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<p ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</p>

<p ALIGN="CENTER">WASHINGTON, D.C. 20549</p>
</font>

<p ALIGN="CENTER">&nbsp;</p>

<p ALIGN="CENTER"><font SIZE="5"><strong>FORM 8-K</strong></font></p>

<p ALIGN="CENTER"><b><font size="4">CURRENT REPORT</font></b></p>

<table border="0" cellspacing="0" width="100%" height="124" cellpadding="0">
  <tr>
    <td width="100%" colspan="3" height="11"><p ALIGN="CENTER">PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934</td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11">&nbsp; </td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11"><font size="3"><p ALIGN="CENTER">Date of Report:
    June 5, 2002</font></td>
  </tr>
  <tr>
    <td width="100%" colspan="3" HEIGHT="0"><font SIZE="1"><p ALIGN="CENTER">(Date of Earliest
    Event Reported)</font></td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11">&nbsp; </td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11">&nbsp; </td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11"><font size="3"><u><b><p ALIGN="CENTER">AMERICAN
    INTERNATIONAL INDUSTRIES, INC.</b></u></font></td>
  </tr>
  <tr>
    <td width="100%" colspan="3" HEIGHT="0"><font SIZE="1"><p ALIGN="CENTER">(Exact Name of
    Registrant as Specified in its Charter)</font></td>
  </tr>
  <tr>
    <td width="100%" colspan="3" height="11">&nbsp; </td>
  </tr>
  <tr>
    <td width="36%" align="center" height="11"><u>Nevada</u></td>
    <td width="31%" height="11"><p align="center"><u>0-25223</u></td>
    <td width="33%" height="11"><p align="center"><u>88-0326480</u></td>
  </tr>
  <tr>
    <td width="36%" align="center" HEIGHT="0"><font SIZE="1">(State or other jurisdiction of
    incorporation)</font></td>
    <td width="31%" HEIGHT="0"><p align="center"><font SIZE="1">(Commission File Number)</font></td>
    <td width="33%" HEIGHT="0"><p align="center"><font SIZE="1">(IRS Employer Identification
    No.)</font></td>
  </tr>
  <tr>
    <td width="36%" align="center" height="11">&nbsp; </td>
    <td width="31%" height="11">&nbsp; </td>
    <td width="33%" height="11">&nbsp; </td>
  </tr>
  <tr>
    <td width="36%" align="center" height="11"><u>601 Cien Street, Suite 235, Kemah, TX</u></td>
    <td width="31%" height="11"></td>
    <td width="33%" height="11"><p align="center"><u>77565</u></td>
  </tr>
  <tr>
    <td width="36%" align="center" height="1"><font SIZE="1">(Address of principal executive
    offices)</font></td>
    <td width="31%" height="1"></td>
    <td width="33%" height="1"><p align="center"><font SIZE="1">(Zip Code)</font></td>
  </tr>
  <tr>
    <td width="36%" height="1">&nbsp; </td>
    <td width="31%" height="1"></td>
    <td width="33%" height="1"></td>
  </tr>
</table>
<font size="3">

<p>&nbsp;</p>

<p ALIGN="CENTER">Registrant's telephone number, including area code: (281) 334-9479</font></p>

<p align="center">&nbsp;</p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p><font size="3">Table of Contents</font></p>

<table CELLSPACING="0" BORDER="0" WIDTH="664">
  <tr>
    <td WIDTH="615" VALIGN="TOP"></td>
    <td WIDTH="45" VALIGN="TOP"><p ALIGN="CENTER"><font size="3">Page</font></td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 1. Changes in Control of Registrant</font></td>
    <td WIDTH="45" VALIGN="TOP"><p ALIGN="CENTER"><font size="3">3</font></td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 2. Acquisition or Disposition of Assets</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">3</td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 3. Bankruptcy or Receivership</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">3</td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 4. Changes in Registrant&#146;s
    Certifying Accountants</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">3</td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 5. Other Events and FD Disclosure</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">3</td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 6. Resignations of Directors and
    Executive Officers</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">3</td>
  </tr>
  <tr>
    <td WIDTH="615" VALIGN="TOP"><font size="3">Item 7. Financial Statements and Exhibits</font></td>
    <td WIDTH="45" VALIGN="TOP" align="center">4</td>
  </tr>
</table>

<p>&nbsp;</p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div><b>

<p><font size="3">ITEM 1. CHANGES IN CONTROL OF REGISTRANT</font></p>
</b>

<p><font size="3">Not applicable.</font></p>

<p><b><font size="3">ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS</font></b></p>

<p>Effective June 5, 2002, the Company sold, through its majority owned subsidiary
(Unlimited Coatings Corporation), 100% of its investment in Marald, Inc. for total
consideration of $725,000. The $725,000 received consists of $225,000 in cash and one
long-term note receivable in the amount of $300,000 and another long-term note receivable
with a face amount $300,000, reduced by a $100,000 valuation reserve due to a provision
which allows for a payment of $200,000 for early retirement of the note.</p>
<b>

<p><font size="3">ITEM 3. BANKRUPTCY OR RECEIVERSHIP</font></p>
</b>

<p><font size="3">Not applicable.</font></p>
<b>

<p><font size="3">ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT</font></p>
</b>

<p><font size="3">Not applicable.</font></p>

<p><b><font size="3">ITEM 5. OTHER EVENTS</font></b></p>

<p><font size="3">Not applicable.</font></p>
<b>

<p><font size="3">ITEM 6. RESIGNATIONS OF DIRECTORS AND EXECUTIVE OFFICERS</font></p>
</b>

<p><font size="3">Not applicable.</font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p><strong><font size="3">ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS</font></strong></p>

<p ALIGN="JUSTIFY">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="100%">
  <tr>
    <td width="90%"><p ALIGN="JUSTIFY"><font size="3">Proforma Financial Information</font></td>
    <td width="10%" align="center">4</td>
  </tr>
  <tr>
    <td width="90%"><font size="3">Proforma Consolidated Balance Sheet &#150; March 31, 2002</font></td>
    <td width="10%" align="center">5</td>
  </tr>
  <tr>
    <td width="90%"><font size="3">Proforma Consolidated Statement of Operations - Year ended
    December 31, 2001</font></td>
    <td width="10%" align="center">6</td>
  </tr>
  <tr>
    <td width="90%"><font size="3">Proforma Consolidated Statement of Operations - Three
    months ended March 31, 2002</font></td>
    <td width="10%" align="center">7</td>
  </tr>
  <tr>
    <td width="90%"><font size="3">Note to Unaudited Proforma Consolidated Financial
    Statements</font></td>
    <td width="10%" align="center">7</td>
  </tr>
</table>
<font FACE="Arial" SIZE="2">

<p ALIGN="CENTER"></font><font face="Times New Roman" size="3">AMERICAN INTERNATIONAL
INDUSTRIES, INC.<br>
UNAUDITED PROFORMA CONSOLIDATED FINANCIAL STATEMENTS</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">&nbsp;Effective June 5, 2002, the
Company sold, through its majority owned subsidiary (Unlimited Coatings Corporation), 100%
of its investment in Marald, Inc. for total consideration of $725,000. The $725,000
received consists of $225,000 in cash and one long-term note receivable in the amount of
$300,000 and another long-term note receivable with a face amount $300,000, reduced by a
$100,000 valuation reserve due to a provision which allows for a payment of $200,000 for
early retirement of the note.</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">The following unaudited proforma
consolidated statements of operations for the three months ended March 31, 2002 and for
the year ended December 31, 2001, assumes the disposition of Marald, Inc. had occurred on
January 1, 2001 and include the historical unaudited consolidated statements of operations
for the Registrant for the year ended December 31, 2001 and quarter ended March 31, 2002,
adjusted for the proforma effects of the disposition.</font></p>

<p><font face="Times New Roman" size="3">The unaudited proforma consolidated statements
are not necessarily indicative of the results of operations that would actually have
occurred if the transactions had been consummated as of January 1, 2001. These statements
should be read in conjunction with the historical consolidated financial statements and
related notes thereto of the Registrant, in its annual report on Form 10-KSB and the
quarterly report on Form 10-QSB for the quarter ended March 31, 2002.</font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p>&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%" height="1">
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9" align="center"><font size="2"><strong>AMERICAN
    INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES </strong></font></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9" align="center"><font size="2">Unaudited
    Proforma Consolidated Balance Sheet</font></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9" align="center"><font size="2">March
    31, 2002 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="21"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"><font size="2">Consolidated </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"><font size="2">Proforma</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="21"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"><font size="2">Balance</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="22%" VALIGN="top" HEIGHT="0" align="center" colspan="3"><font size="2">Proforma
    Adjustments</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"><font size="2">Balance</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><p align="center"><font size="2">Assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="center"><font size="2">March 31, 02</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">Increase</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="center"><font size="2">Decrease</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="center"><font size="2">March 31, 02</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Current assets:</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Cash </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">475,748 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$ </font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">225,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$ </font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(94,319)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$ </font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">606,429 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Certificate of deposit</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">235,340 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">235,340 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Trading securities</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">24,600 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">24,600 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Available-for-sale
    securities</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">550,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">550,000 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Accounts receivable,
    net</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">627,679 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(239,883)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">387,796 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Accounts and notes
    receivable from related parties</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">470,879 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">470,879 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Inventories</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,106,250 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(129,784)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">976,466 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Real estate held for
    sale </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">885,624 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">885,624 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Prepaid expenses and
    other current assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">5,138 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">5,138 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    current assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">4,381,258 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">225,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(463,986)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">4,142,272 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Notes receivable</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,988,607 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">500,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">2,488,607 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Less allowance for
    uncollectible accounts</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net notes
    receivable</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,988,607 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">500,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">2,488,607 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Property and equipment, net of
    accumulated </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; depreciation and
    amortization</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">195,950 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(95,141)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">100,809 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Excess of cost over net assets of
    businesses</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; acquired, less
    accumulated amortization of </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; $298,709 in 2002 and
    2001</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,303,239 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(628,700)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">674,539 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Other assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">8,018 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(1,885)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">6,133 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    assets</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">7,877,072 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">725,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(1,189,712)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">7,412,360 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><p align="center"><font size="2">Liabilities and
    Stockholders' Equity</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Current liabilities:</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Accounts payable and
    accrued expenses</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">700,803 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(44,364)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">656,439 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Short-term notes
    payable</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">108,698 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(108,698)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Current installments
    of long-term debt</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">33,151 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(62,148)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(28,997)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    current liabilities </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">842,652 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(215,210)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">627,442 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Long-term notes payable to related
    parties</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,033,638 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,033,638 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Long-term debt, less current
    installments </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">409,275 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">409,275 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Minority interest</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">130,034 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(112,183)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">17,851 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    liabilities</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">2,415,599 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(112,183)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(215,210)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">2,088,206 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Stockholders' equity:</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Preferred stock, $.001
    par value. Authorized</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; 10,000,000
    shares: none issued</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Common stock, $.001
    par value. Authorized 200,000,000 shares:</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    155,084,398 shares issued and 154,832,398 shares</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    outstanding at March 31, 2002, 152,884,398 shares issued and </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp;
    152,632,398 shares outstanding at December 31, 2001</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">154,832 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(1,000)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">154,832 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Additional paid-in
    capital </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">17,888,983 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">696,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(696,000)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">17,888,983 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Accumulated deficit</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(12,448,314)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">140,183 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(277,502)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(12,585,633)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    stockholders' equity</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">5,595,501 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">837,183 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(974,502)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">5,458,182 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Less treasury stock,
    at cost (252,000 shares)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(34,028)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(34,028)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Unrealized losses on
    shares available-for-sale</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(100,000)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(100,000)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    stockholders' equity</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">5,461,473 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">837,183 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(974,502)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">5,324,154 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Commitments and contingent
    liabilities</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    liabilities and stockholders' equity </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">7,877,072 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">725,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(1,189,712)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">7,412,360 </font></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9"><font size="2">See accompanying notes
    to unaudited Proforma consolidated financial statements.</font></td>
  </tr>
</table>

<p>&nbsp;</p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div><b>

<p></b>&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%" height="507">
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9"><p align="center"><strong><font
    size="2">AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES </font></strong></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9"><p align="center"><font size="2">Unaudited
    Proforma Consolidated Statement of Operations </font></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9"><p align="center"><font size="2">Year
    ended December 31, 2001 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p align="center"><font size="2">Proforma</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"><font size="2">Consolidated </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p align="center"><font size="2">Adjustments</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p align="center"><font size="2">Proforma</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" align="center"
    style="border-bottom: 1px solid rgb(0,0,0)"><font size="2">Balance</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="center"><font size="2">Increase</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="center"><font size="2">Decrease</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="center"><font size="2">Balance</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Revenues</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">0</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(2,892,279)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">793,6211</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Costs and expenses:</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Costs of sales</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">8,630,198 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(2,228,626)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">6,401,572 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Selling, general and
    administrative</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">2,537,839 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(550,198)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">1,987,641 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    costs and expenses</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">11,168,037 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(2,778,824)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">8,389,213 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Operating
    loss</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(339,547)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(113,455)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(453,002)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Other income (expenses):</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Interest income</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">132,690 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">215 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">132,905 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Unrealized losses on
    investments</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(91,200)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(91,200)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Gain on sale of
    subsidiary</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,555,435 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,555,435 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Gain on disposition of
    assets</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">15,000 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">15,000 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Other income</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">281,919 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">2,824 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">284,743 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp; Interest expense</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(73,316)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">14,439 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(58,877)</font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    other income (expenses)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">1,820,528 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">17,478 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">1,838,006 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
    earnings (loss) before income taxes</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,480,981 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">(95,977)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">1,385,004 </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">Provision for income taxes </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
  </tr>
  <tr>
    <td WIDTH="52%" VALIGN="top" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
    earnings (loss)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">1,480,981 </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(95,977)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">1,385,004 </font></td>
  </tr>
  <tr>
    <td WIDTH="100%" VALIGN="top" HEIGHT="0" colspan="9"><font size="2">See accompanying notes
    to unaudited Proforma consolidated financial statements.</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div><b>

<p></b>&nbsp;</p>

<table CELLSPACING="0" BORDER="0" CELLPADDING="0" WIDTH="100%" height="1">
  <tr>
    <td WIDTH="97%" VALIGN="TOP" HEIGHT="0" colspan="9"><p align="center"><strong><font
    size="2">AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES </font></strong></td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" HEIGHT="0" colspan="9"><p align="center"><font size="2">Unaudited
    Proforma Consolidated Statement of Operations </font></td>
  </tr>
  <tr>
    <td WIDTH="97%" VALIGN="TOP" HEIGHT="0" colspan="9"><p align="center"><font size="2">Three
    months ended March 31, 2002</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="CENTER"><font size="2">Consolidated </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="22%" VALIGN="TOP" COLSPAN="3" HEIGHT="0"><p ALIGN="CENTER"><font size="2">Proforma
    Adjustments</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="CENTER"><font size="2">Proforma</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="CENTER"><font size="2">Balance</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="CENTER"><font size="2">Increase</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="CENTER"><font size="2">Decrease</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="CENTER"><font size="2">Balance</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="8"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="8"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="8"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="8"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">Revenues </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">1,802,065</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(820,771)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"><p align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">981,294 </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">Costs and expenses: </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp; Costs of sales </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">1,381,133 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">(622,111)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">759,022
    </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp; Selling, general and
    administrative </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="right"><font size="2">533,713 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">(154,236)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">379,477 </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    costs and expenses </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    align="right"><font size="2">1,914,846 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">(776,347)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">1,138,499 </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">Operating loss </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">(112,781)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(44,424)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(157,205)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">Other income (expenses): </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp; Interest income </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">3,436 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">3,436 </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp; Unrealized losses on
    investments </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p align="right"><font size="2">(4,200)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(4,200)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp; Gain on sale of
    subsidiary </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; Gain on disposition of
    assets </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; Other income </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">(1,749)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" align="right"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(1,749)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; Interest expense </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">(8,728)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">2,260 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">(6,468)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Total
    other income (expenses) </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">(11,241)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"><p
    ALIGN="right"><font size="2">2,260 </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" align="right"
    style="border-bottom: 1px solid rgb(0,0,0)"><p ALIGN="right"><font size="2">(8,981)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp;&nbsp;&nbsp;&nbsp; Net
    earnings (loss) before income taxes </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">(124,022)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(42,164)</font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">(166,186)</font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">Provision for income taxes </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0"><p ALIGN="right"><font size="2">- </font></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="0"><font size="2">&nbsp; </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0"></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="0" style="border-bottom: 1px solid rgb(0,0,0)"></td>
  </tr>
  <tr>
    <td WIDTH="51%" VALIGN="TOP" HEIGHT="1"><font size="2">&nbsp;&nbsp;&nbsp; Net earnings
    (loss) </font></td>
    <td WIDTH="2%" VALIGN="TOP" HEIGHT="1"><p align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="top" HEIGHT="1" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(124,022)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="1" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="1" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">- </font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="1" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="9%" VALIGN="TOP" HEIGHT="1" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(42,164)</font></td>
    <td WIDTH="2%" VALIGN="top" HEIGHT="1" style="border-bottom: 2px none rgb(0,0,0)"><p
    align="right"><font size="2">$</font></td>
    <td WIDTH="10%" VALIGN="TOP" HEIGHT="1" style="border-bottom: 2px double rgb(0,0,0)"><p
    ALIGN="RIGHT"><font size="2">(166,186)</font></td>
  </tr>
  <tr>
    <td WIDTH="96%" VALIGN="TOP" HEIGHT="1" colspan="9"><font size="2">See accompanying notes
    to unaudited Proforma consolidated financial statements.</font></td>
  </tr>
</table>

<p ALIGN="CENTER"><font face="Times New Roman" size="3"><b>Unaudited Proforma Consolidated
Financial Statements<br>
</b>Notes to Unaudited Proforma Consolidated Financial Statements</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">(1) Basis of Presentation</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">The unaudited Proforma
Consolidated Statement of Operations for the three months ended March 31, 2002, included
the unaudited historical results of operations for American International Industries, Inc.
and subsidiaries, excluding Marald, Inc. for the three months ended March 31, 2002,
adjusted for the proforma effects of the disposition assuming the disposition occurred on
January 1, 2001.</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">The unaudited Proforma
Consolidated Statement of Operations for the year ended December 31, 2001, included the
audited historical results of operations of American International Industries, Inc. and
subsidiaries, and adjusted for the proforma effects of the disposition assuming the
disposition occurred on January 1, 2001.</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">The unaudited Proforma Balance
Sheet at March 31, 2002, included the unaudited position of American International
Industries, Inc. and subsidiaries as of March 31, 2002, assuming the disposition occurred
on March 31, 2002, adjusted for the proforma effects of the disposition.</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">(b) Exhibits</font></p>

<p ALIGN="JUSTIFY"><font face="Times New Roman" size="3">None</font></p>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div>

<p ALIGN="CENTER"><font size="3">SIGNATURES</font></p>

<p ALIGN="JUSTIFY"><font size="3">Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.</font></p>

<table border="0" cellspacing="0" width="100%">
  <tr>
    <td width="100%"><font size="3">American International Industries, Inc.</font></td>
  </tr>
  <tr>
    <td width="100%"><u><font size="3">By /s/ Daniel Dror, CEO, President and Chairman</font></u></td>
  </tr>
  <tr>
    <td width="100%"><p ALIGN="JUSTIFY"></td>
  </tr>
  <tr>
    <td width="100%"><font size="3">Date: June 24, 2002</font></td>
  </tr>
</table>
</div>

<p><br clear="all" style="page-break-before:always; mso-break-type:section-break">
</p>
<div></div>
</body>
</html>
[{"type": "8-K", "sequence": "1", "filename": "edii-8k.htm", "secsgml_size_bytes": 92849}]
{"company-data": {"conformed-name": "AMERICAN INTERNATIONAL INDUSTRIES INC", "cik": "0001073146", "assigned-sic": "6799", "irs-number": "880326480", "state-of-incorporation": "NV", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-25223", "film-number": "02686310"}, "business-address": {"street1": "601 CIEN ST", "street2": "SUITE 235", "city": "KEMAH", "state": "TX", "zip": "77565-2701", "phone": "2813349479"}, "mail-address": {"street1": "601 HANSON RD", "city": "KEMAH", "state": "TX", "zip": "77565-2701"}}
edii
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
    OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report:
    June 5, 2002
(Date of Earliest
    Event Reported)
AMERICAN
    INTERNATIONAL INDUSTRIES, INC.
(Exact Name of
    Registrant as Specified in its Charter)
Nevada
0-25223
88-0326480
(State or other jurisdiction of
    incorporation)
(Commission File Number)
(IRS Employer Identification
    No.)
601 Cien Street, Suite 235, Kemah, TX
77565
(Address of principal executive
    offices)
(Zip Code)
Registrant's telephone number, including area code: (281) 334-9479
Table of Contents
Page
Item 1. Changes in Control of Registrant
3
Item 2. Acquisition or Disposition of Assets
3
Item 3. Bankruptcy or Receivership
3
Item 4. Changes in Registrant's
    Certifying Accountants
3
Item 5. Other Events and FD Disclosure
3
Item 6. Resignations of Directors and
    Executive Officers
3
Item 7. Financial Statements and Exhibits
4
ITEM 1. CHANGES IN CONTROL OF REGISTRANT
Not applicable.
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS
Effective June 5, 2002, the Company sold, through its majority owned subsidiary
(Unlimited Coatings Corporation), 100% of its investment in Marald, Inc. for total
consideration of $725,000. The $725,000 received consists of $225,000 in cash and one
long-term note receivable in the amount of $300,000 and another long-term note receivable
with a face amount $300,000, reduced by a $100,000 valuation reserve due to a provision
which allows for a payment of $200,000 for early retirement of the note.
ITEM 3. BANKRUPTCY OR RECEIVERSHIP
Not applicable.
ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT
Not applicable.
ITEM 5. OTHER EVENTS
Not applicable.
ITEM 6. RESIGNATIONS OF DIRECTORS AND EXECUTIVE OFFICERS
Not applicable.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Proforma Financial Information
4
Proforma Consolidated Balance Sheet – March 31, 2002
5
Proforma Consolidated Statement of Operations - Year ended
    December 31, 2001
6
Proforma Consolidated Statement of Operations - Three
    months ended March 31, 2002
7
Note to Unaudited Proforma Consolidated Financial
    Statements
7
AMERICAN INTERNATIONAL
INDUSTRIES, INC.
UNAUDITED PROFORMA CONSOLIDATED FINANCIAL STATEMENTS
Effective June 5, 2002, the
Company sold, through its majority owned subsidiary (Unlimited Coatings Corporation), 100%
of its investment in Marald, Inc. for total consideration of $725,000. The $725,000
received consists of $225,000 in cash and one long-term note receivable in the amount of
$300,000 and another long-term note receivable with a face amount $300,000, reduced by a
$100,000 valuation reserve due to a provision which allows for a payment of $200,000 for
early retirement of the note.
The following unaudited proforma
consolidated statements of operations for the three months ended March 31, 2002 and for
the year ended December 31, 2001, assumes the disposition of Marald, Inc. had occurred on
January 1, 2001 and include the historical unaudited consolidated statements of operations
for the Registrant for the year ended December 31, 2001 and quarter ended March 31, 2002,
adjusted for the proforma effects of the disposition.
The unaudited proforma consolidated statements
are not necessarily indicative of the results of operations that would actually have
occurred if the transactions had been consummated as of January 1, 2001. These statements
should be read in conjunction with the historical consolidated financial statements and
related notes thereto of the Registrant, in its annual report on Form 10-KSB and the
quarterly report on Form 10-QSB for the quarter ended March 31, 2002.
AMERICAN
    INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES
Unaudited
    Proforma Consolidated Balance Sheet
March
    31, 2002
Consolidated
Proforma
Balance
Proforma
    Adjustments
Balance
Assets
March 31, 02
Increase
Decrease
March 31, 02
Current assets:
Cash
$
475,748
$
225,000
$
(94,319)
$
606,429
Certificate of deposit
235,340
-
-
235,340
Trading securities
24,600
-
-
24,600
Available-for-sale
    securities
550,000
-
-
550,000
Accounts receivable,
    net
627,679
-
(239,883)
387,796
Accounts and notes
    receivable from related parties
470,879
-
-
470,879
Inventories
1,106,250
-
(129,784)
976,466
Real estate held for
    sale
885,624
-
-
885,624
Prepaid expenses and
    other current assets
5,138
-
-
5,138
Total
    current assets
4,381,258
225,000
(463,986)
4,142,272
Notes receivable
1,988,607
500,000
-
2,488,607
Less allowance for
    uncollectible accounts
-
-
-
-
Net notes
    receivable
1,988,607
500,000
-
2,488,607
Property and equipment, net of
    accumulated
depreciation and
    amortization
195,950
-
(95,141)
100,809
Excess of cost over net assets of
    businesses
acquired, less
    accumulated amortization of
$298,709 in 2002 and
    2001
1,303,239
-
(628,700)
674,539
Other assets
8,018
-
(1,885)
6,133
Total
    assets
$
7,877,072
$
725,000
$
(1,189,712)
$
7,412,360
Liabilities and
    Stockholders' Equity
Current liabilities:
Accounts payable and
    accrued expenses
700,803
-
(44,364)
656,439
Short-term notes
    payable
108,698
-
(108,698)
-
Current installments
    of long-term debt
33,151
-
(62,148)
(28,997)
Total
    current liabilities
842,652
-
(215,210)
627,442
Long-term notes payable to related
    parties
1,033,638
-
-
1,033,638
Long-term debt, less current
    installments
409,275
-
-
409,275
Minority interest
130,034
(112,183)
-
17,851
Total
    liabilities
2,415,599
(112,183)
(215,210)
2,088,206
Stockholders' equity:
Preferred stock, $.001
    par value. Authorized
10,000,000
    shares: none issued
-
-
-
-
Common stock, $.001
    par value. Authorized 200,000,000 shares:
155,084,398 shares issued and 154,832,398 shares
outstanding at March 31, 2002, 152,884,398 shares issued and
152,632,398 shares outstanding at December 31, 2001
154,832
1,000
(1,000)
154,832
Additional paid-in
    capital
17,888,983
696,000
(696,000)
17,888,983
Accumulated deficit
(12,448,314)
140,183
(277,502)
(12,585,633)
Total
    stockholders' equity
5,595,501
837,183
(974,502)
5,458,182
Less treasury stock,
    at cost (252,000 shares)
(34,028)
-
-
(34,028)
Unrealized losses on
    shares available-for-sale
(100,000)
-
-
(100,000)
Total
    stockholders' equity
5,461,473
837,183
(974,502)
5,324,154
Commitments and contingent
    liabilities
Total
    liabilities and stockholders' equity
$
7,877,072
$
725,000
$
(1,189,712)
$
7,412,360
See accompanying notes
    to unaudited Proforma consolidated financial statements.
AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES
Unaudited
    Proforma Consolidated Statement of Operations
Year
    ended December 31, 2001
Proforma
Consolidated
Adjustments
Proforma
Balance
Increase
Decrease
Balance
Revenues
$
$
0
$
(2,892,279)
$
793,6211
Costs and expenses:
Costs of sales
8,630,198
-
(2,228,626)
6,401,572
Selling, general and
    administrative
2,537,839
-
(550,198)
1,987,641
Total
    costs and expenses
11,168,037
-
(2,778,824)
8,389,213
Operating
    loss
(339,547)
-
(113,455)
(453,002)
Other income (expenses):
Interest income
132,690
-
215
132,905
Unrealized losses on
    investments
(91,200)
-
-
(91,200)
Gain on sale of
    subsidiary
1,555,435
-
-
1,555,435
Gain on disposition of
    assets
15,000
-
-
15,000
Other income
281,919
-
2,824
284,743
Interest expense
(73,316)
-
14,439
(58,877)
Total
    other income (expenses)
1,820,528
-
17,478
1,838,006
Net
    earnings (loss) before income taxes
1,480,981
-
(95,977)
1,385,004
Provision for income taxes
-
-
-
-
Net
    earnings (loss)
$
1,480,981
$
-
$
(95,977)
$
1,385,004
See accompanying notes
    to unaudited Proforma consolidated financial statements.
AMERICAN INTERNATIONAL INDUSTRIES, INC. AND SUBSIDIARIES
Unaudited
    Proforma Consolidated Statement of Operations
Three
    months ended March 31, 2002
Consolidated
Proforma
    Adjustments
Proforma
Balance
Increase
Decrease
Balance
Revenues
$
1,802,065
$
-
$
(820,771)
$
981,294
Costs and expenses:
Costs of sales
1,381,133
-
(622,111)
759,022
Selling, general and
    administrative
533,713
-
(154,236)
379,477
Total
    costs and expenses
1,914,846
-
(776,347)
1,138,499
Operating loss
(112,781)
-
(44,424)
(157,205)
Other income (expenses):
Interest income
3,436
-
-
3,436
Unrealized losses on
    investments
(4,200)
-
-
(4,200)
Gain on sale of
    subsidiary
-
-
-
-
Gain on disposition of
    assets
-
-
-
-
Other income
(1,749)
-
-
(1,749)
Interest expense
(8,728)
-
2,260
(6,468)
Total
    other income (expenses)
(11,241)
-
2,260
(8,981)
Net
    earnings (loss) before income taxes
(124,022)
-
(42,164)
(166,186)
Provision for income taxes
-
-
-
-
Net earnings
    (loss)
$
(124,022)
$
-
$
(42,164)
$
(166,186)
See accompanying notes
    to unaudited Proforma consolidated financial statements.
Unaudited Proforma Consolidated
Financial Statements
Notes to Unaudited Proforma Consolidated Financial Statements
(1) Basis of Presentation
The unaudited Proforma
Consolidated Statement of Operations for the three months ended March 31, 2002, included
the unaudited historical results of operations for American International Industries, Inc.
and subsidiaries, excluding Marald, Inc. for the three months ended March 31, 2002,
adjusted for the proforma effects of the disposition assuming the disposition occurred on
January 1, 2001.
The unaudited Proforma
Consolidated Statement of Operations for the year ended December 31, 2001, included the
audited historical results of operations of American International Industries, Inc. and
subsidiaries, and adjusted for the proforma effects of the disposition assuming the
disposition occurred on January 1, 2001.
The unaudited Proforma Balance
Sheet at March 31, 2002, included the unaudited position of American International
Industries, Inc. and subsidiaries as of March 31, 2002, assuming the disposition occurred
on March 31, 2002, adjusted for the proforma effects of the disposition.
(b) Exhibits
None
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
American International Industries, Inc.
By /s/ Daniel Dror, CEO, President and Chairman
Date: June 24, 2002