RecycleNet Corporation Financial

RECYCLENET CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS

	For the 12 months ended December 31st
	2003	2002
Cash Flows From Operating Activities
Net Income (loss)	$ (62,926)	24,015
Adjustments to reconcile net income (loss) to net cash used by operating activities:
Depreciation	1,165	3,707
Foreign currency net exchange (gain) loss	(559)	(1,314)
Issuance of common shares for consulting services and amortization of shares held in escrow	115,139	-
Changes in assets and liabilities:
Accounts and other receivables	(22,122)	(178)
Inventory
Prepaid expenses	(1,164)	(4,028)
Accounts payable and accrued liabilities	(33,811)	26,999
Deferred revenue	6,612	(16,396)
Net Cash Provided by Operating Activities	2,334	94,257
Cash Flows From Investing Activities:
Collection of advances to related party	5,962	1,380
Purchase of property and equipment	(8,339)	-
Net Cash Provided by (Used In) Investing Activities	(2,377)	1,380
Cash Flows From Financing Activities:
Cash paid in redemption of Class N and (Class X) common shares	-	(75,000)
Intercompany loans R/Net Utah	256	-
Net Cash Provided By (Used In) Financing Activites	256	(75,000)
Effect of Exchange Rate Changes on Cash	887	1,314
Net Increase in Cash	1,100	21,951
Cash at Beginning of Period	212,196	190,245
Cash at End of Period	213,296	212,196

Non-Cash Investing and Financing Activities:
Converted 116,000 shares of Class N (Class X) shares to common stock	-	1,161

File No.: 2012