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|          New Jersey                                         22-1848316 -------------------------------                     -----------------------(State or Other Jurisdiction of                     (I.R.S. Employer Identification No.)                                                                                         Incorporation or Organization) |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                                               |   | Page       |   |   |
|----------------------------------------------------------------------------------------------------|--------|------------|--------|--------|
|                                                                                               |   |       |   |   |
| Condensed Balance Sheets as of September 30, 2010 and December 31, 2009                            |   | F-3        |   |   |
| Condensed Statements of Operations for the three and nine months ended September 30, 2010 and 2009 |   | F-4        |   |   |
| Condensed Statements of Cash Flows for the nine months ended September 30, 2010 and 2009           |   | F-5        |   |   |
| Notes to Condensed Financial Statements                                                            |   | F-6 to F-7 |   |   |
|                                                                                               |   |       |   |   |

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| Worlds.com Inc                                                                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Balance Sheets                                                                                                                                                          |
| September 30, 2010 and December 31, 2009                                                                                                                                |
|                                                                                                                                                                    |   | Unaudited |   |   |   |
| Audited                                                                                                                                                                 |   |
|                                                                                                                                                                    |   | 30-Sep-10 |   | 31-Dec-09 |   |
| Current Assets                                                                                                                                                          |   |   |   |   |   |
| Cash and cash equivalents                                                                                                                                               |   | $ | 75,362 |   | $ | - |   |
| Restricted Cash                                                                                                                                                         |   |   | - |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total Current Assets                                                                                                                                                    |   |   | 75,362 |   |   | 0 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Property and equipment, net of                                                                                                                                          |   |   |   |   |   |   |   |
| accumulated depreciation                                                                                                                                                |   |   | 1,540 |   |   | 3,883 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| TOTAL ASSETS                                                                                                                                                            |   | $ | 76,902 |   | $ | 3,883 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Current Liabilities                                                                                                                                                     |   |   |   |   |   |   |   |
| Cash Overdraft                                                                                                                                                          |   |   |   |   | $ | 1,175 |   |
| Accounts payable                                                                                                                                                        |   |   | 782,784 |   |   | 782,784 |   |
| Accrued expenses                                                                                                                                                        |   |   | 1,688,435 |   |   | 1,589,587 |   |
| Loan payable officer                                                                                                                                                    |   |   | 2,400 |   |   | 4,000 |   |
| Deferred Revenue                                                                                                                                                        |   |   | 466,950 |   |   | 541,950 |   |
| Notes Payable                                                                                                                                                           |   |   | 773,279 |   |   | 948,279 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total Current Liabilities                                                                                                                                               |   |   | 3,713,848 |   |   | 3,867,776 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Stockholders (Deficit)                                                                                                                                                  |   |   |   |   |   |   |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Common stock (Par value $0.001 authorized 65,000,000 shares, issued and outstanding 57,456,324 and 53,663,758 at September 30, 2010 and December 31, 2009 respectively) |   | $ | 57,455 |   | $ | 53,663 |   |
| Additional Paid in Capital                                                                                                                                              |   |   | 22,586,280 |   |   | 22,258,713 |   |
| Accumulated Deficit                                                                                                                                                     |   |   | (26,280,681) |   |   | (26,176,269 | ) |
| Total stockholders deficit                                                                                                                                              |   |   | (3,636,946) |   |   | (3,863,893 | ) |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| Total Liabilities and stockholders deficit                                                                                                                              |   | $ | 76,902 |   | $ | 3,883 |   |
|                                                                                                                                                                    |   |   |   |   |   |   |   |
| See Notes to Condensed Financial Statements                                                                                                                             |   |

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| Worlds.com IncCondensed Statements of Operations for the three and nine months ended September 30, 2010 and 2009 |
|------------------------------------------------------------------------------------------------------------------|
|                                                                                                             |
|                                                                                                             |   | Nine months ended Sept. 30, |   |   | Three months ended Sept 30, |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Revenues                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   Revenue                                                                                                   |   | $ | 225,652 |   |   | $ | 100,967 |   |   | $ | 150,078 |   |   | $ | 10,374 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                            |   |   | 225,652 |   |   |   | 100,967 |   |   |   | 150,078 |   |   |   | 10,374 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost and Expenses                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Cost of Revenue                                                                                           |   |   | 10,593 |   |   |   | 160,214 |   |   |   | 2,481 |   |   |   | 11,727 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Gross Profit                                                                                              |   |   | 215,059 |   |   |   | (59,247 | ) |   |   | 147,597 |   |   |   | (1,353 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Waarants expense                                                                                          |   |   |   |   |   |   | 35,833 |   |   |   |   |   |   |   |   |   |
|   Selling, General & Admin.                                                                             |   |   | 319,471 |   |   |   | 266,507 |   |   |   | 112,796 |   |   |   | 52,193 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating loss                                                                                            |   |   | (104,412 | ) |   |   | (361,586 | ) |   |   | 34,801 |   |   |   | (53,545 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Income Expense                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Interest Expense                                                                                          |   |   | - |   |   |   | 3,210 |   |   |   | - |   |   |   | 1,605 |   |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Profit/(Loss)                                                                                                |   | $ | (104,412 | ) |   | $ | (364,796 | ) |   | $ | 34,801 |   |   | $ | (55,150 | ) |
|                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See Notes to Condensed Financial Statements                                                                      |   |

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| Worlds.com Inc                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Condensed Statements of Cash Flows for the nine months ended September 30, 2010 and 2009                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   | 30-Sep-10 |   |   | 30-Sep-09 |   |
| Cash flows from operating activities                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |
| Net profit/(loss)                                                                                                                                                                                                                                                                                                                    |   | $ | (104,412 | ) |   | $ | (364,796 | ) |
| Adjustments to reconcile net loss to net cash used                                                                                                                                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| in operating activities                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |   |   |
| Warrants expense                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   | 35,833 |   |
| Depreciation                                                                                                                                                                                                                                                                                                                         |   |   | 2,343 |   |   |   | 2,723 |   |
| Cash Overdraft                                                                                                                                                                                                                                                                                                                       |   |   | (1,175 | ) |   |   |   |   |
| Accounts payable and accrued expenses                                                                                                                                                                                                                                                                                                |   |   | 98,847 |   |   |   | (89,636 | ) |
| Contingent Deposit                                                                                                                                                                                                                                                                                                                   |   |   | - |   |   |   |   |   |
| Deferred revenue                                                                                                                                                                                                                                                                                                                     |   |   | (75,000 | ) |   |   | (90,000 | ) |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net cash used in operating activities                                                                                                                                                                                                                                                                                                |   |   | (79,397 | ) |   |   | (505,876 | ) |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from investing activities                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Maturity of certificate of deposit                                                                                                                                                                                                                                                                                                   |   |   | - |   |   |   | 166,451 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net cash used in investing activities                                                                                                                                                                                                                                                                                                |   |   | 0 |   |   |   | 166,451 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Proceeds  from exercise of warrants                                                                                                                                                                                                                                                                                        |   |   | 145,459 |   |   |   | 250 |   |
| Proceeds from issuance of notes payable                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   | 175,000 |   |
| Issuance of common stock for services renderred                                                                                                                                                                                                                                                                                      |   |   | 10,900 |   |   |   |   |   |
| Repayment of officer loan payable                                                                                                                                                                                                                                                                                                    |   |   | (1,600 | ) |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net cash provided by financing activities                                                                                                                                                                                                                                                                                            |   |   | 154,759 |   |   |   | 175,250 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net increase/(decrease) in cash                                                                                                                                                                                                                                                                                                      |   |   | 75,362 |   |   |   | (164,176 | ) |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash beginning of period                                                                                                                                                                                                                                                                                                             |   |   | 0 |   |   |   | 166,535 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Cash end of period                                                                                                                                                                                                                                                                                                                   |   | $ | 75,362 |   |   | $ | 2,359 |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Supplemental disclosure of cash flow information:                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Cash paid during the period for                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|  Interest                                                                                                                                                                                                                                                                                                                       |   | $ | - |   |   | $ | - |   |
|                                                     Income taxes |   | $ | - |   |   | $ | - |   |
|                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| See Notes to Condensed Financial Statements                                                                                                                                                                                                                                                                                          |

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| ·   | VIP subscriptions to our Worlds Ultimate 3-D Chat service. |
|--------------------|------------------------------------------------------------|

| ·   | Licensing fees for our technology |
|--------------------|-----------------------------------|

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| 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. |

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|         /s/ Thomas KidrinBy: Thomas Kidrin       President and CEO         /s/ Christopher RyanBy: Christopher Ryan       Chief Financial 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. |