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UNITED      STATES

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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, 2003                                                                               |   | 3      |   |   |
| Condensed                 Statements of Operations for the three and six months ended June                30, 2003                and 2002 |   | 4      |   |   |
| Condensed Statements                of cash flows for the six months ended June 30, 2003 and                2002                      |   | 5      |   |   |
| Notes                to Financial Statements                                                                                                    |   | 6-9    |   |   |
|                                                                                                                                            |   |   |   |   |

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| Worlds.com,                Inc.Balance Sheets(Unaudited)As of June 30,                2003               |
|----------------------------------------------------------------------------------------------------------|
| Current                Assets                                                                            |   |   |   |
| Cash                and cash                equivalents                                                  |   |  $ | 3,860 |   |
|  Accounts                recievable                                                                 |   |   | -  |   |
|  Prepaid                Expenses                                                                    |   |   | -  |   |
|  Inventory                                                                                          |   |   | -  |   |
|                                                                                                     |   |   |   |   |
|                                                                                                     |   |   |   |   |
| Total                Current                Assets                                                       |   |   | 3,860 |   |
|                                                                                                     |   |   | -  |   |
| Property,                equipment software                dev  net of                         |   |   |   |   |
|  accumulated                depreciation                                                            |   |   |   |   |
|                                                                                                     |   |   |   |   |
|                                                                                                     |   |   |   |   |
| TOTAL                ASSETS                                                                              |   |  $ | 3,860 |   |
|                                                                                                     |   |   |   |   |
|                                                                                                     |   |   |   |   |
|                                                                                                     |   |   |   |   |
| Current                Liabilities                                                                       |   |   |   |   |
| Accounts                payable                                                                          |   |   | 1,145,704 |   |
| Accrued                expenses                                                                          |   |   | 858,373 |   |
| Deferred                Revenue                                                                          |   |   | 631,950 |   |
|  Current                maturities notes                payable                                     |   |   | 2,221,969 |   |
|                                                                                                     |   |   |   |   |
| Total                Current                Liabilities                                                  |   |   | 4,857,997 |   |
|                                                                                                     |   |   |   |   |
|                                                                                                     |   |   |   |   |
| Stockholders                Equity                (Deficit)                                              |   |   |   |   |
|                                                                                                     |   |   |   |   |
| Common                stock                                                                              |   |   | 33,824 |   |
|  Additional                Paid in                Capital                                           |   |   | 20,146,723 |   |
| Accumulated                Deficit                                                                       |   |   | (25,034,683 | ) |
|                                                                                                     |   |   |   |   |
|  Total                stockholders                deficit                                           |   |   | (4,854,136 | ) |
|                                                                                                     |   |   |   |   |
|    Total                Liabilities and stockholders deficit                              |   |  $ | 3,860 |   |
| 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, 2003 and 2002 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                      |   |   | Six                months ended June                30, |   |   | Three                months ended June                30, |   |
|                                                                                                                                                      |   |   | 2003 |   |   | 2002 |   |   | 2003 |   |   | 2002 |   |
| Revenues                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      | Revenue |   |  $ | 10,239 |   |   |  $ | 122,246 |   |   |  $ | 10,239 |   |   |  $ | 38,298 |   |
|                                                                                                                                                      | Revenue                from terminated                contract |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total                                                                                                                                                     |   |   |   | 10,239 |   |   |   | 122,246 |   |   |   | 10,239 |   |   |   | 38,298 |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cost                and                Expenses                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      | Cost                of                Revenue |   |   | 22,831 |   |   |   | 38,874 |   |   |   | 11,750 |   |   |   | 24,360 |   |
|                                                                                                                                                      | Selling                General &                Admin |   |   | 2,298 |   |   |   | (22,879 | ) |   |   | - |   |   |   | (24,695 | ) |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      | Operating                  income (loss) |   |   | (14,890 | ) |   |   | 106,251 |   |   |   | (1,511 | ) |   |   | 38,633 |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                Income                Expense                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      | Interest                Income |   |   | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                      | Interest                Expense |   |   | 76,922 |   |   |   | 76,922 |   |   |   | 38,461 |   |   |   | 38,461 |   |
|                                                                                                                                                      | Offering                Expense |   |   | - |   |   |   | -  |   |   |   | - |   |   |   | - |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                Gain                (Loss)                                                                                                             |   |  $ | (91,812 | ) |   |  $ | 29,329 |   |   |  $ | (39,972 | ) |   |  $ | 172 |   |
| 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, 2003 and 2002 |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                   |   | 2003 |   |   | 2002 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |
| Cash                  flows from operating                  activities                                                                                                 |   |   |   |   |   |   |
|  Net                  Income/(loss)                                                                                                                               |   |  $ | (91,812 | ) |   |  $ | 29,330 |   |
| Adjustments                  to reconcile net loss                  to net cash used                                                                                   |   |   |   |   |   |   |   |   |
|  in                  operating                  activities                                                                                                        |   |   | -  |   |   |   | - |   |
|  Dep&                  amort                                                                                                                                  |   |   | -  |   |   |   | - |   |
|  Accretion                  of deferred                  revenue                                                                                                  |   |   | - |   |   |   | (66,937 | ) |
|  Accounts                  receivable                                                                                                                             |   |   |   |   |   |   |   |   |
|  Prepaid                  expenses and other                  current assets                                                                                      |   |   |   |   |   |   |   |   |
|                    inventories                                                                                                                                    |   |   | - |   |   |   | - |   |
|  accounts                  payable and                  accrued expenses                                                                                          |   |   | 76,922 |   |   |   | 70,922 |   |
|  Loan                                                                                                                                                             |   |   | 6,000 |   |   |   | 2,000 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Net                  cash used in operating                  activities                                                                                                |   |   | (8,890 | ) |   |   | 35,315 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash                  flows from investing                  activities                                                                                                 |   |   |   |   |   |   |   |   |
| Acquisition                  of property and                  equipment                                                                                                |   |   | - |   |   |   | - |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Net                  cash used in investing                  activities                                                                                                |   |   | - |   |   |   | - |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash                  flows from financing                  activities                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Net                  cash provided from investing                  activities                                                                                          |   |   | - |   |   |   | - |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Net                  increase(decrease) in                  cash                                                                                                       |   |   | (8,890 | ) |   |   | 35,315 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash                  beginning of                  period                                                                                                             |   |   | 12,750 |   |   |   | 5,888 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| Cash                  end of                  period                                                                                                                   |   |  $ | 3,860 |   |   |  $ | 41,203 |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |   |   |   |   |   |   |   |
| 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.                                                           |

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Liquidity      and Capital Resources

    During      the first      quarter of 2008, our Certifying Officers evaluated the effectiveness of our      disclosure controls and procedures as of the end of the period covered by this      report. Based on the evaluation, the Certifying Officers concluded that our      disclosure controls and procedures were effective to provide reasonable      assurance that information required 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.

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None.

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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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