QUANTUM BIT INDUCTION TECHNOLOGY, INC.
BALANCE SHEET
FROM DECEMBER 31, 2002 THROUGH DECEMBER 31, 2003
ASSETS	12/31/2003	12/31/2002
CURRENT ASSETS
Cash on hand and in banks	$     21,455	$     13,989
Short-term investments	$     10,800	$     57,700
Accounts Receivable	$   153,341	_
Less Allowance (1)	$    (38,335)	_
		_
Furniture, Fixtures & Equipment	$   132,119	_
Total current assets	$   279,380	$     71,689
LONG-TERM RECEIVABLES
Receivables from Personal Injury Cases	$1,132,222	_
Less Allowance (1)	$  (396,278)	_
		_
Total Long-term Receivables	$   735,944
PROPERTY AND COMPUTER EQUIPMENT	$      2,644	$      2,644
TOTAL ASSETS	$1,017,968	$     74,333
LIABILITIES AND SHAREHOLDER'S DEFICIT
CURRENT LIABILITIES
Accounts payable and accrued liabilities	$     28,156	$     59,487
Short-term note payable	$     30,700	$     67,697
Payable to officers		$   676,458
Other current liabilities	$     59,434	_
Total current liabilities	$   118,290	$   803,642
SHAREHOLDERS' EQUITY (DEFICIT)
Common stock, par value $.001, 200,000,000
shares authorized, 50,000,000 shares outstanding	$     50,000	$     45,000
Paid-in-capital	$   765,408	$     32,030
Deficit accumulated during the development stages	$  (902,872)	$  (806,339)
Other - PTA	$   987,142	_
Total shareholders' equity (deficit)	$   899,678	$  (729,309)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)	$1,017,968	$     74,333
The accompanying notes are an integral part of these financial statements.