QUANTUM BIT INDUCTION TECHNOLOGY, INC.
STATEMENT OF CASH FLOWS
FROM DECEMBER 31, 2002 THROUGH DECEMBER 31, 2003
	For the period ended
	12/31/2003	12/31/2002
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$   (29,269)	$   (30,746)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation expenses		$        587
Stock exchange - PTA acquisition
Changes in working capital:
Current assets increase (decrease)	$        (221)
Current account receivables net increase (decrease)	$   (44,571)	$      1,303
Long-term receivables net increase (decrease)	$  254,584
Accounts payable and accrued liabilities increase (decrease)	$     (5,985)	$    54,738
Other loans and payables increase (decrease)	$    32,045
Personal injury & insurance cases charged off	$ (201,848)
Net cash used in operating activities	$     (4,735)	$    25,882
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from financing activities-Offering 2003	$    20,314
Proceeds from officers to finance operations		$      5,900
Net cash provided by Financing Activities	$    20,314	$      5,900
Net increase (decrease) in cash and cash equivalents	$    15,579	$    31,782
CASH AT BEGINNING OF PERIOD	$      5,876	$    13,989
CASH AT END OF PERIOD	$    21,455	$    45,771
The accompanying notes are an integral part of these financial statements.