 (the
      "Closing Date").

      (b)   Stock Option Plan

      The Company adopted a Stock Incentive Option Plan in April 2005. There
      were 969,500 initial options granted to former EST limited partnership
      employees.

      (c)   Officers loans payable

      In January 2005 the loans payable to three partners totaling $1,198,630
      were converted into 1,198,630 shares of common stock of Bluestone.

      (d)   Notes Payable - Related Parties

      In January 2005 the notes payable to related parties of $1,272,000 plus
      accrued interest were converted into 1,585,111 shares of common stock of
      Bluestone.

      (e)   Line of Credit

      The line of credit was assigned in March 2005 to Bluestone (now known as
      Electronic Sensor Technology, Inc.) for borrowings up to $1,800,000
      payable on December 31, 2005. Borrowings under this agreement remain under
      similar terms. The loan is collateralized by all the assets of the
      Company. As part of such collateral, the Company also assigned a
      Certificate of Deposit of $900,000 to the bank.

                                      F-12UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS

      The following Unaudited Pro Forma Combined Financial Statements of
Electronic Sensor Technology, LP ("EST") and Bluestone Ventures, Inc.
("Bluestone") give effect to the merger between EST and Bluestone under the
purchase method of accounting prescribed by Financial Accounting Standards Board
141, Business Combinations. The acquisition of Bluestone by EST has been
accounted for as a reverse acquisition under the purchase method for business
combinations. The combination of the two companies is recorded as a
recapitalization of Bluestone pursuant to which EST is treated as the continuing
entity. These pro forma combined financial statements are presented for
illustrative purposes only. The pro forma adjustments are based upon available
information and assumptions that management believes are reasonable. The
Unaudited Pro Forma Combined Financial Statements do not purport to represent
what the results of operations or financial position of EST would actually have
been if the merger had in fact occurred on January 1, 2004, nor do they purport
to project the results of operations or financial position of EST for any future
period or as of any date, respectively.

      These Unaudited Pro Forma Combined Financial Statements do not give effect
to any restructuring costs or to any potential cost savings or other operating
efficiencies that could result from the merger between EST and Bluestone.

      The financial statements of Bluestone for the year ended December 31,
2004, are derived from audited financial statements and are included in the Form
10-K as filed by Bluestone on April 15, 2005, with the Securities and Exchange
Commission.

      You should read the financial information in this section along with
Bluestone's Financial Statements and accompanying notes in prior Securities and
Exchange Commission filings.

                                      P-1
<PAGE>

Electronic Sensor Technology, Inc.
Unaudited Pro Forma Combined Balance Sheet
December 31, 2004

<TABLE>
<CAPTION>
                                                                                       Pro forma adjustments
                                                Electronic Sensor   Bluestone      --------------------------------
                                                  Technology, LP  Ventures, Inc.         DR                CR         Pro forma
                                                  ------------    -------------    --------------   ---------------  -----------
                                                   (Unaudited)    (Unaudited)                                        (Unaudited)
<S>                                                <C>            <C>                <C>               <C>           <C>
CURRENT ASSETS:
     Cash                                         $     26,205    $         225         3,985,000 (4)                $ 4,011,430
     Accounts receivable                                30,687               --                                           30,687
     Prepaid expenses                                   14,257               --                                           14,257
     Deferred transaction costs                                          21,398                            21,398(1)          --
     Inventories                                       480,648               --                                          480,648
                                                  ------------    -------------                                      -----------
        TOTAL CURRENT ASSETS                           551,797           21,623                                        4,537,022

PROPERTY AND EQUIPMENT                                  51,199               --                                           51,199

SECURITY DEPOSITS                                       12,957               --                                           12,957
                                                  ------------    -------------                                      -----------

                                                  $    615,953    $      21,623                                      $ 4,601,178
                                                  ============    =============                                      ===========

CURRENT LIABILITIES:
     Line of credit                               $  1,969,137    $          --                                      $ 1,969,137
     Accounts payable and accrued expenses             212,802           47,898                                          260,700
     Note payable-- related parties                  1,272,000               --         1,272,000 (2)                         --
     Due to related party                               60,000           14,815                                           74,815
     Partners' loans payable                         1,308,630               --         1,198,630 (2)                    110,000
     Interest payable                                  333,455               --           313,112 (2)                     20,343
     Accrued compensation due to partners'             934,957               --           934,957 (3)                         --
     Other current liabilities                          35,665               --                                           35,665
                                                  ------------    -------------                                      -----------
        TOTAL CURRENT LIABILITIES                    6,126,646           62,713                                        2,470,660
                                                  ------------    -------------                                      -----------

                                                                             --                                               --

                                                                             --                                               --

PARTNERS' / STOCKHOLDERS' DEFICIT (EQUITY):
     Preferred stock, $.001 par value 50,000,000
        shares authorized non issued and
        outstanding                                         --               --                                               --
     Common stock, $.001 par value, 200,000,000             --           81,279            54,279 (6)       2,784(2)      53,969
        shares authorized, 81,127,147 issued
        and outstanding,                                                                                    3,985(4)
        and 53,968,643 issued and outstanding
       -- pro forma                                                                                        20,200(5)
     Additional paid-in capital                             --           61,071            21,398 (1)     934,957(3)   7,587,242
                                                                                           20,200 (5)   2,780,958(2)

                                                                                                        3,981,015(4)
                                                                                                           54,279(6)
                                                                                          237,440 (7)
                                                                                                           54,000(8)
     Donated Capital                                        --           54,000            54,000 (8)                         --
     Accumulated deficit                            (5,510,693)        (237,440)                          237,440(7)  (5,510,693)
                                                  ------------    -------------                                      -----------
        TOTAL STOCKHOLDERS' DEFICIT (EQUITY)        (5,510,693)         (41,090)                                       2,130,518
                                                  ------------    -------------                                      -----------

                                                   $   615,953    $      21,623                                      $ 4,601,178
                                                  ============    =============                                      ===========
</TABLE>

See Note 2 of Pro Forma Combined Financial Statements regarding footnotes.

                                      P-2
<PAGE>

Electronic Sensor Technology, Inc.
Unaudited Pro Forma Combined Statements of Operations
December 31, 2004

<TABLE>
<CAPTION>
                                                                                       Pro forma adjustments
                                                Electronic Sensor   Bluestone      --------------------------------
                                                  Technology, LP  Ventures, Inc.         DR                CR         Pro forma
                                                  ------------    -------------    --------------   ---------------  -----------
                                                   (Unaudited)    (Unaudited)                                        (Unaudited)
<S>                                                <C>            <C>                <C>               <C>           <C>
REVENUES                                          $  1,268,416    $          --                                      $ 1,268,416
COST OF SALES                                        1,039,280               --                                        1,039,280
                                                  ------------    -------------                                      -----------
GROSS PROFIT                                           229,136               --                                          229,136

COSTS AND EXPENSES:
    Compensation                                        81,734               --                                           81,734
    Selling                                            161,546               --                                          161,546
    General and administrative                         282,305           88,877                           72,901(8)      298,281
                                                  ------------    -------------                                      -----------
        Total Expense                                  549,033           88,877                                          565,009

LOSS FROM OPERATIONS                                  (296,449)         (88,877)                                        (312,425)

OTHER INCOME AND EXPENSE
    Other income                                        57,076               --                                           57,076
    Gain (loss) on sale of property and equipment       (7,710)              --                                           (7,710)
    Gain on settlement of debt                              --           16,317                            16,317(8)          --
    Interest expense                                  (164,133)              --                                         (164,133)
                                                  ------------    -------------                                      -----------
        TOTAL OTHER INCOME AND EXPENSE                (114,767)          16,317                                         (114,767)

NET LOSS                                          $   (411,216)   $     (72,560)                                     $  (427,192)
                                                  ============    =============                                      ===========

LOSS PER SHARE-- BASIC AND DILUTED                $         --    $       (0.00)                                     $     (0.01)
                                                  ============    =============                                      ===========

WEIGHTED AVERAGE NUMBER OF SHARES
    USED IN CALCULATION OF BASIC AND
    DILUTED LOSS PER SHARE                                  --       53,968,643                                       53,968,643
                                                  ============    =============                                      ===========
</TABLE>

See Note 2 of Pro Forma Combined Financial Statements regarding footnotes.

                                      P-3
<PAGE>

Electronic Sensor Technology, Inc.
Unaudited Pro Forma Combined Statements of Operations
December 31, 2003

<TABLE>
<CAPTION>
                                                                                       Pro forma adjustments
                                                Electronic Sensor   Bluestone      --------------------------------
                                                  Technology, LP  Ventures, Inc.         DR                CR         Pro forma
                                                  ------------    -------------    --------------   ---------------  -----------
                                                   (Unaudited)    (Unaudited)                                        (Unaudited)
<S>                                                <C>            <C>                <C>               <C>           <C>
REVENUES                                          $  1,242,296    $          --                                      $ 1,242,296
COST OF SALES                                        1,143,350               --                                        1,143,350
                                                  ------------    -------------                                      -----------
GROSS PROFIT                                            98,946               --                                           98,946

COSTS AND EXPENSES:
     Compensation                                       80,601               --                                           80,601
     Selling                                           114,124               --                                          114,124
     General and administrative                        219,646           63,277                            61,722(8)     221,201
                                                  ------------    -------------                                      -----------
          Total Expense                                414,371           63,277                                          415,926

LOSS FROM OPERATIONS                                  (315,425)         (63,277)                                        (316,980)

OTHER INCOME AND EXPENSE
     Other income                                          264               --                                              264
     Gain (loss) on sale of property and equipment       1,182               --                                            1,182
     Interest expense                                  (80,418)              --                                          (80,418)
                                                  ------------    -------------                                      -----------
          TOTAL OTHER INCOME AND EXPENSE               (78,972)              --                                          (78,972)

NET LOSS                                          $   (394,397)   $     (63,277)                                     $  (395,952)
                                                  ============    =============                                      ===========

LOSS PER SHARE-- BASIC AND DILUTED                $         --    $       (0.00)                                     $     (0.01)
                                                  ============    =============                                      ===========

WEIGHTED AVERAGE NUMBER OF SHARES
     USED IN CALCULATION OF BASIC AND
     DILUTED LOSS PER SHARE                                 --       53,968,643                                       53,968,643
                                                  ============    =============                                      ===========
</TABLE>

See Note 2 of Pro Forma Combined Financial Statements regarding footnotes.

                                      P-4
<PAGE>

                       ELECTRONIC SENSOR TECHNOLOGY, INC.
                Notes to Pro Forma Combined Financial Statements
                                  (Unaudited)

NOTE 1 - BASIS OF PRESENTATION

The accompanying pro forma condensed combined financial statements present the
combined financial position and results of operations of Electronic Sensor
Technology, LP, a California limited partnership ("EST"), and Bluestone
Ventures, Inc., a Nevada corporation (now known as Electronic Sensor Technology,
Inc.) ("Bluestone").

NOTE 2 - PRO FORMA ENTRIES

The pro forma condensed combined financial statements give effect to the
following adjustments:

      (1)   To record deferred transaction costs against additional paid-in
            capital.

      (2)   To record conversion of EST debt into Bluestone common shares and
            warrants to purchase Bluestone shares.

      (3)   To record contribution of accrued compensation as additional paid-in
            capital.

      (4)   To record 3,985,000 Bluestone common shares sold for $3,985,000 in
            private placement financing on February 1, 2005.

      (5)   To record issuance of 20,200,000 Bluestone common shares in
            connection with acquisition of all limited partnership interests of
            ELP.

      (6)   To record cancellation of 54,279,147 Bluestone common shares held by
            directors.

      (7)   To record reverse acquisition of Bluestone by EST.

      (8)   To eliminate Bluestone activity except for expenses associated with
            being a publicly-traded corporation.

                                      P-5

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