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|                                                                 New                Jersey                                                                                                                      22-1848316                                                      -------------------------------                                                                                                     -----------------------                                                    (State or other jurisdiction                of                                                                                                (I.R.S. Employer ID                No.)                                                     incorporation or organization) |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                                                                            |   | Page   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                            |   |   |   |   |
| Condensed                 Balance Sheets as of June 30, 2004                                                                               |   | 3      |   |   |
| Condensed                 Statements of Operations for the three and six months ended June                30, 2004                and 2003 |   | 4      |   |   |
| Condensed Statements                of Cash Flows for the six months ended June 30, 2004 and                2003                      |   | 5      |   |   |
| Notes                to Financial Statements                                                                                                    |   | 6-9    |   |   |
|                                                                                                                                            |   |   |   |   |

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| Worlds.com,                  Inc.Balance                  Sheets(Unaudited)As of June 30, 2004               |
|--------------------------------------------------------------------------------------------------------------|
| Current                  Assets                                                                              |   |   |   |
| Cash                  and cash                  equivalents                                                  |   |  $ | 3,349 |   |
| Accounts                  recievable                                                                         |   |   | -  |   |
| Prepaid                  Expenses                                                                            |   |   | -  |   |
| Inventory                                                                                                    |   |   | -  |   |
|                                                                                                         |   |   |   |   |
|                                                                                                         |   |   |   |   |
| Total                  Current                  Assets                                                       |   |   | 3,349 |   |
|                                                                                                         |   |   |   |   |
|  Property,                  equipment                  software dev  net of                   |   |   |   |   |
|  accumulated                  depreciation                                                              |   |   | -  |   |
|                                                                                                         |   |   |   |   |
|                                                                                                         |   |   |   |   |
| TOTAL                  ASSETS                                                                                |   |   | 3,349 |   |
|                                                                                                         |   |   |   |   |
|                                                                                                         |   |   |   |   |
|                                                                                                         |   |   |   |   |
| Current                  Liabilities                                                                         |   |   |   |   |
| Accounts                  payable                                                                            |   |   | 1,145,704 |   |
| Accrued                  expenses                                                                            |   |   | 1,012,217 |   |
| Deferred                  Revenue                                                                            |   |   | 631,950 |   |
|  Current                  maturities notes                  payable                                     |   |   | 2,238,745 |   |
|                                                                                                         |   |   |   |   |
| Total                  Current                  Liabilities                                                  |   |   | 5,028,617 |   |
|                                                                                                         |   |   |   |   |
|                                                                                                         |   |   |   |   |
| Stockholders                  Equity                  (Deficit)                                              |   |   |   |   |
|                                                                                                         |   |   |   |   |
| Common                  stock                                                                                |   |   | 33,824 |   |
|  Additional                  Paid in                  Capital                                           |   |   | 20,146,723 |   |
| Accumulated                  Deficit                                                                         |   |   | (25,205,813 | ) |
|                                                                                                         |   |   |   |   |
| Total                  stockholders                  deficit                                                 |   |  $ | (5,025,267 | ) |
|                                                                                                         |   |   |   |   |
| Total                  Liabilities and stockholders                  deficit                                 |   |  $ | 3,349 |   |
| The                  accompanying notes are an integral part of these financial                  statements. |

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| Worlds.com,                Inc.Statements                of Operations(Unaudited)For                the                three and six months ended June 30, 2004 and 2003 |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                     |   |   | Six                months ended June                30, |   |   | Three                months ended June                30, |   |
|                                                                                                                                                                     |   |   | 2004 |   |   | 2003 |   |   | 2004 |   |   | 2003 |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     | Revenue |   |  $ | 71,912 |   |   |  $ | 10,239 |   |   |  $ | 31,343 |   |   |  $ | 10,239 |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                                                                                    |   |   |   | 71,912 |   |   |   | 10,239 |   |   |   | 31,343 |   |   |   | 10,239 |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                and                Expenses                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     | Cost                of                Revenue |   |   | 69,596 |   |   |   | 22,831 |   |   |   | - |   |   |   | 11,750 |   |
|                                                                                                                                                                     | Selling                General &                Admin |   |   | 8,899 |   |   |   | 2,298 |   |   |   | 42,292 |   |   |   | - |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     | Operating                  income                  (loss) |   |   | (6,583 | ) |   |   | (14,890 | ) |   |   | (10,949 | ) |   |   | (1,511 | ) |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income                Expense                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     | Interest                Income |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                     | Interest                Expense |   |   | 76,922 |   |   |   | 76,922 |   |   |   | 38,461 |   |   |   | 38,461 |   |
|                                                                                                                                                                     | Offering                Expense |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Loss                                                                                                                                                  |   |  $ | (83,505 | ) |   |  $ | (91,812 | ) |   |  $ | (49,410 | ) |   |  $ | (39,972 | ) |
| The                accompanying notes are an integral part of these financial                statements.                                                                 |

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| Worlds.com,                  Inc. Statements                  of Cash Flows(Unaudited)For                  the                  six months ended June 30, 2004 and 2003 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                         |   | 2004 |   |   | 2003 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |
| Cash                  flows from operating                  activities                                                                                                       |   |   |   |   |   |   |
| Net                Income/(loss)                                                                                                                                             |   |  $ | (83,505 | ) |   |  $ | (91,812 | ) |
|                   Adjustments                to reconcile net loss                to net cash used                                                                 |   |   |   |   |   |   |   |   |
|                   in operating activities                                                                                                                          |   |   | - |   |   |   | - |   |
|  Dep&                  amort                                                                                                                                        |   |   | - |   |   |   | - |   |
|  Accretion                  of deferred                  revenue                                                                                                        |   |   | - |   |   |   | - |   |
|  Accounts                  receivable                                                                                                                                   |   |   |   |   |   |   |   |   |
|   Prepaid                  expenses and                  other current assets                                                                                      |   |   |   |   |   |
| inventories                                                                                                                                                                  |   |   | - |   |   |   | - |   |
|  accounts                  payable and                  accrued expenses                                                                                                |   |   | 76,922 |   |   |   | 76,922 |   |
| Loan                                                                                                                                                                         |   |   | 7,500 |   |   |   | 6,000 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net                  cash used in operating                  activities                                                                                                      |   |   | 917 |   |   |   | (8,890 | ) |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Cash                  flows from investing                  activities                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   | - |   |   |   | - |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net                  cash used in investing                  activities                                                                                                      |   |   | - |   |   |   | - |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Cash                  flows from financing                  activities                                                                                                       |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net                  cash provided from investing                  activities                                                                                                |   |   | - |   |   |   | - |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Net                  increase(decrease) in                  cash                                                                                                             |   |   | 917 |   |   |   | (8,890 | ) |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Cash                  beginning of                  period                                                                                                                   |   |   | 2,432 |   |   |   | 12,750 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Cash                  end of                  period                                                                                                                         |   |   | 3,349 |   |   |   | 3,860 |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Supplemental                  disclosure of cash                  flow information:                                                                                          |   |   |   |   |   |
|                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                                     |   |   | - |   |   |   | - |   |
| Income                  taxes                                                                                                                                                |   |   | - |   |   |   | - |   |
| The                    accompanying notes are an integral part of these financial                    statements.                                                             |

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|                                           By: /s/                Thomas Kidrin                                                Thomas                Kidrin                                               President,                CEO                and Treasurer                                          By:  /s/                Christopher                Ryan                                               Christopher                Ryan                                               Chief                Financial Officer and                                               Principal                Accounting Officer |
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| Exhibit                No. |  | Description                                                                                                                                                      |
|----------------------------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                            |  |                                                                                                                                                                  |
| 31.1                       |  | Certification                of Chief Executive                Officer                                                                                           |
|                            |  |                                                                                                                                                                  |
| 31.2                       |  | Certification                of Chief Financial                Officer                                                                                           |
|                            |  |                                                                                                                                                                  |
| 32.1                       |  | Statement                required by 18 U.S.C. Section 1350, as adopted                pursuant to section 906 of the Sarbanes-Oxley Act of                2002. |
|                            |  |                                                                                                                                                                  |
| 32.2                       |  | Statement                required by 18 U.S.C. Section 1350, as adopted pursuant to section                906 of                the Sarbanes-Oxley Act of 2002. |