Exhibit 99.1 (b) 3

ARCLIGHT SYSTEMS LLC

Statements of Operations

Year ended December 31, 2002 and Period from April 1, 2001

(date of inception of operations) to December 31, 2001

	2002			2001
Revenues	$	4,281,649		$	2,543,120
Operating expenses:
Cost of revenues		4,842,537			3,387,055
Selling and marketing		2,969,963			1,446,226
Product development		15,016,009			4,022,836
Loss from disposal and sale of assets		550,682			—
General and administrative		4,698,984			2,680,227
Total operating expenses		28,078,175			11,536,344
Loss from operations		(23,796,526	)		(8,993,224	)
Other income (expense):
Interest expense		(163,833	)		(112,983	)
Interest income		634,597			30,731
Total other income (expense)		470,764			(82,252	)
Net loss from continuing operations		(23,325,762	)		(9,075,476	)
Discontinued operations:
Income from discontinued operations (including gain on sale of $77,877,708 in 2002)		78,862,837			3,272,883
Net income (loss)	$	55,537,075		$	(5,802,593	)

See accompanying notes to financial statements.