|   |                                                                                                             |
|--------|------------------------------------------------------------------------------------------------------------------|
| þ | Quarterly                Report Under Section 13 or 15(d) of the Securities Exchange Act of                1934  |
|   |                                                                                                             |
|   | For                the quarterly period ended September 30, 2008                                                 |
|   |                                                                                                             |
| o      | Transition                Report Under Section 13 or 15(d) of the Securities Exchange Act of                1934 |
|   |                                                                                                             |
|   | For                the transition period from _______ to                __________                     |

|                                             |                                    |
|--------------------------------------------------|-----------------------------------------|
| Delaware                                         | 21-0661726                              |
| (State                  or other Jurisdiction of | (I.R.S.                  Employer       |
| incorporation                  or organization)  | Identification                  Number) |
|                                             |                                    |

| Large                Accelerated Filer o |   | Accelerated                Filer o              |   |
|------------------------------------------|--------|-------------------------------------------------|--------|
| Non-Accelerated                Filer o   |   | Smaller                Reporting Company þ |

----

**EXPLANATORY      NOTE**

|                                                                                                       |   | Nine                  months ended |       |
|------------------------------------------------------------------------------------------------------------|--------|------------------------------------|------------|
|                                                                                                       |   | September                  30,     |       |
|                                                                                                       |   | 2008                               |       | 2007 |   |
| Cash                  flows from operating activities:                                                     |   |                               |       |   |   |   |   |
| Net                  loss                                                                                  |   | $                                  | (4,354,791 | ) | $ | (2,214,396 | ) |
| Adjustments                  to reconcile net loss to                                                      |   |                               |       |   |   |   |   |
| net                  cash used in operations:                                                              |   |                               |       |   |   |   |   |
| Stocks,                  Warrants and options issued for services                                          |   |                               | 1,693,261  |   |   | 296,997 |   |
| Stock                  issued for debt                                                                     |   |                               | 1,159,733  |   |   | - |   |
| Depreciation                  expense                                                                      |   |                               | 63,900     |   |   | 68,429 |   |
| Disposal                  of Fixed Assets                                                                  |   |                               | 22,249     |   |   | 7,170 |   |
| Change                  to allowance for bad debt                                                          |   |                               |       |   |   | (4,682 | ) |
| Changes                  in operating assets and liabilities:                                              |   |                               |       |   |   |   |   |
| Accounts                  receivable                                                                  |   |                               | 411,812    |   |   | (20,535 | ) |
| Revenues                  in excess of billings                                                       |   |                               | (7,679     | ) |   | 70,000 |   |
| Inventory                                                                                             |   |                               | 305,932    |   |   | (158,376 | ) |
| Prepaid                  expenses                                                                     |   |                               | 55,350     |   |   | (5,492 | ) |
| Accounts                  payable and accrued liabilities                                             |   |                               | 336,502    |   |   | (832,309 | ) |
| Deferred                  revenue                                                                     |   |                               | (79,796    | ) |   | 140,829 |   |
| Billings                  in excess of revenue                                                        |   |                               | (636,371   | ) |   | 356,165 |   |
| Dividends                  payable                                                                    |   |                               | (864,013   | ) |   | 315,000 |   |
| Net                  cash used in operating activities                                                     |   |                               | (1,893,911 | ) |   | (1,981,200 | ) |
|                                                                                                       |   |                               |       |   |   |   |   |
| Cash                  flows from investing activities:                                                     |   |                               |       |   |   |   |   |
| Purchase                  of fixed assets                                                                  |   |                               | (7,307     | ) |   | (11,686 | ) |
| Net                  cash used in investing activities                                                     |   |                               | (7,307     | ) |   | (11,686 | ) |
|                                                                                                       |   |                               |       |   |   |   |   |
| Cash                  flows from financing activities:                                                     |   |                               |       |   |   |   |   |
| Issuance                  of secured notes payable                                                         |   |                               | 350,000    |   |   | 1,275,000 |   |
| Repayments                  of secured notes payable                                                       |   |                               | -          |   |   | (127,500 | ) |
| Repayments                  of notes payable                                                               |   |                               | (418,985   | ) |   | (6,661 | ) |
| Proceeds                  from issuance of stock                                                           |   |                               | 4,946,000  |   |   | 6,292 |   |
| Cost                  of issuance of preferred stock and Warrants                                          |   |                               | (85,500    | ) |   | (111,032 | ) |
| Interest                  on notes payable                                                                 |   |                               | 8,775      |   |   | - |   |
| Net                  cash provided by financing activities                                                 |   |                               | 4,800,290  |   |   | 1,036,099 |   |
|                                                                                                       |   |                               |       |   |   |   |   |
| Increase                  (Decrease) in cash and cash equivalents                                          |   |                               | 2,899,072  |   |   | (956,787 | ) |
|                                                                                                       |   |                               |            |   |   |  |   |
| Cash                  and cash equivalents, beginning of period                                            |   |                               | 212,215    |   |   | 1,892,336 |   |
| Cash                  and cash equivalents, end of period                                                  |   | $                                  | 3,111,287  |   | $ | 935,549 |   |
|                                                                                                       |   |                               |       |   |   |   |   |
| Supplemental                  disclosures of cash flow information:                                        |   |                               |       |   |   |   |   |
| Cash                  paid for interest                                                                    |   | $                                  | 94,303     |   | $ | 45,780 |   |
| Supplemental                  disclosures of non-cash investing and financing                  activities: |   |                               |       |   |   |   |   |
| Conversion                  of note to stock                                                               |   | $                                  | 1,225,000  |   | $ | 129,299 |   |
| Accrual                  of preferred stock dividends                                                      |   | $                                  | 210,000    |   | $ | 310,000 |   |
| Conversion                  of accrued dividend to stock                                                   |   | $                                  | 480,436    |   | $ | - |   |
| Conversion                  of acrued liquidated damages to stock                                          |   | $                                  | 598,577    |   | $ | - |   |
| Retirement                  of Preferred Stock                                                             |   | $                                  | 2,204      |   | $ | - |   |
| Stock                  issued for recapitalization                                                         |   | $                                  | 6,328      |   | $ | - |   |

----

**I**
**tem      6. Exhibits**

|         |                                                                                                                                                                                                                             |
|--------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| NUMBER  | DESCRIPTION                  OF EXHIBIT                                                                                                                                                                                          |
|         |                                                                                                                                                                                                                             |
|         |                                                                                                                                                                                                                             |
| 31.1*        | Certification                  by the Principal Executive Officer of Registrant pursuant to Section                  302                  of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule                  15d-14(a)). |
| 31.2*        | Certification                  by the Principal Financial Officer of Registrant pursuant to Section                  302                  of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule                  15d-14(a)). |
| 32.1*        | Certification                  by the Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002.                                 |
| 32.2*        | Certification                  by the Chief Financial Officer pursuant to 18 U.S.C. 1350 as adopted                  pursuant to Section 906 of the Sarbanes-Oxley Act of                  2002.                                 |
|         |                                                                                                                                                                                                                             |

| Date:                  December 1, 2008                  | Date:                  December 1, 2008                                        |
|----------------------------------------------------------|--------------------------------------------------------------------------------|
| By:                  /s/                  Scott Grisanti | By:                  /s/                  Kevin T. Dunphy                      |
| Scott                  Grisanti,                         | Kevin                  T. Dunphy                                               |
| President                  and                           | Treasurer                  and                                                 |
| Chief                  Executive Officer                 | and                  Chief Financial Officer                                   |
| (Principal                  Executive Officer)           | (Principal                  Financial and Accounting                  Officer) |