QUANTUM BIT INDUCTION TECHNOLOGY, INC.
STATEMENT OF SHAREHOLDERS' EQUITY
FROM DECEMBER 31, 2002 TO DECEMBER 31, 2003
						Accumulated	Retained
				Paid		Other	Deficit & Other	Shareholders'
	Comprehensive	Common	Stock	In	Retained	Comprehensive	Comprehensive	Equity
	Income (Loss)	Shares	Amount	Capital	Deficit	Income (Loss)	Total	Total
Balance at March 31, 2001		45000000	$ 45,000	$   26,130	$   (677,333)	$       (34,263)	$      (711,596)	$     (640,466)
Comprehensive income (loss):
Capital Contributed				$     5,900				$         5,900
Net Loss	$       (82,735)				$    (82,735)		$        (82,735)	$       (82,735)
Unrealized gain on investments
Comprehensive loss	$       (82,735)							-76835
Balance at March 31, 2002		45000000	$ 45,000	$   32,030	$   (760,068)	$       (34,263)	$      (794,331)	$     (717,301)
Comprehensive income (loss):
Capital Contributed
Net Loss	$       (40,995)				$    (40,995)		$        (40,995)	$       (40,995)
Balance at March 31, 2003		45000000	$ 45,000	$   32,030	$   (801,063)	$       (34,263)	$      (835,326)	$     (758,296)
Reclassification adjustment for
additional loss	$       (23,045)				$    (23,045)		$        (23,045)	$       (23,045)
Comprehensive loss	$       (64,040)
Balance at March 31, 2003-Restated		45000000	$ 45,000	$32,030	$   (824,108)	$       (34,263)	$      (858,371)	$     (781,341)
Comprehensive income (loss):
Capital in excess of Par				$ 733,378				$      733,378
Net Loss	$       (10,824)				$    (10,824)		$        (10,824)	$       (10,824)
Other Comprehensive loss	$       (10,824)
Balance at September 30, 2003		45000000	$ 45,000	$ 765,408	$   (834,932)	$       (34,263)	$      (869,195)	$       (58,787)
Comprehensive income (loss):
Increase in common shares and		5000000
stock amount			$   5,000					$         5,000
PTA acquisition - increase in
shareholders' equity					$    987,142			987142
Comprehensive net loss	$       (33,677)						$        (33,677)	$       (33,677)
Comprehensive consolidated net loss	$       (29,269)				$    (29,269)
Balance at December 31, 2003		50000000	$ 50,000	$ 765,408	$    122,941	$       (34,263)	$      (902,872)	$      899,678
The accompanying notes are an integral part of these financial statements.