CRYPTOLOGIC INC. CONSOLIDATED BALANCE SHEETS In thousands of U.S. dollars As at March 31, As at December 31, 2001 2000 ------------------------------------------------------------------- (unaudited) (audited) ASSETS Current assets Cash and cash equivalents $46,664 $42,696 Restricted cash 14,500 14,000 Reserve with credit card processor 1,423 1,217 Accounts receivable 456 1,435 Prepaid expenses and other 1,219 839 ------------------------------------------------------------------- 64,262 60,187 Investments 2,351 1,430 Capital assets 841 839 ------------------------------------------------------------------- $67,454 $62,456 ------------------------------------------------------------------- ------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $1,538 $2,154 Accrued liabilities 1,083 876 Income taxes payable 627 2 Funds held on deposit 2,209 1,814 ------------------------------------------------------------------- 5,457 4,846 ------------------------------------------------------------------- Shareholders' equity Capital stock 6,857 6,477 Retained earnings 55,140 51,133 ------------------------------------------------------------------- 61,997 57,610 ------------------------------------------------------------------- $67,454 $62,456 ------------------------------------------------------------------- ------------------------------------------------------------------- CRYPTOLOGIC INC. CONSOLIDATED BALANCE SHEETS In thousands of U.S. dollars As at June 30 As at December 31 2001 2000 (unaudited) (audited) ASSETS Current assets Cash and cash equivalents $40,901 $42,696 Restricted cash 14,800 14,000 Reserve with credit card processor 1,488 1,217 Accounts receivable 581 1,435 Prepaid expenses and other 807 839 ------------------------------------------------------------------- 58,577 60,187 Investments 2,480 1,430 Capital assets 968 839 ------------------------------------------------------------------- $62,025 $62,456 ------------------------------------------------------------------- ------------------------------------------------------------------- LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities Accounts payable $2,062 $2,154 Accrued liabilities 991 876 Income taxes payable 1,051 2 Funds held on deposit 2,317 1,814 ------------------------------------------------------------------- 6,421 4,846 ------------------------------------------------------------------- Shareholders' equity Capital stock 7,499 6,477 Retained earnings 48,105 51,133 ------------------------------------------------------------------- 55,604 57,610 ------------------------------------------------------------------- $62,025 $62,456 ------------------------------------------------------------------- -------------------------------------------------------------------