Exhibit 99.1 (c) 2

ARCLIGHT SYSTEMS LLC

Unaudited Statements of Operations

Nine months ended September 30, 2003 and 2002

	2003			2002
Revenues	$	238,391		$	—
Operating expenses:
Equipment operating expenses		4,336,704			2,106,664
Selling and marketing		1,869,206			2,010,499
Product development		13,086,818			11,841,670
Loss from disposal and sale of assets		—			550,682
General and administrative		3,569,352			3,555,703
Total operating expenses		22,862,080			20,065,218
Loss from operations		(22,623,689	)		(20,065,218	)
Other income (expense):
Interest expense		—			(148,938	)
Interest income		452,113			377,134
Total other income (expense)		452,113			228,196
Net loss from continuing operations		(22,171,576	)		(19,837,022	)
Discontinued operations:
Income from discontinued operations		1,635,331			76,544,403
Net income (loss)	$	(20,536,245	)	$	56,707,381

See accompanying notes to financial statements.