----

----

|   |   |                                                                                                    |
|--------|--------|---------------------------------------------------------------------------------------------------------|
| þ |   | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934  |

|   |   |                                                                                                     |
|--------|--------|----------------------------------------------------------------------------------------------------------|
| o      |   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934  |

|      Delaware   |   |   |  83-0221517                 |
|----------------------------------------------------|--------|--------|--------------------------------------------|
|  (State or      other jurisdiction of         |   |   | (I.R.S. Employer      I.D. No.)  |
|  incorporation      or organization)          |   |   |                                       |
|                                               |   |   |                                       |

|                                |   |                                              |   |                              |   |                                       |
|-------------------------------------|--------|---------------------------------------------------|--------|-----------------------------------|--------|--------------------------------------------|
| Large      accelerated filer o |   | Accelerated      filer o                     |   | Non-accelerated      filer o |   | Smaller      reporting company þ |
|                                |   | (Do      not check if a smaller reportingcompany) |

----

|                                      |   |   Page      No. |   |
|-------------------------------------------|--------|---------------------------|--------|
|  PART I -      FINANCIAL INFORMATION |   |                      |   |

|     Item      1.  |  Financial      Statements:                                                                 |     |   |
|--------------------------------------------|--------------------------------------------------------------------------------------------------|----------|--------|
|                                       |                                                                                             |     |   |
|                                       |  Condensed      Consolidated Balance Sheets at                                              |     |   |
|                                       |  March 31, 2008      (unaudited) and December 31, 2007 (audited)                            |  13 |   |
|                                       |                                                                                             |     |   |
|                                       |  Condensed      Consolidated Statements of Operations (unaudited) for the                   |     |   |
|                                       |  three months      ended March 31, 2008 and March 31, 2007              |  14 |   |
|                                       |                                                                                             |     |   |
|                                       |  Condensed      Consolidated Statements of Cash Flows (unaudited) for the                   |     |   |
|                                       |  three months      ended March 31, 2008 and March 31, 2007                             |  15 |   |
|                                       |                                                                                             |     |   |
|                                       |  Notes to      Unaudited Condensed Consolidated Financial Statements                        |  16 |   |
|                                       |                                                                                             |     |   |
|  Item    2.                           |  Management's      Discussion and Analysis of Financial Condition and Results of Operations |  2  |   |
|                                       |                                                                                             |     |   |
|  Item      4T.                   |  Controls and      Procedures                                                          |  7  |   |
|                                       |                                                                                             |     |   |

| PART II - OTHER      INFORMATION |   |   |
|----------------------------------|--------|--------|

|  Item      1   |  Legal      Proceedings                                           |  8  |   |
|--------------------------|------------------------------------------------------------------------|----------|--------|
|                     |                                                                   |     |   |
|  Item    1A         |  Risk      Factors                            |  8  |   |
|                     |                                                                   |     |   |
|  Item      2   |  Unregistered      Sales of Equity Securities and Use of Proceeds |  9  |   |
|                     |                                                                   |     |   |
|  Item    3          |  Defaults Under      Senior Securities                  |  9  |   |
|                     |                                                                   |     |   |
|  Item      4   |  Submission of      Matters to a Vote of Security Holders         |  9  |   |
|                     |                                                                   |     |   |
|  Item      5   |  Other      Information                                      |  9  |   |
|                     |                                                                   |     |   |
|  Item      6.  |  Exhibits                                          |  9  |   |
|                     |                                                                   |     |   |
|  SIGNATURES    |                                                                   |  12 |   |
|                     |                                                                   |     |   |
|  CERTIFICATIONS     |                                                                   |     |   |

----

| ITEM      2 | MANAGEMENT'S      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF      OPERATIONS |
|-------------|-------------------------------------------------------------------------------------------------|

----

| ·   | MuGard™      is our approved product for the management of oral mucositis, a frequent      side-effect of cancer therapy for which there is no established treatment.      The market for mucositis treatment is estimated to be in excess of US$1      billion world-wide. MuGard, a proprietary nanopolymer formulation, has      received marketing allowance in the U.S. from the Food & Drug      Administration (“FDA”). |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Our      lead development candidate for the treatment of cancer is ProLindac™, a      nanopolymer DACH-platinum prodrug. ProLindac is currently in a Phase 2      clinical trial being conducted in the EU in patients with ovarian cancer.      The DACH-platinum incorporated in ProLindac is the same active moiety as      that in oxaliplatin (Eloxatin; Sanofi-Aventis), which has sales in excess      of $2.0 billion. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-clinical      development of Cobalamin™, our proprietary nanopolymer oral drug delivery      technology based on the natural vitamin B12 uptake mechanism. We are      currently developing a product for the oral delivery of      insulin. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-clinical      development of Angiolix®, a humanized monoclonal antibody which acts as an      anti-angiogenesis factor and is targeted to cancer cells, notably breast,      ovarian and colorectal cancers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-clinical      development of Prodrax®, a non-toxic prodrug which is activated in the      hypoxic zones of solid tumors to kill cancer  cells. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-clinical      development of Alchemix®, a chemotherapeutic agent that combines multiple      modes of action to overcome drugresistance. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Pre-clinical      development of Cobalamin-mediated targeted  delivery. |
|--------------------|-------------------------------------------------------------------------|

| ·   | Phenylbutyrate      (“PB”), an HDAC inhibitor and a differentiating agent, is a Phase 2      clinical candidate being developed in collaboration with Virium      Pharmaceuticals. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Compound                                                                     |   | Originator                            |   |  Technology                  |   | Indication |   | ClinicalStage (1)                       |
|------------------------------------------------------------------------------|--------|---------------------------------------|--------|-----------------------------------|--------|------------|--------|-----------------------------------------|
|                                                                         |   |                                  |   |                              |   |       |   |                                    |
| MuGard™                                                                |   | Access                                |   | Mucoadhesiveliquid                |   | Mucositis  |   | Marketing      clearance received  |
| ProLindacTM      (Polymer   Platinate,      AP5346) (2)  |   | Access      – U London          |   | Syntheticpolymer                  |   | Cancer     |   | Phase      2                            |
| Phenylbutyrate      (PB)                                                |   | NationalInstituteof      Health  |   | Smallmolecule                     |   | Cancer     |   | Phase      2                            |
| Oral      Insulin                                                       |   | Access                                |   | Cobalamin                         |   | Diabetes   |   | Pre-clinical                            |
| Oral      Delivery System                                               |   | Access                                |   | Cobalamin                         |   | Various    |   | Pre-clinical                            |
| Angiolix®                                                          |   | Immunodex,Inc.                   |   | Humanizedmonoclonalantibody  |   | Cancer     |   | Pre-clinical                            |
| Prodrax®                                                           |   | UnivLondon                       |   | Smallmolecule                     |   | Cancer     |   | Pre-clinical                            |
| Alchemix®                                                          |   | DeMontfordUniv                   |   | Smallmolecule                     |   | Cancer     |   | Pre-clinical                            |
| Cobalamin-Targeted      Therapeutics                                         |   | Access                                |   | Cobalamin                         |   | Anti-tumor |   | Pre-clinical                            |
|                                                                         |   |                                  |   |                              |   |       |   |                                    |

----

| (1)   | For      more information, see “Government Regulation” for description of clinical      stages. |
|-----------------|-------------------------------------------------------------------------------------------------------------|

| (2)   | Licensed      from the School of Pharmacy, The University of London. Subject to a 1%      royalty and milestone payments onsales. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------|

----

----

| ·   | the      Somanta acquisition resulted in a one-time non-cash in-process research      and development expense in the first quarter of 2008      ($8,879,000); |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | costs      for product manufacturing for a new ProLindac clinical trial expected to      start in mid 2008 ($257,000); |
|--------------------|------------------------------------------------------------------------------------------------------------------------|

| ·   | higher      scientific consulting expenses($60,000); |
|--------------------|------------------------------------------------------|

| ·   | higher      salary and related cost due to the hiring of additional scientific staff      ($40,000); |
|--------------------|------------------------------------------------------------------------------------------------------|

| ·   | higher      clinical trial costs this quarter ($38,000);and |
|--------------------|-------------------------------------------------------------|

| ·   | other      net decreases ($42,000). |
|--------------------|-------------------------------------|

| ·   | lower      salary related expenses due to stock option expenses      ($233,000); |
|--------------------|----------------------------------------------------------------------------------|

| ·   | lower      patent expenses ($49,000); and |
|--------------------|-------------------------------------------|

| ·   | offset      by higher other net increases($32,000). |
|--------------------|-----------------------------------------------------|

----

----

----

| ITEM      2 | UNREGISTERED      SALES OF EQUITY SECURITIES AND USE OFPROCEEDS |
|-------------|-----------------------------------------------------------------|

----

| ITEM      6 | EXHIBITS |
|-------------|----------|

| Exhibits: |
|-----------|

|   | 2.2 | Agreement      and Plan of Merger, by and among Access Pharmaceuticals, Inc., Somanta      Acquisition Corporation, Somanta Pharmaceuticals, Inc., Somanta      Incorporated and Somanta Limited, dated April 18, 2007. (Incorporated by      reference to Exhibit 2.1 to our Form 8-K dated April 18,    2007) |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |  3.0  | Articles      of incorporation and bylaws: |
|--|-----------------|--------------------------------------------|

|   | 3.1 | Certificate      of Incorporation (Incorporated by Reference to Exhibit 3(a) of our Form      8-B dated July 12, 1989, Commission File Number  9-9134) |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | 3.2  | Certificate      of Amendment of Certificate of Incorporation filed August 21,      1992 |
|--|-----------|------------------------------------------------------------------------------------------|

|   | 3.3 | Certificate      of Merger filed January 25, 1996. (Incorporated by reference to Exhibit E      of our Registration Statement on Form S-4 dated December 21, 1995,      Commission File No. 33-64031) |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  |        3.4 | Certificate      of Amendment of Certificate of Incorporation filed January 25, 1996.      (Incorporated by reference to Exhibit E of our Registration Statement on      Form S-4 dated December 21, 1995, Commission File No.      33-64031) |
|--|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |        3.5 | Certificate      of Amendment of Certificate of Incorporation filed July 18, 1996.      (Incorporated by reference to Exhibit 3.8 of our Form 10-K for the year      ended December 31, 1996) |
|--|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |        3.6 | Certificate      of Amendment of Certificate of Incorporation filed June 18, 1998.      (Incorporated by reference to Exhibit 3.8 of our Form 10-Q for the quarter      ended June 30, 1998) |
|--|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  |        3.7  | Certificate      of Amendment of Certificate of Incorporation filed July 31, 2000.      (Incorporated by reference to Exhibit 3.8 of our Form 10-Q for the quarter      ended March 31, 2001) |
|--|-----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        3.8 | Certificate      of Designations of Series A Junior Participating Preferred Stock filed      November 7, 2001 (Incorporated by reference to Exhibit 4.1.h of our      Registration Statement on Form S-8, dated December 14, 2001, Commission      File No. 333-75136) |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|        3.9 | Amended      and Restated Bylaws (Incorporated by reference to Exhibit 3.1 of our Form      10-Q for the quarter ended June 30,1996) |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------|

|        10.30  | Employment      Agreement Amendment, dated April 9, 2008 between us and Jeffrey B.      Davis |
|-------------------------|-----------------------------------------------------------------------------------------------|

|  |        31.1  | Certification      of Chief Executive Officer of Access Pharmaceuticals, Inc. pursuant to      Rule13a-14(a)/15d-14(a) |
|--|------------------------|------------------------------------------------------------------------------------------------------------------------|

|        31.2 | Certification      of Chief Financial Officer of Access Pharmaceuticals, Inc. pursuant to      Rule 13a-14(a)/15d-14(a) |
|------------------|-------------------------------------------------------------------------------------------------------------------------|

|        32.1* | Certification      of Chief Executive Officer of Access Pharmaceuticals, Inc. pursuant to 18      U.S.C. Section 1350 |
|-------------------|-----------------------------------------------------------------------------------------------------------------------|

|        32.2* | Certification      of Chief Financial Officer of Access Pharmaceuticals, Inc. pursuant to 18      U.S.C. Section 1350 |
|-------------------|-----------------------------------------------------------------------------------------------------------------------|

----

| Date:  | May 20, 2008 | By:                                              | /s/ Jeffrey B. Davis    |
|--------|--------------|--------------------------------------------------|-------------------------|
|   |         | Jeffrey      B. Davis                            |
|   |         | Chief      Executive Officer                     |
|   |         | (Principal      Executive Officer)               |
|   |         |                                             |
| Date:  | May 20, 2008 | By:                                              | /s/ Stephen B. Thompson |
|   |         | Stephen      B. Thompson                         |
|   |         | Vice      President and Chief Financial Officer  |
|   |         | (Principal      Financial and Accounting Officer |
|   |         |                                             |

----

|                                                                                                                              |   | March      31, 2008 |         |   | December      31, 2007 |   |
|-----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------------|--------|------------------------|--------|
| ASSETS                                                                                                                            |   | (unaudited)         |         |   | (unaudited)            |   |
|                                                                                                                              |   |                |         |   |                   |   |
|  Current      assets                                                                                                         |   |                |         |   |                   |   |   |   |
|  Cash      and cash equivalents                                                                                              |   | $                   | 226,000      |   |                   |   | 159,000 |   |
|  Short      term investments, at cost                                                                                        |   |                | 6,163,000    |   |                   |   | 6,762,000 |   |
|  Receivable                                                                                                                  |   |                | -            |   |                   |   | 35,000 |   |
|  Receivables      due from Somanta Pharmaceuticals                                                                           |   |                | -            |   |                   |   | 931,000 |   |
|  Prepaid      expenses and other current assets                                                                              |   |                | 142,000      |   |                   |   | 410,000 |   |
|   Total      current assets                                                                                             |   |                | 6,531,000    |   |                   |   | 8,297,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Property      and equipment, net                                                                                            |   |                | 142,000      |   |                   |   | 130,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Patents,      net                                                                                                           |   |                | 667,000      |   |                   |   | 710,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Other      assets                                                                                                           |   |                | 12,000       |   |                   |   | 12,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|             Total      assets                                         |   | $                   | 7,352,000    |   |                   | $      | 9,149,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|         LIABILITIES      AND STOCKHOLDERS' EQUITY (DEFICIT)                               |   |                |         |   |                   |   |   |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Current      liabilities                                                                                                    |   |                |         |   |                   |   |   |   |
|  Accounts      payable and accrued expenses                                                                                  |   | $                   | 2,077,000    |   |                   | $      | 1,796,000 |   |
|  Accrued      interest payable                                                                                               |   |                | 233,000      |   |                   |   | 130,000 |   |
|  Current      portion of deferred revenue                                                                                    |   |                | 82,000       |   |                   |   | 68,000 |   |
|  Current      portion of long-term debt                                                                                      |   |                | -            |   |                   |   | 64,000 |   |
|       Total      current liabilities                                                                |   |                | 2,392,000    |   |                   |   | 2,058,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Long-term      deferred revenue                                                                                             |   |                | 892,000      |   |                   |   | 910,000 |   |
|  Long-term      debt                                                                                                         |   |                | 5,500,000    |   |                   |   | 5,500,000 |   |
|  Total      liabilities                                                                                                      |   |                | 8,784,000    |   |                   |   | 8,468,000 |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Commitments      and contingencies                                                                                          |   |                |         |   |                   |   |   |   |
|                                                                                                                              |   |                |         |   |                   |   |   |   |
|  Stockholders'      equity (deficit)                                                                                         |   |                |         |   |                   |   |   |   |
|  Preferred      stock - $.01 par value; authorized 2,000,000 shares;                                                         |   |                |         |   |                   |   |   |   |
|  3,499.8617      issued at March 31, 2008; 3,227.3617 issued                                                                 |   |                |         |   |                   |   |   |   |
|  at      December 31, 2007                                                                                                   |   |                | -            |   |                   |   | - |   |
|  Common      stock - $.01 par value; authorized 100,000,000 shares;                                                          |   |                |         |   |                   |   |   |   |
|    issued,      5,623,781 at March 31, 2008 and 3,585,458 at                                                       |   |                |         |   |                   |   |   |   |
| December      31, 2007                                                                                                            |   |                | 56,000       |   |                   |   | 36,000 |   |
|  Additional      paid-in capital                                                                                             |   |                | 126,313,000  |   |                   |   | 116,018,000 |   |
|  Notes      receivable from stockholders                                                                                     |   |                | (1,045,000   | )      |                   |   | (1,045,000 | ) |
|  Treasury      stock, at cost – 163 shares                                                                             |   |                | (4,000       | )      |                   |   | (4,000 | ) |
|  Accumulated      deficit                                                                                                    |   |                | (126,752,000 | )      |                   |   | (114,324,000 | ) |
| Total      stockholders' equity (deficit)                                                                                         |   |                | (1,432,000   | )      |                   |   | 681,000 |   |
|             Total      liabilities and stockholders' equity (deficit) |   | $                   | 7,352,000    |   |                   | $      | 9,149,000 |   |

----

|                                                                                        |   | Three      Months ended March 31, |        |
|---------------------------------------------------------------------------------------------|--------|-----------------------------------|-------------|
|                                                                                        |   | 2008                              |        |   | 2007 |   |
| Revenues                                                                                    |   |                              |        |   |   |   |
| License      revenues                                                                       |   | $                                 | 17,000      |   |   | $ | - |   |
| Sponsored      research and development                                                     |   |                              | 21,000      |   |   |   | - |   |
| Total      revenues                                                                         |   |                              | 38,000      |   |   |   | - |   |
|                                                                                        |   |                              |        |   |   |   |   |   |
| Expenses                                                                                    |   |                              |        |   |   |   |   |   |
| Research      and development                                                               |   |                              | 9,645,000   |   |   |   | 413,000 |   |
| General      and administrative                                                             |   |                              | 889,000     |   |   |   | 1,139,000 |   |
| Depreciation      and amortization                                                          |   |                              | 67,000      |   |   |   | 75,000 |   |
|             Total      expenses |   |                              | 10,601,000  |   |   |   | 1,627,000 |   |
|                                                                                        |   |                              |        |   |   |   |   |   |
| Loss      from operations                                                                   |   |                              | (10,563,000 | ) |   |   | (1,627,000 | ) |
|                                                                                        |   |                              |        |   |   |   |   |   |
| Interest      and miscellaneous income                                                      |   |                              | 76,000      |   |   |   | 35,000 |   |
| Interest      and other expense                                                             |   |                              | (108,000    | ) |   |   | (2,535,000 | ) |
|                                                                                        |   |                              | (32,000     | ) |   |   | (2,500,000 | ) |
| Net      loss                                                                               |   |                              | (10,595,000 | ) |   |   | (4,127,000 | ) |
|                                                                                        |   |                              |             |   |   |   |   |   |
| Less      preferred stock dividends                                                         |   |                              | 1,833,000   |   |   |   | - |   |
| Net      loss allocable to common stockholders                                              |   | $                                 | (12,428,000 | ) |   | $ | (4,127,000 | ) |
|                                                                                        |   |                              |        |   |   |   |   |   |
| Basic      and diluted loss per common shareNet      loss allocable to common stockholders  |   | $                                 | (2.31       | ) |   | $ | (1.17 | ) |
|                                                                                        |   |                              |        |   |   |   |   |   |
| Weighted      average basic and dilutedcommon      shares outstanding                       |   |                              | 5,380,259   |   |   |   | 3,535,197 |   |
|                                                                                        |   |                              |        |   |   |   |   |   |
|                                                                                        |   |                              |        |   |   |   |   |   |

----

|                                                                                                                                                                             |   | Three      Months ended March 31, |            |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------------|
|                                                                                                                                                                             |   | 2008                              |            |   | 2007 |   |
| Cash      flows from operating activities:                                                                                                                                       |   |                              |            |   |   |   |
|      Net      loss                                                                                                                                      |   | $                                 | (10,595,000     | ) |   | $ | (4,127,000 | ) |
|   Adjustments      to reconcile net loss to cash used              in      operating activities: |   |                              |            |   |   |   |   |   |
| Depreciation      and amortization                                                                                                                                               |   |                              | 67,000          |   |   |   | 75,000 |   |
| Stock      option expense                                                                                                                                                        |   |                              | 57,000          |   |   |   | 292,000 |   |
|  Acquired      in-process research and development                                                                                                                          |   |                              | 8,879,000  |   |   |   |   |   |
| Amortization      of debt costs and discounts                                                                                                                                    |   |                              | -               |   |   |   | 2,215,000 |   |
| Change      in operating assets and liabilities:                                                                                                                                 |   |                              |            |   |   |   |   |   |
|     Receivables                                                                                                                                              |   |                              | 35,000          |   |   |   | 3,000 |   |
| Prepaid      expenses and other current assets                                                                                                                                   |   |                              | (117,000        | ) |   |   | (74,000 | ) |
| Other      assets                                                                                                                                                                |   |                              | -               |   |   |   | 1,000 |   |
|     Accounts      payable and accrued expenses                                                                                                               |   |                              | (1,250,000      | ) |   |   | 6,000 |   |
| Accrued      interest payable                                                                                                                                                    |   |                              | 103,000         |   |   |   | 318,000 |   |
| Deferred      revenues                                                                                                                                                           |   |                              | (4,000          | ) |   |   | - |   |
| Net      cash used in operating activities                                                                                                                                       |   |                              | (2,825,000      | ) |   |   | (1,291,000 | ) |
|                                                                                                                                                                             |   |                              |            |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                       |   |                              |            |   |   |   |   |   |
|     Capital      expenditures                                                                                                                                |   |                              | (22,000         | ) |   |   | (15,000 | ) |
|  Somanta      acquisition, net of cash acquired                                                                                                                             |   |                              | (65,000         | ) |   |   | - |   |
|  Redemptions      of short term investments andcertificates      of deposit                                                                                                 |   |                              | 599,000         |   |   |   | 471,000 |   |
| Net      cash provided by investing activities                                                                                                                                   |   |                              | 512,000         |   |   |   | 456,000 |   |
|                                                                                                                                                                             |   |                              |            |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                       |   |                              |            |   |   |   |   |   |
|     Payments      of notes payable                                                                                                                           |   |                              | (64,000         | ) |   |   | - |   |
|     Proceeds      from preferred stock issuances, net of costs                                                                                               |   |                              | 2,444,000       |   |   |   | - |   |
| Net      cash provided by financing activities                                                                                                                                   |   |                              | 2,380,000       |   |   |   | - |   |
|                                                                                                                                                                             |   |                              |            |   |   |   |   |   |
| Net      (decrease) increase in cash and cash equivalents                                                                                                                        |   |                              | 67,000          |   |   |   | (835,000 | ) |
| Cash      and cash equivalents at beginning of period                                                                                                                            |   |                              | 159,000         |   |   |   | 1,194,000 |   |
| Cash      and cash equivalents at end of period                                                                                                                                  |   | $                                 | 226,000         |   |   | $ | 359,000 |   |
|                                                                                                                                                                             |   |                              |            |   |   |   |   |   |
| Supplemental      cash flow information:                                                                                                                                         |   |                              |            |   |   |   |   |   |
|    Cash      paid for interest                                                                                                                                    |   |  $                           | 5,000      |   |   |  $ | 2,000  |   |
| Supplemental      disclosure of noncash transactions;                                                                                                                            |   |                              |            |   |   |   |   |   |
| Shares      issued  for payables                                                                                                                                            |   |                              | 1,576,000       |   |   |   | - |   |
|   Preferred      stock dividends in accounts payable                                                                                                                   |   |                              | 525,000         |   |   |   | - |   |
|        Beneficial conversion feature      -                                                                                                                                 |   |                              |            |   |   |   |   |   |
| February      2008 preferred stock dividends                                                                                                                                     |   |                              | 857,000    |   |   |   | -  |   |
| November      2007 preferred stock dividends correction                                                                                                                          |   |                              | 451,000    |   |   |   | -  |   |
|  Preferred      stock issuance costs paid in cash                                                                                                                           |   |                              | 281,000    |   |   |   | -  |   |

----

| (1)   | Interim      Financial Statements |
|-----------------|-----------------------------------|

|                                            |   | March      31, 2008 |        |   | December      31, 2007  |   |
|-------------------------------------------------|--------|---------------------|-------------|--------|-------------------------|--------|
|                                            |   | Grosscarryingvalue  |        |   | Accumulatedamortization |   |   | Grosscarryingvalue |   |   | AccumulatedAmortization |   |
| Amortizable      intangible assets Patents |   | $                   |  1,680 |   |                    | $      |  1,013 |   |   | $ |  1,680 |   |   | $ |  970 |   |
|                                            |   |                |        |   |                    |   |   |   |   |   |   |   |   |   |   |   |

|  2008  |   | $      | 125    |   |
|-------------|--------|--------|--------|--------|
|  2009  |   |   | 168    |   |
|  2010  |   |   | 168    |   |
|  2011  |   |   | 168    |   |
|  2012  |   |   | 38     |   |
|        |   |   |   |   |
|  Total |   | $      | 667    |   |

----

| ·   | Approximately      1.5 million shares of Access common stock was issued to the common and      preferred shareholders of Somanta as consideration having a value of      approximately $4,650,000 (the value was calculated using Access’ stock      price on January 4, 2008 times the shares  issued); |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | exchange      all outstanding warrants for Somanta common stock for warrants to purchase      191,991 shares of Access common stock at exercise prices ranging between      $18.55 and $69.57 per share. The warrants were valued at approximately      $281,000. All of the warrants are exercisable immediately and expire      approximately four years from date of issue. The weighted average fair      value of the warrants was $1.46 per share on the date of the grant using      the Black-Scholes pricing model with the following assumptions: expected      dividend yield 0.0%, risk-free interest rate 3.26%, expected volatility      114% and an expected term of approximately 4  years; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | paid      an aggregate of $475,000 in direct transaction costs;  and |
|--------------------|----------------------------------------------------------------------|

| ·   | cancelled      receivable from Somanta of$931,000. |
|--------------------|----------------------------------------------------|

|  Cash                                             |   | $      | 1      |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|
|  Prepaid      expenses                                 |   |   | 25     |   |
|  Office      equipment, net        |   |   | 14     |   |
|  Accounts      payable                                      |   |   | (2,582 | )      |
|  In-process      research & development                 |   |   | 8,879  |   |
|                                                                       |   | $      | 6,337  |   |

|   |   | Three Months Ended March31, |   |
|--------|--------|-----------------------------|--------|
|   |   | 2008                        |   |   | 2007 |   |

| Net      loss                                                                             |   | $      | (1,716 | )      |   | $      | (5,969 | )      |
|-------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                      |   |   |   |   |   |   |   |   |
| Net      loss per common shares (basic and diluted)                                       |   | $      | (0.32  | )      |   | $      | (1.19  | )      |
|                                                                                      |   |   |   |   |   |   |   |   |
| Weighted      average common shares outstanding   (basic      and diluted) |   |   | 5,446  |   |   |   | 5,035  |   |
|                                                                                      |   |   |   |   |   |   |   |   |

----

----

|                                                                                                        |   | Quarter      endedMarch      31, 2008 |   |   | Quarter      endedMarch      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|---------------------------------------|--------|
| Research      and development                                                                               |   | $                                     | 13,000 |   |                                  | $      | 16,000 |   |
| General      and administrative                                                                             |   |                                  | 44,000 |   |                                  |   | 276,000 |   |
|    Stock-based      compensation expense   included      in operating expense |   | $                                     | 57,000 |   |                                  | $      | 292,000 |   |

|                         |          |   |
|------------------------------|---------------|--------|
|                         | 3/31/07       |   |
| Expected      life           | 4.3 yrs. |   |
| Risk      free interest rate | 4.66          | %      |
| Expected      volatility(a)  | 137           | %      |
| Expected      dividend yield | 0.0           | %      |
|                         |          |   |

| (a) | Reflects      movements in our stock price over the most recent historical period      equivalent to the expected life. |
|-----|-------------------------------------------------------------------------------------------------------------------------|

----