----

----

----

UNITED        STATES

----

----

----

----

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

----

----

----

----

|                                                                                                                                                  |   | Page   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                  |   |   |   |   |
| Condensed                    Balance Sheets as of June 30, 2001                                                                                       |   | 3      |   |   |
| Condensed                    Statements of Operations for the three and six months ended June                    30, 2001                    and 2000 |   | 4      |   |   |
| Condensed Statements                    of Cash Flows for the six months ended June 30, 2001 and                    2000                         |   | 5      |   |   |
| Notes                    to Financial Statements                                                                                                      |   | 6-10   |   |   |
|                                                                                                                                                  |   |   |   |   |

----

|   Worlds.com,                  Inc.Balance                  Sheets(Unaudited)As                  of June 30, 2001 |
|-----------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                        |   |   |   |
| Current                  Assets                                                                                             |   |   |   |
| Cash                  and cash                  equivalents                                                                 |   |  $ | 5,744 |   |
|  Accounts                  recievable                                                                                  |   |   | 28,959 |   |
|  Prepaid                  Expenses                                                                                     |   |   | 74,209 |   |
|  Inventory                                                                                                             |   |   | 52,727 |   |
|                                                                                                                        |   |   |   |   |
|                                                                                                                        |   |   |   |   |
| Total                  Current                  Assets                                                                      |   |   | 161,640 |   |
|                                                                                                                        |   |   |   |   |
| Property,                  equipment software                  dev  net of                                        |   |   |   |   |
|  accumulated                  depreciation                                                                             |   |   | 1,195,837 |   |
|                                                                                                                        |   |   |   |   |
|                                                                                                                        |   |   |   |   |
| TOTAL                  ASSETS                                                                                               |   |  $ | 1,357,477 |   |
|                                                                                                                        |   |   |   |   |
|                                                                                                                        |   |   |   |   |
|                                                                                                                        |   |   |   |   |
| Current                  Liabilities                                                                                        |   |   |   |   |
| Accounts                  payable                                                                                           |   |   | 1,145,796 |   |
| Accrued                  expenses                                                                                           |   |   | 604,700 |   |
| Deferred                  Revenue                                                                                           |   |   | 698,887 |   |
|  Current                  maturities notes                  payable                                                    |   |   | 2,181,212 |   |
|                                                                                                                        |   |   |   |   |
| Total                  Current                  Liabilities                                                                 |   |   | 4,630,594 |   |
|                                                                                                                        |   |   |   |   |
|                                                                                                                        |   |   |   |   |
| Stockholders                  Equity                  (Deficit)                                                             |   |   |   |   |
|                                                                                                                        |   |   |   |   |
| Common                  stock                                                                                               |   |   | 33,824 |   |
|  Additional                  Paid in                  Capital                                                          |   |   | 20,146,723 |   |
|   Accumulated                  Deficit                                                                            |   |   | (23,453,664 | ) |
|                                                                                                                        |   |  $ |   |   |
|  Total                  stockholders                  deficit                                                          |   |   | (3,273,118 | ) |
|                                                                                                                        |   |   |   |   |
|  Total                  Liabilities and                  stockholders deficit                                          |   |  $ | 1,357,477 |   |
|                                                                                                                        |   |   |   |   |
|  The                accompanying notes are an integral part of these financial                statements.              |

----

|   Worlds.com,                    Inc.Statements of Operations(Unaudited)For Three                    and Six months ended June 30, 2001 and 2000 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                            |   |   | Six                    months ended June                    30, |   |   | Three                    months ended June                    30, |   |
|                                                                                                                                                            |   |   | 2001 |   |   | 2000 |   |   | 2001 |   |   | 2000 |   |
| Revenues                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            | Revenue |   |  $ | 530,546 |   |   |  $ | 513,764 |   |   |  $ | 352,791 |   |   |  $ | 333,741 |   |
|                                                                                                                                                            | Revenue                    from terminated                    K |   |   | 834,722 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                                                                                                           |   |   |   | 1,365,268 |   |   |   | 513,764 |   |   |   | 352,791 |   |   |   | 333,741 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                    and                    Expenses                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            | Cost                    of                    Revenue |   |   | 223,237 |   |   |   | 212,312 |   |   |   | 28,957 |   |   |   | 142,361 |   |
|                                                                                                                                                            | Selling                    General &                    Admin |   |   | 1,973,071 |   |   |   | 4,818,989 |   |   |   | 605,174 |   |   |   | 2,727,300 |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            | Operating                    income                    (loss) |   |   | (831,040 | ) |   |   | (4,517,537 | ) |   |   | (281,341 | ) |   |   | (2,535,920 | ) |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                    Income                    Expense                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            | Interest                    Income |   |   | 6,053 |   |   |   | 68,053 |   |   |   | 33 |   |   |   | 52,302 |   |
|                                                                                                                                                            | Interest                    Expense |   |   | 825,235 |   |   |   | 85,773 |   |   |   | - |   |   |   | 43,144 |   |
|                                                                                                                                                            | Offering                    Expense |   |   | 208,880 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    Loss                                                                                                                                     |   |   |  $ | (1,859,102 | ) |   |  $ | (4,535,257 | ) |   |  $ | (281,308 | ) |   |  $ | (2,526,762 | ) |
|                                                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  The                    accompanying notes are an integral part of these financial                    statements.                                          |

----

| Worlds.com,                    Inc.Statement                    of Cash Flows(Unaudited)For Six                      months ended June 30, 2001 and 2000 |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                          |   | 2001 |   |   | 2000 |   |
| Cash                    flows from operating                    activities                                                                                    |   |   |   |   |   |   |
|                                 Net Income/(loss)                                                 |   |  $ | (1,859,102 | ) |   |  $ | (4,535,257 | ) |
|      Adjustments                    to reconcile net loss to net cash used                                                           |   |   |   |   |   |   |   |   |
|     in                    operating activities                                                                                            |   |   |   |   |   |   |   |   |
| Dep&                    amort                                                                                                                             |   |   | 185,989 |   |   |   | 672,389 |   |
| Accretion                    of deferred                    revenue                                                                                           |   |   | (774,639 | ) |   |   | - |   |
|  Consulting                    expense related                    to the                                                                                 |   |   |   |   |   |   |   |   |
|    issuance                    of                    stock options                                                                             |   |   | 165,000 |   |   |   | 138,231 |   |
|  Interest                    expense on                    beneficial conversion                                                                         |   |   |   |   |   |   |   |   |
|    feature                    in                    private placement                                                                          |   |   | 746,381 |   |   |   | - |   |
|     Placement                    fee and bonus expense paid                                                                               |   |   |   |   |   |   |   |   |
|    with                    convertible                    notes                                                                                |   |   | 95,000 |   |   |   | - |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                            Changes in operating assets and liabilities                                                     |   |   |   |   |   |   |   |   |
| Accounts                    receivable                                                                                                                        |   |   | 175,608 |   |   |   | (117,496 | ) |
|  Prepaid                    expenses and other                    current assets                                                                         |   |   | 218,087 |   |   |   | 26,625 |   |
| inventories                                                                                                                                                   |   |   | 83,978 |   |   |   | (29,376 | ) |
|    accounts                    payable and accrued expenses                                                                                    |   |   | (229,962 | ) |   |   | 154,302 |   |
| Deferred                    revenue                                                                                                                           |   |   | - |   |   |   | 85,675 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net                    cash used in operating                    activities                                                                                   |   |   | (1,193,661 | ) |   |   | (3,604,907 | ) |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash                    flows from investing                    activities                                                                                    |   |   |   |   |   |   |   |   |
| Acquisition                    of property and                    equipment                                                                                   |   |   | - |   |   |   | (65,238 | ) |
| Addition                    to software development                    costs                                                                                  |   |   | (90,404 | ) |   |   | (133,364 | ) |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net                    cash used in investing                    activities                                                                                   |   |   | (90,404 | ) |   |   | (198,602 | ) |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash                    flows from financing                    activities                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Proceeds                    from sale of convertible                    notes                                                                                 |   |   | 1,250,000 |   |   |   | - |   |
| Proceeds                    from sale of common                    stock                                                                                      |   |   | - |   |   |   | 3,708,957 |   |
| Proceeds                    from exercise of                    options                                                                                       |   |   | - |   |   |   | 135,500 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net                    Cash provided from financing                    activities                                                                             |   |   | 1,250,000 |   |   |   | 3,844,457 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net                    increase(decrease) in                    cash                                                                                          |   |   | (34,065 | ) |   |   | 40,948 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash                    beginning of                    period                                                                                                |   |   | 40,489 |   |   |   | 1,821,180 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Cash                    end of                    period                                                                                                      |   |  $ | 6,424 |   |   |  $ | 1,862,128 |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
|                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Supplemental                    disclosure of cash                    flow information:                                                                       |   |   |   |   |   |   |   |   |
|                            Cash paid during the year for                                                                   |   |   |   |   |   |   |   |   |
| Interest                                                                                                                                                      |   |   | - |   |   |   | - |   |
| Income                    taxes                                                                                                                               |   |   | - |   |   |   | - |   |
|                    The                  accompanying notes are an integral part of these financial                  statements.                     |

----

----

----

----

Liquidity        and Capital Resources

    During        the first quarter of 2008 our Certifying        Officers evaluated the effectiveness of our disclosure controls and procedures.        Based on the evaluation, the Certifying Officers concluded that our disclosure        controls and procedures were effective to provide reasonable assurance that        information required As of the end of the period covered by this report to        be        disclosed by us in the reports that we file or submit under the Exchange        Act is        recorded, processed, summarized and reported, within the time periods specified        in the applicable rules and forms, and that it is accumulated and communicated        to our management, including the Certifying Officers, as appropriate to allow        timely decisions regarding required disclosure.

----

None.

----

|  By:  /s/                  Thomas Kidrin  Thomas                  Kidrin President,                  CEO and Treasurer  By: /s/                  Christopher Ryan Christopher                  RyanChief                  Financial Officer andPrincipal                  Accounting Officer |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                           |

----

XHIBITS

| 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. |

----