March 31, 2008				December 31,
	(unaudited)				2007
ASSETS
Current assets
Cash		$	143,127			$	47,660
Accounts receivable, net of allowance for doubtful accounts of $1,380 and $0, respectively			-				1,380
Inventory			30,256				30,256
Other current assets			22,700				20,552
Total current assets			196,083				99,848
Equipment, net			163,599				201,058
Other assets			4,500				4,500
Total assets		$	364,182			$	305,406

 

		March 31, 2008				December 31,
		(unaudited)				2007
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current liabilities
Accounts payable-related parties		$	344,587			$	323,413
Accounts payable-other			929,632				716,986
Accrued expenses			685,748				742,719
Accrued research and development fees			38,347				53,347
Accrued professional fees			270,113				747,261
Loan payable-related party			84,817				83,596
Loan payable-other			—				20,334
Convertible debentures, net-related parties			315,419				227,136
Convertible debentures, net-others			414,483				1,078,408
Convertible debentures, net-other-default			—				671,992
Total current liabilities			3,083,146				4,665,192
Commitments and contingencies
Stockholders’ deficiency
Common stock, $.001 par value: 200,000,000 shares authorized, 54,751,117 and 46,470,413 shares issued and outstanding at March 31, 2008 and December 31, 2007, respectively			54,752				46,471
Common stock to be issued			459,105				4,000
Additional paid-in capital			35,741,366				32,280,083
Deficit accumulated during the development stage			(38,974,187	)			(36,690,340	)
Total stockholders’ deficiency			(2,718,964	)			(4,359,786	)
Total liabilities and stockholders’ deficiency		$	364,182			$	305,406

 

										Cumulative
		March 31,				March 31,				since
		2008				2007				inception
Net sales		$	—			$	22,000			$	69,000
Cost of goods sold			—				5,360				24,120
Gross profit			—				—				44,880
Operating expenses			760,142				1,279,775				27,619,463
Research and development expenses			259,670				340,452				5,065,9000
Non-cash patent settlement cost			—				—				1,610,066
Loss before other income(expense)			(1,019,812	)			(1,603,587	)			(34,250,549	)
Other income(expense)
Other income			200				87				3,709
Interest income			354				17				16,696
Interest expense			(1,254,906	)			(309,878	)			(5,747,286	)
Loss on sale of equipment			(9,683	)			—				(9,683	)
Settlement of litigation and debt			—				—				1,017,208
Loss before provision for income taxes			(2,283,847	)			(1,913,361	)			(38,969,905	)
Provision for income taxes			—				800				4,282
Net loss		$	(2,283,847	)		$	(1,914,161	)		$	(38,974,187	)
Net loss per common share, basic and diluted		$	(0.05	)		$	(0.05	)
Weighted average common shares outstanding, basic and diluted			49,551,981				39,012,446