Chemalite Inc.

CHEMALITE, INC. | Financial Report | Period of January, 2003 1 to June 30, 2003 |

Financial report of Chemalite, Inc. for six months period ended June 30, 2003 is to include cash transaction, income statement and balance sheet. This report will also to include comment on Chemalite, Inc’s actual loss for the period. |

In early 2003, Chemalite, Inc. was established by Bennett Alexander to market his invention, Chemalite,. During the first six months, Chemalite, Inc. was preparing for initial production and was still not ready for commercial phase. Chemalite, Inc. was setting up the plant by procuring needed legal entity, place, equipment and inventories.
From those preparation activities, Chemalite, Inc.’s summary of the cash for six months ended June 30, 2003 is: Chemalite, Inc | Cash Transactions from January 1, 2003 to June 30, 2003 | | | | | Date | Account | Debit | Credit | 1/2/2003 | Cash | $ 375,000 | | | Patent | $ 125,000 | | | Equity | | $ 500,000 | 1/15/2003 | Incorporation expense | $ 7,500 | | | Cash | | $ 7,500 | 6/15/2003 | Equipment | $ 62,500 | | | Cash | | $ 62,500 | 6/24/2003 | Inventory | $ 75,000 | | | Cash | | $ 75,000 |

And T-Accounts for transactions are: T Accounts | Asset | = | Liabilities & Equity | | Cash | | Equity | $ 375,000 | $ 7,500 | | | $ 500,000 | | $ 62,500 | | | $ 500,000 | | $ 75,000 | | | $ 500,000 | $ 375,000 | $ 145,000 | | | | $ 230,000 | | | | | | | | Expenses | Patent | | Incorporation expense | | $ 125,000 | | | $ 7,500 | | $ 125,000 | | | $ 7,500 | | $ 125,000 | | | $ 7,500 | | | | | | | Equipment | | Revenue | $ 62,500 | | | | - | $ 62,500 | | | | $ - |