PennBrook Professional Group Inc. Income Statern For the Six Months Enri' June 30, 1999 . yr?? z/ Re . Patient Care Revenue?Of?ce TMH House Physician Tithe?income Rent Total Revenues Cost of Sales Neomed Billing Service Charges Total Cost of Sales Gross Pro?t Expenses Salaries Expense Advertising Expense Answering Service Expense Subcontracted Labor Auto Expenses Bank Charges Depreciation Expense Medical Supplies Expense Medical and Staff Dues I \and Subscriptions Exp byee Bene?t Programs Exp Insurance Expense Insurance Auto Insurance - Business Liability Insurance Malpractice Interest Expense Legal and Professional Expense Lease Expense - CONH Maintenance Expense Meals and Entertainment Exp Of?ce Expense Other Taxes Payroll Tax Expense Postage Expense Continued Education Rent~Building Telephone Expense Telephone-Mobile Pagers Travel Expense Workers Compensation-Ohio Utilities Expense Physician Wages Total Expenses Net Incom {Current Month Year to Date 89,870.03 86.96 -581,479.60 86.04 12,304.00 11.91 12.71 7100.50? 0.39 434%.63 "0761'" 772.12 0.75 4,285.59 0.63 103,346.65 100.00 675,794.82 100.00 3,783.50 3.66 22,654.94 3.35 3,783.50 3.66 22,654.94 3.35 99,563.15 96.34 653,139.88 96.65 9,340.05 9.04 57,448.78 "8.50 254.50 0.25 1,914.35 0.28 383.23 0.37 2,305.48 0.34 42,210.67 40.84 259,249.99 38.36 972.25 0.94 5,562.17 0.82 281.07 0.27 1,077.34 0.16 2,451.01 2.37 14,706.06 '32.]8 2,100.20 2.03 9,317.82 1.38 405.50 0.39 2,055.50 0.30 0.00 0.00 467.59 0.07 1,982.06 1.92 11,244.91 1.66 0.00 0.00 475.60 0.07 457.00 0.44 1,346.00 0.20 483.33 0.47 1,450.00 0.21 1,788.90 1.73 19,802.00 2.93 1,524.08 1.47 13,741.93 2.03 275.00 0.27 1,871.00 0.28 535.70 0.52 3,214.20 0.48 135.65 0.13 2,634.31 :039 0.00 0.00 568.25 0.08 1,029.17 1.00 7,128.86 1.05 0.00 0.00 533.23 0.08 947.59 0.92 12,381.77 11.83 126.25 0.12 475.68 0.07 0.00 0.00 50.00 0.01 11,350.00 10.98 67,700.00 10.02 1,177.68 1.14 7,134.97 1.06 447.78 0.43 2,950.37 0.44 0.00 0.00 1,674.65 0.25 300.00 0.29 1,650.00 . 0.24 782.63 0.76 7,067.55 :1.05 22,733.32 22.00 147,649.38 21.85 104,4 74.62 101.09 666,849.74 98.68 <4.75> <2.03> <4,9l 1.47> <13,709.86> For Management Purposes Only RE Page: 1 of CEWED 111113 1 2 1883 Bureau ii_ I ll Ucensufa an (:35 \l 9935- ewida 1011111111111 6371111651131 rent Assets of PA Natl-?ank Deposits Accounts Receivable Accounts Receivable?VFS CC. Other Re ivables ce Inventory Accounts Receivable-Apex" AIR Mina Medical Corp. Total Current Assets Property and Equipment Furniture and Fixtures Medical Equipment Of?ce Equipment Leasehold Improvements Medical Library Capital Lease-Equipment-#l Capital Lease-Equipment-i?iz Equipment Art Frame Collection Accum. Depreciation?Furniture . Accum. Depreciation?Med Equip Accum Decreciation-O?ice Equi A . Depreciation-Leasehold At .11 DepreciationvMed Library Accum Deprec-Cap Lease?Equip Accum Dem-Equipment Accum Amortiz - Goodwill Total Property and Equipment )ther Assets Goodwill Stock Invest-Austintown ER Stock Investment - Mina Corp. Stock Investment-EOPO a, Total Other Assets Total Assets Iurrent Liabilities Accounts Payable Wages Payable Federal Payroll Taxes Payable FUTA Tax Payable Sta? I"ayroll Taxes Payable 31 Fax Payable FILA MCARE Taxes Payable PennBrook Professional Group Inc. Balance Sheet June 30, I999 AS SETS 2,540.24 1.215531 460.00 241,608.55 14,451.45 4,680.00 3,000.00 8,898.81 1 1,623.75 288,482.60 2,859.40 55,739.62 22,525. 82 39,280.50 10,020.47 15,31 8.00 38,042.40 1,665.21 2,493.75 <1 ,924.40> <3 8,540.84> <8,886.76> <8,568.99> <8,016.47> 1 90. 80> <843.62> <5,777.77> 106,195.52 90,000.00 500.00 1,008.35 2,500.00 94,008.35 488,686.47 LIABILITIES AND CAPITAL 92,693.92 40,925.00 14,595.89 77.45 866.47 221.01 15,180.00 Unaudited - For Management Purposes Only and oemuca?on 0t Liceri's-Ui Nevada L115 ?9935* CONFIDENTIAL Lecal Taxes Payable Current Liabilities hunt Payable Yankee Run Total Current Liabilities far-Jr- Long-Term Liabilities Loan Payable-Bank One Loan Payable - SBKM Loan Payable-Yankee Run Loan Payable-Albert Toss Loan Payable-FNB#7I 665244 Loan Payable-FNB#O71651020 Loan Payable Loan Payable-Second Natl. Bank Loan Payable-VFS (Capital) Loan Payable-VJ Scoccia? Loan Payable?Tmmbull Hospital Lo'an Payable-'MBNA Arn'ei'iCa Loan Payable - Star Bank Lease Obligation-Copelco #1 Lease Obligation-Copelco #2 Lease Payable - COMI Loan Payable-Hennan Yassall,D0 Loan Payable-CKBrandeberry Loan Payableery Bank Loan Payable-Barbara Scoccia q)Long-Term Liabilities Total Liabilities Iapital Common Stock-VF Scoccia Retained Earnings Net Income Total Capital Total Liabilities Capital PennBrook Professional Group Inc. Balance Sheet June 30, 1.999 103.15 2,346.52 1,000.00 2,167.39 13,004.00 10,046.00 51.74 4,600.00 26,146.78 8,992.48 29,535.92 32,285.04 4,300.00 229,683.00 10,473.41 974.15 9,465.68 31,072.23 8,792.76 42,383.33 54,805.86 2,150.00 3,300.00 524,229.77 692,239.18 100.00 <189,942.85> <13,709.86> (203,5 52.71 488,686.47 Unaudited - For Management Purposes Only 158.99.51.41 RECEIVED 11110121939 . WBEUBLBS VegaS. Nevada 13011101311011 PennBrook Professional Group Inc. 2 44? the Twelve Months Endin December 31,1998) Current Month {evenues Patient Care Revenue-Office 78,907.02 Corp. 3 103. 93 Other Income 635 50 Prof?ssional Fees 86 Services 20, 000. 00 Rent 772.12 Total Revenues 103,468.57 fost of Sales Neomed Billing Service Charges 3,692.50 Lab Seiyice Fees 0 00 [9111! 17.911.909.115 ?1 5.9.31- 5.0 Gross Pro?t .. 99 776 07 ixpenses Salaries Expense. 10,845.03- Advertising Expense 573.85 Answering Service Expense 277.75 Subcontracted Labor 26,914.50 Auto Expenses 83 5.50 Bank Charges 161.28 Charitable Contributions Exp 0.00 611141.011 Expense. 5,497.25 cal Supplies Expense 1,034.83 91,8111ch and Staff Dues 1.5.5.00. Dues anti Subscriptions Exp 0.00 Employee Bene?t ProgMS Exp 2,076.14 insurance Auto 0.00 lnsurance - Business Liability 184.00 insurance .- Malpgactice . 299:00 rnterest Expense 5,074.42 Legal 81-161 Professmnal Expense 1.262.176 .6636 Expense? 535.70- Maintenance Expense 1,162.54 .VIeals and Entertainment Exp 1,486.10 3?ice Expense 858.06 DtlierTaxes 0:00 ?ayr011 Tax Expense 2,375.43 .?ostage Expense 93.55. nonlinued Education 163.60 lent?Building 11,250.00 Telephone Expense 897.00 Telephone-Mobile Pagers 373.70 Fravel Expense. 603.81- Norkers Compensation?Ohio 650.00 1.6111198. 711375161611 Wages 28,500.00 [?otal Expenses 105,177.89 51 5 <5,401.82> For Management Purposes Only 76:26. 866 19.33 0.75 100.00 3.57 0:00- 4.15.7. 96.43 7 10.48. 0.55 0.27 26.01 0.81 0.16 0.00 5.31 1.00 1.1.15. 0.00 2.01 0.00 0.18 0:29 4.90 18.2 0.52 1.12 1.44 0.83 0:00. 2.30 0.09. 0.16 10.87 0.87 0.36 0:58. 0.63 1.00 27.54 101.65 3 me Page: 3,655.24 1,121,481.00 38,130.17 300100 43.93.1117. 1,083,050.83 156,468.01. 10,627.77 2,596.25 342,326.78 8,229.46 2,058.92 25.00 27,120.82. 17,591.10 319809 422.33' 16,439.41 1,478.00 2,916.00 13,356.50 . 38, 582 73 4.133 113 6 428. 40" 4,988.89 3,462.44 7,731.06 1,009.12- 39, 790 32 1,254. 23 3,388 17' 1 19,666.33 15,179.59 3,588.94 3,924.63 2,427.10 12.18822 3215,64 83 1,194,161.23 100.00 3.40 0.03 3.4.3! 96.57 13.95. ?0.95 0.23 30.52 0.73 0.18 0.00 2.42 1.57 0.4.9 0.04 1.47 0.13 ?0.26 1.19. 3 44 11.37 0. 57 0.44 0.31 0.69 0.09. 3.55 111.11. .030 10.67 51.35 0.32 0.35 0.22 1.09. 28.67 106.48 (19.911 YeartoDate RECEIVED 1,086,112.91 98,35 . . 1.1115192 ,0 63__ 131115 I 1993 4.6.69, 93 'o .42 :1 Certi?cation 2000000 g; 11111111111111 Lurrent Assets of PA _.Cas.t1.;C . Deposits Accounts Receivable Other Receivables Inventory Prepaid Expenses Accoun ts Receivable-Apex AIR Mina Medical Corp. Total Current Assets Property and Equipment Furniture and FiXtures Medical Equipment Of?ce Equipment Leasehold Improvements Medical Library Capital Lease-Equipment?i? Capital Equipment Art Frame Collection Accum. Depreciation?Furniture Accum. Depreciation-Med Equip Accum Decreciation-O?ice Equi 2:111. Deprcaution-Leasehold 1 . Depreciation?Med Library Accum Deprec-Cap Lease-Equip Accum Depr-Equipment Accum Amortiz Goodwill Total Property and Equipment Other Assets Goodwill Stock Invest-Austintown ER Stock Investment Mina Corp. Stock Investment-EOPO Total Other Assets Total Assets Current Liabilities Accounts Payable Wages Payable Federal Payroll Taxes Payable UTA Tax Payable Payroll Taxes Payable A Tax Payable FICA MCARE Taxes Payable PennBrook Professional Group Inc. Balance Sheet December 31, I998 ASSETS .. i 1' 460.001,, 186,599.22 18,038.59 - 4680.004?- 3,000.001/ 4,005.00 1/ 8,898.81 1/ 2,859.40 55,739.62 22,525.82 38,549.67 10,020.47 I 5,318.00 38,042.40 1,665.21 2,493.75 I ,537.46> <30,485-42> <6,654.10> . <7,248.45> 4.4 <7,659.00> <666.98> <5,777.77> 500.00 1,008.35 14-, 2,500,002,? RECEIVED 400121999 Burea Las VegaS. Nevada 229,236.56 120,170.75 94,008.35 443,4l5.66 LIABILITIES AND CAPITAL 70,050.66 1/ 44,250.00 21,784.34 176.81 2,96l.] 8 698.68 21,600.42 CONFIDENTIAL Unaudited - For Management Purposes Only Local Taxes Payable ?}er Current Liabilities Total Current Liabilities _Lo 11 g-Tgrna?abi iti es; Loan Payable?Bank One Loan Payable - SBKM Loan Payable-Yankee Run Loan Payable?Albert Toss Loan Payable-FNB#71665244 Loan 020 Loan Payable .- - 2,203.02 Loan Payable?Second Natl. Bank Loan Payable?FNB 71677587 Loan Payable-VFS (Capital) Loan Payable-VJ Scoccia Loan Payable~Tr11n1bull Hospital Lo'an' Payable?MBN'A Arii'?ri'c'a' Loan Payable Star Bank Lease Obligation?Copelco #1 Lease Obligation?Copelco #2 Lease Payable COMI Loan Payable-Herman YassallDO Loan Payable-CKBrandeberry Loan Payable?Key Bank Loan Payable-Barbara Scoccia ll Long-Tenn Liabilities Total Liabilities Capital Common Stock?VF Scoccia Retained Earnings Net Income Total Capital Total Liabilities Capital PennBrook Professional Group Inc. Balance Sheet December 3 1, 1998 103.01 - 163,828.62 1,961.94 12,804.00 10,046.00 639.51 4,900.00 30,670.91 10,290.83 29,819.86 2,321.22 25,923.04 4,300.00 RECEIVED 110012 1998 - - 116211011 "Ll ?D?l L35 Nevada 158,333.00 10,757.09 7 7 1,545.95 10,549.44 33,353.46 6,078.56 47,745.42 61,739.66 2,350.00 3,300.00 469,429.89 633,258.51 100.00 <67,824.54> <122,118_31> <189,842.85> 443,415.66 Unaudited - For Management Purposes Only CONFIDENTIAL Page: '1 of PennBrook Professional Group Inc. Income 8111mm t?x?x?eml For the Twelve Months En 3 December 31, 199757 N. - 0011601108.?, Year toDate Revenues ?95,?158771? - - --66:61 1 -- 408.1 11399.. PatientCare Revenue~Anstintow1 0.00 0.00 111,661.50 22.3 8 Certi?cation Patient Care Revenue?BPS 0.00 0.00 46,137.50 9.25 Bureau 01 ?03mg: ablievada Other Income 100.00 0.10 - 4,329.84 0.87 69 7 Professional Fees 8: Services 696.00 0.72 2,890.00 0.58 Rent 294.00 0.31 1,617.00 0.32 Total Revenues . 96,248.71 100.00 498,986-34 100.00 I Cost of Sales Neomed Billing Service Charges 1,608.71 1.67 8,855.08 1.77 Total Cost of Sales 1,608.71. 1.67 8,855.08 1.77 Gums Pro?t 94,640.00 98.33 490,131.26 98.23 Expenses Salaries Expense 17,830.42 18.53 95,986.67 19.24 Advertising Expense 1,223.85 1.27 8,723.77 1.75 Answering Service Expense 159.50 0.17 1,025.63 1 0.21 Subcontracted labor 23,967.00 24.90 94,858.50 19.01 Auto Expenses 744.23 0.77 10,087.18 .- 2.02 Bank Charges 103.02 0.11 648.49 0.13 7' nimble Contributions Exp 0.00 0.00 280.00 0.06 .reeiation Expense 3,054.72 3.17 20,610.78 - 4.13 Medical Supplies Expense 1,208.84 1.26 8,171-42 1.64 Medical and Staff-Dues 285.00 0.30 2,291.95 0.46 Dues and Subscriptions Exp 0.00 0.00 2,3 87.24 0.48 Employee Bene?t Programs Exp 1,686.29 1.75 7,708.46 1.54 Insurance Expense 0.00 0.00 5,754.00 1.15 Insurance - Auto 0.00 0.00 1,289.00 0.26 Insurance - Business Liability 0.00 0.00 293.00 '3 0.06 Insurance - Malpractice 2,713.00 2.8.2 8,052.25 1.61 ?Intuest Expats: 529.63 0.55 8,399.54 1.68 Legal and Professional Expense 205.00 0.21 10,692.50 2.14. Lease Expense - COMI 535.70 0.56 4,273.52 0.86 Maintenance Emense 649.31 0.67 5,541.62 1.11 Meals and Entertaimnent Exp 188.24 0.20 2,358.70 0.47 Of?ce Expense 556.81 0.58 9,371.96 1.88 Other Taxm 0.00 0.00 219.00 0.04 Payroll Tax Expense 2,835.90 2.95 16,153.80 3.24 Postage Expense 144.09 0. 1 5 1,100.29 0.22 Continued Education 0.00 0.00 2,730.64 0.55 Rent-Building 4,350.00 4.52 33,900.00 3 . 6.79 Telephone Expense 1,775.63 1.84 11,132.42 2.23 Telephone-Mobile 88 Pagers 477.04 0.50 2,141.38 0.43 Travel Expmse 0.00 0.00 6,600.32 .1 1.32 Workers Compensation?Ohio 0.00 0.00 1,229.03 1 0.25 Utilities Expense 1,739.66 1.81 9,739.55 1.95 Physician Wages 26,999.99 28.05 134,286.63 3 26.91 Miscellaneous Expense 1,000.00 1.04 1,000.00 0.20 . .41 Expenses 94,962.87 98.66 529,039.24 106.02 NetIncome 8 <322.87>- <0.34> <38,907.98> ?87.80> [7:041 PennBrook Professional Group Inc. Balance Sheet December 31, 1.997 IV ASSETS Current Assets AUG 1 2 1999 of PE i 1. 7" 5 Bureau ?ltioensule and cenmca??n""? Cash-CKQSecoud NatlBank 415.48 Las V8935. Nevada Deposits 460.00 1 Accounts Receivable 13 4,767.33 Accounts Receivable-Apex 8,898.81 Total Current Assets 145,314.06 Prope?y and Equipment Fumiture and Fixtures 2,859.40 Medical 23,739.62 Of?ce Emlipment 1 3,578.68 Leasehold 3 8,549.67 Medical Libraxy . . 10,020.47, Capital 1 5,3 1 8.00 Capital 38,042.40 Equipment 1,665.21 Alt 3r. Frame Collection 2,333.90 Accum. Depreciation-Fwd ture <779.51> Accum. Depreciation?Med Equip <1 5,871.50> Accum Dedeciation-Of?ce Equi <3,549.83> Accum. Depreciation?Leasehold <4,607.37> Accmn Depreciation?Med Library <5,010.29> Accum Deprec?Cap Lease-Equip <4,595.40> )m Dept-Equipment <313.70> Total Property and Equipment 111,379.? 5 Other Assets Goodwill 50,000.00 Stock Invest?Austintown ER 500.00 Stock - Mina Corp. 1,555.95 Total Other Assets 52,055.95 Total Assets 309,24 9.76 LIABIIJTIES AND CAPITAL Current Liabilities Accounts Payable 60,078.17 Wages Payable 28,174.99 Federal Payroll Taxes Payable 6,728.00 State Payroll Taxes Payable 3,629.93 FICA 85 MCARE Taxes Payable 3,423.46 Local Taxes Payable. 92.67 Total Cun?esnt Liabilities 102,127.22 . If" a?Tenn Liabilities Payable-Serena Co. 1,000.00 1.0m: Payable SEEM 2,304.00 Loan Payable-Yankee Run 1,096.00 Loan PayableAlbut Toss 1,680.17 Loan Payable?FNB#71 665 244 5,000.00 Loan Payable-FNB#071651020 39,087.63 Loan Payable 12,705.93 Loan Pavable-Second Natl. Rank 21.5 00.00 man Payable-VFS (Capital) Loan I?ayable?VFS(Drawing) Loan Payable-American Express Loan Payable-Trumbull Hospital Lease Obliga?on?Copelco #1 Luise Obliga?on?Copelco #2 Lease Payable - COMI Loan Payable-Providian Loan Payable-Hm Yassal],DO Total Long-Tenn Liabilities Total Liabilities . I 1 I Capllal i CommonStock?VF Scoccia Retained Eamiugs Net Income Total Cq??ral Total Liabilities Sr. Capital PeunBrook Professional Group Inc. Balance Sheet December 31, 1997 5,087.07 1,884.30 313.0200 5,990.00 60,000.00 10,838.44 32,271.51 8,400.16 2,027.00 50,000.00 7100.00 <29,24l .79) <38,907.98> $68,049.77) 275,172.31 377,299.53 309,249.76 RECEIVED Bureau oi Licensure and Ceni?cation Las Vegas, Nevada Personal Financial Statement SCHEDULE A Government and Marketable Securities Aumber of Shares or Are These Registered Market Face Value of Bonds Description In the Name of E?dged or mm by Others Value 40 Ohio Edison Alessia Scoccia (daughter) N0 80] 40 NB of Penna. Angelica Scoccia (daughter) No 800 20 FNB of Penna. Evita Scoccia (daughter) No 2WD SCHEDULE - Non?Marketable Securities (Closely Held Family Businesses) Percentage of Are These Registered Source Ownershig Description In the Name of Pledged or Held by Others Value of Value 24% Serena Company Vincent F. Scoccia No 155520 Estimates 16% COMI Vincent F. Scoccia No 75000 Based on 25% SBKM Partnership \?ncent F. Scoccia No 150000 Current 90% Apex Inc. \?ncent F. Scoccia No Operational 103% Inc. Vincent F. Smccia No 2520000 Cash Flow 18% Yankee Run Dev. Vincent F. Scoccia No 72003 andIor?" 50% Annuit Coeptis Vlncent F. Scoccia No 250000 Current 50% Mina Medical Corp. Vincent F. Scoccia No 10000.] Acquisition 100% Adderstone Ltd. \flncent F. Scoccia No 253170 Costs TOTAL ESTIMATED VALUE 39%20 SCHEDULE - Residences and Other Real Estate (Partially or Wholly Owned) Address and Type Percentage of Date Market Mortgage Mortgage of Prom in Name of Ownershig Agguired Cost Value Pament Amount Maturity ?390 Redwood Drive ubbard. OH 44425 VF Tina Scoccia 100% 01101197 184000 200000 1WD 140000 2027 SCHEDULE 0 Life Insurance Carried, Including Group Insurance Name of Insurance Bene?ciary Face Policy Cash Surrender ComganyiEmgloLer Owner Relationship Amount Loans Value Westem Southern \?ncent Scoccia Tina Scoccia, Spouse 2 Western Southem \?ncent Scoccia PennBrook Prof. Group 3 1 0 0 Sharon City Schools Tina Scoccia Vincent Scoccia, Spouse 5 500 0 0 SCHEDULE - Bank and Other Institutional Relationships Name of Creditor Amount Date of or Loan Proeessor Owed Loan Sallie Mae-Education 35000 1996 PM C-Educational 70000 1996 UOMHS-Educational 7000 1989 EFS-Education 7000 1988 MBNA Gold 10000 John Carroll-Education 800 MBNA Credit 8000 Providian Credit 2200?.) First National Bank of PA 140000 1996 Key Bank 1997 $9603 SCHEDULE - Notes Receivable From Closely Held Buslnesses Payment Received A__mant Including Principal and Interest BKM Partnership 19000 300 ,.erena Company 15800 228 nl?r?ih? T' COM: 5000 No amortized payments [3 - A PennBrook Professional GroupI Inc. 5130 No amortized payments