6-7-04 draft	Balance Sheet 2000  (2000 back to last report)
			Prophy Research Corporation
			Year end (Dec 31) 2000    (in dollars except number of shares)
			Main		Main		Main		Main
		2000	changes		changes		changes		changes	Begin
		year end	during	year end	during	year end	during	year end	during	year end
		2000	2000	1999	1999	1998	1998	1997	1997	1996
Current assests
	Cash	1,077	-25	1,102	225	877	-437	1,314	515	799
	Other	0		0		0		0		0
Long term assets
	Real assets	0		0		0		0		0
	Patent aps*	235,010	14,450	220,560	16,320	204,240	16,940	187,300	44,000	143,300
Total assets		236,087		221,662		205,117		188,614		144,099
Liabilities		0		0		0		0		0
Net assets		236,087		221,662		205,117		188,614		144,099
Goodwill stock		235,010	14,450	220,560	16,320	204,240	16,940	187,300	44,000	143,300
Paid in capital stock		59,136	1,259	57,877	1,552	56,325	1,147	55,178	3,752	51,426
Total stock		294,146		278,437		260,565		242,478		194,726
Retained earnings (loss)		-58,059	-1,284	-56,775	-1,327	-55,448	-1,584	-53,864	-3,237	-50,627
Stockholders' equity		236,087		221,662		205,117		188,614		144,099
Number of shares		25,530.36	1,570.90	23,959.46	1787.2	22,172.26	1808.7	20,363.56	4,775.20	15588.36
Equity/share		9.25		9.25		9.25		9.26		9.24
Cash assets/share		0.04		0.05		0.04		0.06		0.05
*Values assigned to patent rights**:  (These values are strictly fig newtons of my imagination.)
	OptiDose®	193,010	13,450	179,560	13,320	166,240	10,940	155,300	34,000	121,300
	OsteoPat	42,000	1,000	41,000	3,000	38,000	6,000	32,000	10,000	22,000
	Other	0	0	0	0	0	0	0	0	0
	Total pat aps***	235,010	14,450	220,560	16,320	204,240	16,940	187,300	44,000	143,300
**Prophy ownership of patent rights: All intellectual property (patents, trademarks, etc.) that I mention in our reports
have been ours (100% owned by the company) until this year. This spring I gave our guys in Switzerland 50%
of our Swiss patent. Heinz & Julia have done virtually everything that has been done in Switzerland to date, which
is our single best success story so far. (I'll get more into this arrangement in the "news".) Now let's get back to
notes about who owns what. The transfer from my ownership (the patent office grants ownership to the
applicant) to company ownership is by agreement, usually explicit. For example, in our original incorporation
I give the OptiDose rights, and in the Osteo patent application I list Prophy as the assignee. However, this does not
give our company clear title. This is fine in most situations, but it would be cleaner if we went ahead and transferred
title to the company, at least for the valuable pieces of property. I was getting the paper work (about 5
pages) and cash (about $65) ready for OptiDose (U.S. patent rights), when the stupid
lost check issue came up. I'll get back on that. I'll start gathering paperwork for the U.S. trademark, and see what
the situation is for the remainder of the Swiss patent rights.
*** The total patent aps had a slight mistake on the 1996 balance sheet. It showed $143, 330 ($30 too much). That came from
two old mistakes when I used to total the stock clubs by hand instead of Excel. The PD club showed 37 shares instead of the
correct total of 36, and the NHSC club showed 241 shares, not the correct 245. The net effect was 3 extra shares at $10.