UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 

FORM 10-QSB
     
þ
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended March 31, 2008
or
     
o
 
TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from                      to                     
 
Commission File Number 0-29185
 
SAVE THE WORLD AIR, INC.
(Exact name of registrant as specified in its charter)
     
Nevada
 
52-2088326
(State or other jurisdiction of
incorporation or organization)
 
(I.R.S. Employer
Identification No.)
 
235 Tennant Avenue
Morgan Hill, California 95037
(Address, including zip code, of principal executive offices)
 
(408) 778-0101
(Registrant’s telephone number, including area code)
 
Securities registered pursuant to Section 12(b) of the Exchange Act: None.
 
Securities registered pursuant to Section 12(g) of the Exchange Act: Common Stock, $0.001 par value.
 
Check whether the Registrant (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x   No  o
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  o   No  þ
 
The number of shares of the Registrant’s Common Stock outstanding as of May 7, 2008 was 56,109,125 shares.
 
Transitional Small Business Disclosure Format (Check one): Yes o  No þ
 
 


 

 
Table of Contents
 
SAVE THE WORLD AIR, INC.
FORM 10-QSB
 INDEX
           
   
Page
 
PART I
   
3
   
           
ITEM 1. Financial Statements
   
3
   
Condensed consolidated balance sheets
   
3-4
   
Condensed consolidated statements of operations (unaudited)
   
5
   
Condensed consolidated statement of changes in stockholders’ deficiency (unaudited)
   
6-32
   
Condensed consolidated statements of cash flows (unaudited)
   
33-34
   
Notes to condensed consolidated financial statements (unaudited)
   
35
   
ITEM 2. Management’s Discussion and Analysis or Plan of Operations
   
52
   
ITEM 3. Controls and Procedures
   
62
   
     
 
   
PART II
   
64
   
           
ITEM 1. Legal Proceedings
   
64
   
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
   
64
   
ITEM 3. Defaults Upon Senior Securities
   
66
   
ITEM 4. Submission of Matters to a Vote of Security Holders
   
66
   
ITEM 5. Other Information
   
66
   
ITEM 6. Exhibits
   
66
   
           
SIGNATURES
   
67
   
           
EXHIBIT INDEX
   
68
   
           
EXHIBIT 31.1
         
EXHIBIT 31.2
         
EXHIBIT 32
         
 


PART I
Item 1. Financial Statements
SAVE THE WORLD AIR, INC. AND SUBSIDIARY
 (A DEVELOPMENT STAGE ENTERPRISE)

 CONDENSED CONSOLIDATED BALANCE SHEETS
 MARCH 31, 2008 (UNAUDITED) AND DECEMBER 31, 2007

             
 
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  
                 


See notes to condensed consolidated financial statements.
 
3


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
 (A DEVELOPMENT STAGE ENTERPRISE)

 CONDENSED CONSOLIDATED BALANCE SHEETS
 MARCH 31, 2008 (UNAUDITED) AND DECEMBER 31, 2007

                 
   
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
 
             
 
See notes to condensed consolidated financial statements.

4


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
 (A DEVELOPMENT STAGE ENTERPRISE)

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
 THREE MONTHS ENDED MARCH 31, 2008 AND 2007 AND FOR THE PERIOD
 FEBRUARY 18, 1998 (DATE OF INCEPTION) TO MARCH 31, 2008

                         
                   
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
         
                     


See notes to condensed consolidated financial statements

5


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                                   
  Deficit Accumulated
         
   
Price per
     
Common Stock 
   
  Common
Stock
   
Additional
Paid-in
   
Deferred
   
 During the
Development
   
Total Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
 Compensation 
   
Stage
   
Deficiency 
 
                                                                 
Balance, February 18, 1998 (date of inception)
           
   
$ 
   
$ 
   
$ 
   
$ 
   
$ 
   
$ 
 
Issuance of common stock on April 18, 1998
   
.0015 — .01
     
10,030,000
     
10,030
     
     
14,270
     
     
     
24,300
 
Net loss                            
           
     
     
     
     
     
(21,307
)
   
(21,307
)
Balance, December 31, 1998
           
10,030,000
   
$
10,030
   
$
     
14,270
   
$
   
$
(21,307
)
 
$
2,993
 
Issuance of common stock on May 18, 1999
   
1.00 — 6.40
     
198,003
     
198
     
     
516,738
     
     
     
516,936
 
Issuance of common stock for ZEFS on September 14, 1999
   
.001
     
5,000,000
     
5,000
     
     
     
     
     
5,000
 
Stock issued for professional services on May 18, 1999
   
0.88
     
69,122
     
69
     
     
49,444
     
     
     
49,513
 
Net loss                            
           
     
     
     
     
     
(1,075,264
)
   
(1,075,264
)
Balance, December 31, 1999
           
15,297,125
   
$
15,297
   
$
   
$
580,452
   
$
   
$
(1,096,571
)
 
$
(500,822
)
Stock issued for employee compensation on February 8, 2000
   
1.03
     
20,000
     
20
     
     
20,580
     
     
     
20,600
 
Stock issued for consulting services on February 8, 2000
   
1.03
     
100,000
     
100
     
     
102,900
     
     
     
103,000
 
Stock issued for professional services on April 18, 2000
   
3.38
     
27,000
     
27
     
     
91,233
     
     
     
91,260
 
Stock issued for directors fees on April 18, 2000
   
3.38
     
50,000
     
50
     
     
168,950
     
     
     
169,000
 
Stock issued for professional services on May 19, 2000
   
4.06
     
5,000
     
5
     
     
20,295
     
     
     
20,300
 
Stock issued for directors fees on June 20, 2000
   
4.44
     
6,000
     
6
     
     
26,634
     
     
     
26,640
 
Stock issued for professional services on June 20, 2000
   
4.44
     
1,633
     
2
     
     
7,249
     
     
     
7,251
 
 
6


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                     
Deficit Accumulated 
         
   
Price per
   
Common Stock
   
 Common
Stock
   
Additional
Paid-in
 
Deferred
 
   During the Development
   
Total
Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
 
  Compensation
 
Stage
   
  Deficiency
 
                                                                 
Stock issued for professional services on June 26, 2000
   
5.31
     
1,257
     
1
     
     
6,674
     
     
     
6,675
 
Stock issued for employee compensation on June 26, 2000
   
5.31
     
22,000
     
22
     
     
116,798
     
     
     
116,820
 
Stock issued for consulting services on June 26, 2000
   
5.31
     
9,833
     
10
     
     
52,203
     
     
     
52,213
 
Stock issued for promotional services on July 28, 2000
   
4.88
     
9,675
     
9
     
     
47,205
     
     
     
47,214
 
Stock issued for consulting services on July 28, 2000
   
4.88
     
9,833
     
10
     
     
47,975
     
     
     
47,985
 
Stock issued for consulting services on August 4, 2000
   
2.13
     
35,033
     
35
     
     
74,585
     
     
     
74,620
 
Stock issued for promotional services on August 16, 2000
   
2.25
     
25,000
     
25
     
     
56,225
     
     
     
56,250
 
Stock issued for consulting services on September 5, 2000
   
2.25
     
12,833
     
13
     
     
28,861
     
     
     
28,874
 
Stock issued for consulting services on September 10, 2000
   
1.50
     
9,833
     
10
     
     
14,740
     
     
     
14,750
 
Stock issued for consulting services on November 2, 2000
   
0.88
     
9,833
     
10
     
     
8,643
     
     
     
8,653
 
Stock issued for consulting services on November 4, 2000
   
0.88
     
9,833
     
10
     
     
8,643
     
     
     
8,653
 

 
7


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                       
Deficit
Accumulated
       
   
Price per
   
Common Stock
   
Common
Stock
   
Additional Paid-in
   
Deferred
   
During the
Development
   
Total
Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
                                                                 
Stock issued for consulting services on December 20, 2000
   
0.50
     
19,082
     
19
     
     
9,522
     
     
     
9,541
 
Stock issued for filing services on December 20, 2000
   
0.50
     
5,172
     
5
     
     
2,581
     
     
     
2,586
 
Stock issued for professional services on December 26, 2000
   
0.38
     
12,960
     
13
     
     
4,912
     
     
     
4,925
 
Other stock issuance on August 24, 2000
   
2.13
     
2,000
     
2
     
     
4,258
     
     
     
4,260
 
Common shares cancelled
           
(55,000
)
   
(55
)
   
     
(64,245
)
   
     
     
(64,300
)
Net loss
           
     
     
     
     
     
(1,270,762
)
   
(1,270,762
)
Balance, December 31, 2000
           
15,645,935
   
$
15,646
   
$
   
$
1,437,873
   
$
   
$
(2,367,333
)
 
$
(913,814
)
Stock issued for consulting services on January 8, 2001
   
0.31
     
9,833
     
10
     
     
3,038
     
     
     
3,048
 
Stock issued for consulting services on February 1, 2001
   
0.33
     
9,833
     
10
     
     
3,235
     
     
     
3,245
 
                                                                 
Stock issued for consulting services on March 1, 2001
   
0.28
     
9,833
     
10
     
     
2,743
     
     
     
2,753
 

 
8


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
                                                   
Deficit
Accumulated 
         
   
Price per
   
Common Stock
   
Common
Stock
   
  Additional Paid-in
   
Deferred
   
  During the Development
   
  Total Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
  Deficiency
 
                                                                 
Stock issued for legal services on March 13, 2001
   
0.32
     
150,000
     
150
     
     
47,850
     
     
     
48,000
 
Stock issued for consulting services on April 3, 2001
   
0.25
     
9,833
     
10
     
     
2,448
     
     
     
2,458
 
Stock issued for legal services on April 4, 2001
   
0.25
     
30,918
     
31
     
     
7,699
     
     
     
7,730
 
Stock issued for professional services on April 4, 2001
   
0.25
     
7,040
     
7
     
     
1,753
     
     
     
1,760
 
Stock issued for consulting services on April 5, 2001
   
0.25
     
132,600
     
132
     
     
33,018
     
     
     
33,150
 
Stock issued for filing fees on April 30, 2001
   
1.65
     
1,233
     
1
     
     
2,033
     
     
     
2,034
 
Stock issued for filing fees on September 19, 2001
   
0.85
     
2,678
     
2
     
     
2,274
     
     
     
2,276
 
Stock issued for professional services on September 28, 2001
   
0.62
     
150,000
     
150
     
     
92,850
     
     
     
93,000
 
Stock issued for directors services on October 5, 2001
   
0.60
     
100,000
     
100
     
     
59,900
     
     
     
60,000
 
Stock issued for legal services on October 17, 2001
   
0.60
     
11,111
     
11
     
     
6,655
     
     
     
6,666
 
 
9


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                       
Deficit
Accumulated
       
   
Price per
   
Common Stock
   
Common
Stock
   
Additional
Paid-in
   
Deferred
   
During the
Development
   
Total Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
                                                                 
Stock issued for consulting services on October 18, 2001
   
0.95
     
400,000
     
400
     
     
379,600
     
     
     
380,000
 
Stock issued for consulting services on October 19, 2001
   
1.25
     
150,000
     
150
     
     
187,350
     
     
     
187,500
 
Stock issued for exhibit fees on October 22, 2001
   
1.35
     
5,000
     
6
     
     
6,745
     
     
     
6,751
 
Stock issued for directors
   
0.95
     
1,000,000
     
1,000
     
     
949,000
     
     
     
950,000
 
Stock issued for consulting services on November 7, 2001
   
0.85
     
20,000
     
20
     
     
16,980
     
     
     
17,000
 
Stock issued for consulting services on November 20, 2001
   
0.98
     
43,000
     
43
     
     
42,097
     
     
     
42,140
 
Stock issued for consulting services on November 27, 2001
   
0.98
     
10,000
     
10
     
     
9,790
     
     
     
9,800
 
Stock issued for consulting services on November 28, 2001
   
0.98
     
187,000
     
187
     
     
183,073
     
     
     
183,260
 
Intrinsic value of options issued to employees
           
     
     
     
2,600,000
     
(2,600,000
)
   
     
 
Fair value of options issued to non-employees for services
           
     
     
     
142,318
     
     
     
142,318
 


10


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                 
Deficit
Accumulated
       
   
 
Price per
   
Common Stock
   
Common
Stock
   
Additional
Paid-in
   
 
Deferred
   
During the
Development
   
Total Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
                                                                 
Amortization of deferred compensation
           
     
     
     
     
191,667
     
     
191,667
 
Net loss
           
     
     
     
     
     
(2,735,013
)
   
(2,735,013
)
Balance, December 31, 2001
           
18,085,847
   
$
18,086
   
$
   
$
6,220,322
   
$
(2,408,333
)
 
$
(5,102,346
)
 
$
(1,272,271
)
Stock issued for directors services on December 10, 2002
   
0.40
     
2,150,000
     
2,150
     
     
857,850
     
     
     
860,000
 
Common stock paid for, but not issued (2,305,000 shares)
   
0.15-0.25
     
     
     
389,875
     
     
     
     
389,875
 
Fair value of options issued to non-employees for services
           
     
     
     
54,909
     
(54,909
)
   
     
 
Amortization of deferred compensation
           
     
     
     
     
891,182
     
     
891,182
 
Net loss for the year ended December 31, 2002
           
     
     
     
     
     
(2,749,199
)
   
(2,749,199
)
Balance, December 31, 2002
           
20,235,847
   
$
20,236
   
$
389,875
   
$
7,133,081
   
$
(1,572,060
)
 
$
(7,851,545
)
 
$
(1,880,413
)
Common stock issued, previously paid for
   
0.15
     
1,425,000
     
1,425
     
(213,750
)
   
212,325
     
     
     
 
Common stock issued, previously paid for
   
0.25
     
880,000
     
880
     
(220,000
)
   
219,120
     
     
     
 
Stock issued for cash on March 20, 2003
   
0.25
     
670,000
     
670
     
     
166,830
     
     
     
167,500
 
Stock issued for cash on April 4, 2003
   
0.25
     
900,000
     
900
     
     
224,062
     
     
     
224,962
 
Stock issued for cash on April 8, 2003
   
0.25
     
100,000
     
100
     
     
24,900
     
     
     
25,000
 
Stock issued for cash on May 8, 2003
   
0.25
     
1,150,000
     
1,150
     
     
286,330
     
     
     
287,480
 
Stock issued for cash on June 16, 2003
   
0.25
     
475,000
     
475
     
     
118,275
     
     
     
118,750
 
 
11


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                       
Deficit
Accumulated
       
   
Price per
   
Common Stock
   
Common
Stock
   
Additional
Paid-in
   
Deferred
   
During the
Development
   
Total Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
                                                             
 
 
Stock issued for cash on June 16, 2003
   
0.25
     
475,000
     
475
     
     
118,275
     
     
     
118,750
 
Stock issued for legal services on June 27, 2003
   
0.55
     
83,414
     
83
     
     
45,794
     
     
     
45,877
 
Debt converted to stock on June 27, 2003
   
0.25
     
2,000,000
     
2,000
     
     
498,000
     
     
     
500,000
 
Stock and warrants issued for cash on July 11, 2003
   
0.25
     
519,000
     
519
     
     
129,231
     
     
     
129,750
 
Stock and warrants issued for cash on September 29, 2003
   
0.25
     
1,775,000
     
1,775
     
     
441,976
     
     
     
443,751
 
Stock and warrants issued for cash on October 21, 2003
   
0.25
     
1,845,000
     
1,845
     
     
459,405
     
     
     
461,250
 
Stock and warrants issued for cash on October 28, 2003
   
0.25
     
1,570,000
     
1,570
     
     
390,930
     
     
     
392,500
 
Stock and warrants issued for cash on November 19, 2003
   
0.25
     
500,000
     
500
     
     
124,500
     
     
     
125,000
 
Finders’ fees related to stock issuances
           
     
     
43,875
     
(312,582
)
   
     
     
(268,707
)
Common stock paid for, but not issued (25,000 shares)
   
0.25
     
     
     
6,250
     
     
     
     
6,250
 
Amortization of deferred comp
           
     
     
     
     
863,727
     
     
863,727
 
Net loss for year ended December 31, 2003
           
     
     
     
     
     
(2,476,063
)
   
(2,476,063
)
Balance, December 31, 2003
           
34,128,261
   
$
34,128
   
$
6,250
   
$
10,162,177
   
$
(708,333
)
 
$
(10,327,608
)
 
$
(833,386
)
 
12


SAVE THE WORLD AIR, INC. AND SUBSIDIARY
(A DEVELOPMENT STAGE ENTERPRISE)

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO MARCH 31, 2008
 
                                 
Deficit
Accumulated
       
   
Price per
   
Common Stock
   
Common
Stock
   
Additional
Paid-in
   
Deferred
   
During the
Development
   
Total
Stockholders’
 
   
Share
   
Shares
   
Amount
   
to be Issued
   
Capital
   
Compensation
   
Stage
   
Deficiency
 
                                                                 
Common stock issued, previously paid for
   
0.25
     
25,000
     
25
     
(6,250
)
   
6,225
     
     
     
 
Stock issued for director services on March 31, 2004
   
1.50
     
50,000
     
50
     
     
74,950
     
     
     
75,000
 
Stock issued for finders fees on March 31, 2004
   
0.15
     
82,500