| Delaware                      | 20-5911117                                |
|-------------------------------|-------------------------------------------|
| (State      of Incorporation) | (I.R.S.      Employer Identification No.) |

| 130      Shore Road, Suite 238                |
|-----------------------------------------------|
| Port      Washington, NY  11050     |
| __________________________________            |
| (Address      of principal executive offices) |

|  [      X ]   yes |  [   ]  no |
|---------------------------------------|------------------------------------------|

|  [   ]   yes |  [   ]  no |
|-------------------------------------------------|------------------------------------------|

|  [      X ]   yes |  [   ]  no |
|---------------------------------------|------------------------------------------|

----

|  TABLE OF CONTENTS                                                                                                                       | PAGE NUMBERS |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------------|
| PART      I                                                                                                                                   |         |
|                                                                                                                                          |         |
| Item      1 – Condensed Financial Statements                                                                                            |         |
|                                                                                                                                          |         |
| Balance      Sheets as of June 30, 2010(Unaudited)      and December 31, 2009                                                                 |  3      |
|                                                                                                                                          |         |
| Statements      of Operations for the three and sixmonths      ended June 30, 2010 and 2009 (Unaudited)                                       |  4      |
|                                                                                                                                          |         |
| Statements      of Cash Flows for the six monthsended      June 30, 2010 and 2009 (Unaudited)                                                 |  5      |
|                                                                                                                                          |         |
| Notes      to Condensed Financial Statements (Unaudited)                                                                                      | 6            |
|                                                                                                                                          |         |
| Item      2 – Management’s Discussion and Analysis         Or      Plan of Operation |  10     |
|                                                                                                                                          |         |
| Item      3 – Quantative and Qualitative Disclosures about Market    Risk                                                               | 13           |
|                                                                                                                                          |         |
| Item      4T – Controls and Procedures                                                                                                  | 13           |
|                                                                                                                                          |         |
| PART      II – OTHER INFORMATION                                                                                                        |         |
|                                                                                                                                          |         |
| Item      1 – Legal Proceedings                                                                                                         | 13           |
|                                                                                                                                          |         |
| Item      2 - Unregistered Sales of Equity Securities and Use of         Proceeds                |  13     |
|                                                                                                                                          |         |
| Item      3 - Defaults upon Senior Securities                                                                                                 | 13           |
|                                                                                                                                          |         |
| Item      4 – (Removed and Reserved)                                                                                                    | 13           |
|                                                                                                                                          |         |
| Item      5 - Other Information                                                                                                               | 13           |
|                                                                                                                                          |         |
| Item      6 - Exhibits and Reports on Form 8-K                                                                                                | 13           |
|                                                                                                                                          |         |
| Signatures                                                                                                                                    | 15           |
|                                                                                                                                          |         |
|                                                                                                                                          |         |

----

|                                                                                                                                                                |   | As ofJune 30, 2010(Unaudited) |            |   | As ofDecember 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------------|-----------------|--------|------------------------|--------|
|                                                                                                                                                                |   |                          |            |   |                   |   |
| ASSETS                                                                                                                                                              |   |                          |            |   |                   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |
| CURRENT      ASSETS:                                                                                                                                                |   |                          |            |   |                   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |
| CASH                                                                                                                                                                |   | $                             | 21,305          |   |                   | $      | 18,649 |   |
| INVENTORY                                                                                                                                                           |   |                          | 670             |   |                   |   | 725 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| TOTAL      CURENT ASSETS                                                                                                                                            |   |                          | 21,975          |   |                   |   | 19,374 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| PROPERTY      ASSETS:                                                                                                                                               |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| EQUIPMENT                                                                                                                                                           |   |                          | 44,536          |   |                   |   | 44,536 |   |
| LESS:  ACCUMULATED      DEPRECIATION                                                                                                                      |   |                          | (28,951         | )      |                   |   | (24,497 | ) |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| EQUIPMENT      NET OF ACCUMULATED DEPRECIATION                                                                                                                      |   |                          | 15,585          |   |                   |   | 20,039 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                   |   | $                             | 37,560          |   |                   | $      | 39,413 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS’ EQUITY                                                                                                                     |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| CURRENT      LIABILITIES:                                                                                                                                           |   |                          |            |   |                   |   |   |   |
|    ACCRUED      LIABILITIES                                                                                                                          |   | $                             | 7,050           |   |                   | $      | 6,554 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| LONG      TERM LIABILITIES:                                                                                                                                         |   |                          |            |   |                   |   |   |   |
|    INTEREST      PAYABLE                                                                                                                             |   |                          | 29              |   |                   |   | -0- |   |
|    LOAN      PAYABLE – STOCKHOLDER                                                                                                             |   |                          | 20,000          |   |                   |   | -0- |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| TOTAL      LIABILITIES                                                                                                                                              |   |                          | 27,079          |   |                   |   | 6,554 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| STOCKHOLDERS      EQUITY:                                                                                                                                           |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| PREFERRED      STOCK $0.0001 PAR VALUE,AUTHORIZED      1,000,000 SHARES, ISSUED-NONE                                                                                |   |                          |  -0-       |   |                   |   |  -0- |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| COMMON      STOCK $0.0001 PAR VALUE, AUTHORIZED4,000,000      SHARES, ISSUED AND OUTSTANDING163,000      SHARES AS OF June 30, 2010 ANDAS      OF December 31, 2009 |   |                          |    16 |   |                   |   |    16 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| ADDITIONAL      PAID-IN CAPITAL                                                                                                                                     |   |                          | 132,984         |   |                   |   | 132,984 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| ACCUMULATED      DEFICIT                                                                                                                                            |   |                          | (122,519        | )      |                   |   | (100,141 | ) |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| TOTAL      STOCKHOLDERS’ EQUITY                                                                                                                               |   |                          | 10,481          |   |                   |   | 32,859 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
| TOTAL      LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                               |   | $                             | 37,560          |   |                   | $      | 39,413 |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |
|                                                                                                                                                                |   |                          |            |   |                   |   |   |   |

----

|                                                                           |   | June 30, 2010 |    |   | June 30, 2009 |   |    | June 30, 2010 |   |   | June 30, 2009 |   |
|--------------------------------------------------------------------------------|--------|---------------|---------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |
| SALES                                                                          |   | $             | 1,051   |   |          | $      | 1,735   |          |   | $      | 2,966         |   |   | $ | 3,039 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| RAW      MATERIALS COST                                                        |   |          | 257     |   |          |   | 388     |          |   |   | 635           |   |   |   | 761 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| GENERAL      AND ADMINISTRATIVE EXPENSES                                       |   |          | 7,503   |   |          |   | 9,209   |          |   |   | 20,237        |   |   |   | 21,893 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| DEPRECIATION                                                                   |   |          | 2,227   |   |          |   | 2,227   |          |   |   | 4,454         |   |   |   | 4,454 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| TOTAL      OPERATING EXPENSES                                                  |   |          | 9,987   |   |          |   | 11,824  |          |   |   | 25,326        |   |   |   | 27,108 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| OPERATING      LOSS                                                            |   |          | (8,936  | )      |          |   | (10,089 | )             |   |   | (22,360       | )      |   |   | (24,069 | ) |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| OTHER      INCOME                                                              |   |          | 5       |   |          |   | 22      |          |   |   | 11            |   |   |   | 48 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| INTEREST      EXPENSE                                                          |   |          | 29      |   |          |   | -0-     |          |   |   | 29            |   |   |   | -0- |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
|    NET      LOSS                                                |   |          | (8,960  | )      |          | $      | (10,067 | )             |   |   | (22,378       | )      |   | $ | (24,021 | ) |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| LOSS      PER COMMON SHARE   BASIC      AND DILUTED             |   | $             | (0.06   | )      |          | $      | (0.06   | )             |   | $      | (0.14         | )      |   | $ | (0.15 | ) |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |
| WEIGHTED      AVERAGE NUMBER OF COMMON SHARES OUTSTANDING BASIC AND    DILUTED |   |          | 163,000 |   |          |   | 163,000 |          |   |   | 163,000       |   |   |   | 163,000 |   |
|                                                                           |   |          |    |   |          |   |    |          |   |   |          |   |   |   |   |   |

----

|                                                                                                                                                                                                                                                                                                                                    FOR THE SIX MONTHS ENDED |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | June 30, 2010 |   |   | June 30, 2009 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| CASH      FLOWS FROM OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| NET      (LOSS)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | (22,378 | ) |   | $ | (24,021 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Adjustments      to reconcile net loss to net cashUsed      in operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 4,454 |   |   |   | 4,454 |   |
| Changes      in asset and liability balances:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 55 |   |   |   | 278 |   |
| Prepaid      Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | -0- |   |   |   | 463 |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 29 |   |   |   | -0- |   |
| Accrued      Liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 496 |   |   |   | (832 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| NET      CASH USED IN OPERATING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | (17,344 | ) |   | $ | (19,658 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| Proceeds      from issuance of debt to shareholder                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 20,000 |   |   |   | -0- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| NET      CASH PROVIDED BY FINANCING ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 20,000 |   |   |   | -0- |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| NET      INCREASE (DECREASE) IN CASH                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $ | 2,656 |   |   | $ | (19,658 | ) |
| CASH      – beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 18,649 |   |   |   | 47,440 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
| CASH      – end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $ | 21,305 |   |   | $ | 27,782 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |

----

----

----

----

|            | 3      months ended | 3      months ended | 6      months ended | 6      months ended |
|-----------------|---------------------|---------------------|---------------------|---------------------|
|            | June 30, 2010       | June 30, 2009       | June 30, 2010       | June 30, 2009       |
| Customer      A | 56%                 | --                  | 20%                 | --                  |
| Customer      B | 18%                 | --                  |  6%            | --                  |
| Customer      C | 10%                 |  9%            |  6%            | --                  |
| Customer      D | --                  | --                  | 20%                 | --                  |
| Customer      E | --                  | --                  | 15%                 | --                  |
| Customer      F | --                  | 30%                 | --                  | 17%                 |
| Customer      G | --                  | 18%                 | --                  | 10%                 |
| Customer      H | --                  | 16%                 | --                  |  9%            |
| Customer      I | --                  | 15%                 | --                  |  8%            |
| Customer      J | --                  |  3%            | --                  | 10%                 |
| Customer      K | --                  | --                  | --                  | 10%                 |

----

|                                                             |   | June 30, 2010 |   |   | June 30, 2009 |   |    | June 30, 2010 |   |   | June 30, 2009 |   |
|------------------------------------------------------------------|--------|---------------|--------|--------|---------------|--------|---------|---------------|--------|--------|---------------|--------|
| Sales                                                            |   | $             | 1,051  |   |          | $      | 1,735   |          |   | $      | 2,966         |   |   | $ | 3,039 |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Raw      materials cost                                          |   |          | 257    |   |          |   | 388     |          |   |   | 635           |   |   |   | 761 |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| General      and administrative expenses                         |   |          | 7,503  |   |          |   | 9,209   |          |   |   | 20,237        |   |   |   | 21,893 |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Depreciation                                                     |   |          | 2,227  |   |          |   | 2,227   |          |   |   | 4,454         |   |   | $ | 4,454 |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Interest      Expense                                            |   |          | 29     |   |          |   | -0-     |          |   |   | 29            |   |   |   | -0- |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Other      income                                                |   |          | 5      |   |          |   | 22      |          |   |   | 11            |   |   |   | 48 |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Income      (loss) before income tax      expense (benefit) |   |          | (8,960 | )      |          |   | (10,067 | )             |   |   | (22,378       | )      |   |   | (24,021 | ) |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
| Income      tax expense (benefit)                                |   |          | -0-    |   |          |   | -0-     |          |   |   | -0-           |   |   |   | -0- |   |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |
|    Net      Income (loss)                         |   | $             | (8,960 | )      |          | $      | (10,067 | )             |   | $      | (22,378       | )      |   | $ | (24,021 | ) |
|                                                             |   |          |   |   |          |   |    |          |   |   |          |   |   |   |   |   |

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