~~Pro~~SECURITIES ~~Forma~~AND ~~Historical~~EXCHANGE ~~Adjustments Pro Forma ----------- ----------- ----------- REVENUE License fees $ 417~~COMMISSION Washington,~~894~~ $ (417,894) (1) $ - Consulting 946,617 (58,650) (1) 887,967 Maintenance 40,593 (40,593) (1) - ----------- ----------- ----------- Total revenue 1,405,104 (517,137) 887,967 EXPENSES Payroll 1,281,561 (51,714) (2) 1,229,847 Payroll taxes 85,417 85,417 Employee health insurance 52,159 52,159 Employer 401(k) contribution 39,191 39,191 Software development and consulting 169,101 169,101 Administration 252,221 252,221 Interest 31,226 (31,226) (3) - Travel 88,689 88,689 Marketing 15,533 15,533 Miscellaneous 19,896 19,896 Equipment and office rent 44,072 44,072 Depreciation 18,045 18,045 ----------- ----------- ----------- Total expenses 2,097,111 (82,940) 2,014,171 ----------- ----------- ----------- NET LOSS $ (692,007) $ (434,197) $(1,126,204) =========== =========== =========== Net loss per share - Basic $ (0D.~~04) $ (0~~C.~~02)~~ $ (0.06) =========== =========== =========== Diluted $ (0.04) $ (0.02) $ (0.06) =========== =========== =========== Weighted average shares outstanding - Basic 17,856,000 17,856,000 17,856,000 =========== =========== =========== Fully Diluted 17,856,000 17,856,000 17,856,000 =========== =========== ===========20549

~~Pro~~FORM ~~Forma Historical Adjustments Pro Forma~~ 8----------- ----------- ----------- ASSETS Cash and cash equivalents $ 18,961 $ 805,501 (1) $ 824,462 Cash in escrow - 150,000 (2) 150,000 Accounts receivable 275,690 - 275,690 Total current assets 294,651 955,501 1,250,152 ----------- ----------- ----------- Equipment, net of accumulated depreciation 62,654 62,654 Other assets 3,150 3,150 ----------- ----------- ----------- Total assets $ 360,455 $ 955,501 $ 1,315,956 =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Accounts payable $ 184,410 $ 184,410 Accrued payroll and related liabilities 226,872 226,872 Accrued royalty 10,500 10,500 Accrued interest payable 18,766 (18,766) (4) - Deferred income 101,118 (101,118) (3) - Line of credit 200,000 (200,000) (4) - Current portion of long-term debt 41,538 (41,538) (4) - ----------- ----------- ----------- Total current liabilities 783,204 (361,422) 421,782 Long-term debt 183,077 (183,077) (4) - ----------- ----------- ----------- Total liabilities 966,281 (544,499) 421,782 Stockholders' equity (deficit): Common stock - $0.001 par value; 50,000,000 shares authorized; 17,856,000 shares issued and outstanding 17,856 17,856 Convertible preferred stock - $0.001 par value; 20,000,000 shares authorized; 10,000 shares issued and outstanding. Shares convert to common stock at a ratio of 1,000 shares of common for each share of convertible preferred stock on February 28, 20002. 10 10 Additional paid-in capital 1,377,648 1,377,648 Accumulated deficit (1,983,690) 1,500,000 (5) (483,690) Unearned compensation (17,650) (17,650) ----------- ----------- ----------- Total stockholders' equity (deficit) (605,826) 1,500,000 894,174 ----------- ----------- ----------- Total liabilities and stockholders' equity (deficit) $ 360,455 $ 955,501 $ 1,315,956 =========== =========== ===========K

~~Pro~~CURRENT Forma Historical Adjustments Pro Forma ----------- ----------- ----------- REVENUE License fees $ 294,751 $ (294,751) (1) $ - Consulting 387,723 (25,781) (1) 361,942 Maintenance 33,061 (33,061) (1) - Other 21,519 21,519 ----------- ----------- ----------- Total revenue 737,054 (353,593) 383,461 EXPENSES Payroll 839,550 (35,359) (2) 804,191 Payroll taxes 59,227 59,227 Employee health insurance 40,100 40,100 Software development and consulting 377,551 377,551 Administration 191,064 191,064 Interest 19,914 (19,914) (3) - Travel 110,029 110,029 Marketing 4,388 4,388 Miscellaneous 1,066 1,066 Equipment and office rent 46,734 46,734 Depreciation 14,470 14,470 ----------- ----------- ----------- Total expenses 1,704,093 (55,273) 1,648,820 ----------- ----------- ----------- NET LOSS $ (967,039) $ (298,320) $(1,265,359) =========== =========== =========== Net loss per share - Basic $ (0.07) $ (0.02) $ (0.09) =========== =========== =========== Diluted $ (0.07) $ (0.02) $ (0.09) =========== =========== =========== Weighted average shares outstanding - Basic 14,536,175 14,536,175 14,536,175 =========== =========== =========== Fully Diluted 14,536,175 14,536,175 14,536,175 =========== =========== ===========REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

August 20, 2003
Date of Report (Date of earliest event reported)

Commission File Number 000-26839

SNAP 2 CORPORATION
(Exact name of small business issuer as specified in its charter)

Nevada
(State or other jurisdiction of
incorporation or organization)

88-0407246
(IRS Employer Identification No.)

6767 West Tropicana Avenue, Suite 203
Las Vegas, Nevada 89103
(Address of principal executive offices)

(702) 682-3330
(Issuer's telephone number)

ITEM 1. CHANGES IN CONTROL OF REGISTRANT.

Not applicable.

ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS.

Not applicable.

ITEM 3. BANKRUPTCY OR RECEIVERSHIP.

Not applicable.

ITEM 4. CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT.

Not applicable.

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ITEM 5. OTHER EVENTS.

By approval of the Board of Directors of Snap2 Corp. the Board has authorized a reverse split of ten shares to one share. This action was approved on August 20, 2003 and to be effective by September 4, 2003.

ITEM 6. RESIGNATIONS OF DIRECTORS.

Not applicable.

ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.

Not applicable.

ITEM 8. CHANGE IN FISCAL YEAR:

Not applicable.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

	SNAP2 CORPORATION
Dated: August 3, 2003	By:/s/Kevin Johnson Kevin Johnson, C.E.O.

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