~~ASSETS~~UNITED ~~------~~STATES ~~1999~~SECURITIES 1998 -------------- ------------ Current assets: Cash $ 19,189 711 Accounts receivable 25,753 18,547 Inventory 30,942 31,012 Prepaids 3,371 3,371 ------------ ------------ Total current assets 79,255 53,641 Property and equipment, net 88,754 125,644 Security deposits 4,418 4,418 ------------ ------------ $ 172,427 183,703 ============ ============ 9 LIABILITIES AND ~~STOCKHOLDERS'~~EXCHANGE ~~DEFICIT~~COMMISSION ------------------------------------- 1999 1998 ------------ ------------ Current liabilities: Accounts payable and accrued expenses $ 131,165 122,567 Bank line of credit 24,869 25,000 Current portion of bank loan and capital lease obligations 21,127 23,052 Advances from stockholders 35,000 -- ----------- ------------ Total current liabilities 212,161 170,619 Bank loan, less current portion -- 2,567 Capital lease obligations, less current portion 36,925 55,485 Convertible debentures 230,000 100,000 Advances from stockholders -- 30,200 ----------- ------------ Total liabilities 479,086 358,871 ----------- ------------ Stockholders' deficit: Convertible preferred stock, $2.00 par value, 5,000,000 shares authorized, 271,875 shares issued and outstanding 543,750 -- Common stock, $.0005 par value, 30,000,000 shares authorized, 5,323,333 and 4,950,000 shares issued and outstanding, respectively 2,662 2,475 Additional paid-in capital 556,735 551,327 Accumulated deficit during development stage (1,409,806) (728,970) ----------- ------------ Net stockholders' deficit (306,659) (175,168) ----------- ------------ $ 172,427 183,703 =========== ============

~~Cumulative Amounts from inception to 1999 1998 December 31~~Washington, ~~1999~~D.C. ~~----------~~20549 ---------- ------------------ Sales, net $ 253,975 285,809 1,408,863 Cost of sales 69,196 87,536 266,127 ---------- ---------- ---------- Gross margin 184,779 198,273 1,142,736 ---------- ---------- ---------- Operating expense: Sales and marketing 353,465 225,224 978,505 General and administrative 427,613 383,917 1,399,868 Research and development 84,537 47,846 174,169 ---------- ---------- ---------- Total operating expenses 865,615 656,987 2,552,542 ---------- ---------- ---------- Net loss $(680,836) (458,714) (1,409,806) ========== ========== ==========

~~Accumulated~~FORM ~~Convertible Additional Deficit During Stock Net Preferred Stock Common Stock Paid~~8-inK Development Subscriptions Stockholders' Shares Amount Shares Amount Capital Stage Receivable Deficit ------ ------ ------ ------ ----------- -------------- ------------- ------------ Issuance of common stock for cash -- $ -- 4,657,389 $ 2,329 12,171 -- -- 14,500 Net loss -- -- -- -- -- (5,124) -- (5,124) ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1993 -- -- 4,657,389 2,329 12,171 (5,124) -- 9,376 Acquisition and retirement of common stock -- -- (802,999 (402) (2,098) -- -- (2,500) Net income -- -- -- -- -- 33,669 -- 33,669 ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1994 -- -- 3,854,390 1,927 10,073 28,545 -- 40,545 Net loss -- -- -- -- -- (721) -- (721) ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1995 -- -- 3,854,390 1,927 10,073 27,824 -- 39,824 Net loss -- -- -- -- -- (39,561) -- (39,561) ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1996 -- -- 3,854,390 1,927 10,073 (11,737) -- 263 Issuance of common stock for cash and notes -- -- 587,794 294 310,956 -- (106,250) 205,000 Compensation related to grant of stock options -- -- -- -- 15,800 -- -- 15,800 Net loss -- -- -- -- (258,519) -- (258,519) ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1997 -- -- 4,442,184 2,221 336,829 (270,256) (106,250) (37,456) Issuance of common stock for cash -- -- 507,816 254 194,746 -- -- 195,000 Collection of subscription receivable -- -- -- -- -- -- 106,250 106,250 Compensation related to grant of stock options -- -- -- -- 19,752 -- -- 19,752 Net loss -- -- -- -- (458,714) -- (458,714) ---- ------ --------- -------- ---------- ---------- ---------- ---------- Balances at December 31, 1998 -- -- 4,950,000 2,475 551,327 (728,970) -- (175,168) (continued) 12 BBJ ENVIRONMENTAL SOLUTIONS, INC. (A Development Stage Company) Statements of Stockholders' Deficit - Continued Accumulated Convertible Additional Deficit During Stock Net Preferred Stock Common Stock Paid-in Development Subscriptions Stockholders' Shares Amount Shares Amount Capital Stage Receivable Deficit ------ ------ ------ ------ ---------- -------------- ------------- ------------ Issuance of convertible preferred stock for cash 271,875 $ 543,750 -- -- (72,187) -- -- 471,563 Issuance of common stock for services -- -- 40,000 20 13,314 -- -- 13,334 Conversion of convertible debenture -- -- 333,333 167 99,833 -- -- 100,000 Cancellation of unexercised options -- -- -- -- (35,552) -- -- (35,552) Net loss -- -- -- -- -- (680,836) -- (680,836) -------- --------- --------- ----- ------- ------------- ----------- -------- Balances at December 31, 1999 271,875 $ 543,750 5,323,333 2,662 556,735 (1,409,806) -- (306,659) ======== ========= ========= ===== ======= ============= =========== ========

~~Cumulative~~CURRENT ~~Amounts~~REPORT from inception to 1999 1998 December 31, 1999 ---------- ---------- ------------------ Cash flows from operating activities: Net loss $ (680,836) (458,714) (1,409,806) Adjustment to reconcile net loss to net cash used in operating activities: Depreciation, net of gain on sale 35,701 35,089 106,123 Compensation due to grant of stock options (35,552) 19,752 -- Changes in current assets and liabilities: Accounts receivable (7,206) (4,385) (25,753) Inventory 70 (4,224) (30,942) Prepaids -- (3,371) (3,371) Accounts payable and accrued expenses 94,432 57,669 216,999 ---------- ---------- ---------- Net cash used in operating activities (593,391) (358,184) (1,146,750) ---------- ---------- ---------- Cash flows from investing activities: Purchase of property and equipment, net of proceeds from sale 1,189 (56,299) (105,266) Security deposits -- -- (4,418) ---------- ---------- ---------- Net cash provided by (used in) investing activities 1,189 (56,299) (109,684) ---------- ---------- ---------- Cash flows from financing activities: Proceeds from bank loans -- 2,000 56,517 Principal payments on bank notes and capital leases (23,183) (20,025) (63,207) Proceeds from convertible debenture 34,500 100,000 334,500 Proceeds from cash advances from stockholders 197,300 30,200 227,500 Repayment of cash advances from stockholder (69,500) -- (69,500) Net proceeds from issuance of preferred and common stock 471,563 301,250 789,813 ---------- ---------- ---------- Net cash provided by financing activities 610,680 413,425 1,275,623 ---------- ---------- ---------- (continued) 14 BBJ ENVIRONMENTAL SOLUTIONS, INC. (A Development Stage Company) Statements of Cash Flows - Continued Cumulative Amounts from inception to 1999 1998 December 31, 1999 ---------- ---------- ------------------ Net increase (decrease) in cash $ 18,478 (1,058) 19,189 Cash, beginning of period 711 1,769 -- -------- -------- -------- Cash, end of period $ 19,189 711 19,189 ======== ======== ======== Supplemental disclosures of cash flow information: Interest paid $ 14,872 17,656 45,986 Supplemental disclosures of non-cash financing activities: Conversion of convertible debentures into 385,439 shares of common stock $ -- -- 200,000 Purchase of property and equipment financed by capital lease obligations -- -- 89,611 Conversion of convertible debentures into 333,333 shares of common stock 100,000 -- 100,000 Issuance of 40,000 shares of common stock for legal services 13,334 -- 13,334 Conversion of cash advances from stockholders to convertible debenture 123,000 -- 123,000 Conversion of accrued interest and consulting services to convertible debt 72,500 -- 72,500

~~1999~~Pursuant ~~1998~~to ~~----~~Section ~~----------~~13 ~~Furniture~~or and fixtures $ 32,945 32,945 Office equipment 39,634 44,443 Manufacturing equipment 94,891 94,541 Leasehold improvements 17,272 17,272 ---------- -------- 184,742 189,201 Less accumulated depreciation and amortization 15(~~95,988~~d) ~~(63,557)~~of ~~----------~~the Securities ~~--------~~Exchange $Act ~~88,754~~of ~~125,644~~1934 ~~========== ========~~

~~Year~~Date ~~Ending~~of ~~December 31~~Report: ~~------------~~August ~~2000 $ 25~~30,~~900~~ ~~2001 25,900~~ 2002 16,112 -------- 67,912 Amount representing interest (12,427) -------- Present value of future payments 55,485 Current installments of capital lease obligations 18,560 -------- Capital lease obligations, less current installments $ 36,925 ======== (continued)

~~1999~~BBJ ~~1998~~ENVIRONMENTAL ~~--------- --------- Deferred tax assets: Net operating loss carryforwards $ 310~~TECHNOLOGIES,~~000~~ ~~61,000~~INC. Accrued compensation 11,000 20,000 Other -- 3,000 --------- --------- Total deferred tax assets 321,000 84,000 Valuation allowance for deferred tax assets (321,000) (84,000) --------- --------- Net deferred tax assets $ -- -- ========= =========

1999 1998 -------------------------------- ---------------------------------- Weighted Weighted Average Average Exercise Exercise Shares Price Shares Price --------------- --------------- -------------- ----------------- Beginning balance 931,843 $ 0.90 444,220 $ 0.66 Granted 1,512,500 1.15 487,623 1.11 Exercised -- -- -- Canceled (302,099) 0.40 -- -- --------------- --------------- -------------- ----------------- Ending balance 2,142,244 $ 1.15 931,843 $ 0.90 =============== =============== ============== ================= Exercisable 1,032,872 $ 1.04 623,189 $ 1.00 =============== =============== ============== ================= Weighted average fair value of options granted during the year $ 1.15 $ 1.11 =============== =================

Nevada		0-24016		65-1148155
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

~~Weighted~~6802 ~~Average~~Citicorp Number Remaining Number Exercise Outstanding Contractual Exercisable Price 12/31/99 Life in Years 12/31/99 -------------------------------- ----------------------- -------------------------- ---------------------- $1Blvd.~~25 1~~,~~212,500~~ ~~5.0~~Suite ~~172,~~500 ~~1.17 509~~,~~744~~ ~~3.0 440~~Tampa,~~372~~ ~~1.00~~Florida ~~120,000~~33619 1.6 120,000 0.75 300,000 4.0 300,000 -------------------------------- ----------------------- -------------------------- ---------------------- $0.75 - $1.25 2,142,244 4.2 1,032,872 ================================ ======================= ========================== ====================== (continued)

~~Pro Forma Combined Omega BBJ Adjustments Pro Forma -------------- ------------- -------------- ---------------- Assets Current assets: Cash $ 5,924 $ 4,016 $ 125,000~~ (2)Address $ 134,940 Accounts receivable -- 43,148 -- 43,148 Inventory -- 41,819 -- 41,819 Prepaids -- 7,120 7,120 Due from Omega -- 50,000 (50,000) (3) -- ------------- ------------- -------------- -------------- Total current assets 5,924 96,103 75,000 227,027 Furniture and equipment, net -- 83,690 -- 83,690 Security deposits -- 14,614 -- 14,614 ------------- ------------- -------------- -------------- $ 5,924 $ 194,407 $ 75,000 $ 325,331 ============= ============= ============== ============== Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 15,434 $ 86,101 $ -- $ 101,535 Bank line of ~~credit~~principal --executive ~~24,869 -- 24,869 Current portion of bank loan and capital lease obligations -- 19,212 -- 19,212 Advances from stockholders -- 85,000 85,000 Due to BBJ 50,000 -- (50,000~~offices) (3)Zip ~~-- ------------- ------------- -------------- -------------- Total current liabilities 65,434 215,182 (50,000~~Code) 230,616 Capital lease obligations, less current portion -- 32,285 -- 32,285 Convertible debenture -- 230,000 -- 230,000 ------------- ------------- -------------- -------------- Total liabilities 65,434 477,467 (50,000) 492,901 ------------- ------------- -------------- -------------- Stockholders' deficit: Convertible preferred stock -- 543,750 (543,750) (4) -- Common stock 15,000 2,842 (3,796) (4) 14,046 Additional paid-in capital 4,645,653 879,109 (4,047,617) (4) 1,477,145 Accumulated deficit (4,720,163) (1,658,761) 4,720,163 (4) (1,658,761) ------------- ------------- -------------- -------------- Net stockholders' deficit (59,510) (233,060) 125,000 (167,570) ------------- ------------- -------------- -------------- $ 5,924 $ 244,407 $ 75,000 $ 325,331 ============= ============= ============== ==============

~~Pro~~Registrant’s ~~Forma~~telephone ~~Combined Omega BBJ Adjustments Pro Forma ---------------- ---------------- ---------------- ---------------- Sales~~number, ~~net~~including $area -- $ 71,305 $ -- $ 71,305 Cost of sales -- 24,285 -- 24,285 --------------- --------------- --------------- --------------- Gross margin -- 47,020 -- 47,020 --------------- --------------- --------------- --------------- Operating expensescode: Sales and marketing -- 121,984 -- 121,984 General and administrative 11,187 154,817 -- 166,004 Research and development -- 19,173 -- 19,173 --------------- --------------- --------------- --------------- Total operating expenses 11,187 295,974 -- 307,161 --------------- --------------- --------------- --------------- Net loss $ (~~11,187~~813) ~~$ (248,954) $~~ 622--8550 ~~$ (260,141) =============== =============== =============== =============== Basic and diluted loss per share $ (0.02) =============== Pro forma common shares outstanding 14,045,666 ===============~~

Not Applicable

(Former name or former address, if changed since last report.)

Item 5. Other Events

On August 8, 2002, BBJ Environmental Technologies, Inc. (the “Company”) raised $45,000 from the issuance and sale of non-convertible promissory notes (“Note”) to three current shareholders. Each Note is due and payable on November 15, 2002, together with interest at the rate of 10% per annum, based upon the actual number of days that the Notes are outstanding. The Notes are redeemable by the Company anytime without penalty or prior written notice. In addition, for every one dollar of investment, the Company issued to each Noteholder a Warrant to purchase five shares of the Company’s Common Stock exercisable at $.20 per share until the close of business August 31, 2003. As of August 30, 2002, the Company has granted Warrants totaling 225,000 shares of the Company’s Common Stock.

On August 12, 2002, the Company commenced an offering to sell on a “best efforts basis” up to 5,340,000 shares of its restricted Common Stock at $.14 per share in order to raise up to $747,600. As of August 30, 2002, the Company has raised $226,800 through the sale of 1,620,000 restricted shares of its Common Stock at a purchase price of $.14 per share to an oversea bank ($196,000) and to Olivier d’Auriol ($30,800), a director of the Company. Each investor in this private placement also received a Warrant for every $1.25 of investment in the Company to purchase one share of the Company’s Common Stock exercisable at $.30 per share until the close of business August 31, 2004. As of August 30, 2002, the Company has granted Warrants totaling 181,440 shares of the Company’s Common Stock. This offering is ongoing and can be terminated by the Company at any time. The Company has received indications of interest from additional oversea banks and investors to purchase an additional 1,951,429 shares of the Company’s Common Stock for a total of $273,200. There can be no assurances given that the Company will receive this additional financing. As stated in our Form 10-Q, for the quarter ended June 30, 2002, management believed that it needed to raise $500,000 in additional financing to meet its obligations. This financing is in accordance with management’s plan to raise the necessary capital for the Company to continue as a going concern and carry out its business plan. Of the monies raised, $25,000 was used to retire one of the non-convertible promissory notes issued earlier in the month.

The Company also granted certain registration rights to its investors in connection with the foregoing offerings.

On August 13, 2002, Discount Bank and Trust Company converted 276,000 shares of its Series A Convertible Preferred Stock into 2,208,000 shares of Common Stock. As of August 30, 2002, all shares of the Series A Convertible Preferred Stock have been converted into shares of Common Stock and the Company has no preferred stock issued or outstanding.

Robert Baker, Chief Executive Officer of the Company, notified the Company of his intention to sell 100,000 shares of the Company’s Common Stock owned by him to

pay for college tuition.

INCREASE IN OUTSTANDING SHARES. As of August 30, 2002, the Registrant has 30,214,578 shares issued and outstanding after giving effect to the 1,620,000 restricted shares of its Common Stock issued as a result of $226,800 in financing.

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.

BBJ ENVIRONMENTAL TECHNOLOGIES, INC.

By:		/s/ JERRY V. SCHINELLA
		Jerry V. Schinella, President & CFO

Date: August 30, 2002

Filing Compare · BBJ ENVIRONMENTAL TECHNOLOGIES INC