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

| Large      accelerated filer | Accelerated      filer           |
|------------------------------|----------------------------------|
| Non-accelerated      filer   | P Smaller      reporting company |

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| ASSETS                                                                                |   |           |   |   |              |   |
|---------------------------------------------------------------------------------------|--------|----------------|--------|--------|-------------------|--------|
|                                                                                  |   | As      of     |   |   | As      of        |   |
|                                                                                  |   | March      31, |   |   | December      31, |   |
|                                                                                  |   | 2008           |   |   | 2007              |   |
|                                                                                  |   | (Unaudited)    |   |   | (audited)         |   |
|                                                                                  |   |           |   |   |              |   |
| CURRENT      ASSETS:                                                                  |   |           |   |   |              |   |
|      Cash      & cash equivalents                        |   | $              | 11,969 |   |              | $      | 2,706 |   |
|     Prepaid      expenses and other                               |   |           | 200    |   |              |   | 200 |   |
|                                                                                  |   |           |   |   |              |   |   |   |
|           Total      current assets |   |           | 12,169 |   |              |   | 2,906 |   |
|                                                                                  |   |           |   |   |              |   |   |   |
| EQUIPMENT      AND FURNITURE, at cost,                                                |   |           |   |   |              |   |   |   |
|   Less      accumulated depreciation of                                     |   |           |   |   |              |   |   |   |
|   $254,947      and $254,856 respectively                                   |   |           | 274    |   |              |   | 365 |   |
|                                                                                  |   |           |   |   |              |   |   |   |
|           Total      assets         |   | $              | 12,443 |   |              | $      | 3,271 |   |

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| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                   |   |           |       |   |              |   |
|-------------------------------------------------------------------------------------------------------------|--------|----------------|------------|--------|-------------------|--------|
|                                                                                                        |   | As      of     |       |   | As      of        |   |
|                                                                                                        |   | March      31, |       |   | December      31, |   |
|                                                                                                        |   | 2008           |       |   | 2007              |   |
|                                                                                                        |   | (Unaudited)    |       |   | (audited)         |   |
|                                                                                                        |   |           |       |   |              |   |
| CURRENT      LIABILITIES:                                                                                   |   |           |       |   |              |   |
|      Related      party consulting fees payable                                    |   | $              | 84,000     |   |              | $      | 78,000 |   |
|      Accounts      payable                                                         |   |           | 21,232     |   |              |   | 5,503 |   |
|      Accrued      payroll                                                          |   |           | 12,000     |   |              |   | - |   |
|      Accrued      interest                                                         |   |           | 20,362     |   |              |   | 16,495 |   |
|      Related      party royalty payable                                            |   |           | 83,333     |   |              |   | 73,333 |   |
|      Preferred      stock dividend payable                                         |   |           | 51,069     |   |              |   | 49,177 |   |
|       Current      portion of long term debt                                       |   |           | 140,000    |   |              |   | 60,617 |   |
|                                                                                                        |   |           |       |   |              |   |   |   |
|      Total      current liabilities                                                |   |           | 411,996    |   |              |   | 283,125 |   |
|                                                                                                        |   |           |       |   |              |   |   |   |
| LONG      TERM LIABILITIES                                                                                  |   |           |       |   |              |   |   |   |
|       Long      term convertible promissory note                                   |   |           | 85,033     |   |              |   | 140,000 |   |
|                                                                                                        |   |           |       |   |              |   |   |   |
| TOTAL      LIABILITIES                                                                                      |   |           | 497,029    |   |              |   | 423,125 |   |
|                                                                                                        |   |           |       |   |              |   |   |   |
| MINORITY      INTEREST                                                                                      |   |           | (217,169   | )      |              |   | (191,668 | ) |
|                                                                                                        |   |           |       |   |              |   |   |   |
| 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                                          |   |           | (8,807,458 | )      |              |   | (8,768,227 | ) |
|                                                                                                        |   |           |       |   |              |   |   |   |
|           Total      stockholders equity                  |   |           | (267,417   | )      |              |   | (228,186 | ) |
|                                                                                                        |   |           |       |   |              |   |   |   |
|           Total      liabilities and stockholders' equity |   | $              | 12,443     |   |              | $      | 3,271 |   |

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| EXHIBIT      NUMBER | DESCRIPTION |
|---------------------|-------------|

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