----

----

| Nevada                                                                   | 86-0728263                                |
|--------------------------------------------------------------------------|-------------------------------------------|
| (State or other      jurisdiction of incorporation or      organization) | (I.R.S. Employer      Identification No.) |

----

----

----

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----

|          |                                                                                                                             | Page   |
|---------------|----------------------------------------------------------------------------------------------------------------------------------|--------|
|          |                                                                                                                             |   |
| PART      I   |
|          |                                                                                                                             |   |
| ITEM      1.  | DESCRIPTION      OF BUSINESS                                                                                                | 4      |
|          |                                                                                                                             |   |
| ITEM      2.  | DESCRIPTION      OF PROPERTY                                                                                                | 16     |
|          |                                                                                                                             |   |
| ITEM      3.  | LEGAL      PROCEEDINGS                                                                                                      | 16     |
|          |                                                                                                                             |   |
| ITEM      4.  | SUBMISSION      OF MATTERS TO A VOTE OF SECURITY HOLDERS                                                                    | 16     |
|          |                                                                                                                             |   |
| PART      II  |
|          |                                                                                                                             |   |
| ITEM      5.  | MARKET      FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS                                                               | 16     |
|          |                                                                                                                             |   |
| ITEM      7   | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS                   | 16     |
|          |                                                                                                                             |   |
| ITEM      8.  | FINANCIAL      STATEMENTS                                                                                                   | 17     |
|          |                                                                                                                             |   |
| ITEM      9.  | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE                              | 18     |
|          |                                                                                                                             |   |
| ITEM      9A. | CONTROLS      AND PROCEDURES                                                                                                | 18     |
|          |                                                                                                                             |   |
| ITEM      9B. | CHANGES      IN INTERNAL CONTROL OVER FINANCIAL REPORTING                                                                   | 20     |
|          |                                                                                                                             |   |
| PART      III |
|          |                                                                                                                             |   |
| ITEM      10. | DIRECTORS,      EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS: COMPLIANCE WITH SECTION      16(A) OF THE EXCHANGE ACT.  | 20     |
|          |                                                                                                                             |   |
| ITEM      11. | EXECUTIVE      COMPENSATION                                                                                                 | 23     |
|          |                                                                                                                             |   |
| ITEM      12. | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT                                                         | 23     |
|          |                                                                                                                             |   |
| ITEM      13. | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS                                                                         | 24     |
|          |                                                                                                                             |   |
| PART      IV  |
|          |                                                                                                                             |   |
| ITEM      14. | EXHIBITS      AND REPORTS ON FORM 8-K                                                                                            | 25     |
|          |                                                                                                                             |   |
| ITEM      15. | PRINCIPAL      ACCOUNTANT FEES AND SERVICES                                                                                 | 26     |
|          |                                                                                                                             |   |
| SIGNATURES    |                                                                                                                             | 26     |

----

| ITEM      1.  | DESCRIPTION      OF BUSINESS |
|--------------------|------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

| (1) | Homeland      security uses scintillation detectors and scintillation detector based      systems for scanning personnel, vehicles and cargo vessels, ships, for      radioactive exposure and radioactive material contents. Border crossings,      airports, seaports, and many other points where passengers and cargo are      passing through use these systems. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Medical      imaging uses scintillation crystals to analyze the radiation emitted from      the patients in order to make health related diagnosis. Gamma scanners      employ from one to three crystal plates positioned around the patient in      order to obtain two dimensional (using one plate) or three dimensional      image (using 2 0r 3 plates) of the patients organs    examined. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Energy      explorations use scintillation crystals to do a real-time analysis of the      soil the drill is in and to provide estimates of the oil contents of      certain oil rich deposits (whenfound). |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4) | Engine      fabricators use scintillation detectors for integrity and the consistency      of the engine wall. |
|-----|----------------------------------------------------------------------------------------------------------------|

| (5) | Construction      industry uses scintillation detectors for real time weld      inspections. |
|-----|----------------------------------------------------------------------------------------------|

| (6) |  CRC’s      patented technology provides multiple independent benefits that result in      more affordable and better gamma ray detectors and systems can be      summarized as follows: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | · | The      yield for marketable crystals is low, and for large crystals can be as low      as 1-3%; |
|--------|--------|---------------------------------------------------------------------------------------------------|

|   | · | There      are limitations on the maximum possible size of the    crystals; |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | The      growth rate of the crystals is low, thus inhibiting volume production and      increasing crystal production time; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | There      is significant impurity variation within crystals. Often, less than 10% of      the crystal produced is within the desired  range; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      capital investment for mass production islarge. |
|--------|--------|----------------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | · | the      medical imaging industry uses NaI crystal plates to transform invisible      gamma rays into visible light, which can be converted into an image of the      object examined; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | bottlers      use NaI crystal detectors to prevent overfilling of aluminum      cans; |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | automobile      manufacturers use crystal detectors to control the paint spraying process      to guarantee proper color mixing; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------|

|   | · | steel      manufacturers use NaI crystal detectors to adjust gigantic rollers to      insure uniform thickness of rolledsteel; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | nuclear      power plants use thousands of small NaI crystal detectors to measure      radiation levels throughout the plant and control any possible leakage of      radioactive material that might threaten the general      population; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Engine      manufacturers use scintillation technology to ensure proper engine wall      thickness, alloy uniformity and crack free  parts; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Airports      use crystals in personal and baggage scanners for detection of controlled      substances, explosives and radioactivematerial; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Borders      and ports use scintillation based detectors for detection of controlled      substances, explosives and radioactivematerial. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

| Crystal      Type/High Tech Product | Application                                                      | Market      Information                                                                                                                                                                                                       |
|-------------------------------------|------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Sodium      Iodide (NaI)            | Homeland      Security; Borders, Ports, and inland applications. | Major      Customers: US Government, Lockheed Martin, General Electric,      Others.Current      Market Size:  Approximately $362 BillionCurrent      Producer:  Saint Gobain, Foreign Corporation.  |
| Sodium      Iodide (NaI)            | Oil      Well Logging Detectors                                  | Major      Customers: Schlumberger, Halliburton, Baker HughesCurrent      Market Size:  Approximately $100 MillionCurrent      Producer:  Saint Gobain, Foreign Corporation.                         |
| Sodium      Iodide (NaI)            | Medical      Imaging                                             | Major      Customers: GE, ADAC, Siemens, ToshibaCurrent      Market Size: Over $400 MillionCurrent      Producer: Saint Gobain, Foreign Corporation.                                                                     |

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

| Cesium      Iodide                                          | High      Energy Physics                                                                               | Major      Customers: U.S. Nat'l Research FacilitiesCurrent      Market Size: Approximately Over $100 MillionCurrent      Producer:  Saint Gobain, Foreign Corporation, and several      Chinese Government owned entities.  |
|-------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Calcium      Fluoride (CaF2)                                | Semiconductor      Equipment manufacturing, Space Applications, Consumer optical      products         | Major      Customers: Nikon, Canon, ASML, Zeiss, US Government.Current      Market Size: Over $1 Billion(per Deutche Bank report)Current      Producers: Canon, Nikon, Corning, Shott Lithotech                                        |
| Barium      Fluoride (BaF2);      Strontium Fluoride (SrF2) | Airborne      Laser Defense Systems; Medical Imaging; Semiconductor Equipment      Manufacturing  | Major      Customers: Lockheed Martin, Northrop Grumman, Boeing, GE,      Phillips.Current      Market Size: Over $1 BillionCurrent      Producers: Korth Kristale (Germany), Russian and Chinese Government      Companies.           |
| Metal      and Metal  Alloys                      | Jet      Engine Turbine Blades, Space applications                                                     | Major      customers: Honeywell International, GE, Rolls RoyceCurrent      Market Size: Over $1 BillionMajor      producers: No major producers,                                                                                       |
| Silicon/Silicon      Alloy products                         | Semiconductor      Manufacturing, Chemical Industry, Space Applications                                | Major      customers: Intel, Freescale, TI, Sony, AMD, Others.Current      Market Size: Over $5 BillionMajor      producers: Toshiba, Norton, Kyocera,                                                                                 |
| High      Purity Quartz & Quartz products               | Semiconductor      manufacturing, Fiber Optic Industry; Food industry                                  | Major      customers: Intel, Freescale, Sony, AMD, OthersCurrent      Market Size: Over $1 BillionMajor      producers Corning, Asahi, Shott Glass                                                                                     |

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | 1. | Ultra      pure materials – high purity metals and alloys for direct or indirect use      in the semiconductor, medical, energy exploration, military, space, and      other leading edge industries. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2. | Crystals      and crystal products for the semiconductor industry, optics industry,      medical applications, military and defense applications, homeland      security, aerospace industry, deep space applications, and other      industries. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Semiconductor      manufacturing system components – high purity, high temperature silicon      based wafer processing chambercomponents. |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | Equipment      and Process for production of ultra-pure materials for semiconductor,      space and military applications. |
|--------|----|----------------------------------------------------------------------------------------------------------------------------|

|   | 5. | All      silicon CVD equipment andprocesses. |
|--------|----|----------------------------------------------|

|   | 6. | Equipment      and process for crystal growth for the semiconductor industry, space      applications and many defense industryproducts. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------|

|   | 7. | Equipment      and single crystals for Medical Imaging System  Assemblies. |
|--------|----|----------------------------------------------------------------------------|

|   | 8. | Energy      Exploration drilling sensor assemblies and drilling tools employing      them. |
|--------|----|--------------------------------------------------------------------------------------------|

|   | 9. | Airport      security screening systems |
|--------|----|-----------------------------------------|

|  | 10. | Nuclear      material radiation sensing and inspecting  systems. |
|--|-----|------------------------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | 11. | Fiber      optic products – fused silica grain with desired size and purity,      preforms, and near-net-shape fused silica  products. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | 12. | Equipment      and Process for fiber opticpreforms. |
|--------|-----|-----------------------------------------------------|

|   | 13. | Fused      silica processes |
|--------|-----|-----------------------------|

|   | 14. | Sensors      and systems for industrial safety andcontrol. |
|--------|-----|------------------------------------------------------------|

|   | · | Various      products for the energy exploration and homeland security applications,      all based on detection of gamma rays and particle  rays. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A      novel approach for full body scanning  technology. |
|--------|--------|-----------------------------------------------------------|

|   | · | The      growth of large, high purity crystals of several important compounds such      as sodium iodide, cesium iodide, calcium fluoride, barium fluoride – all      doped and un-doped materials (by adding or subtracting specific      impurities). |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The      process and technology for purification of materials and materials      mixtures. |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | The      process and technology to manufacture components for the semiconductor      industry. |
|--------|--------|------------------------------------------------------------------------------------------------|

|   | · | The      process and technology to manufacture fiber optic enhanced sensor      technology for energy applications (MWD and LWD included), homeland      security, nuclear stockpile storage, airport security and other      applications. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | v | 6,402,840  Crystal      growth employing embedded purificationchamber |
|--------|---|---------------------------------------------------------------------------------|

|   | v | 6,352,588  Material      Purification |
|--------|---|-------------------------------------------------|

|   | v | 6,334,899  Continuous      crystal plate growth apparatus |
|--------|---|---------------------------------------------------------------------|

|   | v | 6,153,011  Continuous      crystal plate growth process andapparatus |
|--------|---|--------------------------------------------------------------------------------|

|   | v | 6,071,339  Continuous      crystal plate growth process andapparatus |
|--------|---|--------------------------------------------------------------------------------|

|   | v | 5,993,540  Continuous      crystal plate growth process andapparatus |
|--------|---|--------------------------------------------------------------------------------|

|   | v | 5,753,918  Superior      performance subassembly for scintillation detection and detectors      employing the subassembly |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------|

|   | v | 5,614,721  Modular      gamma camera plate assembly with enhanced energy detection  and      resolution |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------|

|   | v | 5,548,116  Long      life oil well logging assembly |
|--------|---|---------------------------------------------------------------|

|   | v | 5,521,385  Long      life gamma camera plate assembly with improved reflector      system |
|--------|---|-----------------------------------------------------------------------------------------------------|

|   | v | 5,229,613  Extended      lifetime scintillation camera plateassembly |
|--------|---|--------------------------------------------------------------------------------|

|   | v | 5,178,719  Continuous      refill crystal growth method |
|--------|---|-------------------------------------------------------------------|

|   | v | 6,743,294      Continuous crystal plate growth process and  apparatus |
|--------|---|-----------------------------------------------------------------------|

|   | v | 6,800,137  Binary      and ternary crystal purification and growth method      and  apparatus |
|--------|---|-------------------------------------------------------------------------------------------------------------------|

----

| ITEM      1.  | DESCRIPTION OF      BUSINESS -      continued |
|--------------------|----------------------------------------------------|

|   | v  | 20020117625      Fiber optic enhanced scintillation detector                                  |
|--------|---------|-----------------------------------------------------------------------------------------------|
|   |    |                                                                                          |
|   | v       | 20020092465      Binary and ternary crystal purification and growth method and      apparatus |

|   | v | 20020083741      Hot substrate deposition of fusedsilica |
|--------|---|----------------------------------------------------------|

|   | v | 20020083740      Process and apparatus for production of silica grain having desired      properties and their fiber optic and semiconductor    application |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | v | 20020083739      Hot substrate deposition fiber optic performs and perform components      process and apparatus |
|--------|---|------------------------------------------------------------------------------------------------------------------|

|   | v | 20020062784      Material purification |
|--------|---|----------------------------------------|

|   | v | 20020053317      Material purification |
|--------|---|----------------------------------------|

|   | v | 20020040675      Continuous crystal plate growth process and  apparatus |
|--------|---|-------------------------------------------------------------------------|

Environmental Laws

----

| ITEM      2.  | DESCRIPTION      OF PROPERTY |
|--------------------|------------------------------|

| ITEM      3.  | LEGAL      PROCEEDINGS |
|--------------------|------------------------|

| ITEM      4.  |  SUBMISSION      OF MATTERS TO A VOTE OF SECURITYHOLDERS |
|--------------------|---------------------------------------------------------------|

| ITEM      5.  | MARKET      FOR COMMON EQUITY AND RELATED STOCKHOLDER  MATTERS |
|--------------------|----------------------------------------------------------------|

| ITEM      7.  | MANGEMENT’S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION      AND RESULTS OF OPERATIONS |
|--------------------|------------------------------------------------------------------------------------------------------|

----

| ITEM      8.  | FINANCIAL      STATEMENTS |
|--------------------|---------------------------|

|                                         | Page   |
|----------------------------------------------|--------|
|                                         |   |
| INDEPENDENT      AUDITORS REPORT        | F-1    |
|                                         |   |
| BALANCE      SHEET                           | F-2    |
|                                         |   |
| STATEMENT      OF OPERATIONS            | F-3    |
|                                         |   |
| STATEMENT      OF STOCKHOLDERS’ EQUITY | F-4    |
|                                         |   |
| STATEMENT      OF CASH FLOWS                 | F-7    |
|                                         |   |
| FOOTNOTES      TO THE FINANCIAL STATEMENTS   | F-8    |

----

----

|                                                                |   |              |       |   | December      31, |   |
|---------------------------------------------------------------------|--------|-------------------|------------|--------|-------------------|--------|
|                                                                |   | December      31, |       |   | 2007              |   |
|                                                                |   | 2008              |       |   | As      Restated  |   |
|                                                                |   |              |       |   |              |   |
| ASSETS                                                              |
|                                                                |   |              |       |   |              |   |
| Current      Assets                                                 |   |              |       |   |              |   |
| Cash                                                                |   | $                 | 2,730      |   |              | $      | 500 |   |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Current Assets                                           |   |              | 2,730      |   |              |   | 500 |   |
|                                                                |   |              |       |   |              |   |   |   |
| Fixed      Assets                                                   |   |              |       |   |              |   |   |   |
| Equipment      - Net (see note 2)                                   |   |              | -          |   |              |   | - |   |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Fixed Assets                                             |   |              | -          |   |              |   | - |   |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Assets                                                   |   | $                 | 2,730      |   |              | $      | 500 |   |
|                                                                |   |              |       |   |              |   |   |   |
|                                                                |   |              |       |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS'      EQUITY/(DEFICIT)                 |
|                                                                |   |              |       |   |              |   |   |   |
| Current      Liabilities                                            |   |              |       |   |              |   |   |   |
| Accounts      Payable                                               |   | $                 | 27,330     |   |              | $      | 750 |   |
| Loans      Payable - Related Parties                                |   |              | 73,954     |   |              |   | 21,556 |   |
|                                                                |   |              |       |   |              |   |   |   |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Current Liabilities                                      |   |              | 101,284    |   |              |   | 22,306 |   |
|                                                                |   |              |       |   |              |   |   |   |
| Stockholders'      Equity                                           |   |              |       |   |              |   |   |   |
|                                                                |   |              |       |   |              |   |   |   |
| Preferred      Stock, authorized                                    |   |              |       |   |              |   |   |   |
| 50,000,000      shares, par value $0.001,                           |   |              |       |   |              |   |   |   |
| no      preferred stock is outstanding                              |   |              | -          |   |              |   | - |   |
|                                                                |   |              |       |   |              |   |   |   |
| Common      Stock, authorized                                       |   |              |       |   |              |   |   |   |
| 450,000,000      shares, par value $0.001,                          |   |              |       |   |              |   |   |   |
| issued      and outstanding on December                             |   |              |       |   |              |   |   |   |
| 31,      2008 and 2007 is                                           |   |              |       |   |              |   |   |   |
| 13,370,270      and 12,327,449 shares                               |   |              |       |   |              |   |   |   |
|  respectively                                                  |   |              | 13,370     |   |              |   | 12,327 |   |
|                                                                |   |              |       |   |              |   |   |   |
| Paid      in Capital                                                |   |              | 2,197,248  |   |              |   | 1,549,720 |   |
|                                                                |   |              |       |   |              |   |   |   |
| Accumulated      Deficit During                                     |   |              |       |   |              |   |   |   |
|      Development      Stage                |   |              | (2,309,172 | )      |              |   | (1,583,853 | ) |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Stockholders' Equity                                     |   |              | (98,554    | )      |              |   | (21,806 | ) |
|                                                                |   |              |       |   |              |   |   |   |
| Total      Liabilities and Stockholders' Equity                     |   | $                 | 2,730      |   |              | $      | 500 |   |
|                                                                |   |              |       |   |              |   |   |   |
| The      accompanying notes are an integral part of thesestatements |   |

----

|                                                                     |   |              |       |   |                |   |       | March      22, 1993 |   |
|--------------------------------------------------------------------------|--------|-------------------|------------|--------|---------------------|--------|------------|---------------------|--------|
|                                                                     |   | Year      Ended   |       |   | (Inception)      to |   |
|                                                                     |   | December      31, |       |   | December      31,   |   |
|                                                                     |   | 2008              |       |   | 2007                |   |       | 2008                |   |
|                                                                     |   |              |       |   |                |   |       |                |   |
| Operating      Expenses                                                  |   |              |       |   |                |   |       |                |   |
|      General      and Administrative            |   | $                 | 46,444     |   |                | $      | 29,443     |                |   | $ | 1,099,632 |   |
|      Loss      on Sale of Asset                 |   |              | -          |   |                |   | -          |                |   |   | 7,491 |   |
|      Patent      Maintenance                    |   |              | 7,070      |   |                |   |       |                |   |   | 7,070 |   |
|      Research      and Development              |   |              | -          |   |                |   | -          |                |   |   | 331,459 |   |
|      Professional      Fees                     |   |              | 43,984     |   |                |   | 33,763     |                |   |   | 132,739 |   |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
|      Total      Expenses                        |   |              | 97,498     |   |                |   | 63,206     |                |   |   | 1,578,391 |   |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| (Loss)      from Operations                                              |   |              | (97,498    | )      |                |   | (63,206    | )                   |   |   | (1,578,391 | ) |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| Other      Income (Expenses)                                             |   |              |       |   |                |   |       |                |   |   |   |   |
|      Other      Income                          |   |              | -          |   |                |   | -          |                |   |   | 6,654 |   |
|      Gain      on Write-Off of Debt             |   |              |       |   |                |   |       |                |   |   | 230,000 |   |
|      Impairment      of Manufacturing Equipment |   |              | (627,821   | )      |                |   | -          |                |   |   | (826,752 | ) |
|      Interest      Expense                      |   |              | -          |   |                |   | -          |                |   |   | (140,683 | ) |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| Net      Income/(Loss)                                                   |   | $                 | (725,319   | )      |                | $      | (63,206    | )                   |   | $ | (2,309,172 | ) |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| Basic      and Diluted (Loss) per Share                                  |   | $                 | (0.06      | )      |                | $      | (0.01      | )                   |   | $ | (0.52 | ) |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| Weighted      Average Basic and Diluted                                  |   |              |       |   |                |   |       |                |   |   |   |   |
|    Number      of Shares Outstanding                      |   |              | 13,037,287 |   |                |   | 11,385,991 |                |   |   | 4,445,019 |   |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
|                                                                     |   |              |       |   |                |   |       |                |   |   |   |   |
| The      accompanying notes are an integral part of thesestatements      |   |              |       |   |                |

----

|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   | Deficit         |   |    |   |   |
|---------------------------------------------------------------------|-----------|--------|--------|--------|--------|-------------------|--------|-----------|--------------|--------|--------|---------------|--------|--------|-------------|---------|--------|-----------------|--------|---------|--------|--------|
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   | Accumulated     |   |    |   |   |
|                                                                |      |   | Price  |   |   |              |   |      |         |   |   |          |   |   |        |    |   | During      the |   |    |   |   |
|                                                                | Issue     |   | Per    |   |   | Common      Stock |   |      | Paid      in |   |   | Subscriptions |   |   | Development |    |   | Total           |   |
|                                                                | Date      |   | Share  |   |   | Shares            |   |      | Amount       |   |   | Capital       |   |   | Receivable  |    |   | Stage           |   |    | Equity |   |
| Balance      at inception, March 22, 1993                           |      |   |   |   |   |              | -      |      |         | $      | -      |          |   | $      | -           |    |   | $               | -      |    |   | $      | - |   |   | $ | - |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |
| Common      shares issued to founder                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |
|       for      cash and subscriptions | 22-Mar-93 |   | $      | 0.01   |   |              |   | 2,210,000 |         |   |   | 2,210         |   |   |        | 22,926  |   |            |   | (12,555 | )      |   |   | - |   |   |   | 12,581 |   |
| Payment      of stock subscription                                  |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   | 12,555  |   |   |   |   |   |   |   | 12,555 |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Net      Loss                                                       |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   | (33,292 | ) |   |   | (33,292 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1994                                     |      |   |   |   |   |              |   | 2,210,000 |         |   |   | 2,210         |   |   |        | 22,926  |   |            |   | -       |   |   |   | (33,292 | ) |   |   | (8,156 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Common      shares issued for services                              | 21-Sep-95 |   | $      | 0.04   |   |              |   | 44,000    |         |   |   | 44            |   |   |        | 1,956   |   |            |   |    |   |   |   |   |   |   |   | 2,000 |   |
| Common      shares issued for services                              | 30-Sep-95 |   | $      | 0.25   |   |              |   | 47,000    |         |   |   | 47            |   |   |        | 11,703  |   |            |   |    |   |   |   |   |   |   |   | 11,750 |   |
| Common      shares issued for cash                                  | 21-Sep-95 |   | $      | 0.22   |   |              |   | 112,333   |         |   |   | 112           |   |   |        | 24,888  |   |            |   |    |   |   |   |   |   |   |   | 25,000 |   |
| Common      shares issued in                                        |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   | - |   |
|    conversion      of convertible notes              | 30-Oct-95 |   | $      | 0.25   |   |              |   | 100,000   |         |   |   | 100           |   |   |        | 24,900  |   |            |   |    |   |   |   |   |   |   |   | 25,000 |   |
| Common      shares issued for services                              | 15-Nov-95 |   | $      | 0.25   |   |              |   | 31,600    |         |   |   | 32            |   |   |        | 7,868   |   |            |   |    |   |   |   |   |   |   |   | 7,900 |   |
| Common      shares issued in                                        |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   | - |   |
|    conversion      of convertible notes              | 30-Dec-95 |   | $      | 0.25   |   |              |   | 40,000    |         |   |   | 40            |   |   |        | 9,960   |   |            |   |    |   |   |   |   |   |   |   | 10,000 |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                                     |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   | (236,109 | ) |   |   | (236,109 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1995                                     |      |   |   |   |   |              |   | 2,584,933 |         |   |   | 2,585         |   |   |        | 104,201 |   |            |   | -       |   |   |   | (269,401 | ) |   |   | (162,615 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Common      shares issued for cash                                  | 18-Jan-96 |   | $      | 0.25   |   |              |   | 40,000    |         |   |   | 40            |   |   |        | 9,960   |   |            |   |    |   |   |   |   |   |   |   | 10,000 |   |
| Common      shares issued for services                              | 06-Apr-96 |   | $      | 0.25   |   |              |   | 7,000     |         |   |   | 7             |   |   |        | 1,743   |   |            |   |    |   |   |   |   |   |   |   | 1,750 |   |
| Common      shares issued for services                              | 19-Aug-96 |   | $      | 0.25   |   |              |   | 4,000     |         |   |   | 4             |   |   |        | 996     |   |            |   |    |   |   |   |   |   |   |   | 1,000 |   |
| Common      shares issued for services                              | 17-Dec-06 |   | $      | 0.25   |   |              |   | 15,200    |         |   |   | 15            |   |   |        | 3,785   |   |            |   |    |   |   |   |   |   |   |   | 3,800 |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                                     |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   | (192,969 | ) |   |   | (192,969 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1996                                     |      |   |   |   |   |              |   | 2,651,133 |         |   |   | 2,651         |   |   |        | 120,685 |   |            |   | -       |   |   |   | (462,370 | ) |   |   | (339,034 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Common      shares issued for cash                                  | 09-May-97 |   | $      | 0.50   |   |              |   | 50,000    |         |   |   | 50            |   |   |        | 24,950  |   |            |   |    |   |   |   |   |   |   |   | 25,000 |   |
| Common      shares issued for services                              | 09-May-97 |   | $      | 0.50   |   |              |   | 22,000    |         |   |   | 22            |   |   |        | 10,978  |   |            |   |    |   |   |   |   |   |   |   | 11,000 |   |
| Common      shares issued in                                        |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
|    conversion      of convertible notes              | 29-May-97 |   | $      | 0.25   |   |              |   | 80,000    |         |   |   | 80            |   |   |        | 19,920  |   |            |   |    |   |   |   |   |   |   |   | 20,000 |   |
| Common      shares issued for services                              | 14-Jul-97 |   | $      | 0.50   |   |              |   | 15,000    |         |   |   | 15            |   |   |        | 7,485   |   |            |   |    |   |   |   |   |   |   |   | 7,500 |   |
| Common      shares issued for cash                                  | 14-Jul-97 |   | $      | 0.50   |   |              |   | 70,000    |         |   |   | 70            |   |   |        | 34,930  |   |            |   |    |   |   |   |   |   |   |   | 35,000 |   |
| Common      shares issued in                                        |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
|    conversion      of convertible notes              | 19-Aug-97 |   | $      | 0.25   |   |              |   | 120,000   |         |   |   | 120           |   |   |        | 29,880  |   |            |   |    |   |   |   |   |   |   |   | 30,000 |   |
| Common      shares issued for cash                                  | 26-Aug-97 |   | $      | 0.50   |   |              |   | 113,472   |         |   |   | 113           |   |   |        | 56,623  |   |            |   |    |   |   |   |   |   |   |   | 56,736 |   |
| Common      shares issued for cash                                  | 04-Dec-97 |   | $      | 0.50   |   |              |   | 30,000    |         |   |   | 30            |   |   |        | 14,970  |   |            |   |    |   |   |   |   |   |   |   | 15,000 |   |
| Common      shares issued for services                              | 04-Dec-97 |   | $      | 0.50   |   |              |   | 85,000    |         |   |   | 85            |   |   |        | 42,415  |   |            |   |    |   |   |   |   |   |   |   | 42,500 |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                                     |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   | (175,534 | ) |   |   | (175,534 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1997                                     |      |   |   |   |   |              |   | 3,236,605 |         |   |   | 3,236         |   |   |        | 362,836 |   |            |   | -       |   |   |   | (637,904 | ) |   |   | (271,832 | ) |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Common      shares issued for cash                                  | 26-Feb-98 |   | $      | 0.50   |   |              |   | 20,000    |         |   |   | 20            |   |   |        | 9,980   |   |            |   |    |   |   |   |   |   |   |   | 10,000 |   |
| Common      shares issued for services                              | 26-Feb-98 |   | $      | 0.50   |   |              |   | 8,000     |         |   |   | 8             |   |   |        | 3,992   |   |            |   |    |   |   |   |   |   |   |   | 4,000 |   |
| Common      shares issued for cash                                  | 11-May-98 |   | $      | 0.50   |   |              |   | 64,000    |         |   |   | 64            |   |   |        | 31,936  |   |            |   |    |   |   |   |   |   |   |   | 32,000 |   |
| Common      shares issued for cash                                  | 30-Sep-98 |   | $      | 0.50   |   |              |   | 30,000    |         |   |   | 30            |   |   |        | 14,970  |   |            |   |    |   |   |   |   |   |   |   | 15,000 |   |
| Common      shares issued for services                              | 21-Dec-98 |   | $      | 0.50   |   |              |   | 3,000     |         |   |   | 3             |   |   |        | 1,497   |   |            |   |    |   |   |   |   |   |   |   | 1,500 |   |
|                                                                |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                                     |      |   |   |   |   |              |   |      |         |   |   |          |   |   |        |    |   |            |   |    |   |   |   | (220,547 | ) |   |   | (220,547 | ) |

----

| Balance,      December 31, 1998                                     |      |   |   |   |   |   |   | 3,361,605 |   |   |   | 3,361  |   |   |   | 425,211   |   |   |   | -      |   |   |   | (858,451   | )      |   |   | (429,879 | )      |
|---------------------------------------------------------------------|-----------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|----------|--------|
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Common      shares issued for cash                                  | 14-Apr-98 |   | $      | 0.50   |   |   |   | 12,000    |   |   |   | 12     |   |   |   | 5,988     |   |   |   |   |   |   |   |       |   |   |   | 6,000    |   |
| Common      shares issued for cash                                  | 15-Sep-98 |   | $      | 0.50   |   |   |   | 8,000     |   |   |   | 8      |   |   |   | 3,992     |   |   |   |   |   |   |   |       |   |   |   | 4,000    |   |
| Common      shares issued for services                              | 15-Sep-99 |   | $      | 0.50   |   |   |   | 8,000     |   |   |   | 8      |   |   |   | 3,992     |   |   |   |   |   |   |   |       |   |   |   | 4,000    |   |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (154,943   | )      |   |   | (154,943 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 1999                                     |      |   |   |   |   |   |   | 3,389,605 |   |   |   | 3,389  |   |   |   | 439,183   |   |   |   | -      |   |   |   | (1,013,394 | )      |   |   | (570,822 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Common      shares issued for services                              | 28-Mar-00 |   | $      | 0.25   |   |   |   | 290,000   |   |   |   | 290    |   |   |   | 72,210    |   |   |   |   |   |   |   |       |   |   |   | 72,500   |   |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (231,985   | )      |   |   | (231,985 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2000                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 511,393   |   |   |   | -      |   |   |   | (1,245,379 | )      |   |   | (730,307 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (80,558    | )      |   |   | (80,558  | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2001                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 511,393   |   |   |   | -      |   |   |   | (1,325,937 | )      |   |   | (810,865 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (16,760    | )      |   |   | (16,760  | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2002                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 511,393   |   |   |   | -      |   |   |   | (1,342,697 | )      |   |   | (827,625 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (18,063    | )      |   |   | (18,063  | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2003                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 511,393   |   |   |   | -      |   |   |   | (1,360,760 | )      |   |   | (845,688 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (142,763   | )      |   |   | (142,763 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2004                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 511,393   |   |   |   | -      |   |   |   | (1,503,523 | )      |   |   | (988,451 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Contributed      service                                            |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   | 660,000   |   |   |   |   |   |   |   |       |   |   |   | 660,000  |   |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      Income / (Loss)                                            |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | 113,674    |   |   |   | 113,674  |   |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2005                                     |      |   |   |   |   |   |   | 3,679,605 |   |   |   | 3,679  |   |   |   | 1,171,393 |   |   |   | -      |   |   |   | (1,389,849 | )      |   |   | (214,777 | )      |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Common      shares issued for                                       |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
|      exercise      of warrants for debt    | 10-Jun-06 |   | $      | 0.12   |   |   |   | 869,844   |   |   |   | 870    |   |   |   | 100,305   |   |   |   |   |   |   |   |       |   |   |   | 101,175  |   |
| Common      shares issued for                                       |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
|      conversion      of related party debt | 10-Jun-06 |   | $      | 0.04   |   |   |   | 5,800,000 |   |   |   | 5,800  |   |   |   | 226,200   |   |   |   |   |   |   |   |       |   |   |   | 232,000  |   |
| Common      shares issued for services                              | 10-Jun-06 |   | $      | 0.04   |   |   |   | 300,000   |   |   |   | 300    |   |   |   | 11,700    |   |   |   |   |   |   |   |       |   |   |   | 12,000   |   |
| Common      shares issued for services                              | 30-Sep-06 |   | $      | 0.04   |   |   |   | 10,000    |   |   |   | 10     |   |   |   | 390       |   |   |   |   |   |   |   |       |   |   |   | 400      |   |
|                                                                |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      (Loss)                                                     |      |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (130,798   | )      |   |   | (130,798 | )      |

----

| Balance,      December 31, 2006                                                                                                                                    |      |   |   |   |   |   |   | 10,659,449 |   |   |   | 10,659 |   |   |   | 1,509,988 |   |   |   | -      |   |   |   | (1,520,647 | )      |   |   | -        |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|------------|--------|--------|--------|----------|--------|
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Common      shares issued for services                                                                                                                             | 15-Jun-07 |   | $      | 0.01   |   |   |   | 1,050,000  |   |   |   | 1,050  |   |   |   | 9,450     |   |   |   |   |   |   |   |       |   |   |   | 10,500   |   |
| Common      shares issued for services                                                                                                                             | 01-Oct-07 |   | $      | 0.05   |   |   |   | 618,000    |   |   |   | 618    |   |   |   | 30,282    |   |   |   |   |   |   |   |       |   |   |   | 30,900   |   |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      Income / (Loss)                                                                                                                                           |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (63,206    | )      |   |   | (63,206  | )      |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2007                                                                                                                                    |      |   |   |   |   |   |   | 12,327,449 |   |   |   | 12,327 |   |   |   | 1,549,720 |   |   |   | -      |   |   |   | (1,583,853 | )      |   |   | (21,806  | )      |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Common      shares issued to acquire                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
|      Assets                                                                                                                               | 31-Mar-08 |   | $      | 1.00   |   |   |   | 627,821    |   |   |   | 628    |   |   |   | 627,193   |   |   |   |   |   |   |   |       |   |   |   | 627,821  |   |
| Common      shares issued for services                                                                                                                             | 04-Jun-08 |   | $      | 0.05   |   |   |   | 415,000    |   |   |   | 415    |   |   |   | 20,335    |   |   |   |   |   |   |   |       |   |   |   | 20,750   |   |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Net      Income / (Loss)                                                                                                                                           |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   | (725,319   | )      |   |   | (725,319 | )      |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2008                                                                                                                                    |      |   |   |   |   |   |   | 13,370,270 |   |   | $      | 13,370 |   |   | $      | 2,197,248 |   |   | $      | -      |   |   | $      | (2,309,172 | )      |   | $      | (98,554  | )      |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| On      June 9, 2006 the Company exercised articles of conversion from an Arizona      Corporation to a Nevada Corporation and changed its capital stock      from |      |
| no      par value stock to a $0.001 par value, this change has been retroactively      applied to this schedule.                                                   |      |   |   |   |   |   |   |       |   |   |   |   |   |
| On      June 10, 2006 the Company exercised a 4:1 forward stock split that has      been retroactively applied to this schedule and increases the number      of   |      |
| shares      issued and thereby decreases the price per share.                                                                                                      |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |
|                                                                                                                                                               |      |   |   |   |   |   |   |       |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |       |   |   |   |     |   |
| The      accompanying notes are an integral part of these  statements                                                                                              |

----

|                                                                                                        |   |              |     |   |                |   |    | March      22, 1993 |   |
|-------------------------------------------------------------------------------------------------------------|--------|-------------------|----------|--------|---------------------|--------|---------|---------------------|--------|
|                                                                                                        |   | Year      Ended   |     |   | (Inception)      to |   |
|                                                                                                        |   | December      31, |     |   | December      31,   |   |
|                                                                                                        |   | 2008              |     |   | 2007                |   |    | 2008                |   |
| Operating      Activities:                                                                                  |   |              |     |   |                |   |    |                |   |
|      Net      Profit / (Loss)                                                      |   | $                 | (725,319 | )      |                | $      | (63,206 | )                   |   | $ | (2,309,172 | ) |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
|      Adjustments      to reconcile Net (Loss) to cash:                             |   |              |     |   |                |   |    |                |   |   |   |   |
|           Depreciation                                    |   |              | -        |   |                |   | -       |                |   |   | 25,545 |   |
|           Loss      on Sale of Asset                      |   |              | -        |   |                |   | -       |                |   |   | 7,491 |   |
|           Impairment      of Manufacturing Equipment      |   |              | 627,821  |   |                |   | -       |                |   |   | 826,752 |   |
|           Common      Stock issued for Service            |   |              | 20,750   |   |                |   | 41,400  |                |   |   | 245,750 |   |
|           Contributed      Services                       |   |              | -        |   |                |   | -       |                |   |   | 660,000 |   |
|      Changes      in Assets and Liabilities                                        |   |              |     |   |                |   |    |                |   |   |   |   |
|           Increase/(Decrease)      in Accounts Payable    |   |              | 26,580   |   |                |   | 750     |                |   |   | 18,865 |   |
|           Increase/(Decrease)      in Accrued Liabilities |   |              | -        |   |                |   | -       |                |   |   | 24,183 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Net      Cash (Used) by Operating Activities                                                                |   |              | (50,168  | )      |                |   | (21,056 | )                   |   |   | (500,586 | ) |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Investment      Activities:                                                                                 |   |              |     |   |                |   |    |                |   |   |   |   |
|      Equipment      Purchase                                                       |   |              | -        |   |                |   | -       |                |   |   | (17,858 | ) |
|      Manufacturing      Equipment Purchase                                         |   |              | -        |   |                |   | -       |                |   |   | (214,109 | ) |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Cash      Used by Investment Activities                                                                     |   |              | -        |   |                |   | -       |                |   |   | (231,967 | ) |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Financing      Activities:                                                                                  |   |              |     |   |                |   |    |                |   |   |   |   |
|      Net      Proceeds from loans - Related Parties                                |   |              | 52,398   |   |                |   | 21,556  |                |   |   | 276,411 |   |
|      Proceeds      from Series A Convertible Notes                                 |   |              | -        |   |                |   | -       |                |   |   | 200,000 |   |
|      Proceeds      from sale of Common Stock                                       |   |              | -        |   |                |   | -       |                |   |   | 258,872 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Cash      Provided by Financing Activities                                                                  |   |              | 52,398   |   |                |   | 21,556  |                |   |   | 735,283 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Net      Increase/(Decrease) in Cash                                                                        |   |              | 2,230    |   |                |   | 500     |                |   |   | 2,730 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Cash,      Beginning of Period                                                                              |   |              | 500      |   |                |   | -       |                |   |   | - |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Cash,      End of Period                                                                                    |   | $                 | 2,730    |   |                | $      | 500     |                |   | $ | 2,730 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Supplemental      Information:                                                                              |   |              |     |   |                |   |    |                |   |   |   |   |
|      Interest      Paid                                                            |   | $                 | -        |   |                | $      | -       |                |   | $ | 140,683 |   |
|      Income      Taxes Paid                                                        |   | $                 | -        |   |                | $      | -       |                |   | $ | - |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| Non-Cash      Activities:                                                                                   |   |              |     |   |                |   |    |                |   |   |   |   |
|      Loss      on Sale and Impairment of Assets                                    |   | $                 | 627,821  |   |                | $      | -       |                |   | $ | 834,243 |   |
|      Stock      issued for Purchase of Assets                                      |   | $                 | 627,821  |   |                | $      | -       |                |   | $ | 627,821 |   |
|      Contributed      Capital                                                      |   | $                 | -        |   |                | $      | -       |                |   | $ | 660,000 |   |
|      Stock      issued to Convert Notes                                            |   | $                 | -        |   |                | $      | -       |                |   | $ | 85,000 |   |
|      Stock      issued  to convert related-party debt                    |   | $                 | -        |   |                | $      | -       |                |   | $ | 333,175 |   |
|      Stock      issued in lieu of cash for service                                 |   | $                 | 20,750   |   |                | $      | 41,400  |                |   | $ | 245,750 |   |
|                                                                                                        |   |              |     |   |                |   |    |                |   |   |   |   |
| The      accompanying notes are an integral part of these  statements                                       |

----

| NOTE      1.  | GENERAL      ORGANIZATION AND BUSINESS |
|--------------------|----------------------------------------|

| NOTE      2.  | SUMMARY      OF SIGNIFICANT ACCOUNTING PRACTICES |
|--------------------|--------------------------------------------------|

----

| NOTE      2. | SUMMARY      OF SIGNIFICANT ACCOUNTING PRACTICES-      continued |
|--------------|------------------------------------------------------------------|

----

| NOTE      2. | SUMMARY      OF SIGNIFICANT ACCOUNTING PRACTICES-      continued |
|--------------|------------------------------------------------------------------|

| Asset                                                      |   | Cost   |    |
|------------------------------------------------------------|--------|--------|---------|
|                                                       |   |   |    |
| Purification      Stations - Qty 3                         |   |   |    |
|    Including      Spare Parts and Materials |   | $      | 593,486 |   |
| Generator                                                  |   |   | 3,256   |   |
| Converters      - Qty 2                                    |   |   | 8,500   |   |
| Gas      Cabinet                                           |   |   | 2,579   |   |
|                                                       |   |   |    |   |
| Total                                                      |   | $      | 627,821 |   |

----

| NOTE      2. | SUMMARY      OF SIGNIFICANT ACCOUNTING PRACTICES-      continued |
|--------------|------------------------------------------------------------------|

| NOTE      3.  | GOING      CONCERN |
|--------------------|--------------------|

| NOTE      4.  | STOCKHOLDERS’      EQUITY |
|--------------------|---------------------------------|

----

| NOTE      4. | STOCKHOLDERS’      EQUITY-      continued |
|--------------|-------------------------------------------------|

|   | · | On      June 10, 2006, the Company issued 469,844 shares of common stock to the      CEO as a result of his exercise of an option to purchase such shares at      $0.0025 per share, or $1,175.  The purchase price was paid by      the cancellation of indebtedness from the Company to the CEO in an equal      amount. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                 |
|   | · | On      June 10, 2006, the Company issued 400,000 shares of common stock to the      CEO as a result of his exercise of an option to purchase such shares at      $0.25 per share, or $100,000.  The purchase price was paid by      the cancellation of indebtedness from the Company to the CEO in an equal      amount. |

|   | · | On      June 10, 2006, the Company issued 5,800,000 shares of common stock to the      CEO in satisfaction of $232,000 of indebtedness from the Company to CEO,      or $0.04 the trading price of the shares on the date of issuance of per      share. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 10, 2006, the Company issued 300,000 shares of common stock to six      unrelated parties for services rendered to the Company.  The      shares were valued at the trading price of the shares on the date of      issuance of $0.04 per share. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      September 30, 2006, the Company issued 10,000 shares of common stock to an      unrelated person for services rendered to the Company.  The      shares were valued at $0.04 pershare. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 15, 2007 the Company issued 1,050,000 common shares at the trading      price of the shares on the date of issuance of $0.01 for professional      consulting services of $10,500. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      October 1, 2007 the Company issued 440,000 common shares to four board      members for services in lieu of cash at $0.05 per share or $22,000 and      178,000 common shares at $0.05 per share to convert accounts payable of      $8,900. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      March 31, 2008 the Company issued 627,821 common shares to acquire certain      crystal growth and material purification assets valued at $627,821 from      SCT, LLC.  The assets were valued at the actual cost to the      predecessor related party and the number of shares issued are the number      of shares negotiated. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      June 4, 2008 the company issued 300,000 common shares at $0.05 for      consulting services of $15,000; 110,000 Common Shares at $0.05 for $5,500      executive compensation and 5,000 common shares at $0.05 for $250      bookkeeping services. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| NOTE      4. | STOCKHOLDERS’      EQUITY-      continued |
|--------------|-------------------------------------------------|

| Total      Warrants outstanding at December 31, 2006                   |   |   | 300,000  |   |
|------------------------------------------------------------------------|--------|--------|----------|--------|
|      Less:  Warrants      Exercised |   |   | -        |   |
|      Less:      Warrants Expired              |   |   | -        |   |
|                                                                   |   |   |     |   |
| Total      Warrants outstanding at December 31, 2007                   |   |   | 300,000  |   |
|      Less:  Warrants      Exercised |   |   | -        |   |
|      Less:      Warrants Expired              |   |   | (140,000 | )      |
|                                                                   |   |   |     |   |
| Total      Warrants outstanding at December 31, 2008                   |   |   | 160,000  |   |

|        |   | Warrants    |    |   | Exercise |   | Expiration |
|-------------|--------|-------------|---------|--------|----------|--------|------------|
|        |   | Outstanding |    |   | Price    |   | Date       |
|        |   |        |    |   |     |   |       |
|        |   |        | 160,000 |   |     | $      | 0.50       |   | 8-Apr-2011 |
|        |   |        |    |   |     |   |       |   |   |
|  Total |   |        | 160,000 |   |     |   |       |   |   |

| NOTE      5.  | RELATED      PARTY PAYABLES |
|--------------------|-----------------------------|

----

| NOTE      5. | RELATED      PARTY PAYABLES-      continued |
|--------------|---------------------------------------------|

| NOTE      6.  | PROVISION      FOR INCOME TAXES |
|--------------------|---------------------------------|

|                       |   | December      31, |    |   | December      31, |   |
|----------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                       |   | 2008              |    |   | 2007              |   |
| Deferred      Tax Asset    |   | $                 | 21,450  |   |              | $      | 13,905 |   |
| Valuation      Allowance   |   |              | (21,450 | )      |              |   | (13,905 | ) |
| Current      Taxes Payable |   |              | -       |   |              |   | - |   |
|                       |   |              |    |   |              |   |   |   |
| Income      Tax Expense    |   | $                 | -       |   |              | $      | - |   |

----

| NOTE      6. | PROVISION      FOR INCOME TAXES-      continued |
|--------------|-------------------------------------------------|

| Year   |   | Amount |      | Expiration |
|--------|--------|--------|-----------|------------|
| 1994   |   | $      | -         |       | 2014 |
| 1995   |   |   | 155,727   |       | 2015 |
| 1996   |   |   | 192,969   |       | 2016 |
| 1997   |   |   | 175,534   |       | 2017 |
| 1998   |   |   | 220,547   |       | 2018 |
| 1999   |   |   | 154,943   |       | 2019 |
| 2000   |   |   | 231,985   |       | 2020 |
| 2001   |   |   | 80,558    |       | 2021 |
| 2002   |   |   | 16,760    |       | 2022 |
| 2003   |   |   | 18,063    |       | 2023 |
| 2004   |   |   | 142,763   |       | 2024 |
| 2005   |   |   | -         |       | 2025 |
| 2006   |   |   | 130,798   |       | 2026 |
| 2007   |   |   | 63,206    |       | 2027 |
| 2008   |   |   | 97,498    |       | 2028 |
|   |   |   |      |       |   |
| Total  |   | $      | 1,681,351 |       |   |

| NOTE      7.  | USE      OF PATENTS LICENSE, COMMITMENTS AND  CONTINGENCIES |
|--------------------|-------------------------------------------------------------|

----

| NOTE      7. | USE      OF PATENTS LICENSE, COMMITMENTS AND CONTINGENCIES-      continued |
|--------------|----------------------------------------------------------------------------|

| NOTE      8.  | THE      EFFECT OF RECENTLY ISSUED ACCOUNTINGSTANDARDS |
|--------------------|--------------------------------------------------------|

----

| NOTE      8. | THE      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS-      continued |
|--------------|-------------------------------------------------------------------------|

----

| NOTE      8. | THE      EFFECT OF RECENTLY ISSUED ACCOUNTING STANDARDS-      continued |
|--------------|-------------------------------------------------------------------------|

----

| ITEM      9.  | CHANGES      IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL      DISCLOSURE |
|--------------------|------------------------------------------------------------------------------------------------|

| ITEM      9A.  | CONTROLS      AND PROCEDURES |
|---------------------|------------------------------|

|   | - | Pertain      to the maintenance of records that in reasonable detail accurately and      fairly reflect      the transactions and dispositions of the assets of the      company;                                                                                                                                                                                                                        |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | - | Provide      reasonable assurance that transactions are recorded as necessary to permit      preparation of financial statements in accordance with accounting      principles generally accepted in the United States of America and that      receipts and expenditures of the company are being made only in accordance      with authorizations of management and directors of the company;      and |

|   | - | Provide      reasonable assurance regarding prevention or timely detection of      unauthorized acquisition, use or disposition of the company’s assets that      could have a material effect on the financial  statements. |
|--------|---|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      9A.  | CONTROLS      AND PROCEDURES-      continued |
|---------------------|----------------------------------------------|

----

| ITEM      9B.  | CHANGES      IN INTERNAL CONTROL OVER FINANCIALREPORTING |
|---------------------|----------------------------------------------------------|

| ITEM      10.  | DIRECTORS,      EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS:      COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT |
|---------------------|---------------------------------------------------------------------------------------------------------------------------|

| Name                       | Age    | First Year as Director | Position                     |
|----------------------------|--------|------------------------|------------------------------|
| Dr. Kiril A. Pandelisev    | 58     | 1993                   | CEO/Director                 |
|                       |   |                   |                         |
| Charles      J. Searock    | 72     | 2007                   | President/Director           |
|                       |   |                   |                         |
| Don      Meyers            | 66     | 2008                   | Chief      Financial Officer |
|                       |   |                   |                         |
| Dr.      Don Jackson       | 74     | 2007                   | Director                     |
|                       |   |                   |                         |
| Alexander      Ostrogorsky | 51     | 2007                   | Director                     |
|                       |   |                   |                         |
| Dr.      Shariar Motakef   | 51     | 2007                   | Director                     |

----

| ITEM      10.  | DIRECTORS,      EXECUTIVE OFFICERS, PROMOTERS AND CONTROLPERSONS:      COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT-      continued |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      10.  | DIRECTORS,      EXECUTIVE OFFICERS, PROMOTERS AND CONTROLPERSONS:      COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT-      continued |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------|

----

| ITEM      10.  | DIRECTORS,      EXECUTIVE OFFICERS, PROMOTERS AND CONTROLPERSONS:      COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT-      continued |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM      11.  | EXECUTIVE      COMPENSATION |
|---------------------|-----------------------------|

| ITEM      12.  | SECURITY      OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT |
|---------------------|---------------------------------------------------------------------|

| Title      ofClass |   | Name,      Title and Address of BeneficialOwner      of Shares                            |   | Amount      of BeneficialOwnership |      |   | %      ofShareholdings |   |
|--------------------|--------|-------------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|------------------------|--------|
|               |   |                                                                                      |   |                               |      |   |                   |   |
| Common             |   | Kiril      A. Pandelisev, CEO, and Director                                               |   |                               | 8,189,844 |   |                   |   | 61.25 | % |
|               |   |                                                                                      |   |                               |      |   |                   |   |   |   |
| Common             |   |        Charles      J. Searock, President and Director |   |                               | 110,000   |   |                   |   | .82 | % |
|               |   |                                                                                      |   |                               |      |   |                   |   |   |   |
| Common             |   |         Don      Meyers                           |   |                               | 278,000   |   |                   |   | 2.08 | % |
|               |   |                                                                                      |   |                               |      |   |                   |   |   |   |
| Common             |   |        Dr.      Don Jackson                            |   |                               | 110,000   |   |                   |   | .82 | % |
|               |   |                                                                                      |   |                               |      |   |                   |   |   |   |
| Common             |   |        Dr.      Shariar Motakef                        |   |                               | 110,000   |   |                   |   | .82 | % |
|               |   |                                                                                      |   |                               |      |   |                   |   |   |   |
| Common             |   |        Alexander      Ostrogorsky                      |   |                               | 110,000   |   |                   |   | .82 | % |

----

| ITEM      13.  | CERTAIN      RELATIONSHIPS AND RELATEDTRANSACTIONS |
|---------------------|----------------------------------------------------|

----

| ITEM      13.  | CERTAIN      RELATIONSHIPS AND RELATED TRANSACTIONS -  continued |
|---------------------|------------------------------------------------------------------|

| ITEM      14.  | EXHIBITS      AND REPORTS ON FORM 8-K |
|---------------------|---------------------------------------|

| 1.  | Financial      statements; see index to financial statements and schedules in Item 8      herein. |
|----------|---------------------------------------------------------------------------------------------------|

| 2. | Financial      statement schedules; see index to financial statements and schedules in      Item 8 herein. |
|----|------------------------------------------------------------------------------------------------------------|

| 3.  | Exhibits: |
|----------|-----------|

| 3.1  | Articles      ofIncorporation    (1) |
|-----------|----------------------------------------------------------|

| 3.2  | By-laws    (1) |
|-----------|------------------------------------|

| 14.1  | Code ofEthics |
|------------|---------------|

| 23.1 | Consent of Independent Registered Public      Accounting Firm |
|------|---------------------------------------------------------------|

| 31.1  | Certification pursuant to Section 302 of the      Sarbanes-Oxley At of 2002 |
|------------|-----------------------------------------------------------------------------|

| 32.1  | Certification pursuant to Title 18 Section      1350 |
|------------|------------------------------------------------------|

| 23.  | 8k      filed June 28, 2007 (incorporated byreference) |
|-----------|--------------------------------------------------------|

----

| ITEM      15.  | PRINCIPAL      ACCOUNTANT FEES AND SERVICES |
|---------------------|---------------------------------------------|

----

----

----