----

----

----

| x | QUARTERLY REPORT UNDER SECTION      13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT OF 1934 For the quarterly period ended: September 30,      2008 |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o | TRANSITION      REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES AND EXCHANGE ACT      OF 1934 For the transition period from ___________ to      ____________ |
|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Nevada                               | 76-0766174               |
|--------------------------------------|--------------------------|
| (State      or other jurisdiction of | (I.R.S.      Employer    |
| Incorporation      or organization)  | Identification      No.) |

----

----

| Large Accelerated      filer                     | o      | Accelerated      Filer         | o      |
|--------------------------------------------------|--------|--------------------------------|--------|
|                                             |   |                           |   |
| Non-accelerated      filer                       | o      | Smaller Reporting      Company | x      |
| (Do not check if      smaller reporting company) |   |                           |

----

----

|                                                                                                                                                                                        | Page   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Part      I - Financial Information                                                                                                                                                         |
|                                                                                                                                                                                        |   |
| Item      1. Financial Statements                                                                                                                                                           | 3      |
|                                                                                                                                                                                        |   |
| Balance      Sheets as of September 30, 2008 (Unaudited) and December 31,      2007                                                                                                    | 3      |
|                                                                                                                                                                                        |   |
| Statements      of Operations (Unaudited) for the Nine and Three Months      Ended September 30, 2008 and 2007 and from July 26, 1994 (Inception)      to September 30, 2008 | 4      |
|                                                                                                                                                                                        |   |
| Statements      of Stockholders' Equity (Unaudited) from July 26, 1994 (Inception)      to September 30, 2008                                                                          | 5      |
|                                                                                                                                                                                        |   |
| Statements      of Cash Flows (Unaudited) for the Nine and Three Months      Ended September 30, 2008 and 2007 and from July 26, 1994 (Inception)      to September 30, 2008 | 7      |
|                                                                                                                                                                                        |   |
| Notes      to Financial Statements                                                                                                                                                          | 8      |
|                                                                                                                                                                                        |   |
| Item      2. Management's Discussion and Analysis of Financial Condition and Results      of Operations                                                                                     | 15     |
|                                                                                                                                                                                        |   |
| Item      3. Quantitative and Qualitative Disclosures About Market    Risk                                                                                                                  | 18     |
|                                                                                                                                                                                        |   |
| Item      4T. Controls and Procedures                                                                                                                                                       | 18     |
|                                                                                                                                                                                        |   |
| Part      II - Other Information                                                                                                                                                            |
|                                                                                                                                                                                        |   |
| Item      1. Legal Proceedings                                                                                                                                                              | 18     |
|                                                                                                                                                                                        |   |
| Item      1(A). Risk Factors                                                                                                                                                                | 18     |
|                                                                                                                                                                                        |   |
| Item      2. Unregistered Sales of Equity Securities and Use of    Proceeds                                                                                                                 | 18     |
|                                                                                                                                                                                        |   |
| Item      3. Defaults Upon Senior Securities                                                                                                                                                | 19     |
|                                                                                                                                                                                        |   |
| Item      4. Submission of Matters to a Vote of Security Holders                                                                                                                            | 19     |
|                                                                                                                                                                                        |   |
| Item      5. Other Information                                                                                                                                                              | 19     |
|                                                                                                                                                                                        |   |
| Item      6. Exhibits and Reports on Form 8-K                                                                                                                                               | 19     |
|                                                                                                                                                                                        |   |
| Signatures                                                                                                                                                                                  | 19     |

----

|                                                                  |   |               |       |   | December      31, |   |
|-----------------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                                  |   | September      30, |       |   | 2007              |   |
|                                                                  |   | 2008               |       |   | (Audited)         |   |
|                                                                  |   |               |       |   |              |   |
| ASSETS                                                                |
|                                                                  |   |               |       |   |              |   |
| Current      Assets:                                                  |   |               |       |   |              |   |
| Cash      and Cash Equivalents                                        |   | $                  | 563        |   |              | $      | 7,128 |   |
| Accounts      Receivable                                              |   |               | 1,065      |   |              |   | 775 |   |
| Accrued      Interest Receivable                                      |   |               | -          |   |              |   | - |   |
| Inventory                                                             |   |               | 21,580     |   |              |   | 22,141 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Current Assets                                             |   |               | 23,208     |   |              |   | 30,044 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Fixed      Assets:                                                    |   |               |       |   |              |   |   |   |
| Furniture      and Equipment, net                                     |   |               | 9,774      |   |              |   | 13,775 |   |
| Other      Assets:                                                    |   |               |       |   |              |   |   |   |
| Formula      and Rights                                               |   |               | 400,000    |   |              |   | 400,000 |   |
| Trademarks,      Trade Names                                          |   |               | 13,204     |   |              |   | 13,054 |   |
| Deposits                                                              |   |               | 1,135      |   |              |   | 1,135 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Assets                                                     |   | $                  | 447,321    |   |              | $      | 458,008 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| LIABILITIES AND      STOCKHOLDERS' EQUITY                             |
|                                                                  |   |               |       |   |              |   |   |   |
| Current      Liabilities                                              |   |               |       |   |              |   |   |   |
| Accounts      Payable                                                 |   | $                  | 345,384    |   |              | $      | 92,831 |   |
| Accrued      Payroll                                                  |   |               | 70,000     |   |              |   | 70,000 |   |
| Accrued      Interest Payable                                         |   |               | -          |   |              |   | - |   |
| Notes      Payable                                                    |   |               | 27,500     |   |              |   | 2,500 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Current Liabilities                                        |   |               | 442,884    |   |              |   | 165,331 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Liabilities                                                |   |               | 442,884    |   |              |   | 165,331 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Stockholders'      Equity                                             |   |               |       |   |              |   |   |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Preferred      Stock, authorized 2,000,000                            |   |               |       |   |              |   |   |   |
| shares,      par value $0.001, issued and                             |   |               |       |   |              |   |   |   |
| outstanding      on  September 30, 2008 and December 31,         |   |               |       |   |              |   |   |   |
| 2007      is 550,000 and (0) zero respectively                        |   |               | 550        |   |              |   | 550 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Common      Stock, authorized 20,000,000                              |   |               |       |   |              |   |   |   |
| shares,      par value $0.00125, issued and                           |   |               |       |   |              |   |   |   |
| outstanding      on September 30, 2008 and December                   |   |               |       |   |              |   |   |   |
| 31,      2007 is 8,665,247 and 8,665,247 respectively                 |   |               | 10,831     |   |              |   | 10,831 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Additional      Paid-in Capital                                       |   |               | 2,478,156  |   |              |   | 2,478,156 |   |
| Subscriptions      (Receivable)/Cash Receipts                         |   |               | (76,226    | )      |              |   | (76,226 | ) |
| Accumulated      Deficit during Development Stage                     |   |               | (2,408,874 | )      |              |   | (2,120,634 | ) |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Stockholders' Equity                                       |   |               | 4,437      |   |              |   | 292,677 |   |
|                                                                  |   |               |       |   |              |   |   |   |
| Total      Liabilities and Stockholders' Equity                       |   | $                  | 447,321    |   |              | $      | 458,008 |   |
|                                                                  |   |               |       |   |              |   |   |   |
|                                                                  |   |               |       |   |              |   |   |   |
| The      accompanying notes are an integral part of these  statements |

----

|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   | July      26, 1994 |      |
|-----------------------------------------------------------------------|--------|------------------------|-----------|--------|-------------------------|--------|-----------|-----------------------|--------|--------|-----------|--------|--------|--------------------|-----------|
|                                                                  |   | Nine      Months Ended |      |   | Three      Months Ended |   |      | (Inception)           |   |
|                                                                  |   | September      30,     |      |   | September      30,      |   |      | to      September 30, |   |
|                                                                  |   | 2008                   |      |   | 2007                    |   |      | 2008                  |   |   | 2007      |   |   | 2008               |      |
| Revenue                                                               |   | $                      | 2,268     |   |                    | $      | 16,822    |                  |   | $      | 1,438     |   |   | $                  | 1,768     |   |   | $ | 21,390 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Total      Revenue                                                    |   |                   | 2,268     |   |                    |   | 16,822    |                  |   |   | 1,438     |   |   |               | 1,768     |   |   |   | 21,390 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Cost      of Goods Sold                                               |   |                   | 850       |   |                    |   | 4,009     |                  |   |   | 519       |   |   |               | 980       |   |   |   | 5,048 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Gross      Profit                                                     |   |                   | 1,418     |   |                    |   | 12,813    |                  |   |   | 919       |   |   |               | 788       |   |   |   | 16,342 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Operating      Expenses                                               |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Salaries      and Wages                                               |   |                   | 210,000   |   |                    |   | 96,103    |                  |   |   | 70,000    |   |   |               | (37,501   | ) |   |   | 702,198 |   |
| General      and Administrative                                       |   |                   | 49,491    |   |                    |   | 59,120    |                  |   |   | 18,224    |   |   |               | 13,632    |   |   |   | 415,138 |   |
| Professional      and Consulting                                      |   |                   | 30,168    |   |                    |   | 220,769   |                  |   |   | 8,010     |   |   |               | 128,969   |   |   |   | 504,226 |   |
| Product      Development                                              |   |                   | -         |   |                    |   | -         |                  |   |   | -         |   |   |               | -         |   |   |   | 84,851 |   |
| Marketing                                                             |   |                   | -         |   |                    |   | 27,904    |                  |   |   | -         |   |   |               | -         |   |   |   | 289,551 |   |
| Investor      Relations                                               |   |                   | -         |   |                    |   | 63,000    |                  |   |   | -         |   |   |               | 63,000    |   |   |   | 465,672 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Total      Expenses                                                   |   |                   | 289,659   |   |                    |   | 466,896   |                  |   |   | 96,234    |   |   |               | 168,100   |   |   |   | 2,461,636 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| (Loss)      from Operations                                           |   |                   | (288,241  | )      |                    |   | (454,083  | )                     |   |   | (95,315   | )      |   |               | (167,312  | ) |   |   | (2,445,294 | ) |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Other      Income/(Expense)                                           |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Other      Income                                                     |   |                   | -         |   |                    |   | -         |                  |   |   | -         |   |   |               | -         |   |   |   | 4,517 |   |
| Interest      Income                                                  |   |                   | -         |   |                    |   | 12,336    |                  |   |   | -         |   |   |               | 2,275     |   |   |   | 45,173 |   |
| Interest      Expense                                                 |   |                   | -         |   |                    |   | (13,217   | )                     |   |   | -         |   |   |               | (1,832    | ) |   |   | (13,217 | ) |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Total      Other Income/(Expense)                                     |   |                   | -         |   |                    |   | (881      | )                     |   |   | -         |   |   |               | 443       |   |   |   | 36,473 |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Net      Income/(Loss) Before Income Taxes                            |   |                   | (288,241  | )      |                    |   | (454,964  | )                     |   |   | (95,315   | )      |   |               | (166,869  | ) |   |   | (2,408,821 | ) |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Income      Taxes                                                     |   |                   | -         |   |                    |   | (53       | )                     |   |   | -         |   |   |               | (53       | ) |   |   | (53 | ) |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Net      Income/(Loss)                                                |   | $                      | (288,241  | )      |                    | $      | (455,017  | )                     |   | $      | (95,315   | )      |   | $                  | (166,922  | ) |   | $ | (2,408,874 | ) |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Basic      (Loss) per Share                                           |   | $                      | (0.03     | )      |                    | $      | (0.07     | )                     |   | $      | (0.01     | )      |   | $                  | (0.03     | ) |   |   |   |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| Weighted      Average Number of Common Shares                         |   |                   | 8,665,247 |   |                    |   | 6,383,638 |                  |   |   | 8,665,247 |   |   |               | 6,383,638 |   |   |   |   |   |
|                                                                  |   |                   |      |   |                    |   |      |                  |   |   |      |   |   |               |      |   |   |   |   |   |
| The      accompanying notes are an integral part of these  statements |

----

|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      | (Deficit)   |   |   |     |   |
|---------------------------------------------------------|--------|----------------------|--------|--------|-------------------|--------|--------|--------------|--------|--------|---------------|--------|--------|-------------|--------|--------|--------------|--------|-----------|-------------|--------|--------|----------|--------|
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      | Accumulated |   |   |     |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   | Stock        |   |      | During      |   |   |     |   |
|                                                    |   | Preferred      Stock |   |   | Common      Stock |   |   | Paid      in |   |   | Subscriptions |   |   | Development |   |   | Total        |   |
|                                                    |   | Shares               |   |   | Amount            |   |   | Shares       |   |   | Amount        |   |   | Capital     |   |   | (Receivable) |   |      | Stage       |   |   | Equity   |   |
| Balance,      Inception July 26, 1994                   |   |                 | -      |   |              | $      | -      |         |   |   | -             |   |   | $           | -      |   |         | $      | -         |        |   | $      | -        |   |   |   | - |   |   | $ | - |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued to founders                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    26-Jul-1994      @ $0.00125 per share |   |                 |   |   |              |   |   |         |   |   | 2,080,000     |   |   |        | 2,600  |   |         |   | -         |        |   |   |     |   |   |   |   |   |   |   | 2,600 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for services                  |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    26-Jul-1994      @ $0.00125 per share |   |                 |   |   |              |   |   |         |   |   | 80,000        |   |   |        | 100    |   |         |   | -         |        |   |   |     |   |   |   |   |   |   |   | 100 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   | (49,500 | ) |   |   | (49,500 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 1994                         |   |                 | -      |   |              |   | -      |         |   |   | 2,160,000     |   |   |        | 2,700  |   |         |   | -         |        |   |   | -        |   |   |   | (49,500 | ) |   |   | (46,800 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    29-Jun-1995      @ $1.25 per share    |   |                 |   |   |              |   |   |         |   |   | 80,000        |   |   |        | 100    |   |         |   | 49,900    |        |   |   |     |   |   |   |   |   |   |   | 50,000 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   | (181,369 | ) |   |   | (181,369 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2004                         |   |                 | -      |   |              |   | -      |         |   |   | 2,240,000     |   |   | $           | 2,800  |   |         | $      | 49,900    |        |   | $      | -        |   |   |   | (230,869 | ) |   | $ | (178,169 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    3-May-05      @ $0.50 per share       |   |                 |   |   |              |   |   |         |   |   | 200,000       |   |   |        | 250    |   |         |   | 99,750    |        |   |   | (85,000  | )      |   |   |   |   |   |   | 15,000 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued to purchase                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    Assets      on 11-May-05 @ $0.50      |   |                 |   |   |              |   |   |         |   |   | 800,000       |   |   |        | 1,000  |   |         |   | 399,000   |        |   |   |     |   |   |   |   |   |   |   | 400,000 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Cash on                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    21-Jul-05      @ $1.00 per share      |   |                 |   |   |              |   |   |         |   |   | 250,000       |   |   |        | 313    |   |         |   | 249,687   |        |   |   | (250,000 | )      |   |   |   |   |   |   | - |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Service                   |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    on      13-Oct-05 @ $0.83 per share   |   |                 |   |   |              |   |   |         |   |   | 370,000       |   |   |        | 462    |   |         |   | 443,538   |        |   |   |     |   |   |   |   |   |   |   | 444,000 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares returned and cancelled               |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
|    on      13-Oct-05 @ $0.83 per share   |   |                 |   |   |              |   |   |         |   |   | (50,000       | )      |   |        | (63    | )      |         |   | (59,937   | )           |   |   |     |   |   |   |   |   |   |   | (60,000 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Net      (Loss)                                         |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   | (483,422 | ) |   |   | (483,422 | ) |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance,      December 31, 2005                         |   |                 | -      |   |              |   | -      |         |   |   | 3,810,000     |   |   |        | 4,762  |   |         |   | 1,181,938 |        |   |   | (335,000 | )      |   |   | (714,291 | ) |   |   | 137,409 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for Service on                |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| 27-Jan-06      @ $0.683 per share                       |   |                 |   |   |              |   |   |         |   |   | 205,000       |   |   |        | 256    |   |         |   | 139,744   |        |   |   |     |   |   |   |   |   |   |   | 140,000 |   |
|                                                    |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Common      Shares issued for employee                  |   |                 |   |   |              |   |   |         |   |   |          |   |   |        |   |   |         |   |      |        |   |   |     |   |   |   |   |   |   |   |   |   |
| Compensation      on 27-Jan-06 @ $0.60                  |   |                 |   |   |              |   |   |         |   |   | 327,500       |   |   |        | 410    |   |         |   | 196,090   |        |   |   |     |   |   |   |   |   |   |   | 196,500 |   |

----

| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|--------|--------|----------|--------|--------|--------|------------|--------|--------|--------|----------|--------|
|    on      8-May-06 @ $0.828 per share                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   | 20,360    |   |   |   | 25     |   |   |   | 16,835    |   |   |   |     |   |   |   |       |   |   |   | 16,860   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      14-Jul-06 @ $0.312 per share                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |   |   | 410,000   |   |   |   | 513    |   |   |   | 127,487   |   |   |   |     |   |   |   |       |   |   |   | 128,000  |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      17-Jul-06 @ $0.50 per share                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   | 500,000   |   |   |   | 625    |   |   |   | 249,375   |   |   |   |     |   |   |   |       |   |   |   | 250,000  |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      8-Nov-06 @ $0.50 per share                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   | 30,000    |   |   |   | 37     |   |   |   | 14,963    |   |   |   |     |   |   |   |       |   |   |   | 15,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (936,760   | )      |   |   | (936,760 | )      |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2006                                                                                                                                                                                                                                                                                                                            |   |   | -       |   |   |   | -      |   |   |   | 5,302,860 |   |   |   | 6,628  |   |   |   | 1,926,432 |   |   |   | (335,000 | )      |   |   | (1,651,051 | )      |   |   | (52,991  | )      |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jan-07 @ $0.33 per share                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   | 160,000   |   |   |   | 200    |   |   |   | 52,800    |   |   |   |     |   |   |   |       |   |   |   | 53,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Cash      Received on Subscriptions                                                                                                                                                                                                                                                                                                                        |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   | 258,774  |   |   |   |       |   |   |   | 258,774  |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Preferred      Shares issued for Officer                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 20-Feb-07 @ $0.30                                                                                                                                                                                                                                                                                                   |   |   | 250,000 |   |   |   | 250    |   |   |   |      |   |   |   |   |   |   |   | 74,750    |   |   |   |     |   |   |   |       |   |   |   | 75,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for employee                                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 3-Jul-07 @ $0.10                                                                                                                                                                                                                                                                                                    |   |   |    |   |   |   |   |   |   |   | 900,000   |   |   |   | 1,125  |   |   |   | 88,875    |   |   |   |     |   |   |   |       |   |   |   | 90,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      3-Jul-07 @ $0.10 per share                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   | 550,000   |   |   |   | 688    |   |   |   | 54,312    |   |   |   |     |   |   |   |       |   |   |   | 55,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Preferred      Shares issued for Officer                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    compensation      on 3-Jul-07 @ $0.10                                                                                                                                                                                                                                                                                                    |   |   | 300,000 |   |   |   | 300    |   |   |   |      |   |   |   |   |   |   |   | 29,700    |   |   |   |     |   |   |   |       |   |   |   | 30,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      10-Jul-07 @ $0.03 per share                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   | 500,000   |   |   |   | 625    |   |   |   | 14,375    |   |   |   |     |   |   |   |       |   |   |   | 15,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued for Service                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jul-07 @ $0.167 per share                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |   |   | 360,000   |   |   |   | 450    |   |   |   | 59,550    |   |   |   |     |   |   |   |       |   |   |   | 60,000   |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Common      Shares issued to Retire Debt                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|    on      24-Jul-07 @ $0.199 per share                                                                                                                                                                                                                                                                                                     |   |   |    |   |   |   |   |   |   |   | 892,387   |   |   |   | 1,115  |   |   |   | 177,362   |   |   |   |     |   |   |   |       |   |   |   | 178,477  |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (469,582   | )      |   |   | (469,582 | )      |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      December 31, 2007                                                                                                                                                                                                                                                                                                                            |   |   | 550,000 |   |   |   | 550    |   |   |   | 8,665,247 |   |   |   | 10,831 |   |   |   | 2,478,156 |   |   |   | (76,226  | )      |   |   | (2,120,633 | )      |   |   | 292,678  |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|  Net      (Loss)                                                                                                                                                                                                                                                                                                                                      |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   | (288,241   | )      |   |   | (288,241 | )      |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| Balance,      September 30, 2008                                                                                                                                                                                                                                                                                                                           |   |   | 550,000 |   |   | $      | 550    |   |   |   | 8,665,247 |   |   | $      | 10,831 |   |   | $      | 2,478,156 |   |   | $      | (76,226  | )      |   | $      | (2,408,874 | )      |   | $      | 4,437    |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| The      Company was inactive from 1995 to 1997 and again from 1999 through 2004,      the company has summarized the accumulated deficit for those periods in these statements.                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| On      April 16, 1997 the company executed an 8:1 forward stock split and on      December 8, 2006 the company executed a 10:1 reverse stock split that      have been retroactively applied to the above    schedule.                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |
| During      the years ended December 31, 2005 and December 31, 2006 the Company issued      a total of 950,000 unrestricted shares of      its common stock in three exempt transactions under Rule 504 of Regulation      D and accepted subscription notes as the original      consideration.                                                           |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |
| Some      payments have been made against those notes. The Company is in the      process of collecting from the original investor all the unrestricted      shares for      cancellation. In return, the Company will issue an equal number of      restricted shares thereby eliminating the original issue under the Rule      504 exemption. |
|                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |   |   |      |   |   |   |   |   |   |   |      |   |   |   |     |   |   |   |       |   |   |   |     |   |
| The      accompanying notes are an integral part of these  statements                                                                                                                                                                                                                                                                                      |

----

|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   | July      26, 1994 |     |
|-----------------------------------------------------------------------|--------|------------------------|----------|--------|-------------------------|--------|----------|---------------------|--------|--------|---------|--------|--------|--------------------|----------|
|                                                                  |   | Nine      Months Ended |     |   | Three      Months Ended |   |     | (Inception)      to |   |
|                                                                  |   | September      30,     |     |   | September      30,      |   |     | September      30,  |   |
|                                                                  |   | 2008                   |     |   | 2007                    |   |     | 2008                |   |   | 2007    |   |   | 2008               |     |
| Operating      Activities                                             |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |
| Net      Loss                                                         |   | $                      | (288,241 | )      |                    | $      | (455,017 | )                   |   | $      | (95,315 | )      |   | $                  | (166,922 | ) |   | $ | (2,408,874 | ) |
| Adjustments      to reconcile Net Loss:                               |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
|    Stock      Issued for Service                       |   |                   | -        |   |                    |   | -        |                |   |   | -       |   |   |               | -        |   |   |   | 1,511,060 |   |
|    Depreciation      and Amortization                  |   |                   | 4,001    |   |                    |   | 3,999    |                |   |   | 1,334   |   |   |               | 1,333    |   |   |   | 10,667 |   |
| Changes      in Operating Assets and Liabilities                      |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
|    (Increase)/Decrease      in Accounts Receivable     |   |                   | (290     | )      |                    |   | -        |                |   |   | (734    | )      |   |               | 1,886    |   |   |   | (1,065 | ) |
|    (Increase)/Decrease      in Interest Receivable     |   |                   | -        |   |                    |   | 8,344    |                |   |   | -       |   |   |               | 16,234   |   |   |   | - |   |
|    (Increase)/Decrease      in Inventory               |   |                   | 562      |   |                    |   | 335      |                |   |   | 453     |   |   |               | 4,158    |   |   |   | (21,579 | ) |
|    (Increase)/Decrease      in Deposits                |   |                   | -        |   |                    |   | -        |                |   |   | -       |   |   |               | -        |   |   |   | (1,135 | ) |
|    Increase/(Decrease)      in Accounts Payable        |   |                   | 252,553  |   |                    |   | 12,643   |                |   |   | 68,852  |   |   |               | 22,241   |   |   |   | 345,384 |   |
|    Increase/(Decrease)      in Accrued Liabilities     |   |                   | -        |   |                    |   | (84,295  | )                   |   |   | -       |   |   |               | (155,495 | ) |   |   | 70,000 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Net      Cash (Used) by Operating Activities                          |   |                   | (31,415  | )      |                    |   | (513,991 | )                   |   |   | (25,410 | )      |   |               | (276,565 | ) |   |   | (495,542 | ) |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Investment      Activities                                            |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Investment      in Trademarks and Trade Names                         |   |                   | (150     | )      |                    |   | (2,100   | )                   |   |   | (150    | )      |   |               |     |   |   |   | (13,204 | ) |
| Purchase      of Equipment                                            |   |                   | -        |   |                    |   | (440     | )                   |   |   | -       |   |   |               |     |   |   |   | (20,441 | ) |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Net      Cash (Used) by Investment Activities                         |   |                   | (150     | )      |                    |   | (2,540   | )                   |   |   | (150    | )      |   |               | -        |   |   |   | (33,645 | ) |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Financing      Activities                                             |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Proceeds      from Loans                                              |   |                   | 25,000   |   |                    |   | -        |                |   |   | 25,000  |   |   |               | -        |   |   |   | 374,709 |   |
| (Repayments)      of Loans                                            |   |                   |     |   |                    |   | (347,209 | )                   |   |   |    |   |   |               | (410,442 | ) |   |   | (168,732 | ) |
| Proceeds      from the Sale of Stock                                  |   |                   | -        |   |                    |   | 815,251  |                |   |   | -       |   |   |               | 687,251  |   |   |   | 323,773 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Net      Cash Provided by Financing Activities                        |   |                   | 25,000   |   |                    |   | 468,042  |                |   |   | 25,000  |   |   |               | 276,809  |   |   |   | 529,750 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Net      Increase / (Decrease) in Cash                                |   |                   | (6,565   | )      |                    |   | (48,489  | )                   |   |   | (560    | )      |   |               | 244      |   |   |   | 563 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Cash,      Beginning of Period                                        |   |                   | 7,128    |   |                    |   | 53,092   |                |   |   | 1,123   |   |   |               | 4,359    |   |   |   | - |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Cash,      End of Period                                              |   | $                      | 563      |   |                    | $      | 4,603    |                |   | $      | 563     |   |   | $                  | 4,603    |   |   | $ | 563 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   | - |   |
| Supplemental      Information:                                        |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Interest      Paid                                                    |   | $                      | -        |   |                    | $      | 13,217   |                |   | $      | -       |   |   | $                  | 1,832    |   |   | $ | 13,217 |   |
| Income      Taxes Paid                                                |   | $                      | -        |   |                    | $      | -        |                |   | $      | -       |   |   | $                  | -        |   |   | $ | - |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Significant      Non-Cash Transactions:                               |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| Stock      Issued for Services                                        |   | $                      | -        |   |                    | $      | -        |                |   | $      | -       |   |   | $                  | -        |   |   | $ | 1,511,060 |   |
| Stock      Issued to Convert Debt                                     |   | $                      | -        |   |                    | $      | -        |                |   | $      | -       |   |   | $                  | -        |   |   | $ | 178,477 |   |
| Stock      Issued to Acquire Assets                                   |   | $                      | -        |   |                    | $      | -        |                |   | $      | -       |   |   | $                  | -        |   |   | $ | 400,000 |   |
|                                                                  |   |                   |     |   |                    |   |     |                |   |   |    |   |   |               |     |   |   |   |   |   |
| The      accompanying notes are an integral part of these  statements |

----

|                |   | 2008   |   |   | 2007   |   |
|---------------------|--------|--------|--------|--------|--------|--------|
| Raw      Material   |   | $      | 14,096 |   |   | $      | 14,096 |   |
| Finished      Goods |   |   | 6,930  |   |   |   | 7,524 |   |
| Packaging           |   |   | 554    |   |   |   | 521 |   |
|                |   |   |   |   |   |   |   |   |
| Total               |   | $      | 21,580 |   |   | $      | 22,141 |   |

----

| ● |  Office      furniture and equipment |  5      years |
|---------|-------------------------------------------|--------------------|
| ● |  Computer      hardware and software |  3      years |

|                                |   | 2008   |    |   | 2007   |   |
|-------------------------------------|--------|--------|---------|--------|--------|--------|
| Office      Furniture and Equipment |   | $      | 10,000  |   |   | $      | 10,000 |   |
| Computer      Hardware and Software |   |   | 10,441  |   |   |   | 10,441 |   |
|                                |   |   |    |   |   |   |   |   |
| Subtotal                            |   |   | 20,441  |   |   |   | 20,441 |   |
| Less:                               |   |   |    |   |   |   |   |   |
| Accumulated      Depreciation       |   |   | (10,667 | )      |   |   | (6,666 | ) |
|                                |   |   |    |   |   |   |   |   |
| Total      Furniture and Equipment  |   | $      | 9,774   |   |   | $      | 13,775 |   |

----

----

|                                   |   | 2008   |   |   | 2007   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|
| Demand      Note, non-interest bearing |   |   | 27,500 |   |   |   | 2,500 |   |
|                                   |   |   |   |   |   |   |   |   |
| Total      Notes Payable               |   | $      | 27,500 |   |   | $      | 2,500 |   |

| December    31,                                  |   | 2007   |     |   | 2006   |   |
|--------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Deferred Tax      Asset                |   | $      | 164,354  |   |   | $      | 324,135 |   |
| Less: Valuation      Allowance    |   |   | (164,354 | )      |   |   | (324,135 | ) |
| Net Current Deferred      Tax Asset    |   | $      | 0        |   |   | $      | 0 |   |

| Year      |   | Amount |      | Expiration |
|-----------|--------|--------|-----------|------------|
| 1994      |   | $      | 49,500    |       | 2014 |
| 2004      |   |   | 181,369   |       | 2024 |
| 2005      |   |   | 483,422   |       | 2025 |
| 2006      |   |   | 926,100   |       | 2026 |
| 2007      |   |   | 469,583   |       | 2027 |
| Total NOL |   | $      | 2,109,974 |       |   |

----

|   | · | On      February 20, 2007 the Company issued 250,000 Class A preferred shares at a      value of $0.30 per share to an officer for  compensation. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 3, 2007 the Company issued 300,000 Class A preferred shares at a      value of $0.10 per share to an officer for  compensation. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      January 27, 2006 the Company issued 205,000 common shares at $0.683 per      share for services valued at $140,000 and 327,500 common shares at $0.60      per share for employee compensation valued at  $196,500. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      May 8, 2006 the Company issued 20,360 common shares at $0.828 per share      for services valued at $16,860. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 14, 2006 the Company issued 410,000 common shares at $0.312 per share      for services valued at $128,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 17, 2006 the Company issued 500,000 common shares at $0.50 per share      for services valued at $250,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | On      November 8, 2006 the Company issued 30,000 common shares at $0.50 per      share for services valued at$15,000. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------|

|   | · | On      January 24, 2007 the Company issued 160,000 post-split common shares at      $0.33 per share for services valued at$53,000 |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 3, 2007 the Company issued 900,000 common shares at $0.10 per share      for employee compensation valued at $90,000 and 550,000 common shares at      $0.10 per share for services valued at$55,000. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 10, 2007 the Company issued 500,000 common shares at $0.03 per share      for services valued at $15,000. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | On      July 24, 2007 the Company issued 360,000 common shares at $0.167 per share      for services valued at $60,000 and 892,387 common shares at $0.199 per      share to retire debt in the amount of$178,477. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|   | · | Absorption |
|--------|--------|------------|

|   | · | Fragrance |
|--------|--------|-----------|

|   | · | Texture |
|--------|--------|---------|

|   | · | Color |
|--------|--------|-------|

----

----

----

| ExhibitNo. | Description                                                                                                         |
|------------|--------------------------------------------------------------------------------------------------------------------------|
| 31         | Certification of Principal Executive Officer and      Principal Financial Officer                                        |
| 32         | Certification Pursuant to 18 U.S.C. 1350, as      Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of      2002 |

|                        | AMERELITE      SOLUTIONS, INC. |                             |
|-----------------------------|--------------------------------|----------------------------------|
|                        |                           |                             |   |
| Date:      December 1, 2008 | By:                            | /s/      Robert L. Knapp         |   |
|                        |                           | Principal      Executive Officer |   |
|                        |                           | Principal      Financial Officer |   |

----