

                             Buy It Cheap.com, Inc.
                          (A Development Stage company)
                        Index to the Financial Statements
                For the Period July 19, 1999 (Date of Inception)
                              to September 30, 1999

                                                                            Page
Independent Auditors' Report.................................................1
Balance Sheet     ...........................................................2
Statement of Operations......................................................3
Statement of Stockholders' Equity............................................4
Statement of Cash Flows......................................................5
Notes to Financial Statements..............................................6-7

<PAGE>


                            (Letter on Letterhead of
                           Rosenberg Rich Baker Berman
                                   & Company)


To the Board of Directors and Shareholders of
Buy It Cheap.com, Inc.


We have audited the  accompanying  balance  sheet of Buy It  Cheap.com,  Inc. (A
Development  Stage Company) as of September 30, 1999 and the related  statements
of operations,  stockholders' equity and cash flows for the period July 19, 1999
(date of inception) to September 30, 1999.  These  financial  statements are the
responsibility of the Company's management.  Our responsibility is to express an
opinion on these financial statements based on our audit.

We conducted our audit in accordance with generally accepted auditing standards.
Those standards  require that we plan and perform the audit to obtain reasonable
assurance   about  whether  the  financial   statements  are  free  of  material
misstatement.  An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements.  An audit also includes
assessing the  accounting  principles  used and  significant  estimates  made by
management,  as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.

In our opinion,  the financial  statements  referred to above present fairly, in
all material  respects,  the  financial  position of Buy It  Cheap.com,  Inc. (A
Development  Stage  Company) as of September 30,  1999,  and  the results of its
operations,  and its cash flows for the period July 19, 1999 (date of inception)
to  September  30,  1999  in  conformity  with  generally  accepted   accounting
principles.



Bridgewater, New Jersey
November 29, 1999

<PAGE>

<TABLE>
<CAPTION>

                             Buy It Cheap.com, Inc.
                          (A Development Stage Company)
                                  Balance Sheet
                               September 30, 1999


                   Assets

Current Assets
<S>                                                                                       <C>
         Cash                                                                                 $   23,566
         Notes receivable - Northeast (USA) Corp.                                                 21,751
         Other receivable                                                                            125
                                                                                               ---------
                  Total Current Assets                                                            45,442

Software                                                                                          19,400
                                                                                               ---------
         Total assets                                                                             64,842
                                                                                               =========
         Liabilities and Stockholders' Equity

                  Current Liabilities

         Accounts payable and accrued expenses                                                     9,697
                                                                                               ---------
                  Total Current Liabilities                                                        9,697
                                                                                               ---------
Stockholders' Equity
         Common stock - no par value; 1,000 shares authorized, 87
           shares issued and outstanding                                                          62,125
         Deficit accumulated during the development stage                                         (6,980)
                                                                                               ----------

                  Total Stockholders' Equity                                                      55,145
                                                                                               ----------
                           Total Liabilities and Stockholders'
                                 Equity                                                      $    64,842
                                                                                             ===========

</TABLE>

                     See Notes to the financial statements.


<PAGE>

                             Buy It Cheap.com, Inc.
                          (A Development Stage Company)
                             Statement of Operations
                For the Period July 19, 1999 (Date of Inception)
                              to September 30, 1999


Revenues                                                     $   --

Costs and expenses:
         General and administrative                              6,980
                                                              --------
Net loss                                                     $   6,980
                                                              ========




                     See Notes to the financial statements.

<PAGE>

<TABLE>
<CAPTION>

                                                     Buy It Cheap.com, Inc.
                                                 (A Development Stage Company)
                                               Statement of Stockholders' Equity
                                        For the Period July 19, 1999 (Date of Inception)
                                                     to September 30, 1999


                                                                                                   Deficit
                                                                                                 Accumulated
                                                                                                  During the             Total
                                                                Common Stock                     Development           Stockholders'
                                                       Shares                 Amount                Stage                Equity

<S>                                                      <C>                  <C>                   <C>                 <C>
Balance at July 19, 1999 (Date of Inception)              -                  $     -             $    -                $   -

Issuance of Stock in exchange for subscription            25                      125                 -                   125
     receivable

Issuance of stock in exchange for software                15                   15,000                 -                15,000

Issuance of stock pursuant to private placement
     offering                                             47                   47,000                 -                47,000

Net loss for the period                                   -                        -                (6,980)             (6,980)

                                                      ___________         _____________           __________          ________
Balance at September 30, 1999                             87                 $ 62,125              $(6,980)          $ 55,145
                                                      ===========         =============           ==========         =========



                     See notes to the financial statements.

<PAGE>


                             Buy It Cheap.com, Inc.
                          (A Development Stage Company)
                             Statement of Cash Flows
                For the Period July 19, 1999 (Date of Inception)
                              to September 30, 1999


Cash Flows From Operating Activities
         Net Loss                                            $   (6,980)

Changes in Assets and Liabilities
         Accounts payable                                         6,797
                                                                 ------
                  Net Cash Used by Operating Activities            (183)
                                                                 -------
Cash Flows From Investing Activities
         Loan to related party                                  (21,751)
         Purchase of software                                    (1,500)
                                                                --------
                  Net Cash Used by Investing Activities         (23,251)
                                                                --------
Cash Flows From Financing Activities
         Sale of common stock                                    47,000
                                                                -------
                  Net Increase in Cash and Cash Balance at
September 30, 1999                                            $  23,566
                                                              =========
SUPPLEMENTAL SCHEDULE OF NON CASH INVESTING AND FINANCING ACTIVITIES

Software costs financed by issuance of common stock           $  15,000
Software costs financed by accounts payable                       2,900
Issuance of common stock for receivable                             125
                                                              ---------
         Total Non Cash Investing and Financing Activities    $  18,025
                                                              =========

</TABLE>

                     See notes to the financial statements.

<PAGE>

                             Buy It Cheap.com, Inc.
                          (A Development Stage Company)
                        Notes to the Financial Statements
                For the Period July 19, 1999 (Date of Inception)
                              to September 30, 1999


SUMMARY OF SIGNIFICANT ACCOUNT POLICIES

         Nature of Organization
               Buy It Cheap.com,  Inc. (the "Company") is a Delaware corporation
               organized  on July 19,  1999.  The  Company  will  operate in the
               Internet retailing industry.

               Since  there  has been no  significant  revenues  generated  from
               Internet retailing, the Company is considered a Development Stage
               Company for financial reporting purposes.

         Software Costs
               Software is stated at cost.  Amortization  will be computed using
               the straight line method over the estimated useful life, when the
               Company substantially begins operations.

         Income Taxes
               Income  taxes are  provided  for the tax effects of  transactions
               reported  in  the  financial  statements  and  consist  of  taxes
               currently   due  plus  deferred   taxes   related   primarily  to
               differences  between  the basis of  assets  and  liabilities  for
               financial and income tax  reporting.  The deferred tax assets and
               liabilities represent the future tax return consequences of those
               differences,  which will either be taxable or deductible when the
               assets and liabilities  are recovered or settled.  Deferred taxes
               also are  recognized  for operating  losses that are available to
               offset future federal and state income taxes.

         Use of Estimates
               The  preparation  of  financial  statements  in  conformity  with
               generally accepted  accounting  principles requires management to
               make estimates and assumptions  that affect the reported  amounts
               of assets and liabilities and disclosure of contingent assets and
               liabilities  at the  date  of the  financial  statements  and the
               reported  amounts of revenues and expenses  during the  reporting
               period. Actual results could differ from those estimates.

         INCOME TAXES

               The  Company's  deferred  tax asset is comprised of the following
               temporary differences:


               Net operating losses                               $  (6,980)
                                                                  ==========
     Deferred taxes are recognized for temporary  differences  between the bases
     of assets and liabilities for   financial statement and income tax purposes
     and net operating loss  carryforwards.  The  differences  relate  primarily
     net operating loss carryforwards.

<PAGE>


     The  Company's  provision  for  income  taxes  differs  from  applying  the
     statutory U.S.  federal income tax rate to income before income taxes.  The
     primary  difference  results from providing for state income taxes and from
     deducting  certain  expenses for financial  statement  purposes but not for
     federal income tax purposes.

     Those amounts have been presented in the Company's financial statement as
     follows:

     Deferred tax asset, noncurrent                              $    1,500
     Total valuation allowance recognized for deferred tax assets    (1,500)
                                                                   ---------
             Net deferred tax assets                             $        -
                                                                 ===========

     The Company has  available net operating  loss  carryforwards  which may be
     used to reduce  Federal and State  taxable  income and tax  liabilities  in
     future years as follows:

<TABLE>
<CAPTION>

                                                               Federal                     State

         Available Through
<S>               <C>                                    <C>                         <C>
                  2007                                   $         -                  $     (6,980)
                  2019                                         (6,980)                          -
                                                          -------------                -------------
                      Total                              $     (6,980)                $     (6,980)
                                                          =============                =============
</TABLE>

RELATED PARTY TRANSACXTIONS

     The Company  loaned  $21,751 to Northeast  (USA) Corp.,  an entity owned in
     part  by some of the  Company's  shareholders.  These  loans  evidenced  by
     promissory  notes,  do not bear interest until the original  maturity date,
     November 30, 1999, at which time interest would accrue at 10% per annum.

SUBSEQUENT EVENT

     On October 27,  1999,  the Company  entered into an agreement to merge with
     Northeast  (USA) corp.  Pursuant to the  agreement  all of the  outstanding
     shares  of Buy It  Cheap.com,  Inc.  will be  converted  into the  right to
     receive  shares of Northeast  (USA) Corp.  on the basis of 10,000 shares of
     Northeast common stock for each outstanding share of Buy It Cheap.com, Inc.
     common stock.

