POKER.COM, INC.
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2001 AND 2000
(U.S. DOLLARS)
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                                            2001        2000
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ASSETS
CURRENT
Cash                                    $169,527     $41,775
Accounts receivable,
net of $18,750 allowance
for bad debts (notes 3, 10(b) and 14)    875,390     456,032
Prepaid expenses and deposits             17,062      50,229
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TOTAL CURRENT ASSETS                   1,061,979     548,036
LONG-TERM RECEIVABLE (note 3)             68,000     140,000
PROPERTY AND EQUIPMENT (note 4)          167,576     161,755
INTANGIBLE ASSETS (notes 5 and 6(a))     220,815     218,346
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TOTAL ASSETS                          $1,518,370  $1,068,137
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LIABILITIES
CURRENT
Accounts payable and accrued liabilities
 (notes 6 and 7)                        $500,772    $569,398
TOTAL LIABILITIES                        500,772     569,398
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POKER.COM, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2001 AND 2000
(U.S. DOLLARS)
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                                            2001        2000
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REVENUES
Marketing and sub-licensing          $ 1,833,397 $ 1,178,290
Miscellaneous                                  0       6,000
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TOTAL REVENUES                         1,833,397   1,184,290
COST OF GOODS SOLD                       253,687     314,465
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GROSS MARGIN                           1,579,710     869,825
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EXPENSES
Wages                                    326,939      93,926
Website marketing                        261,273     434,838
Office supplies and services             129,104      93,309
Management fees (note 9(b))              124,175      76,865
Corporation promotion                     92,234     172,041
General corporate expenses                70,843      70,449
Professional fees                         28,106      48,217
Rent                                      19,648      16,156
Bad debt expense (note 15)                13,500      55,250
Insurance                                  7,407           0
Stock option benefit (note 8(b))               0      14,235
Depreciation and amortization             73,046      27,308
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TOTAL EXPENSES                         1,146,275   1,102,594
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INCOME (LOSS) FROM OPERATIONS            433,435   (232,769)
WRITE-DOWN OF INTANGIBLE ASSETS         (52,494)    (94,444)
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INCOME (LOSS) BEFORE INCOME TAX          380,941   (327,213)
INCOME TAX                               133,329           0
REDUCTION OF INCOME TAX ON
 LOSS CARRYFORWARD
APPLICATION                            (133,329)           0
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NET INCOME (LOSS) FOR YEAR              $380,941  $(327,213)
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NET INCOME (LOSS) PER SHARE                $0.02     $(0.02)
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WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING                    16,943,219  15,984,330
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