----

----

| [X]              | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 for      the quarterly period ended March 31, 2008                         |
|----------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |  OR                                                                                                                                                                |
| [  ]   | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 For      the transition period from ______________ to      ______________ |

|  Delaware(State or      other jurisdiction of  incorporation or      organization)         | 59-2758596(I.R.S.      Employer Identification      No.) |
|-----------------------------------------------------------------------------------------------------------|---------------------------------------------------------------|
|                                                                                                      |                                                          |
|  354      Eisenhower ParkwayLivingston,      New Jersey(Address      of principal executive offices) | 07039(Zip      Code)                                          |
|                                                                                                      |                                                          |

|  Large      accelerated filer [ ]                                                              |  Accelerated      filer [X]         |
|-----------------------------------------------------------------------------------------------------|------------------------------------------|
|  Non-accelerated      filer [ ] (Do      not check if a smaller reporting company)   |  Smaller      reporting company [ ] |

----

----

----

----

----

----

|                                                        |                                                                                          |                                                                       |                                                                  | March      31,                                                                     |                                                                                          | December      31, |
|-------------------------------------------------------------|-----------------------------------------------------------------------------------------------|----------------------------------------------------------------------------|-----------------------------------------------------------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|-------------------|
|                                                        |                                                                                          |                                                                       |                                                                  | 2008                                                                               |                                                                                          | 2007              |
|                                                        |                                                                                          |                                                                       |                                                                  | (Unaudited)                                                                        |                                                                                          |              |
| ASSETS:                                                     |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |
|                                                        | Cash      and cash equivalents                                                                |  $     13,132,875                            |                                                                  |  $         17,221,811            |
|                                                        | Accounts      receivable, net                                                                 | 2,600,884                                                                  |                                                                  | 3,810,993                                                                          |
|                                                        | Inventories                                                                                   |                                                                       |                                                                  | 3,371,034                                                                          |                                                                                          | 3,047,129         |
|                                                        | Prepaid      expenses and other current assets                                                | 1,053,579                                                                  |                                                                  | 1,287,300                                                                          |
|                                                        |   Total      current assets                                                         |                                                                       | 20,158,372                                                            |                                                                               | 25,367,233                                                                                    |
|                                                        |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |              |
|                                                        | Property      and equipment, net                                                              | 716,143                                                                    |                                                                  | 651,967                                                                            |
|                                                        | Intangible      Assets, net                                                                   |                                                                       | 27,598,606                                                            |                                                                               | 28,859,788                                                                                    |
|                                                        | Other      Assets                                                                             |                                                                       | 1,651,165                                                             |                                                                               | 1,710,289                                                                                     |
| TOTAL      ASSETS                                           |                                                                                          |  $     50,124,286                            |                                                                  |  $         56,589,277            |
|                                                        |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |              |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                   |                                                                                          |                                                                       |                                                                  |
|                                                        | Current      liabilities:                                                                     |                                                                       |                                                                  |                                                                               |                                                                                          |
|                                                        | Current      portion of financing agreements                                                  |  $          164,630 |                                                                  |  $           3,786,538 |
|                                                        | Accounts      payable                                                                         |                                                                       |           2,520,370 |                                                                               |               2,215,942 |
|                                                        | Accrued      expenses                                                                         |                                                                       | 4,888,681                                                             |                                                                               | 4,903,881                                                                                     |
|                                                        |   Total      Current liabilities                                                    |                                                                       | 7,573,681                                                             |                                                                               | 10,906,361                                                                                    |
|   Notes      Payable                              |                                                                                          | 28,140,314                                                                 |                                                                  | 27,536,178                                                                         |
|                                                        | Deferred      revenue                                                                         |                                                                       | 3,401,440                                                             |                                                                               | 3,580,880                                                                                     |
|                                                        | Long-term      portion of financing agreements                                                | 11,834,099                                                                 |                                                                  | 11,425,601                                                                         |
| TOTAL      LIABILITIES                                      |                                                                                          | 50,949,534                                                                 |                                                                  | 53,449,020                                                                         |
|                                                        |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |              |
| Contingently      redeemable Series C Convertible Preferred |                                                                                          |                                                                       |                                                                  |
|                                                        | Stock,      1,125 shares issued and outstanding in 2008 and 2007                              | 1,125,000                                                                  |                                                                  | 1,125,000                                                                          |
|                                                        |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |              |
|                                                        | Shareholders'      equity (Deficiency)                                                        |                                                                       |                                                                  |                                                                               |
|                                                        |   Preferred      Stock, $0.01 par value; 1,000,000 shares authorized                |                                                                       |                                                                  |                                                                               |
|                                                        |     Series      B Convertible Preferred Stock, 130 shares issued          |                                                                       |                                                                  |                                                                               |
|                                                        |       and      outstanding in 2008 and 2007                     | 1                                                                          |                                                                  | 1                                                                                  |
|                                                        |     Series      E Convertible Preferred Stock, 59,000 and 63,547 shares   |                                                                       |                                                                  |                                                                               |
|                                                        |       issued      and outstanding in 2008 and 2007 respectively | 590                                                                        |                                                                  | 635                                                                                |
|                                                        |   Common      Stock, $0.01 par value; 100,000,000                                   |                                                                       |                                                                  |                                                                               |
|                                                        |     authorized;      52,062,996 and 51,730,151 shares issued              |                                                                       |                                                                  |                                                                               |
|                                                        |     in      2008 and 2007 respectively                                    | 520,630                                                                    |                                                                  | 517,302                                                                            |
|                                                        | Capital      in excess of par value                                                           | 222,664,322                                                                |                                                                  | 222,376,941                                                                        |
|                                                        | Less      cost of 25,140 and 18,000 treasury shares in 2008 and 2007                          | (71,309)                                                                   |                                                                  | (54,030)                                                                           |
|                                                        | Accumulated      deficit                                                                      |                                                                       | (225,281,991)                                                         |                                                                               | (221,033,196)                                                                                 |
|                                                        | Accumulated      other comprehensive income                                                   | 217,509                                                                    |                                                                  | 207,604                                                                            |
| TOTAL      SHAREHOLDERS' EQUITY (DEFICIENCY)                | (1,950,248)                                                                                   |                                                                       | 2,015,257                                                             |
| TOTAL      LIABILITIES AND SHAREHOLDERS                     |                                                                                          |                                                                       |                                                                  |
|                                                        | EQUITY      (DEFICENCY)                                                                       |                                                                       |  $     50,124,286                       |                                                                               |  $         56,589,277                       |
|                                                        |                                                                                          |                                                                       |                                                                  |                                                                               |                                                                                          |              |

----

----

----

|                            |                                                 |                                                                                  |        Three      Months EndedMarch      31,    |
|---------------------------------|------------------------------------------------------|---------------------------------------------------------------------------------------|------------------------------------------------------|
|                            |                                                 |                                                                                  |                                                 |   | Restated |
|                            |                                                 |                                                                                  | 2008                                                 |   | 2007 |
|                            |                                                 |                                                                                  |                                                 |   |   |
| NET      REVENUES               |  $      9,068,728 |                                                                                  |  $      6,684,620 |
|                            |                                                 |                                                                                  |                                                 |   |   |
| COST      OF REVENUES           | 2,960,097                                            |                                                                                  | 2,072,187                                            |
|                            | Gross      profit                                    | 6,108,631                                                                             |                                                 | 4,612,433 |
|                            |                                                 |                                                                                  |                                                 |   |   |
| OPERATING      EXPENSES:        |                                                 |                                                                                  |                                                 |
|                            | Selling      and distribution                        | 3,259,566                                                                             |                                                 | 1,897,282 |
|                            | General      and administrative                      | 2,119,911                                                                             |                                                 | 1,984,525 |
|                            | Research      and development                        | 1,846,607                                                                             |                                                 | 1,350,901 |
|                            | Amortization      of licensing right                 | 1,261,182                                                                             |                                                 | 1,222,221 |
|                            |                                                 | Total      operating expenses                                                         | 8,487,266                                            |   | 6,454,929 |
|                            |                                                 |                                                                                  |                                                 |   |   |
|                            |                                                 | Loss      from operations                                                             | (2,378,635)                                          |   | (1,842,496) |
| OTHER      INCOME (EXPENSE):    |                                                 |                                                                                  |                                                 |
|                            | Interest      income                                 | 136,321                                                                               |                                                 | 263,556 |
|                            | Interest      expense                                | (1,919,086)                                                                           |                                                 | (1,934,554) |
|                            | Other,      net                                      | (87,395)                                                                              |                                                 | (22,482) |
|                            |                                                 | Total      other (expense)                                                            | (1,870,160)                                          |   | (1,693,480) |
|                            |                                                 |                                                                                  |                                                 |   |   |
|                            |                                                 | Net      loss                                                                         |  $    (4,248,795)           |   |  $    (3,535,976) |
|                            |                                                 |                                                                                  |                                                 |   |   |
| NET      LOSS PER COMMON SHARE: |                                                 |                                                                                  |                                                 |
|                            | Basic      and diluted                               |  $            (0.08) |                                                 |  $            (0.07) |
|                            |                                                 |                                                                                  |                                                 |   |   |
| WEIGHTED      AVERAGE NUMBER OF |                                                 |                                                                                  |                                                 |
|                            | COMMON      SHARES OUTSTANDING:                      |                                                                                  |                                                 |   |
|                            | Basic      and diluted                               | 51,964,036                                                                            |                                                 | 50,081,448 |
|                            |                                                 |                                                                                  |                                                 |   |   |

----

----

----

|                                    |                                             | Three      Months Ended March      31, |
|-----------------------------------------|--------------------------------------------------|----------------------------------------|
|                                    |                                             |                                   |   | Restated |
|                                    |                                             | 2008                                   |   | 2007 |
|                                    |                                             |                                   |   |   |
| NET      LOSS                           |  $     (4,248,795) |                                   |  $     (3,535,976) |
|                                    |                                             |                                   |   |   |
| Other      comprehensive income (loss): |                                             |                                   |   |
|                                    | Foreign      currency translation, net of tax    | 9,905                                  |   | 453 |
|                                    |                                             |                                   |   |   |
| Comprehensive      loss                 |  $     (4,238,890) |                                   |  $     (3,535,523) |

----

----

----

|                                       |                                             |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        | Three      Months Ended March 31,                                                                                         |
|--------------------------------------------|--------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                       |                                             |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        |                                                                                                                      |   | Restated |
|                                       |                                             |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        | 2008                                                                                                                      |   | 2007 |
| CASH      FLOWS FROM OPERATING ACTIVITIES: |                                             |                                                                                                                      |                                                                             |
|                                       | Net      loss                                    |                                                                                                                      |                                                                             |  $     (4,248,795)                                                                          |                                                                                        |  $     (3,535,976)                                                                          |
|                                       | Adjustments      to reconcile net loss to net    |                                                                                                                      |                                                                             |                                                                                                                      |
|                                       |                                             | cash      used in operating activities-                                                                                   |                                                                             |                                                                                                                      |                                                                                        |
|                                       |                                             |                                                                                                                      | Depreciation      and amortization                                               |           1,379,989                                                     |                                                                                        | 1,336,005                                                                                                                 |
|                                       |                                             |                                                                                                                      | Amortization      on beneficial conversion features                              |             343,286                                           |                                                                                        | 303,441                                                                                                                   |
|                                       |                                             |                                                                                                                      | Amortization      on warrant valuation                                           |             260,850                                           |                                                                                        | 234,489                                                                                                                   |
|                                       |                                             |                                                                                                                      | Provision      for doubtful accounts                                             |                 7,130                     |                                                                                        |                     - |
|                                       |                                             |                                                                                                                      | Provision      for sales returns                                                 |             308,782                                           |                                                                                        |             309,047                                           |
|                                       |                                             |                                                                                                                      | Writedown      of inventories                                                    |               47,545                                |                                                                                        |                     - |
|                                       |                                             |                                                                                                                      | Stock      based compensation                                                    |             296,923                                           |                                                                                        |             627,023                                           |
|                                       |                                             |                                                                                                                      | Interest      expense on financing agreements net of payments                    |             327,539                                           |                                                                                        |             412,998                                           |
|                                       | Changes      in assets and liabilities-          |                                                                                                                      |                                                                             |                                                                                                                      |
|                                       |                                             | (Increase)      decrease in:                                                                                              |                                                                             |                                                                                                                      |                                                                                        |
|                                       |                                             |                                                                                                                      | Accounts      receivable                                                         |                                                                                                                      |           1,202,979                       |                                                                                                                      | (2,570,397) |
|                                       |                                             |                                                                                                                      | Inventories                                                                      |                                                                                                                      |            (371,450)                 |                                                                                                                      | (351,618) |
|                                       |                                             |                                                                                                                      | Prepaid      expenses and other current assets                                   |             233,721                                           |                                                                                        | 243,646                                                                                                                   |
|                                       |                                             |                                                                                                                      | Other      assets                                                                |                                                                                                                      |               (4,491) |                                                                                                                      | (202,523) |
|                                       |  Increase      (decrease) in:               |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        |
|                                       |                                             |                                                                                                                      | Accounts      payable                                                            |                                                                                                                      |             304,428             |                                                                                                                      | (328,429) |
|                                       |                                             |                                                                                                                      | Accrued      expenses                                                            |                                                                                                                      |            (323,982)                 |                                                                                                                      | (1,381,346) |
|                                       |                                             |                                                                                                                      | Deferred      revenue                                                            |                                                                                                                      |            (179,440)                 |                                                                                                                      | (63,280) |
|                                       | Net      cash used in operating activities       |            (414,986)                                               |                                                                             | (4,966,920)                                                                                                               |
|                                       |                                             |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        |                                                                                                                      |   |   |
| CASH      FLOWS FROM INVESTING ACTIVITIES: |                                             |                                                                                                                      |                                                                             |
|                                       | Purchase      of property and equipment          |            (119,368)                                               |                                                                             |                     - |
|                                       |                                             |                                                                                                                      | Net      cash used in investing activities                                       |            (119,368)                                               |                                                                                        |                     - |
|                                       |                                             |                                                                                                                      |                                                                             |                                                                                                                      |                                                                                        |                                                                                                                      |   |   |
| CASH      FLOWS FROM FINANCING ACTIVITIES: |                                             |                                                                                                                      |                                                                             |
|                                       | Proceeds      from the sale of common stock, net |                     - |                                                                             |                     - |
|                                       | Proceeds      from exercise of options           |                 7,803                     |                                                                             |                     - |
|                                       | Payments      for purchase of treasury stock     |             (17,279)                                          |                                                                             |                     - |
|                                       | Payments      pursuant to financing agreements   |         (3,540,949)                                                               |                                                                             |                     - |
|                                       | Dividends      paid                              |                                                                                                                      |             (14,062) |                                                                                                                      | (34,063)                                                                                    |
|                                       |                                             |                                                                                                                      | Net      cash used in financing activities                                       |         (3,564,487)                                                               |                                                                                        | (34,063)                                                                                                                  |

----

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----

|                                         |                                                               |                                                               | Three      Months Ended March 31,                                            |
|----------------------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|------------------------------------------------------------------------------|
|                                         |                                                               |                                                               |                                                                         | Restated |
|                                         |                                                               | 2008                                                               |                                                                         | 2007 |
|                                         |                                                               |                                                               |                                                                         |   |
| EFFECT      OF EXCHANGE RATE CHANGES ON CASH |  $         9,905 |                                                               |  $           453 |
|                                         |                                                               |                                                               |                                                                         |   |
| NET      (DECREASE) IN CASH                  |     (4,088,936)                                |                                                               | (5,000,530)                                                                  |
|                                         |                                                               |                                                               |                                                                         |   |
| CASH,      BEGINNING OF PERIOD               | 17,221,811                                                         |                                                               | 25,270,377                                                                   |
|                                         |                                                               |                                                               |                                                                         |   |
| CASH      END OF PERIOD                      |  $      13,132,875                                            |                                                               |  $20,269,847                                                            |
|                                         |                                                               |                                                               |                                                                         |   |
| NON-CASH      INVESTING ACTIVITES            |                                                               |                                                               |                                                                         |
|                                         |                                                               |                                                               |                                                                         |   |
|                                         | Increase      of US CRINONE license right                          | -                                                                  |                                                                         | $1,000,000 |
|                                         |                                                               |                                                               |                                                                         |   |
| NON-CASH      FINANCING ACTIVITIES           |                                                               |                                                               |                                                                         |
|                                         |                                                               |                                                               |                                                                         |   |
|                                         | Conversion      of Series C and Series E preferred shares          |  $         2,274 |                                                                         |  $       14,121 |

----

----

----

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|                                               | Three      months ending           |   | Three      months ending           |
|----------------------------------------------------|------------------------------------|--------|------------------------------------|
|                                               | March      31,                     |   | March      31,                     |
|                                               | 2008                               |   | 2007                               |
|                                               |                               |   |                               |
| Balance      at beginning of year                  | $    1,923,765 |   | $    1,240,235 |
|                                               |                               |   |                               |
| Provision:                                         |                               |   |                               |
|   Related      to current period sales * | 158,782                            |   | 127,156                            |
|   Related      to prior period sales     | 150,000                            |   | 181,891                            |
|                                               | 308,782                            |   | 309,047                            |
|                                               |                               |   |                               |
| Returns:                                           |                               |   |                               |
|   Related      to prior period sales     | (240,350)                          |   | (451,974)                          |
|                                               | (240,350)                          |   | (451,974)                          |
|                                               |                               |   |                               |
| Balance      at end of quarter                     | $    1,992,197 |   | $    1,097,307 |
| *      Sales for 3 months subject to returns       | $    4,301,803 |   | $    3,434,596 |

|                | March      31,                                       |   | December      31,                                    |
|---------------------|------------------------------------------------------|--------|------------------------------------------------------|
|                | 2008                                                 |   | 2007                                                 |
| Finished      goods |  $      2,233,517 |   |  $      1,734,052 |
| Raw      materials  | 1,137,517                                            |   | 1,313,077                                            |
|                |                                                 |   |                                                 |
|                |  $      3,371,034 |   |  $      3,047,129 |
|                |                                                 |   |                                                 |

----

----

----

|                                   |                                                                                               |   |                                                |
|----------------------------------------|----------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------|
|                                   | March      31,                                                                                     |   | December      31,                                   |
|                                   | 2008                                                                                               |   | 2007                                                |
| July      31, 2002 financing agreement |  $               - |   |  $    3,620,653            |
| March      5, 2003 financing agreement |      11,998,729                                                           |   |      11,591,486            |
|                                   |      11,998,729                                                           |   |      15,212,139            |
| Less:      current portion             |          164,630                                      |   |        3,786,538 |
|                                   |  $  11,834,099                                                                      |   |  $  11,425,601                       |
|                                   |                                                                                               |   |                                                |

----

----

----

|                                |                          |                                              |   |                                                                                                          |
|-------------------------------------|-------------------------------|---------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|
|                                |                          | Net                                               |   | Long      Lived                                                                                               |
|                                |                          | Revenues                                          |   | Assets                                                                                                        |
|                                |                          |                                              |   |                                                                                                          |
| As      of and for the three months |                          |                                              |   |
| ended      March 31, 2008           |                          |                                              |   |
|                                | United      States            |  $      6,125,155                            |   |  $  29,079,370                                                                                 |
|                                | Switzerland                   |     2,530,704                 |   |                   - |
|                                | Other      European countries |        412,869 |   |          886,544                                                 |
|                                | Total      International      |     2,943,573                 |   |          886,544                                                 |
|                                | Total                         |  $      9,068,728                            |   |  $  29,965,914                                                                                 |
|                                |                          |                                              |   |                                                                                                          |
| As      of and for the three months |                          |                                              |   |
| ended      March 31, 2007           |                          |                                              |   |
|                                | United      States            |  $      4,597,463                            |   |  $  33,378,108                                                                                 |
|                                | Switzerland                   |     1,860,252                 |   |                   - |
|                                | Other      European countries |        226,905 |   |          652,917                                                 |
|                                | Total      International      |     2,087,157                 |   |          652,917                                                 |
|                                | Total                         |  $      6,684,620                            |   |  $  34,031,025                                                                                 |
|                                |                          |                                              |   |                                                                                                          |

----

----

----

|                        |                                                   | Three      Months EndedMarch      31,                                                       |
|-----------------------------|--------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                        |                                                   |                                                                                        |   |   |
|                        |                                                   |                                                                                        |   | Restated |
|                        |                                                   | 2008                                                                                        |   | 2007 |
|                        |                                                   |                                                                                        |   |   |
| Net      loss               |  $     (4,248,795)       |                                                                                        |  $     (3,535,976) |
|                        | Less:      Preferred stock dividends                   | (14,062)                                                                                    |   | (34,063) |
|                        |                                                   |                                                                                        |   |   |
| Net      loss applicable to |                                                   |                                                                                        |   |
|                        | common      stock                                      |  $     (4,262,857)                                            |   |  $     (3,570,039) |
|                        |                                                   |                                                                                        |   |   |
| Basic      and diluted:     |                                                   |                                                                                        |   |
|                        | Weighted      average number of                        |                                                                                        |   |   |
|                        |     common      shares outstanding |         51,964,036                                  |   | 50,081,448 |
|                        |                                                   |                                                                                        |   |   |
|                        | Basic      and diluted net loss per common share       |  $             (0.08) |   |  $             (0.07) |
|                        |                                                   |                                                                                        |   |   |

----

----

----

----

----

----

|                       |   | Fiscal      2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|----------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Progesterone      Products |   |         o       CRINONE ®      8% (progesterone gel) marketed by the Company in the U.S.         o   CRINONE ®      8% sold to Merck Serono for foreign markets    o   PROCHIEVE ®      8% (progesterone gel)    o   PROCHIEVE ®      4% sold to Ascend Therapeutics, Inc., beginning January 1,      2008                                                                                                                                                                                |
|                       |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Other      Products        |   |         o   STRIANT®      (testosterone buccal system) marketed by the Company in the      U.S.         o   STRIANT®      sold to our partners for foreign markets         o   Replens®      Vaginal Moisturizer sold to Lil’ Drug Store Products, Inc (“Lil’ Drug      Store”) for foreign markets         o   RepHresh®      Vaginal Gel sold to Lil’ Drug Store on a worldwide basis         o   Royalty and licensing      revenues |

----

----

----

----

----

----

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----

|                      | Three      Months Ended March      31,                                                                           |
|---------------------------|------------------------------------------------------------------------------------------------------------------|
|                      |                                                                                                             |   | Restated |
|                      | 2008                                                                                                             |   | 2007 |
| Cash      flows:          |                                                                                                             |   |   |
| Operating      activities | $                 (414,986) |   |  $             (4,966,920) |
| Investing      activities |        (119,368)                                                              |   | - |
| Financing      activities | (3,564,487)                                                                                                      |   | (34,063) |

----

----

----

----

----

----

----

----

----

|                         | 3 months      ending  March      31, 2008 |  3      months ending March 31, 2007 |
|------------------------------|------------------------------------------------|-------------------------------------------|
| Risk      free interest rate | 2.48%                                          | 4.54%                                     |
| Expected      term           | 4.75      years                                | 4.50      years                           |
| Dividend      yield          | 0.0                                            |  0.0                                 |
| Expected      volatility     | .8518                                          | .8567                                     |

----

----

----

----

----

----

----

----

----

| (a)   | Exhibits |
|-----------------|----------|

|  31.1 |   |  Rule      13a-14(a)/15d-14(a) Certification of Chief Executive Officer of the      Company.                                            |
|------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------|
|  31.2 |   |  Rule      13a-14(a)/15d-14(a) Certification of Chief Financial Officer of the      Company.                                            |
|  32.1 |   |  Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      the Sarbanes-Oxley Act of 2002. |
|  32.2 |   |  Certification      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of      theSarbanes-Oxley Act of 2002.       |

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