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The following is an excerpt from a 10KSB SEC Filing, filed by WHITEHALL ENTERPRISES INC on 1/16/2002.
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WHITEHALL ENTERPRISES INC - 10KSB - 20020116 - LIQUIDITY_CAPITAL
LIQUIDITY AND CAPITAL RESOURCES

At September 30, 2001, the Company had operating cash on hand of $265,964 as compared to cash on hand at September 30, 2000 of $57,380. At September 30, 2001, the Company had a negative working capital ratio of current assets to current liabilities of approximately .745, which decrease from a comparable ratio of .879 at September 30, 2000.

At September 30, 2000, the Company had operating cash on hand of $57,380. As compared to cash on hand at September 30, 1999 of $2,264. At September 30, 2000, the Company had a negative working capital ratio of current assets to current liabilities of approximately .879, which improved from a comparable ratio of .528 at September 30, 1999.

The long-term portion of debt at September 30, 2001 consisted of installments due on capital lease and loan obligations of $153,346, and a convertible debenture of $2,150,000 issued for the purchase of DocPal Medical Review software license. The convertible debenture referred to above is subject to conversion at $1 per share until February 28, 2002, the maturity date. Afterwards, the conversion rate becomes the average closing bid price per share for the five trading days prior to the notice of conversion.

The long-term portion of debt at September 30, 2000 consisted of installments due on capital lease and loan obligations of $94,146, convertible debenture of $2,150,000 issued for the purchase of DocPal Medical Review software license, and loans of $626,070 due to an investor group that was issued common shares in lieu of payment on October 31, 2000.

The long-term portion of debt at September 30, 1999 consisted of loans due to the Royal Bank of Canada. The bank indebtedness was secured by a registered general assignment of book debts and a general security agreement, a

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guarantee and postponement of claim in the amount of $1,397,000 by 129 Ontario, assignment of all shares of the company, postponement and assignment of all shareholder debt and an assignment of Keyman insurance. MBM had violated certain covenants with respect to the operating loans. While the bank had been advised of this, they did not expressly waive the conditions. The Company was relieved of all responsibility upon the closing of the sale of MBM.

Cash flows provided by operating activities during the year ended September 30, 2001 were approximately $793,110. The cash provided by operations was used to pay for the expenses of the Company and service debt.

Cash flows provided by operating activities during the year ended September 30, 2000 were approximately $1,500,363. The cash provided by operations was used to pay for the expenses of the Company and service debt. Cash used in operating activities for the year ended September 30, 1999 was approximately $490,576.

Cash flows used in investing activities during the year ended September 30, 2001 were approximately $575,200 used to acquire the MiB common stock and to purchase property and equipment used in existing and new office expansion.

Cash flows used in investing activities during the year ended September 30, 2000 were approximately $2,621,228 used to acquire the ALG and DF common stock and the DocPal Medical Review software license. Cash flows used in investing activities during the year ended September 30, 1999 were approximately $109,210 used to acquire the HBI patents and to purchase capital assets required for manufacturing processes in MBM. Cash flows provided by investing activities during the year ended September 30, 2000 were approximately $549,910 consisting of the proceeds from the sale of MBM.

Cash flows from financing activities during the year ended September 30, 2001 were provided by convertible debentures amounting to $200,000. These debentures were issued relative to IMT transactions. Cash flows used in financing activities during the year ended September 30, 2001 consisted of principal payments of $209,326 on long term debt and capital lease obligations.

Cash flows from financing activities during the year ended September 30, 2000 were provided by loans advanced to meet the working capital agreement requirements in the acquisition of ALG (as discussed above and in the financial statements). These loans were paid by the issuance of common stock on October 31, 2000. Cash flows used in financing activities during the year ended September 30, 1999 consisted mainly of changes in loans receivable balances from 129 Ontario and debt service costs in the form of capitalized deferred charges and loan costs and other loan payments required under the agreements between MBM and the Royal Bank of Canada.

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BROKERAGE PARTNERS