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

FORM 10-Q
     
þ
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30, 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 large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

   
Large accelerated filer o
 
Accelerated filer  o
 
Non-accelerated filer  o  (Do not check if a smaller reporting company)
Smaller reporting company x

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 August 8, 2008 was 55,751,669 shares.




SAVE THE WORLD AIR, INC.
FORM 10-Q
 INDEX
 
           
   
Page
 
PART I
         
           
ITEM 1. Financial Statements
         
Condensed consolidated balance sheets
   
  3
   
Condensed consolidated statements of operations (unaudited)
   
  5
   
Condensed consolidated statement of changes in stockholders’ deficiency (unaudited)
   
  6
   
Condensed consolidated statements of cash flows (unaudited)
   
  34
   
Notes to condensed consolidated financial statements (unaudited)
   
  36
   
ITEM 2. Management’s Discussion and Analysis or Plan of Operations
   
  48
   
ITEM 3. Quantitative and Qualitative Disclosure About Market Risk
   
  60
   
ITEM 4. Controls and Procedures
   
  60
   
           
PART II
         
           
ITEM 1. Legal Proceedings
   
  62
   
ITEM 1A. Risk Factors
   
  62
   
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
   
  64
   
ITEM 3. Defaults Upon Senior Securities
   
  64
   
ITEM 4. Submission of Matters to a Vote of Security Holders
   
  64
   
ITEM 5. Other Information
   
  64
   
ITEM 6. Exhibits
   
  64
   
           
SIGNATURES
   
  65
   
           
EXHIBIT INDEX
         
           
EXHIBIT 31.1
         
EXHIBIT 31.2
         
EXHIBIT 32
         
EXHIBIT 31.1
             
EXHIBIT 31.2
             
EXHIBIT 32
             
 
 
2

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

 CONDENSED CONSOLIDATED BALANCE SHEETS
 JUNE 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007
 
 
   
June 30, 2008
(unaudited)
   
December 31,
2007
 
ASSETS
           
             
Current assets
           
Cash
  $ 78,187     $ 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
    36,422       20,552  
                 
Total current assets
    144,865       99,848  
                 
Equipment, net
    154,796       201,058  
                 
Other assets
    11,250       4,500  
                 
Total assets
  $ 310,911     $ 305,406  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
               
                 
Current liabilities
               
                 
Accounts payable-related parties
  $ 289,718     $ 323,413  
Accounts payable-other
    966,186       244,224  
Accrued expenses
    724,151       742,719  
Accrued research and development fees
    33,347       53,347  
Accrued professional fees
    265,431       747,261  
Loan payable-related party
    86,038       83,596  
Loans and other payable due to Morale/Matthews
          1,748,452  
Convertible debentures, net-related parties
    185,134       227,136  
Convertible debentures, net-others
    274,570       495,044  
                 
Total current liabilities
    2,824,575       4,665,192  
                 
Commitments and contingencies
               
                 
Stockholders’ deficiency
               
                 
Common stock, $.001 par value: 200,000,000 shares authorized, 57,751,669 and 46,470,413 shares issued and outstanding at June 30, 2008 and December 31, 2007, respectively
    57,753       46,471  
Common stock to be issued
          4,000  
Additional paid-in capital
    37,094,797       32,280,083  
Deficit accumulated during the development stage
    (39,666,214 )     (36,690,340 )
                 
Total stockholders’ deficiency
    (2,513,664 )     (4,359,786 )
                 
Total liabilities and stockholders’ deficiency
  $ 310,911     $ 305,406  
 
See notes to condensed consolidated financial statements.
 
 
3

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

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
   
Three months ended
June 30,
   
Six months ended
June 30,
   
For the Period From
February 18, 1998 (Date of Inception) through
 
   
2008
   
2007
   
2008
   
2007
   
June 30, 2008
 
                               
Net sales
  $ -     $ -     $ -     $ 22,000     $ 69,000  
Cost of goods sold
    -       -       -       5,360       24,120  
Gross profit
    -       -       -       16,640       44,880  
                                         
Operating expenses
    (519,860     (1,023,787     (1,280,002     (2,303,562     (28,139,323
                                         
Research and development expenses
    (62,692     (100,731     (322,362 )     (441,183     (5,128,592
                                         
Non-cash patent settlement costs
    -       -       -       -       (1,610,066
                                         
Loss before other income (expense)
    (582,552 )     (1,124,518 )     (1,602,364 )     (2,728,105 )     (34,833,101 )
                                         
Other income (expense)
                                       
Other income
    11       90       563       177       4,072  
Interest income
    -       33       2       50       16,344  
Interest expense
    (161,556 )     (403,788 )     (1,416,462 )     (713,666 )     (5,908,842 )
Loss on sale of equipment
    -       -       (9,683 )     -       (9,683 )
Settlement of litigation and debt
    52,070       -       52,070       -       1,069,278  
 
                                       
Loss before provision for income taxes
    (692,027 )     (1,528,183 )     (2,975,874 )     (3,441,544 )     (39,661,932 )
                                         
Provision for income taxes
    -       -       0       (800     (4,282
                                         
Net loss
  $ (692,027 )   $ (1,528,183 )   $ (2,975,874 )   $ (3,442,344 )   $ (39,666,214 )
                                         
Net loss per share, basic and diluted
  $ (0.02 )   $ (0.04 )   $ (0.06 )   $ (0.09 )        
                                         
Weighted average shares outstanding,
                                       
    basic and diluted
    44,938,165       39,746,015       46,979,175       37,297,407          
 
See notes to condensed consolidated financial statements.
 
 
4

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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
 
 
 
(continued)
 
5

 

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 2008
 
 
   
Price per
   
Common Stock
   
 Common
Stock
   
Additional
Paid-in
 
Deferred
 
  
Deficit
Accumulated
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
 
 
(Continued)
 
 
 
6

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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  
 
(Continued)
 
 
 
 

 
7

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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
 
 
(Continued)
 
 

 
 
8

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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  
 
 
(Continued)
 

 
 
9

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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
 
 
(Continued)
 
 
 
10

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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' fee 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
 
(Continued)
 

 
 
11

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO JUNE 30, 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
     
82