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The following is an excerpt from a 10KSB SEC Filing, filed by CELERITY SYSTEMS INC on 4/15/2003.
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HOMELAND SECURITY CAPITAL CORP - 10KSB - 20030415 - STOCKHOLDERS_EQUITY

CELERITY SYSTEMS, INC.
Statement of Changes in Stockholders' Deficit For the years ended December 31, 2002 and 2001

                                                                                                                     Additional
                                                                                   Shares Of         Common          Paid-In
                                                                                   Common Stock      Stock           Capital
                                                                                   ------------      ------------    ------------
Balances, December 31, 2000                                                           1,231,974      $      1,232    $ 30,430,956
Issuance of common stock                                                                 50,000                50          29,950
Issuance of common stock in connection with a purchase or finance commitment            120,000               120         407,880

 Issuance of convertible debentures with beneficial conversion feature                                                  2,151,794
 Issuance of convertible preferred stock with beneficial conversion feature                                               969,654
Issuance of common stock as payment of certain consulting and directors' fees,
 payroll and accounts payable items                                                      64,144                64         145,464
Conversion of convertible debentures to shares of common stock                        3,155,638             3,156       1,683,193
Conversion of convertible preferred stock to shares of common stock                     318,010               318         190,593
Amortization of beneficial conversion feature and accretion of redeemable
 convertible preferred stock                                                                                               27,446
Reclassification as a result of a change in accounting principle for
 outstanding warrants                                                                                                  (2,863,760)
Loss on treasury stock
Net loss
                                                                                   ------------      ------------    ------------
Balances, December 31, 2001                                                           4,939,766             4,940      33,173,170

Issuance of common stock                                                              9,300,000             9,300          83,700
 Issuance of convertible debentures with beneficial conversion feature                                                    452,252
 Issuance of convertible preferred stock with beneficial conversion feature                                               154,000
Issuance of common stock as payment of certain consulting and directors' fees,
 payroll and accounts payable items                                                   3,810,385             3,810         120,248
Conversion of convertible debentures to shares of common stock                      223,675,428           223,675       1,278,523
Conversion of convertible preferred stock to shares of common stock                   4,600,000             4,600         796,900
Amortization of beneficial conversion feature and accretion of redeemable
 convertible preferred stock
Close out of equity warranty liability account                                                                             29,629
Reestablish equity warranty liability account                                                                             (29,629)
Net Loss
                                                                                   ------------      ------------    ------------
Balances, December 31, 2002                                                         246,325,579      $    246,325    $ 36,058,793
                                                                                   ============      ============    ============

                                                                                                                     Total
                                                                                   Treasury          Accumulated     Stockholders'
                                                                                   Stock             Deficit         Deficit
                                                                                   ------------      ------------    ------------
Balances, December 31, 2000                                                        $   (227,500)     $(32,157,539)   $ (1,952,581)
Issuance of common stock                                                                                                   30,000
Issuance of common stock in connection with a purchase or finance commitment                                              408,000

 Issuance of convertible debentures with beneficial conversion feature                                                  2,151,794
 Issuance of convertible preferred stock with beneficial conversion feature                                               969,654
Issuance of common stock as payment of certain consulting and directors' fees,
 payroll and accounts payable items                                                                                       145,528
Conversion of convertible debentures to shares of common stock                                                          1,686,349
Conversion of convertible preferred stock to shares of common stock                                                       190,911
Amortization of beneficial conversion feature and accretion of redeemable
 convertible preferred stock                                                                           (1,060,000)     (1,032,554)
Reclassification as a result of a change in accounting principle for
 outstanding warrants                                                                                                  (2,863,760)
Loss on treasury stock                                                                  227,500                           227,500
Net loss                                                                                               (3,731,361)     (3,731,361)
                                                                                   ------------      ------------    ------------
Balances, December 31, 2001                                                                  --       (36,948,900)     (3,770,790)

Issuance of common stock                                                                                                   93,000
 Issuance of convertible debentures with beneficial conversion feature                                                    452,252
 Issuance of convertible preferred stock with beneficial conversion feature                                               154,000
Issuance of common stock as payment of certain consulting and directors' fees,
 payroll and accounts payable items                                                                                       124,058
Conversion of convertible debentures to shares of common stock                                                          1,502,198
Conversion of convertible preferred stock to shares of common stock                                                       801,500
Amortization of beneficial conversion feature and accretion of redeemable
 convertible preferred stock                                                                             (154,000)       (154,000)
Close out of equity warranty liability account                                                                             29,629
Reestablish equity warranty liability account
Net Loss                                                                                               (4,455,706)     (4,455,706)
                                                                                   ------------      ------------    ------------
Balances, December 31, 2002                                                        $         --      $(41,558,606)   $ (5,253,488)
                                                                                   ============      ============    ============