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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   | √      Smaller reporting company |

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| ASSETS                                                                                |   |          |   |   |              |   |
|---------------------------------------------------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
|                                                                                  |   | As      of    |   |   | As      of        |   |
|                                                                                  |   | June      30, |   |   | December      31, |   |
|                                                                                  |   | 2008          |   |   | 2007              |   |
|                                                                                  |   | (Unaudited)   |   |   | (audited)         |   |
|                                                                                  |   |          |   |   |              |   |
| CURRENT      ASSETS:                                                                  |   |          |   |   |              |   |
|      Cash      & cash equivalents                        |   | $             | 5,075  |   |              | $      | 2,706 |   |
|      Prepaid      expenses and other                         |   |          | 200    |   |              |   | 200 |   |
|           Total      current assets |   |          | 5,275  |   |              |   | 2,906 |   |
|                                                                                  |   |          |   |   |              |   |   |   |
| EQUIPMENT      AND FURNITURE, at cost,                                                |   |          |   |   |              |   |   |   |
|   less      accumulated depreciation of                                     |   |          |   |   |              |   |   |   |
|   $255,039      and  $254,856      respectively                        |   |          | 183    |   |              |   | 365 |   |
|                                                                                  |   |          |   |   |              |   |   |   |
|           Total      assets         |   | $             | 5,458  |   |              | $      | 3,271 |   |

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| LIABILITIES AND STOCKHOLDERS'      EQUITY                                                                        |   |          |       |   |              |   |
|------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|--------|-------------------|--------|
|                                                                                                             |   | As      of    |       |   | As      of        |   |
|                                                                                                             |   | June      30, |       |   | December      31, |   |
|                                                                                                             |   | 2008          |       |   | 2007              |   |
|                                                                                                             |   | (Unaudited)   |       |   | (Unaudited)       |   |
|                                                                                                             |   |          |       |   |              |   |
| CURRENT      LIABILITIES:                                                                                        |   |          |       |   |              |   |
|      Related      party consulting fees payable                                         |   | $             | 90,000     |   |              | $      | 78,000 |   |
|      Accounts      payable                                                              |   |          | 35,975     |   |              |   | 5,503 |   |
|           Accrued      payroll                                                               |   |          | 24,000     |   |              |   | - |   |
|      Accrued      interest                                                              |   |          | 25,009     |   |              |   | 16,495 |   |
|      Related      party royalty payable                                                 |   |          | 93,333     |   |              |   | 73,333 |   |
|      Preferred      stock dividend payable                                              |   |          | 52,960     |   |              |   | 49,177 |   |
|      Current      portion of long term debt                                             |   |          | 140,000    |   |              |   | 60,617 |   |
|                                                                                                             |   |          |       |   |              |   |   |   |
|           Total      current liabilities                       |   |          | 461,277    |   |              |   | 283,125 |   |
|                                                                                                             |   |          |       |   |              |   |   |   |
| LONG      TERM LIABILITIES                                                                                       |   |          |       |   |              |   |   |   |
|      Long      term convertible promissory note                                         |   |          | 87,633     |   |              |   | 140,000 |   |
|                                                                                                             |   |          |       |   |              |   |   |   |
|           TOTAL      LIABILITIES                               |   |          | 548,910    |   |              |   | 423,125 |   |
|                                                                                                             |   |          |       |   |              |   |   |   |
| MINORITY      INTEREST                                                                                           |   |          | (243,645   | )      |              |   | (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                                               |   |          | (8,839,848 | )      |              |   | (8,768,227 | ) |
|                                                                                                             |   |          |       |   |              |   |   |   |
|           Total      stockholders equity                       |   |          | (299,807   | )      |              |   | (228,186 | ) |
|                                                                                                             |   |          |       |   |              |   |   |   |
|           Total      liabilities and stockholders'      equity |   | $             | 5,458      |   |              | $      | 3,271 |   |

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|   | FORM      10Q/A1 – JUNE 30, 2008 |
|--------|----------------------------------------|

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

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