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

FORM 10-Q
 
o
 
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended September 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     No 

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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 o
 
The number of shares of the Registrant’s Common Stock outstanding as of November 10, 2008 was 58,948,138 shares.
 


 

SAVE THE WORLD AIR, INC.
FORM 10-Q
 INDEX
 
       
   
Page
 
PART I
     
       
ITEM 1. Financial Statements
     
Condensed consolidated balance sheets
 
 
Condensed consolidated statements of operations (unaudited)
 
 
Condensed consolidated statement of changes in stockholders’ deficiency (unaudited)
 
3
 
Condensed consolidated statements of cash flows (unaudited)
 
18
 
Notes to condensed consolidated financial statements (unaudited)
 
20
 
ITEM 2. Management’s Discussion and Analysis or Plan of Operations
 
35
 
ITEM 3. Quantitative and Qualitative Disclosure About Market Risk
 
46
 
ITEM 4. Controls and Procedures
 
46
 
       
PART II
     
       
ITEM 1. Legal Proceedings
 
47
 
ITEM 1A. Risk Factors
 
48
 
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds
 
49
 
ITEM 3. Defaults Upon Senior Securities
 
49
 
ITEM 4. Submission of Matters to a Vote of Security Holders
 
49
 
ITEM 5. Other Information
 
50
 
ITEM 6. Exhibits
 
50
 
       
SIGNATURES
 
51
 
       
EXHIBIT INDEX
 
52
 
       
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
 September 30, 2008 (UNAUDITED) AND DECEMBER 31, 2007
  
   
September 30, 2008
(unaudited)
   
December 31,
2007
 
ASSETS
           
             
Current assets
           
Cash
 
$
78,125
   
$
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
   
34,844
     
20,552
 
                 
Total current assets
   
143,225
     
99,848
 
                 
Equipment, net
   
145,691
     
201,058
 
                 
Other assets
   
11,250
     
4,500
 
                 
Total assets
 
$
300,166
   
$
305,406
 
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
               
                 
Current liabilities
               
                 
Accounts payable-related parties
 
$
256,880
   
$
323,413
 
Accounts payable-Temple University
   
537,750
     
161,250
 
Accounts payable-other
   
589,171
     
555,736
 
Accrued expenses
   
184,618
     
172,719
 
Accrued salaries-officers and former officer
   
618,333
     
570,000
 
Accrued research and development fees
   
13,347
     
53,347
 
Accrued professional fees
   
340,978
     
274,499
 
Loan payable-related party
   
77,209
     
83,596
 
Loans and other payable due to Morale/Matthews
   
-
     
1,748,452
 
Convertible debentures, net-related parties
   
-
     
227,136
 
Convertible debentures, net-others
   
266,639
     
495,044
 
                 
Total current liabilities
   
2,884,925
     
4,665,192
 
                 
Commitments and contingencies
               
                 
Stockholders’ deficiency
               
                 
Common stock, $.001 par value: 200,000,000 shares authorized, 58,948,138 and 46,470,413 shares issued and outstanding at September 30, 2008 and December 31, 2007, respectively
   
58,948
     
46,471
 
Common stock to be issued
   
-
     
4,000
 
Additional paid-in capital
   
38,501,646
     
32,280,083
 
Deficit accumulated during the development stage
   
(41,145,353
)
   
(36,690,340
)
                 
Total stockholders’ deficiency
   
(2,584,759
)
   
(4,359,786
)
                 
Total liabilities and stockholders’ deficiency
 
$
300,166
   
$
305,406
 

See notes to condensed consolidated financial statements.

1

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

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 
   
Three months ended
September 30,
   
Nine months ended
September 30,
   
For the Period From
February 18, 1998 (Date of Inception) through
 
   
2008
   
2007
   
2008
   
2007
   
September 30, 2008
 
                               
Net sales
 
$
-
   
$
-
   
$
-
   
$
22,000
   
$
69,000
 
Cost of goods sold
   
-
     
-
     
-
     
5,360
     
24,120
 
Gross profit
   
-
     
-
     
-
     
16,640
     
44,880
 
                                         
Operating expenses
   
(1,148,887
)
   
(873,971
)
   
(2,428,889
)
   
(3,177,533
)
   
(29,288,210
)
                                         
Research and development expenses
   
(109,822
)
   
(98,427
)
   
(432,184
)
   
(539,610
)
   
(5,238,414
)
                                         
Non-cash patent settlement costs
   
-
     
-
             
-
     
(1,610,066
)
                                         
Loss before other income (expense)
   
(1,258,709
)
   
(972,398
)
   
(2,861,073
)
   
(3,700,503
)
   
(36,091,810
)
                                         
Other income (expense)
                                       
Other income
   
(30
)
   
2,271
     
533
     
2,448
     
4,042
 
Interest income
   
-
     
12
     
2
     
62
     
16,344
 
Interest expense
   
(220,400
)
   
(647,737
)
   
(1,636,862
)
   
(1,361,403
)
   
(6,129,242
)
Loss on sale of equipment
   
-
     
-
     
(9,683
)
   
-
     
(9,683
)
Settlement of litigation and debt
   
-
     
-
     
52,070
     
-
     
1,069,278
 
                                         
Loss before provision for income taxes
   
(1,479,139
)
   
(1,617,852
)
   
(4,455,013
)
   
(5,059,396
)
   
(41,141,071
)
                                         
Provision for income taxes
   
-
     
-
     
-
     
(800
)
   
(4,282
)
                                         
Net loss
 
$
(1,479,139
)
 
$
(1,617,852
)
 
$
(4,455,013
)
 
$
(5,060,196
)
 
$
(41,145,353
)
                                         
Net loss per share, basic and diluted
 
$
(0.03
)
 
$
(0.04
)
 
$
(0.10
)
 
$
(0.13
)
       
                                         
Weighted average shares outstanding,
                                       
    basic and diluted
   
47,312,880
     
40,988,308
     
45,374,117
     
38,265,250
         
 
See notes to condensed consolidated financial statements.
 
2

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
FROM INCEPTION (FEBRUARY 18, 1998) TO SEPTEMBER 30, 2008 (Unaudited)
 
         
Common Stock
                     
Deficit Accumulated During the
   
Total
 
   
Price per Share
   
Shares
   
Amount
   
Common Stock to be Issued
   
Additional Paid-in Capital
   
Deferred Compensation
   
Development Stage
   
Stockholders’ 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
   
0.00
     
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
 
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
 

(Continued)
 
3

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO SEPTEMBER 30, 2008
 
         
Common Stock
                     
Deficit Accumulated During the 
   
Total 
 
   
Price per Share
   
Shares
   
Amount
   
Common Stock to be Issued
   
Additional Paid-in Capital
   
Deferred Compensation
   
Development Stage
   
Stockholders’ Deficiency
 
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
 
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
 
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
 

(Continued)
 
4

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Continued)
FROM INCEPTION (FEBRUARY 18, 1998) TO SEPTEMBER 30, 2008
 
         
Common Stock
                     
Deficit Accumulated During the
    Total   
   
Price per Share
   
Shares
   
Amount
   
Common Stock to be Issued
   
Additional Paid-in Capital
   
Deferred Compensation
   
Development Stage
   
Stockholders’ Deficiency
 
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
 
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
 
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
)

(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 SEPTEMBER 30, 2008
 
         
Common Stock
                     
Deficit Accumulated During the
   
Total
 
   
Price per Share
   
Shares
   
Amount
   
Common Stock to be Issued
   
Additional Paid-in Capital
   
Deferred Compensation
   
Development Stage
   
Stockholders’ Deficiency
 
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
 
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
 

(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 SEPTEMBER 30, 2008
 
         
Common Stock
                     
Deficit Accumulated During the
   
Total
 
   
Price per Share
   
Shares
   
Amount
   
Common Stock to be Issued
   
Additional Paid-in Capital
   
Deferred Compensation
   
Development Stage
   
Stockholders’ Deficiency
 
                                                                 
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
)
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
     
-
     
12,293
     
-
     
-
     
12,375
 
Stock issued for finders fees on March 31, 2004
   
0.25
     
406,060
     
407
     
-
     
101,199
     
-
     
-
     
101,606
 
Stock issued for services on April 2, 2004
   
1.53
     
65,000
     
65
     
-
     
99,385
     
-
     
-
     
99,450
 
Debt converted to stock on April 2, 2004
   
1.53
     
60,000
     
60
     
-
     
91,740
     
-
     
-
     
91,800
 
Stock issued upon exercise of warrants on May 21, 2004
   
0.20
     
950,000
     
950
     
-
     
189,050
     
-
     
-
     
190,000
 
Stock issued for directors services on June 8, 2004
   
1.70
     
600,000
     
600
     
-
     
1,019,400
     
-
     
-
     
1,020,000
 
Stock issued for cash on August 25, 2004
   
1.00
     
550,000
     
550
     
-
     
549,450
     
-
     
-
     
550,000
 
Stock issued upon exercise of options on August 30, 2004
   
0.40
     
4,000
     
4
     
-
     
1,596
     
-
     
-
     
1,600
 
Stock issued for cash on September 8, 2004
   
1.00
     
25,000
     
25
     
-
     
24,975
     
-
     
-
     
25,000
 
Stock issued for consulting services on September 15, 2004
   
1.31
     
50,000
     
49
     
-
     
65,451
     
-
     
-
     
65,500
 
Stock issued for patent settlement on September 22, 2004
   
1.24
     
20,000
     
20
     
-
     
24,780
     
-
     
-
     
24,800
 
Stock issued for research and development on October 6, 2004
   
1.40
     
65,000
     
65
     
-
     
90,935
     
-
     
-
     
91,000