----

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| UTAH                                                                | 87-0397815                             |
|---------------------------------------------------------------------|----------------------------------------|
| (State      or other jurisdiction of incorporation or organization) | (IRS      Employer Identification No.) |

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| ASSETS                                                                                             |   |               |   |   |              |   |
|----------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|-------------------|--------|
|                                                                                               |   | As      of         |   |   | As      of        |   |
|                                                                                               |   | September      30, |   |   | December      31, |   |
|                                                                                               |   | 2008               |   |   | 2007              |   |
|                                                                                               |   | (Unaudited)        |   |   | (audited)         |   |
| CURRENT      ASSETS:                                                                               |   |               |   |   |              |   |
|   Cash      & cash equivalents                                                       |   | $                  | 3,532  |   |              | $      | 2,706 |   |
|   Prepaid      expenses and other                                                        |   |               | 200    |   |              |   | 200 |   |
|     Total      current assets                                                  |   |               | 3,732  |   |              |   | 2,906 |   |
|                                                                                               |   |               |   |   |              |   |   |   |
| EQUIPMENT      AND FURNITURE,                                                                      |   |               |   |   |              |   |   |   |
|   at      cost, less accumulated depreciation of $255,130 and $254,856      respectively |   |               | 91     |   |              |   | 365 |   |
|     Total      assets                                                          |   | $                  | 3,823  |   |              | $      | 3,271 |   |

----

| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                                                                                                                          |   |               |       |   |              |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |
|                                                                                                                                                                                                                                                               |   | As      of         |       |   | As      of        |   |
|                                                                                                                                                                                                                                                               |   | September      30, |       |   | December      31, |   |
|                                                                                                                                                                                                                                                               |   | 2008               |       |   | 2007              |   |
|                                                                                                                                                                                                                                                               |   | (Unaudited)        |       |   | (Unaudited)       |   |
| CURRENT      LIABILITIES:                                                                                                                                                                                                                                          |   |               |       |   |              |   |
|   Related      party                                                                                                                                                                                                                                     |   |               |       |   |              |   |
|   Consulting      fees payable                                                                                                                                                                                                                           |   | $                  | 96,000     |   |              |   | 78,000 |   |
|   Accounts      payable                                                                                                                                                                                                                                  |   |               | 25,381     |   |              |   | 5,503 |   |
|   Accrued      payroll                                                                                                                                                                                                                                   |   |               | 36,000     |   |              |   | - |   |
|   Accrued      interest                                                                                                                                                                                                                                  |   |               | 29,656     |   |              |   | 16,495 |   |
|   Related      party royalty payable                                                                                                                                                                                                                     |   |               | 103,333    |   |              |   | 73,333 |   |
|   Preferred      stock dividend payable                                                                                                                                                                                                                  |   |               | 54,852     |   |              |   | 49,177 |   |
|   Related      party loan payable                                                                                                                                                                                                                        |   |               | 18,000     |   |              |   | - |   |
|   Current      portion of long term debt                                                                                                                                                                                                                 |   |               | 92,633     |   |              |   | 60,617 |   |
|     Total      current liabilities                                                                                                                                                                                                             |   |               | 455,855    |   |              |   | 283,125 |   |
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |   |   |
| LONG      TERM LIABILITIES                                                                                                                                                                                                                                         |   |               |       |   |              |   |   |   |
|   Long      term convertible promissory note                                                                                                                                                                                                             |   |               | 140,000    |   |              |   | 140,000 |   |
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |   |   |
|     TOTAL      LIABILITIES                                                                                                                                                                                                                     |   |               | 595,855    |   |              |   | 423,125 |   |
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |   |   |
| MINORITY      INTEREST                                                                                                                                                                                                                                             |   |               | (267,502   | )      |              |   | (192,611 | ) |
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |   |   |
| STOCKHOLDERS'      EQUITY:                                                                                                                                                                                                                                         |   |               |       |   |              |   |   |   |
|   Preferred      stock, 10,000,000 shares authorized;          Series A preferred stock, cumulative and convertible, $4.50 par value,               1,000,000 shares designated, 21,016 shares issued and      outstanding |   |               | 94,573     |   |              |   | 94,573 |   |
|   Common      stock, $.001 par value; 40,000,000 shares authorized, 18,629,493 issued      and outstanding                                                                                                                                               |   |               | 18,629     |   |              |   | 18,629 |   |
|   Additional      paid-in capital                                                                                                                                                                                                                        |   |               | 8,426,839  |   |              |   | 8,426,839 |   |
|   Accumulated      deficit                                                                                                                                                                                                                               |   |               | (8,864,571 | )      |              |   | (8,767,284 | ) |
|     Total      stockholder’s equity                                                                                                                                                                                                      |   |               | (324,530   | )      |              |   | (227,243 | ) |
|                                                                                                                                                                                                                                                               |   |               |       |   |              |   |   |   |
|     Total      liabilities and stockholders' equity                                                                                                                                                                                            |   | $                  | 3,823      |   |              | $      | 3,271 |   |

----

|                                                     |   | For      the Three |       |   | For      the Nine  |   |
|----------------------------------------------------------|--------|--------------------|------------|--------|--------------------|--------|
|                                                     |   | Months      Ended  |       |   | Months      Ended  |   |
|                                                     |   | September      30, |       |   | September      30, |   |
|                                                     |   | 2008               |       |   | 2007               |   |   | 2008 |   |   | 2007 |   |
|                                                     |   | (Unaudited)        |       |   | (Unaudited)        |   |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |
| TOTAL      ROYALTY REVENUES                              |   | $                  | -          |   |               | $      | - |   |   | $ | - |   |   | $ | - |   |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| OPERATING      EXPENSES:                                 |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
|   General      and administrative              |   |               | 42,040     |   |               |   | 61,183 |   |   |   | 153,343 |   |   |   | 148,551 |   |
|   Research      and development                |   |               | -          |   |               |   | 1,009 |   |   |   | - |   |   |   | 1,009 |   |
|     Total      operating expenses    |   |               | 42,040     |   |               |   | 62,192 |   |   |   | 153,343 |   |   |   | 149,560 |   |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      FROM OPERATIONS                                |   |               | (42,040    | )      |               |   | (62,192 | ) |   |   | (153,343 | ) |   |   | (149,560 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| OTHER      EXPENSE:                                      |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
|   other      expense, net                      |   |               | (4,647     | )      |               |   | (3,237 | ) |   |   | (13,161 | ) |   |   | (9,110 | ) |
|     Total      other expense, net    |   |               | (4,647     | )      |               |   | (3,237 | ) |   |   | (13,161 | ) |   |   | (9,110 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| LOSS      BEFORE MINORITY INTEREST                       |   |               | (46,687    | )      |               |   | (65,429 | ) |   |   | (166,504 | ) |   |   | (158,670 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| MINORITY      INTEREST                                   |   |               | 23,857     |   |               |   | 24,759 |   |   |   | 74,891 |   |   |   | 73,680 |   |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS                                            |   |               | (22,830    | )      |               |   | (40,670 | ) |   |   | (91,613 | ) |   |   | (84,990 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| PREFERRED      STOCK DIVIDENDS                           |   |               | (1,891     | )      |               |   | (1,891 | ) |   |   | (5,674 | ) |   |   | (5,674 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS APPLICABLE TO COMMON STOCKHOLDERS          |   |               | (24,721    | )      |               |   | (42,561 | ) |   |   | (97,287 | ) |   |   | (90,664 | ) |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| NET      LOSS PER COMMON SHARE                           |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
|   (BASIC      AND DILUTED)                     |   | $                  | -          |   |               |   | - |   |   | $ | - |   |   | $ | - |   |
|                                                     |   |               |       |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Weighed      average number of common shares outstanding |   |               | 18,629,493 |   |               |   | 18,629,493 |   |   |   | 18,629,493 |   |   |   | 18,629,493 |   |

----

|                                                                                                                   |   | For      the Nine  |    |
|------------------------------------------------------------------------------------------------------------------------|--------|--------------------|---------|
|                                                                                                                   |   | Months      Ended  |    |
|                                                                                                                   |   | September      30, |    |
|                                                                                                                   |   | 2008               |    |   | 2007 |   |
|                                                                                                                   |   | (Unaudited)        |    |
| CASH      FLOWS FROM OPERATING ACTIVITIES:                                                                             |   |               |    |   |   |   |
|   Net      loss                                                                                              |   | $                  | (91,613 | ) |   | $ | (      84,990 | ) |
|   Adjustments      to reconcile net loss to net cash used in operating    activities                         |   |               |    |   |   |   |   |   |
|     Depreciation      and amortization                                                             |   |               | 274     |   |   |   | 370 |   |
|     Minority      interest in losses                                                               |   |               | (74,891 | ) |   |   | (73,680 | ) |
|     Change      in assets and liabilities                                                          |   |               |    |   |   |   |   |   |
|       Account      receivable                                                            |   |               | -       |   |   |   | (90 | ) |
|       Consulting      fee payable to related party                                       |   |               | 18,000  |   |   |   | 18,000 |   |
|       Royalty      payable to Related party                                              |   |               | 30,000  |   |   |   | 30,000 |   |
|       Accounts      payable                                                              |   |               | 19,878  |   |   |   | 2,538 |   |
|       Accrued      interest payable                                                      |   |               | 13,161  |   |   |   | 9,110 |   |
|       Accrued      payroll and related taxes                                             |   |               | 36,000  |   |   |   | - |   |
|             Net      cash used in operating activities     |   |               | (49,191 | ) |   |   | (98,742 | ) |
|                                                                                                                   |   |               |    |   |   |   |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES:                                                                             |   |               |    |   |   |   |   |   |
|   Proceeds      from note receivable                                                                         |   |               | -       |   |   |   | - |   |
|             Net      cash provided by investing activities |   |               | -       |   |   |   | - |   |
|                                                                                                                   |   |               |    |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES:                                                                             |   |               |    |   |   |   |   |   |
|   Proceeds      from notes payable                                                                           |   |               | 32,017  |   |   |   | 70,497 |   |
|   Proceeds      from related party loan                                                                      |   |               | 18,000  |   |   |   | - |   |
|             Net      cash provided by financing activities |   |               | 50,017  |   |   |   | 70,497 |   |

----

|                                             |   | For      the Nine  |   |
|--------------------------------------------------|--------|--------------------|--------|
|                                             |   | Months      Ended  |   |
|                                             |   | September      30, |   |
|                                             |   | 2008               |   |   | 2007 |   |
|                                             |   | (Unaudited)        |   |
|                                             |   |               |   |   |   |   |
|   NET      INCREASE (DECREASE) IN CASH |   |               | 826    |   |   |   | (28,245 | ) |
|                                             |   |               |   |   |   |   |   |   |
|   CASH      AT BEGINNING OF PERIOD     |   |               | 2,706  |   |   |   | 34,079 |   |
|                                             |   |               |   |   |   |   |   |   |
|   CASH      AT END OF PERIOD           |   | $                  | 3,532  |   |   | $ | 5,834 |   |

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| Item      1. | BASIS      OF PRESENTATION |
|--------------|----------------------------|

| 2. | Summary      of Significant Accounting Policies |
|----|-------------------------------------------------|

----

----

|   | Item      4T:  CONTROLS ANDPROCEDURES |
|--------|-------------------------------------------------|

| (31.1) | Sarbanes-Oxley      Section 302 Certification – Ralph Henson          |
|--------|-----------------------------------------------------------------------------|
|   |                                                                        |
| (31.2) | Sarbanes-      Oxley Section 302 Certification- Richard Bruggeman           |
|   |                                                                        |
| (32.1) | Sarbanes-Oxley      Section 906 Certification                               |
|   |                                                                        |
| 99.1   | Option      to Purchase Common Stock dated September  10,    2008 |
|   |                                                                        |
| 99.2   | Proxy      dated September 10, 2008                                         |

----

----

|   | FORM      10Q – SEPTEMBER 30, 2008 |
|--------|------------------------------------------|

| EXHIBITNUMBER | DESCRIPTION                                                                 |
|---------------|-----------------------------------------------------------------------------|
|          |                                                                        |
| (31.1)        | Sarbanes-Oxley      Section 302 Certification – Ralph Henson          |
|          |                                                                        |
| (31.2)        | Sarbanes-      Oxley Section 302 Certification- Richard Bruggeman           |
|          |                                                                        |
| (32.1)        | Sarbanes-Oxley      Section 906 Certification                               |
|          |                                                                        |
| 99.1          | Option      to Purchase Common Stock dated September  10,    2008 |
|          |                                                                        |
| 99.2          | Proxy      dated September 10, 2008                                         |

----