PK Ventures, Inc. and Subsidiaries, et al. - Page 125

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          Other Circumstances Surrounding PK Ventures’ Operations and                 
          Financial Arrangements                                                      
               A.  Going Concern Notes in the Business’s Financial                    
          Statements                                                                  
                    1.  PK Ventures, SLPC, TBPC, and TPTC                             
               Note 10 to PK Ventures’ audited financial statements for the           
          year ended December 31, 1989, set forth the going concern                   
          position of the corporation.  Note 10 stated, in pertinent part,            
          the following with respect to the corporation’s financial status:           
          “Management’s plans include several steps which may mitigate the            
          current adverse financial condition.  * * * The Company’s                   
          management extended payment terms related to certain accrued                
          payables such as officer’s salaries, indefinitely, subject to               
          cash availability.”  The notes to SLPC, TBPC, and TPTC’s audited            
          financial statements for the year ended December 31, 1989, also             
          include “going concern” notes that state that each corporation’s            
          management had “extended payment terms related to certain accrued           
          payables such as officer’s salary, indefinitely, subject to cash            
          availability.”  No corporate resolutions and/or other agreements            
          by PK Ventures, SLPC, TBPC, or TPTC set forth the terms of these            
          extended payment arrangements.                                              
                    2.  PKVI LP                                                       
               Note 8 to PKVI LP’s audited financial statements for the               
          year ended December 31, 1989, set forth the going concern                   
          position of the partnership.  Note 8 stated the following with              






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