As of December 31, 2007, the Company had a cash balance of $5,370 and the Company's accumulated deficit was $19,686,740. The Company had negative working capital of $4,781,188. Total liabilities were $5,510,407 which included accounts payable of $1,125,138, accrued expenses of $128,873, deferred revenue of $166,000 and notes and advances payable of $4,001,188.

The Company anticipates its current cash reserves, plus its expected generation of cash from existing operations and new short-term borrowings, will only be sufficient to fund its anticipated operations through the 1st quarter of 2008 . Consequently, the Company will need to raise additional debt and/or equity capital in order to finance its business plan and needs for working capital. Such financing(s), if available, may increase the risk of the Company not being able to service its debt obligations, and/or cause dilution to existing equity holders.