----

----

| Nevada                                                   | 88-0456274                                     |
|----------------------------------------------------------|------------------------------------------------|
| (State      or other jurisdiction of incorporation) | (I.R.S.      Employer Identification No.) |
|                                                     |                                           |
| 2121      Sage Road, Suite 200, Houston, Texas      | 77056                                          |
| (Address      of principal executive offices)            | (Zip      code)                                |

----

----

----

INDEX

|                                                                                                                                                                           | PAGE   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| PART I.      FINANCIAL INFORMATION                                                                                                                                        |   |
|                                                                                                                                                                           |   |
| Item      1. Financial Statements                                                                                                                                              |   |
|                                                                                                                                                                           |   |
| Balance      Sheets as of April 30, 2008 and July 31, 2007      (Unaudited).                                                                                         | 3      |
|                                                                                                                                                                           |   |
| Statements      of Operations for the three and nine months ended April 30, 2008 and      2007 and for the period from Inception to April 30, 2008      (Unaudited). | 4      |
|                                                                                                                                                                           |   |
| Statements      of Cash Flows for the nine months ended April 30, 2008 and 2007 and      for the period from Inception to April 30, 2008      (Unaudited).           | 5      |
|                                                                                                                                                                           |   |
| Notes      to the Financial Statements (Unaudited)                                                                                                                             | 6      |
|                                                                                                                                                                           |   |
| Item      2. Management's Discussion and Analysis of Financial Condition and Results      of Operations                                                                        | 13     |
|                                                                                                                                                                           |   |
| Item      3. Controls and Procedures                                                                                                                                           | 17     |
|                                                                                                                                                                           |   |
|                                                                                                                                                                           |   |
| PART      II. OTHER INFORMATION                                                                                                                                                |   |
|                                                                                                                                                                           |   |
| Item      1. Legal Proceedings                                                                                                                                                 | 17     |
|                                                                                                                                                                           |   |
| Item      3. Defaults Upon Senior Securities                                                                                                                                   | 17     |
|                                                                                                                                                                           |   |
| Item      6. Exhibits                                                                                                                                                          | 17     |
|                                                                                                                                                                           |   |
| Signatures                                                                                                                                                                     | 18     |

----

Index

BALANCE SHEETS

|                                                                                                                                                                                                                      |   | April      30, 2008 |       |   | July      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|------------|--------|--------------------|--------|
| ASSETS                                                                                                                                                                                                                    |   |                |       |   |               |   |
| Current      assets                                                                                                                                                                                                       |   |                |       |   |               |   |
| Cash      and cash equivalents                                                                                                                                                                                            |   | $                   | 1,645,166  |   |               | $      | 8,363 |   |
| Other      Current Assets                                                                                                                                                                                                 |   |                | 12,472     |   |               |   | 14,000 |   |
| Total      Current Assets                                                                                                                                                                                                 |   |                | 1,657,638  |   |               |   | 22,363 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Property      and Equipment, net                                                                                                                                                                                          |   |                | 38,268     |   |               |   | 12,164 |   |
| Patents                                                                                                                                                                                                                   |   |                | 67,233     |   |               |   | 67,233 |   |
| Intangibles,      net                                                                                                                                                                                                     |   |                | 5,984      |   |               |   | 3,290 |   |
| TOTAL      ASSETS                                                                                                                                                                                                         |   | $                   | 1,769,123  |   |               | $      | 105,050 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' (DEFICIT)                                                                                                                                                                              |   |                |       |   |               |   |   |   |
| Current      Liabilities:                                                                                                                                                                                                 |   |                |       |   |               |   |   |   |
| Accounts      Payable                                                                                                                                                                                                     |   | $                   | 37,908     |   |               | $      | 46,148 |   |
| Accounts      Payable-Stockholder                                                                                                                                                                                         |   |                | 890        |   |               |   | 4,461 |   |
| Accrued      Liabilities                                                                                                                                                                                                  |   |                | 366,202    |   |               |   | 1,391,853 |   |
| Advances      from Stockholder                                                                                                                                                                                            |   |                | 44,000     |   |               |   | 194,800 |   |
| Convertible      Note Payable                                                                                                                                                                                             |   |                | -          |   |               |   | 105,000 |   |
| Derivative      Liability                                                                                                                                                                                            |   |                | -          |   |               |   | 2,025,042 |   |
| Total      Current Liabilities                                                                                                                                                                                            |   |                | 449,000    |   |               |   | 3,767,304 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Note      Payable                                                                                                                                                                                                         |   |                | 500,000    |   |               |   | - |   |
| Total      liabilities                                                                                                                                                                                                    |   |                | 949,000    |   |               |   | 3,767,304 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| STOCKHOLDERS'      EQUITY (DEFICIT)                                                                                                                                                                                       |   |                |       |   |               |   |   |   |
| Preferred      stock:                                                                                                                                                                                                     |   |                |       |   |               |   |   |   |
| Series      A convertible preferred stock, $0.001 par, 2,500,000 shares authorized,      6,378 shares issued and outstanding at April 30, 2008 and 2,031,986 shares      issued and outstanding at July 31, 2007          |   |                | 6          |   |               |   | 2,032 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Series      B convertible preferred stock, $0.001 par, 2,000,000 shares authorized,      17,668 shares issued and outstanding at April 30, 2008 and 660,132 shares      issued and outstanding at July 31, 2007           |   |                | 18         |   |               |   | 661 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Series      C convertible preferred stock, $0.001 par, 25,000 shares authorized, 0      shares issued and outstanding at April 30, 2008 and 19,400 shares issued      and outstanding at July 31, 2007                    |   |                | -          |   |               |   | 19 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
|  Series      D convertible preferred stock, $0.001 par, 110,150 shares authorized, 0      shares issued and outstanding at  April 30, 2008 and 104,992      shares issued and outstanding at July 31, 2007 |   |                | -          |   |               |   | 105 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Class      A Common stock, $0.001 par value, 9,939,101 shares authorized 0 shares      issued and outstanding at April 30, 2008 and 9,939,101 shares issued and      outstanding at July 31, 2007                         |   |                | -          |   |               |   | 9,939 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Common      stock, $0.001 par value, 500,000,000 shares authorized, 396,855,506 shares      issued and outstanding at April 30, 2008 and 78,172,639 shares issued and      outstanding at July 31, 2007                   |   |                | 396,856    |   |               |   | 78,173 |   |
|                                                                                                                                                                                                                      |   |                |       |   |               |   |   |   |
| Additional      paid-in capital                                                                                                                                                                                           |   |                | 9,629,871  |   |               |   | 2,736,566 |   |
| Deficit      accumulated during the development stage                                                                                                                                                                     |   |                | (9,206,628 | )      |               |   | (6,489,749 | ) |
| Total      stockholders' Equity (deficit)                                                                                                                                                                                 |   |                | 820,123    |   |               |   | (3,662,254 | ) |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)                                                                                                                                                                 |   | $                   | 1,769,123  |   |               | $      | 105,050 |   |

----

Index

STATEMENTS OF OPERATIONS

|                                                       |   | Three      MonthsEndedApril      30,2008  |        |   | Three      MonthsEndedApril      30,2007(restated) |   |       | Nine      MonthsEndedApril      30,2008  |   |   | Nine      MonthsEndedApril      30,2007(restated) |   |   | Inception(January      21,2002)to April      30,2008 |       |
|------------------------------------------------------------|--------|------------------------------------------------|-------------|--------|----------------------------------------------------|--------|------------|-----------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------------------------------------------------|------------|
| Revenues                                              |   | $                                              | -           |   |                                               | $      | -          |                                          |   | $      | -                                                 |   |   | $                                                         | -          |   |   | $ | - |   |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| General      & Administrative                          |   |                                           | 162,857     |   |                                               |   | 48,942     |                                          |   |   | 274,493                                           |   |   |                                                      | 276,858    |   |   |   | 2,252,083 |   |
| Depreciation      and amortization                         |   |                                           | 2,583       |   |                                               |   | 2,167      |                                          |   |   | 6,919                                             |   |   |                                                      | 6,503      |   |   |   | 20,563 |   |
| Professional      Fees                                     |   |                                           | 451,783     |   |                                               |   | 48,119     |                                          |   |   | 1,796,483                                         |   |   |                                                      | 143,941    |   |   |   | 3,035,736 |   |
| Payroll      Expenses                                      |   |                                           | 271,108     |   |                                               |   | 289,500    |                                          |   |   | 2,264,908                                         |   |   |                                                      | 877,779    |   |   |   | 2,744,344 |   |
| Software      development expense                          |   |                                           | -           |   |                                               |   | -          |                                          |   |   | -                                                 |   |   |                                                      | 243        |   |   |   | 446,393 |   |
| Research      and Development                              |   |                                           | -           |   |                                               |   | -          |                                          |   |   | -                                                 |   |   |                                                      | -          |   |   |   | 288,259 |   |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Total      Operating Expenses                              |   |                                           | 888,331     |   |                                               |   | 388,728    |                                          |   |   | 4,342,803                                         |   |   |                                                      | 1,305,324  |   |   |   | 8,787,378 |   |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Loss      from Operations                                  |   |                                           | (888,331    | )      |                                               |   | (388,728   | )                                             |   |   | (4,342,803                                        | )      |   |                                                      | (1,305,324 | ) |   |   | (8,787,378 | ) |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Other      Income (Expense):                               |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Gain      (Loss) on derivatives                            |   |                                           | -           |   |                                               |   | (387,570   | )                                             |   |   | 1,630,042                                         |   |   |                                                      | (1,861,129 | ) |   |   | (295,000 | )  |
| Interest      Expense                                      |   |                                           | (116        | )      |                                               |   | -          |                                          |   |   | (4,119                                            | )      |   |                                                      | -          |   |   |   | (124,250 | ) |
| Total      Other Income (Expenses)                         |   |                                           | (116        | )      |                                               |   | (387,570   | )                                             |   |   | 1,625,923                                         |   |   |                                                      | (1,861,129 | )  |   |   | (419,250 | ) |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Loss      Before Income Taxes                              |   |                                           | (888,447    | )      |                                               |   | (776,298   | )                                             |   |   | (2,716,880                                        | )      |   |                                                      | (3,166,453 | ) |   |   | (9,206,628 | ) |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Provision      for Income Taxes                            |   |                                           | -           |   |                                               |   | -          |                                          |   |   | -                                                 |   |   |                                                      | -          |   |   |   | - |   |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Net      Loss                                              |   | $                                              | (888,447    | )      |                                               | $      | (776,298   | )                                             |   | $      | (2,716,880                                        | )      |   | $                                                         | (3,166,453 | ) |   | $ | (9,206,628 | ) |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Basic      and diluted                                     |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Net      Loss per common share-basic and diluted           |   | $                                              | (      0.00 | )      |                                               | $      | (0.02      | )                                             |   | $      | (0.01                                             | )      |   | $                                                         | (0.12      | ) |   |   |   |   |
|                                                       |   |                                           |        |   |                                               |   |       |                                          |   |   |                                              |   |   |                                                      |       |   |   |   |   |   |
| Weighted      average shares outstanding-basic and diluted |   |                                           | 395,075,784 |   |                                               |   | 43,522,004 |                                          |   |   | 285,003,256                                       |   |   |                                                      | 26,938,674 |   |   |   |   |   |

----

Index

STATEMENTS OF CASH FLOWS

|                                                                                  |   | 9      Months  |       |   | 9      Months  |   |       | Inception(January      21,2002) |   |
|---------------------------------------------------------------------------------------|--------|----------------|------------|--------|----------------|--------|------------|---------------------------------|--------|
|                                                                                  |   | Ended          |       |   | Ended          |   |       | to                              |   |
|                                                                                  |   | April      30, |       |   | April      30, |   |       | April      30,                  |   |
|                                                                                  |   | 2008           |       |   | 2007           |   |       | 2008                            |   |
|                                                                                  |   |           |       |   | (restated)     |   |       |                            |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                             |   |           |       |   |           |   |       |                            |   |
| Net      Loss                                                                         |   | $              | (2,716,880 | )      |           | $      | (3,166,453 | )                               |   | $ | (9,206,628 | ) |
| Adjustments      to reconcile net loss to net cash used in operating      activities: |   |           |       |   |           |   |       |                            |   |   |   |   |
| Share-based      compensation                                                         |   |           | 1,417,800  |   |           |   | -          |                            |   |   | 2,167,800 |   |
| Warrant      issued for consulting services                                           |   |           | 434,165    |   |           |   | -          |                            |   |   | 446,660 |   |
| Stock      issued for services                                                        |   |           | 1,079,138  |   |           |   | 769,500    |                            |   |   | 1,252,138 |   |
| Depreciation      and amortization                                                    |   |           | 6,919      |   |           |   | 6,503      |                            |   |   | 20,562 |   |
| (Gain)      Loss on derivatives                                                       |   |           | (2,025,042 | )      |           |   | 1,961,129  |                            |   |   | 5,000 |   |
| Loss      on debt extinguishment                                                      |   |           | 395,000    |   |           |   | -          |                            |   |   | 395,000 |   |
|                                                                                  |   |           |       |   |           |   |       |                            |   |   |   |   |
| Changes      in operating assets and liabilities:                                     |   |           |       |   |           |   |       |                            |   |   |   |   |
| Prepaid      and other current assets                                                 |   |           | 1,528      |   |           |   | -          |                            |   |   | (12,472 | ) |
| Accounts      payable                                                                 |   |           | (8,240     | )      |           |   | 126,325    |                            |   |   | 37,909 |   |
| Accrued      liabilities                                                              |   |           | 404,003    |   |           |   | 13,138     |                            |   |   | 1,796,582 |   |
| Accounts      payable to shareholders                                                 |   |           | (3,571     | )      |           |   | 2,485      |                            |   |   | 890 |   |
| NET      CASH USED IN OPERATING ACTIVITIES                                            |   |           | (1,015,180 |   |           |   | (287,373   | )                               |   |   | (3,096,559 | ) |
|                                                                                  |   |           |       |   |           |   |       |                            |   |   |   |   |
| CASH      FLOW FROM INVESTING ACTIVITIES                                              |   |           |       |   |           |   |       |                            |   |   |   |   |
| Investment      in patents                                                            |   |           | -          |   |           |   | -          |                            |   |   | (67,233 | ) |
| Investment      in intangible assets                                                  |   |           | (5,000     | )      |           |   | -          |                            |   |   | (12,700 | ) |
| Investment      in property and equipment                                             |   |           | (30,717    | )      |           |   | -          |                            |   |   | (52,114 | ) |
| NET      CASH USED IN INVESTING ACTIVITIES                                            |   |           | (35,717    | )      |           |   | -          |                            |   |   | (132,047 | ) |
|                                                                                  |   |           |       |   |           |   |       |                            |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                             |   |           |       |   |           |   |       |                            |   |   |   |   |
| Proceeds      from sale of stock                                                      |   |           | 2,825,000  |   |           |   | -          |                            |   |   | 4,699,000 |   |
| Advances      from stockholder                                                        |   |           | 133,990    |   |           |   | 130,862    |                            |   |   | 400,702 |   |
| Proceeds      from warrants exercised                                                 |   |           | 13,500     |   |           |   | -          |                            |   |   | 31,500 |   |
| Repayment      of advances from  stockholders                               |   |           | (284,790   | )      |           |   | (56,863    | )                               |   |   | (357,430 | ) |
| Convertible      note proceeds (payments)                                             |   |           | -          |   |           |   | 100,000    |                            |   |   | 100,000 |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                        |   |           | 2,687,700  |   |           |   | 173,999    |                            |   |   | 4,873,772 |   |
| NET      CHANGE IN CASH AND CASH EQUIVALENTS                                          |   |           | 1,636,803  |   |           |   | (113,374   | )                               |   |   | 1,645,166 |   |
| Cash      and cash equivalents at beginning of period                                 |   |           | 8,363      |   |           |   | 117,719    |                            |   |   | - |   |
| Cash      and cash equivalents at end of period                                       |   | $              | 1,645,166  |   |           | $      | 4,345      |                            |   | $ | 1,645,166 |   |
|                                                                                  |   |           |       |   |           |   |       |                            |   |   |   |   |
| SUPPLEMENTAL      DISCLOSURES                                                         |   |           |       |   |           |   |       |                            |   |   |   |   |
| Cash      paid for interest                                                           |   | $              | 4,119      |   |           | $      | -          |                            |   |   |   |   |
| Cash      paid for income taxes                                                       |   |           | -          |   |           |   | -          |                            |   |   |   |   |
|                                                                                  |   |           |       |   |           |   |       |                            |   |   |   |   |
| NONCASH      INVESTING AND FINANCING ACTIVITIES:                                      |   |           |       |   |           |   |       |                            |   |   |   |   |
| Conversion      of preferred shares to common stock                                   |   | $              | 260,221    |   |           |   | -          |                            |   |   |   |   |
| Series      C preferred shares cancelled                                              |   |           | 19         |   |           |   | -          |                            |   |   |   |   |

----

Index

NOTES TO THE FINANCIAL STATEMENTS

----

Index

|                                      |   |     |       |   | Weighted |   |
|-------------------------------------------|--------|----------|------------|--------|----------|--------|
|                                      |   |     |       |   | Average  |   |
|                                      |   |     |       |   | Exercise |   |
| Warrants      Outstanding and Exercisable |   | Warrants |       |   | Price    |   |
| OUTSTANDING,      July 31, 2006           |   |     | 4,550,000  |   |     | $      | 0.20 |   |
| Granted                                   |   |     | -          |   |     |   | - |   |
| Expired                                   |   |     | -          |   |     |   | - |   |
| Exercised                                 |   |     | (90,000    | )      |     | $      | 0.20 |   |
| OUTSTANDING,      July 31, 2007           |   |     | 4,460,000  |   |     | $      | 0.20 |   |
| Granted                                   |   |     | 7,300,000  |   |     | $      | 0.86 |   |
| Expired                                   |   |     | -          |   |     |   | - |   |
| Exercised                                 |   |     | (67,500    | )      |     | $      | 0.20 |   |
| OUTSTANDING,      April 30, 2008          |   |     | 11,692,500 |   |     | $      | 0.61 |   |

| Number      of Common StockEquivalents |      |  ExpirationDate |       | RemainingContractedLife      (Years) |   |   | ExercisePrice |   |
|----------------------------------------|-----------|----------------------|------------|--------------------------------------|--------|--------|---------------|--------|
|                                   | 4,342,500 |                 | 10/31/2010 |                                 |   | 2.50   |          |   | $ | $0.20 |   |
|                                   | 1,500,000 |                 | 9/24/2012  |                                 |   | 4.42   |          |   | $ | $0.30 |   |
|                                   | 50,000    |                 | 7/31/2011  |                                 |   | 3.25   |          |   | $ | $0.25 |   |
|                                   | 5,800,000 |                 | 12/31/2011 |                                 |   | 3.77   |          |   | $ | $1.00 |   |

----

Index

|                                             |   | 2007             |       |   | 2007             |   |
|--------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                             |   | As      Reported |       |   | As      Restated |   |
| Balance      Sheet                               |   |             |       |   |             |   |
| ASSETS                                           |   |             |       |   |             |   |
| Current      Assets                              |   | $                | 4,345      |   |             | $      | 4,345 |   |
| Non-current      Assets                          |   | $                | 84,855     |   |             | $      | 84,855 |   |
| TOTAL      ASSETS                                |   | $                | 89,200     |   |             | $      | 89,200 |   |
|                                             |   |             |       |   |             |   |   |   |
| LIABILITIES                                      |   |             |       |   |             |   |   |   |
| Current      Liabilities                         |   | $                | 2,360,531  |   |             | $      | 3,130,031 |   |
| Non-current      Liabilities                     |   |             | -          |   |             |   | - |   |
| Total      Liabilities                           |   | $                | 2,360,531  |   |             | $      | 3,130,031 |   |
|                                             |   |             |       |   |             |   |   |   |
| STOCKHOLDERS'      EQUITY                        |   |             |       |   |             |   |   |   |
| Capital      Stock                               |   | $                | 52,334     |   |             | $      | 52,334 |   |
| Additional      Paid-in capital                  |   | $                | 2,584,161  |   |             | $      | 2,584,161 |   |
| Accumulated      Deficit                         |   | $                | (4,907,826 | )      |             | $      | (5,677,326 | ) |
| TOTAL      STOCKHOLDERS' EQUITY                  |   | $                | (2,271,331 | )      |             | $      | (3,040,831 | ) |
|                                             |   |             |       |   |             |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS' EQUITY  |   | $                | 89,200     |   |             | $      | 89,200 |   |
|                                             |   |             |       |   |             |   |   |   |
| STATEMENT      OF OPERATIONS                     |   |             |       |   |             |   |   |   |
| Net      Revenue                                 |   |             | -          |   |             |   | - |   |
| Total      Operating Expenses                    |   | $                | 535,824    |   |             | $      | 1,305,324 |   |
| Loss      from Operations                        |   | $                | (535,824   | )      |             | $      | (1,305,324 | ) |
| Other      Expenses                              |   |             | (1,861,129 | )      |             |   | (1,861,129 | ) |
| Loss      before Income Taxes                    |   | $                | (2,396,953 | )      |             | $      | (3,166,453 | ) |
| Provision      for Income Taxes                  |   |             | -          |   |             |   | - |   |
| Net      Loss                                    |   | $                | (2,396,953 | )      |             | $      | (3,166,453 | ) |
|                                             |   |             |       |   |             |   |   |   |
| (Loss)      per common share (basic and diluted) |   | $                | (0.09      | )      |             | $      | (0.12 | ) |
|                                             |   |             |       |   |             |   |   |   |
| Weighted      averages shares outstanding        |   |             | 26,938,674 |   |             |   | 26,938,674 |   |
|                                             |   |             |       |   |             |   |   |   |
| STATEMENTS      OF CASH FLOWS (9 Months)         |   |             |       |   |             |   |   |   |
| Net      Income (Loss)                           |   | $                | (2,396,953 | )      |             | $      | (3,166,453 | ) |
| Net      cash used in operating activities       |   | $                | (287,373   | )      |             | $      | (287,373 | ) |
| Net      cash used in investing activities       |   |             | -          |   |             |   | - |   |
| Net      cash provided by financing activities   |   | $                | 173,999    |   |             | $      | 173,999 |   |
| Net      decrease in cash and cash equivalents   |   | $                | 113,374    |   |             | $      | 113,374 |   |

|                                                      |   | 2007             |       |   | 2007             |   |
|-----------------------------------------------------------|--------|------------------|------------|--------|------------------|--------|
|                                                      |   | As      Reported |       |   | As      Restated |   |
|                                                      |   |             |       |   |             |   |
| STATEMENT      OF OPERATIONS                              |   |             |       |   |             |   |
| Net      Revenue                                          |   |             | -          |   |             |   | - |   |
| Total      Operating Expenses                             |   | $                | 100,728    |   |             | $      | 388,728 |   |
| Loss      from Operations                                 |   | $                | (100,728   | )      |             | $      | (388,728 | ) |
| Other      Expenses                                       |   |             | (387,570   | )      |             |   | (387,570 | ) |
| Loss      before Income Taxes                             |   | $                | (488,298   | )      |             | $      | (776,298 | ) |
| Provision      for Income Taxes                           |   |             | -          |   |             |   | - |   |
| Net      Loss                                             |   | $                | (488,298   | )      |             | $      | (776,298 | ) |
|                                                      |   |             |       |   |             |   |   |   |
| Earnings      (Loss) per common share (basic and diluted) |   | $                | (0.01      | )      |             | $      | (0.02 | ) |
|                                                      |   |             |       |   |             |   |   |   |
| Weighted      averages shares outstanding                 |   |             | 43,522,004 |   |             |   | 43,522,004 |   |
|                                                      |   |             |       |   |             |   |   |   |

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Index

ITEM 2

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Index

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Index

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Index

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Index

ITEM 3. CONTROLS AND PROCEDURES

| EXOBOX      TECHNOLOGIES CORP. | OTHER      INFORMATION |
|--------------------------------|------------------------|

Item 1. Legal Proceedings

Item 3. Defaults Upon Senior Securities

Item 6. Exhibits

31.1

31.2

32.1

32.2

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Index

SIGNATURES

|                      | EXOBOX      TECHNOLOGIES CORP.                    |
|---------------------------|---------------------------------------------------|
|                      |                                              |
| Dated:      June 17, 2008 | By:  /s/      Robert B. Dillon          |
|                      | Robert      B. Dillon                             |
|                      | Chief      Executive Officer                      |
|                      | (Principal      Executive Officer)                |
|                      |                                              |
|                      |                                              |
| Dated:      June 17, 2008 | By:      /s/ Michael G. Wirtz                     |
|                      | Michael      G. WirtzChief      Financial Officer |
|                      | (Principal      Financial and Accounting Officer) |

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