Composite Indicator
Trend Spotter (TM) Buy

Short Term Indicators
7 Day Average Directional Indicator Buy
10 - 8 Day Moving Average Hilo Channel Hold
20 Day Moving Average vs Price Hold
20 - 50 Day MACD Oscillator Hold
20 Day Bollinger Bands Hold

Short Term Indicators Average: 20% - Buy
20-Day Average Volume - 114865

Medium Term Indicators
40 Day Commodity Channel Index Hold
50 Day Moving Average vs Price Buy
20 - 100 Day MACD Oscillator Buy
50 Day Parabolic Time/Price Sell

Medium Term Indicators Average: 25% - Buy
50-Day Average Volume - 90558

Long Term Indicators
60 Day Commodity Channel Index Buy
100 Day Moving Average vs Price Buy
50 - 100 Day MACD Oscillator Hold

Long Term Indicators Average: 67% - Buy
100-Day Average Volume - 63676

Overall Average: 40% - Buy

Price Support Pivot Point Resistance

0.01 -0.01 0.03 0.06

Today's Opinion:
40% Buy

Yesterday's Opinion:
72% Buy

Last Week's Opinion:
72% Buy

Last Month's Opinion:
8% Sell

Income Statement Get Income Statement for:




View: Quarterly Data | Annual Data All numbers in thousands
PERIOD ENDING 31-Dec-02 30-Sep-02 30-Jun-02 31-Mar-02
Total Revenue 219 351 81 941
Cost of Revenue 158 263 59 1,160

Gross Profit 61 88 21 (220)

Operating Expenses
Research Development - - - -
Selling General and Administrative 518 599 577 602
Non Recurring - - - 13,010
Others - - - -

Total Operating Expenses - - - -


Operating Income or Loss (456) (512) (556) (13,832)

Income from Continuing Operations
Total Other Income/Expenses Net 0 0 0 0
Earnings Before Interest And Taxes (456) (574) (493) (13,497)
Interest Expense 172 183 194 198
Income Before Tax (628) (757) (688) (13,695)
Income Tax Expense - - - -
Minority Interest 70 77 63 69

Net Income From Continuing Ops (559) (618) (688) (13,961)

Non-recurring Events
Discontinued Operations - - - -
Extraordinary Items - - - -
Effect Of Accounting Changes - - - -
Other Items - - - -


Net Income (559) (618) (688) (13,961)
Preferred Stock And Other Adjustments - - - -

Net Income Applicable To Common Shares ($559) ($618) ($688) ($13,961)

Earth Search Announces Resumption of Trading
Friday February 6, 9:30 am ET

KALISPELL, Mont.--(BUSINESS WIRE)--Feb. 6, 2004--Earth Search Sciences, Inc. (OTCBB:EDIS - News) Earth Search Sciences, Inc. (ESSI) announced that trading of its stock has resumed as of Monday, February 2nd, 2004.
Earth Search Chairman Larry Vance explained that after the first thirty-day "quiet period" has passed further announcements will be released describing the activities of Earth Search during the period of inactivity. Additionally, investors will be advised of current projects and programs as well as imminent opportunities under investigation and exploitation.

--------------------------------------------------------------------------------
Contact:
Earth Search Sciences, Inc., Kalispell
Larry Vance, 406-751-5200
earthsrch@aol.com
www.earthsearch.com

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Source: Earth Search Science

Form 10QSB for EARTH SEARCH SCIENCES INC

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11-Feb-2004

Quarterly Report

MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

RESULTS OF OPERATIONS
-

Historically ESSI's core business has been focused on collecting and processing hyperspectral data for a variety of clients. Most of these have been smaller jobs where the client may still be testing hyperspectral imagery applications. To develop its core business in what has proven to be a multi-faceted and multi-staged industry development curve, the company continues to participate in many "show and tell" projects. These have provided good publicity for the company and have attracted a large number of shareholders to the company. The company's largest clients represent world-class companies from the mineral exploration and exploitation group. These companies have successfully used hyperspectral imagery to identify and define good mineral prospects.

As well as minerals, ESSI has also succeeded in generating revenue from its involvement in oil and gas exploration and exploitation. Currently earning approximately $300,000 to $400,000 per year in revenue, the company's wholly owned (98%) subsidiary, Petro Probe is very active in new drilling programs and acquisition of properties and is expected to make a major contribution to the company's business plan.

The Company is continuing with its strategic plan of investing in projects that explore and develop mineral deposits and oil and gas reserves attractive for joint venturing with ready producers.

The Company recognized revenue of $115,364 the third quarter of 2004 compared with $219,116 in the third quarter of 2003. Included in the third quarter of 2004 is $0 in revenue from Oil and Gas Properties. Revenue for the nine months ended December 31, 2003 and 2002, was $359,540 and $651,315, respectively. Revenue from airborne hyperspectral services was $120,363 and $384,212 for the nine months ended December 2003 and 2002, respectively. Revenue from oil and gas properties was $239,176 and $260,644 for the nine months ended December 2003 and 2002, respectively.

The Company recognized cost of revenue of $0 in the three months ended December 31, 2003 compared with $157,816 for the three months ended December 31, 2002. Included in cost of revenue for the three months ended December 31, 2003 and 2002 is $0 and $29,997, respectively from STDC. Cost of revenue for the nine months ended December 31, 2003 and 2002, was $25,552 and $480,695, respectively. Included in cost of revenue for the nine months ended December 31, 2003 and 2002 is $0 and $49,474, respectively from STDC. Cost of revenue from airborne hyperspectral services was $25,552 and $407,866 for the nine months ended December 2003 and 2002, respectively. Cost of Revenue from oil and gas properties was $0 and $23,355 for the nine months ended December 2003 and 2002, respectively.

General and administrative expenses for the three months ended December 31, 2003 were $419,552 compared with $517,746 for the three months ended December 31, 2002. General and administrative expenses for the nine months ended December 31, 2003 were $1,601,437 compared with $1,694,741 for the nine months ended December 31, 2002.

Interest expense for the three and six months ended December 31, 2003 was $158,176 and $500,658, respectively, compared to $172,110 and $549,017 for the same periods in 2002.

LIQUIDITY AND CAPITAL RESOURCES
-

Capital expenditures in the third quarter of fiscal 2004 were primarily expenditures for the Company's oil and gas properties and computer related assets.

Net cash used in operating activities was $458,510 for the nine months ended December 2003, resulting primarily from a net lost of $1,691,112 net certain non-cash expenses. Net cash used in operating activities was $374,014 for the nine months ended December 31, 2002, resulting primarily from a net loss of $1,863,776.

Included in accounts payable and accrued expenses at December 31, 2003 is $8,216,826 of STDC liabilities. These liabilities are not guaranteed by Earth Search Sciences, Inc.

The Company is experiencing working capital deficiencies because of operating losses and capital expenditures. The Company and its subsidiaries have operated with funds received from the sale of common stock, the issuance of notes and operating revenue. The ability of the Company to continue as a going concern is dependent upon continued debt or equity financings until or unless the Company is able to generate cash flows to sustain ongoing operations. The Company plans to increase the number of revenue producing services through the use of additional hyperspectral instruments and thereby continue as a going concern. There can be no assurance that the Company can generate sufficient operating cash flows or raise the necessary funds to continue as a going concern.

FUTURE OPERATIONS
-

In the future, the Company intends to continue with its efforts to establish subsidiary companies that are capable of driving demand for hyperspectral services within a particular industry. This is in addition to attending to the core business segment of providing hyperspectral services, including surveying and processing, to third parties in the mineral, hydrocarbon, forestry and environmental areas.

Each subsidiary will focus on a specific sector of commercial remote sensing and have a management team with relevant skills and expertise. The Company will provide an exclusivity license for each subsidiary, provide use of the Company's hyperspectral instruments, processing support, and marketing and management support to each subsidiary. This strategy creates a ready market for the Company, as well as positioning the Company to receive a royalty from any resource development that occurs as a result of the subsidiaries' use of the Company's instruments and technology. Additional capital will be raised for each subsidiary by means of private placements or public offerings.

In addition, the Company intends to continue to perform remote sensing surveys for its own use with applications in mineral and hydrocarbon exploration as well as hyperspectral validation surveys that will assist the Company in future marketing activities.

The Company believes that the market for hyperspectral remote sensing services will experience significant growth over the next several years. The Company recognizes the fragmented nature of the remote sensing industry and its composition by a majority of very small companies and sees this situation as an opportunity to speed its development curve by placing itself in a position to acquire other small companies resulting in a stronger vertically integrated company with steady revenues.

The Company's day-to-day business continues to look for:

(1) contracts that produce revenues from the application of remote sensing; (2) the development of additional miniaturized remote sensing instruments and newer generation aircraft instruments to replace the PROBE-1 model. (3) the integration of other advanced technology exploration instruments with the Probe-1 to offer clients a "one-stop" convenience; (4) the development of promising mineral, oil and gas properties in which the Company has an equity interest

In the prior six months, the Company has focused on reducing overhead as a result of the termination of the agreement with the ONR and in order to become more competitive. The Company believes that with the reduction and overhead, performance of current backlog surveys, and execution of a sales and marketing plan, future financial results should improve with profitability being managements near term target.

The Board of Directors recognized the need to address this situation and thus new policies have been initiated to measure performance of new contractors quickly and effectively while maintaining a highly motivated permanent employee hyperspectral services group:

The Board of Directors is also cognizant of the need to attract new board members and management and has adopted policies to:

(1) attract new directors and retain them, (2) place new management talent within the organization (3) appoint committees to examine refinancing and restructuring issues.

As a result the Company is working with interested parties on a short-term basis to establish the parameters and work plans for the key areas of marketing and finance. Once plans are adopted the company will seek permanent staff to fill the positions of Vice-President Marketing and Vice-President Finance.

The Company is also currently searching for a qualified candidate to act as the Chief Executive Officer and President. This candidate will have a proven record of directing the operations of an emerging technology company.

A committee established by The Board of Directors has been seeking new avenues for capital investment in the company. As a result of meeting with many representatives of the investment-banking world they adopted the following two courses of action for the company:

(1) The Company's long-term strategic plan is to create partnerships, strategic alliances, mergers or acquisitions as the most expeditious and cost-effective way to consolidate commercial hyperspectral remote sensing collections and services. (2) The Company's short-term strategic plan is to maximize its opportunity for attracting capital, eliminating debt and finding new management resources by re-structuring itself through a re-incorporation.