| Delaware                          | 95-4106894                           |
|-----------------------------------|--------------------------------------|
| (State or other jurisdiction      | (I.R.S. Employer Identification No.) |
| of incorporation or organization) |                                 |

| Large Accelerated Filer ¨ |   | Accelerated Filer ¨    |
|--------------------------------|--------|-----------------------------|
| Non-accelerated filer ¨   |   | Smaller Reporting Company x |

----

| Class                                     |   | Outstanding October 8, 2009 |
|-------------------------------------------|--------|-----------------------------|
|                                      |   |                        |
| Common Stock, par value $0.0001 per share |   | 47,823,695 shares           |

----

|  Index |                          |                                                                                                                                  |   | Page No. |
|-------------|-------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|----------|
| PART I.     | FINANCIAL INFORMATION         |                                                                                                                                  |   |     |
|        |                          |                                                                                                                                  |   |     |
|        | ITEM 1.                       | Financial Statements (Unaudited)                                                                                                      |   |     |
|        |                          |                                                                                                                                  |   |     |
|        |                          | Statement Regarding Financial Information                                                                                             |   | 4        |
|        |                          |                                                                                                                                  |   |     |
|        |                          | Condensed Consolidated Balance Sheets as of August 31, 2009 (Un-audited) and February 28, 2009                                        |   | 5        |
|        |                          |                                                                                                                                  |   |     |
|        |                          | Condensed Consolidated Statements of Operations for the Three and Six Months Ended August 31, 2009 (Un-audited) and 2008 (Un-audited) |   | 6        |
|        |                          |                                                                                                                                  |   |     |
|        |                          | Condensed Consolidated Statements of Cash Flows for the Six Months Ended August 31, 2009 (Un-audited) and 2008 (Un-audited)           |   | 7        |
|        |                          |                                                                                                                                  |   |     |
|        |                          | Notes to Condensed Consolidated Financial Statements (Un-audited)                                                                     |   | 8        |
|        |                          |                                                                                                                                  |   |     |
|        | ITEM 2.                       | Management's Discussion and Analysis of Financial Condition and Results of Operations                                                 |   | 16       |
|        |                          |                                                                                                                                  |   |     |
|        | ITEM 4T.                      | Controls and Procedures                                                                                                               |   | 20       |
|        |                          |                                                                                                                                  |   |     |
| PART II.    | OTHER INFORMATION             |                                                                                                                                  |   |     |
|        |                          |                                                                                                                                  |   |     |
|        | ITEM 2.                       | Unregistered Sales of Equity Securities and Use of Proceeds                                                                           |   | 21       |
|        |                          |                                                                                                                                  |   |     |
|        | ITEM 6.                       | Exhibits                                                                                                                              |   | 21       |
|        |                          |                                                                                                                                  |   |     |
|        | SIGNATURES AND CERTIFICATIONS |                                                                                                                                  | 22     |

----

----

|                                                                                                                                                                   |   | August 31, 2009 |          |   | February 28, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------|---------------|--------|-------------------|--------|
| ASSETS                                                                                                                                                                 |   | (Un-audited)    |          |   |              |   |
| Current assets:                                                                                                                                                        |   |            |          |   |              |   |
| Cash and cash equivalents                                                                                                                                              |   | $               | 233,796       |   |              | $      | 317,256 |   |
| Accounts receivable, net of allowance for doubtful accounts of $60,000 and $60,000                                                                                     |   |            | 433,371       |   |              |   | 319,249 |   |
| Current inventories                                                                                                                                                    |   |            | 1,500,000     |   |              |   | 1,500,000 |   |
| Other current assets                                                                                                                                                   |   |            | 310,127       |   |              |   | 255,620 |   |
| Total current assets                                                                                                                                                   |   |            | 2,477,294     |   |              |   | 2,392,125 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Property, plant, and equipment, net                                                                                                                                    |   |            | 498,435       |   |              |   | 353,444 |   |
| Non-current inventories net of allowance for obsolete inventories of $2,390,375 and $2,425,994                                                                         |   |            | 2,439,329     |   |              |   | 2,545,978 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Total assets                                                                                                                                                           |   | $               | 5,415,057     |   |              | $      | 5,291,547 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Current liabilities:                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Accounts payable                                                                                                                                                       |   | $               | 1,188,071     |   |              | $      | 1,075,202 |   |
| Current portion of notes payable, net of debt discount                                                                                                                 |   |            | 917,777       |   |              |   | 225,000 |   |
| Notes payable- related party                                                                                                                                           |   |            | 3,920,000     |   |              |   | 1,800,000 |   |
| Customer advances                                                                                                                                                      |   |            | 545,174       |   |              |   | 418,612 |   |
| Accrued expenses                                                                                                                                                       |   |            | 1,555,042     |   |              |   | 1,037,917 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Total current liabilities                                                                                                                                              |   |            | 8,126,064     |   |              |   | 4,556,731 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Convertible notes payable, net of current portion                                                                                                                      |   |            | 606,848       |   |              |   | 500,000 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Total liabilities                                                                                                                                                      |   |            | 8,732,912     |   |              |   | 5,056,731 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Commitments and contingencies                                                                                                                                          |   |            |          |   |              |   |   |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Stockholders' equity (deficit):                                                                                                                                        |   |            |          |   |              |   |   |   |
| Common stock, $0.0001par value, 75,000,000 and 50,000,000 shares authorized, 47,562,113 and 46,344,470 issued and outstanding at August 31, 2009 and February 28, 2009 |   |            | 4,756         |   |              |   | 4,634 |   |
| Additional paid-in capital                                                                                                                                             |   |            | 371,894,826   |   |              |   | 364,222,963 |   |
| Subscription  receivable                                                                                                                                     |   |            | (27,416       | )      |              |   | (27,416 | ) |
| Stock to be issued                                                                                                                                                     |   |            | 130,000  |   |              |   | - |   |
| Accumulated deficit                                                                                                                                                    |   |            | (375,320,021  | )      |              |   | (363,965,365 | ) |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Total stockholders' equity (deficit)                                                                                                                                   |   |            | (3,290,438    | )      |              |   | 234,816 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
| Total liabilities and stockholders' equity                                                                                                                             |   | $               | 5,415,057     |   |              | $      | 5,291,547 |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |
|                                                                                                                                                                   |   |            |          |   |              |   |   |   |

----

|                                                                             |   | Three Months |        | Six Months |   |
|----------------------------------------------------------------------------------|--------|--------------|-------------|------------|--------|
|                                                                             |   | 2009         |        | 2008       |   | 2009 |   | 2008 |   |
| Net Revenues                                                                     |   | $            | 632,111     |       | $      | 590,425 |   | $ | 1,264,806 |   | $ | 825,985 |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Cost of goods sold                                                               |   |         | 519,944     |       |   | 602,729 |   |   | 821,036 |   |   | 783,671 |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Gross Profit (Loss)                                                              |   |         | 112,167     |       |   | (12,304) |   |   | 443,770 |   |   | 42,314 |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Expenses                                                                         |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Engineering, research and development expenses                                   |   |         | 555,143     |       |   | 575,437 |   |   | 1,064,275 |   |   | 938,115 |   |
| Selling, general and administrative expenses                                     |   |         | 1,941,855   |       |   | 2,110,471 |   |   | 3,731,550 |   |   | 3,778,748 |   |
| Stock option compensation expense                                                |   |         | 6,561,011   |       |   | 73,749 |   |   | 6,644,518 |   |   | 207,164 |   |
| Total costs and expenses                                                         |   |         | 9,058,009   |       |   | 2,759,657 |   |   | 11,440,343 |   |   | 4,924,027 |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Loss from operations                                                             |   |         | (8,945,842) |       |   | (2,771,961) |   |   | (10,996,573) |   |   | (4,881,713) |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Other income and (expense)                                                       |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Interest expense, net                                                            |   |         | (235,829)   |       |   | (70,455) |   |   | (336,233) |   |   | (126,022) |   |
| Other income (expense), net                                                      |   |         | (19,075)    |       |   | 17,043 |   |   | (21,850) |   |   | 143,774 |   |
| Total other income (expense)                                                     |   |         | (254,904)   |       |   | (53,412) |   |   | (358,083) |   |   | 17,752 |   |
| Net Loss                                                                         |   | $            | (9,073,629) |       | $      | (2,825,373) |   | $ | (11,354,656) |   | $ | (4,863,961) |   |
|                                                                             |   |         |        |       |   |   |   |   |   |   |   |   |   |
| Total basic and diluted loss per share                                           |   | $            | (0.19)      |       | $      | (0.07) |   | $ | (0.24) |   | $ | (0.12) |   |
| Weighted average shares used tocompute basic and diluted income (loss) per share |   |         | 47,425,400  |       |   | 40,484,276 |   |   | 47,035,475 |   |   | 39,449,720 |   |

----

|                                                                       |   | 2009   |        |   | 2008   |   |
|----------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|
| Cash flow from operating activities:                                       |   |   |        |   |   |   |
| Net Loss                                                                   |   | $      | (11,354,656 | )      |   | $      | (4,863,961 | ) |
| Adjustments to reconcile Net loss to net cash used in operating activities |   |   |        |   |   |   |   |   |
| Depreciation Expense                                                       |   |   | 55,634      |   |   |   | 23,573 |   |
| Issuance of stock as per employment agreement                              |   |   | -           |   |   |   | 100,000 |   |
| Amortization of debt discount                                              |   |   | 140,556     |   |   |   | - |   |
| Loss on settlement of debt                                                 |   |   | 22,750      |   |   |   | - |   |
| Stock options and warrants expense                                         |   |   | 6,644,518   |   |   |   | 207,164 |   |
| (Increase) decrease in:Accounts receivable                                 |   |   | (114,122    | )      |   |   | 246,862 |   |
| Inventory                                                                  |   |   | 213,497     |   |   |   | 50,492 |   |
| Other current assets and deposit                                           |   |   | (54,507     | )      |   |   | 35,875 |   |
| Increase (decrease) in:                                                    |   |   |        |   |   |   |   |   |
| Accounts payable, customer deposit and accrued expenses                    |   |   | 756,557     |   |   |   | 696,006 |   |
| Net cash used in operations                                                |   |   | (3,689,763  | )      |   |   | (3,503,989 | ) |
|                                                                       |   |   |        |   |   |   |   |   |
| Investing activities:                                                      |   |   |        |   |   |   |   |   |
| Acquisition of plant and equipment                                         |   |   | (200,625    | )      |   |   | (60,425 | ) |
|                                                                       |   |   |        |   |   |   |   |   |
| Net cash used by investing activities                                      |   |   | (200,625    | )      |   |   | (60,425 | ) |
|                                                                       |   |   |        |   |   |   |   |   |
| Financing activities:                                                      |   |   |        |   |   |   |   |   |
| Issuance of common stock                                                   |   |   | 785,000     |   |   |   | 603,400 |   |
| Proceeds from (repayments of) notes payable, net                           |   |   | 2,927,500   |   |   |   | 552,251 |   |
| Collections on (increase in) subscriptions receivable                      |   |   | -           |   |   |   | 224,916 |   |
| Proceeds from stock to be issued                                           |   |   | -           |   |   |   | 64,970 |   |
| Exercise of warrants                                                       |   |   | 94,428      |   |   |   | 2,205,277 |   |
|                                                                       |   |   |        |   |   |   |   |   |
| Net cash provided by financing activities:                                 |   |   | 3,806,928   |   |   |   | 3,650,814 |   |
|                                                                       |   |   |        |   |   |   |   |   |
| Net increase (decrease) in cash & cash equivalents                     |   |   | (83,460     | )      |   |   | 86,400 |   |
|                                                                       |   |   |        |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                           |   |   | 317,256     |   |   |   | 37,532 |   |
|                                                                       |   |   |        |   |   |   |   |   |
| Cash and cash equivalents at end of period                                 |   | $      | 233,796     |   |   | $      | 123,932 |   |
|                                                                       |   |   |        |   |   |   |   |   |
| Supplemental disclosures of cash flow information                          |   |   |        |   |   |   |   |   |
| Cash paid during the period for:                                           |   |   |        |   |   |   |   |   |
| Interest                                                                   |   | $      | 17,424      |   |   | $      | 110,601 |   |
| Income taxes                                                               |   | $      | -           |   |   | $      | - |   |

----

----

| Buildings               | 40 years      |
|-------------------------|---------------|
| Machinery and equipment | 5 to 10 years |
| Furniture and fixtures  | 7 years       |

----

In March 2008, the FASB issued FASB Statement No. 161 or ASC section 815, Disclosures about Derivative Instruments and Hedging Activities. The new standard is intended to improve financial reporting about derivative instruments and hedging activities by requiring enhanced disclosures to enable investorsto better understand their effects on an entity’s financial position, financial performance, and cash flows. It is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. The new standard also improves transparency about the location and amounts of derivative instruments in an entity’s financial statements; how derivative instruments and related hedged items are accounted for under Statement 133; and how derivativeinstruments and related hedged items affect its financial position, financial performance, and cash flows. Management is currently evaluating the effect of this pronouncement on financial statements. 

----

|                                        |   | August 31, 2009 |       |   | February 28, 2009 |   |
|---------------------------------------------|--------|----------------------|------------|--------|-------------------|--------|
|                                        |   |                 |       |   |              |   |
| Raw materials                               |   | $                    | 2,811,335  |   |              | $      | 2,642,833 |   |
| Finished goods                              |   |                 | 3,645,485  |   |              |   | 3,829,139 |   |
| Reserved for potential product obsolescence |   |                 | (2,363,033 | )      |              |   | (2,271,535 | ) |
|                                        |   |                 |       |   |              |   |   |   |
|                                        |   |                 | 4,093,787  |   |              |   | 4,200,437 |   |
| Non-current portion                         |   |                 | (2,439,329 | )      |              |   | (2,545,978 | ) |
| Discount on long term inventory             |   |                 | (154,459   | )      |              |   | (154,459 | ) |
|                                        |   |                 |       |   |              |   |   |   |
| Current portion                             |   | $                    | 1,500,000  |   |              | $      | 1,500,000 |   |
|                                        |   |                 |       |   |              |   |   |   |

|                                           |   | August 31, 2009 |      |   | February 28, 2009 |   |
|------------------------------------------------|--------|-----------------|-----------|--------|-------------------|--------|
|                                           |   |            |      |   |              |   |
| Machinery and equipment                        |   | $               | 1,056,587 |   |              | $      | 1,054,422 |   |
| Furniture and fixtures                         |   |            | 1,438,312 |   |              |   | 1,438,312 |   |
| Leasehold Improvements                         |   |            | 398,584   |   |              |   | 200,124 |   |
|                                           |   |            |      |   |              |   |   |   |
|                                           |   |            | 2,893,483 |   |              |   | 2,692,858 |   |
| Less accumulated depreciation and amortization |   |            | 2,395,048 |   |              |   | 2,339,414 |   |
|                                           |   |            |      |   |              |   |   |   |
| Property, plant and equipment, net             |   | $               | 498,435   |   |              | $      | 353,444 |   |
|                                           |   |            |      |   |              |   |   |   |

----

|                                 |   | August 31, 2009 |      |   | February 28, 2009 |   |
|--------------------------------------|--------|-----------------|-----------|--------|-------------------|--------|
|                                 |   |            |      |   |              |   |
| Accrued payroll and related expenses |   | $               | 1,251,681 |   |              | $      | 904,849 |   |
| Other                                |   |            | 303,361   |   |              |   | 133,068 |   |
|                                 |   |            |      |   |              |   |   |   |
| Total                                |   | $               | 1,555,042 |   |              | $      | 1,037,917 |   |
|                                 |   |            |      |   |              |   |   |   |

|                                      |   | August 31, 2009 |      |   | February 28, 2009 |   |
|-------------------------------------------|--------|-----------------|-----------|--------|-------------------|--------|
|                                      |   |            |      |   |              |   |
| Demand notes payable  (a)       |   | $               | 240,000   |   |              | $      | 225,000 |   |
| Convertible note payable (b)              |   |            | 1,364,348 |   |              |   | 500,000 |   |
|                                      |   |            | 1,604,348 |   |              |   | 725,000 |   |
| Less: Un-amortized debt discount          |   |            |      |   |              |   |   |   |
|   Beneficial conversion feature |   |            | 79,723    |   |              |   | - |   |
| Notes payable, net                        |   |            | 1,524,625 |   |              |   | 725,000  |   |
|                                      |   |            |      |   |              |   |   |   |
| Less: Current portion                     |   |            | 997,500   |   |              |   | 225,000 |   |
|                                      |   |            |      |   |              |   |   |   |
| Long-term portion                         |   | $               | 606,848   |   |              | $      | 500,000 |   |
|                                      |   |            |      |   |              |   |   |   |

|   | (a) | Consists of two demand notes payable, with interest at an annual rate of 10%, on which $7,640 in interest was accrued during the six months ended August 31, 2009, and one demand note with an original balance of $100,000 and a remaining balance of $40,000 with a flat interest fee of $10,000, which has already been paid. During the six month period ended August 31, 2009, the Company settled $35,000 of the notes in58,333 shares of the common stock of the Company. The Company recorded a loss on settlement of  debt of $22,750 on the partial settlement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Consists of two convertible notes payable totaling $606,848, bearing interest at a rate of 7%, due in 2013. The notes are convertible into our common stock at a price of $3.00 per share. The Company accrued interest of $19,549 on the notes during the six months ended August 31, 2009. In April 2009, the Company arranged a debt financing aggregating $192,500 from unrelated parties in exchange for the issuance of 120day 10% secured convertible promissory notes and 30,800 warrants at an exercise price of $1.25 for the first year. The performance of the notes is secured by all the inventory of the Company specifically pertaining to the WePower purchase order including all the proceeds arising from the sale or lease of all or any part thereof. The notes are convertible into our common stock at a price of $0.75 per share. The Company accrued interest of $1,811 on the notes during the six months ended August 31, 2009. Also consistsof six convertible notes entered into during the second quarter of fiscal 2010 totaling $565,000. The notes carry an interest rate of 10%, are for a term of 180 days, and are convertible into common stock of the company at $0.75 per share. The company accrued interest of $11,673 on the notes during the six months ended August 31, 2009. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Year Ending February 28, |   |   |      |
|--------------------------|--------|--------|-----------|
| 2010                     |   | $      | 997,500   |   |
| 2011                     |   |   | -         |   |
| 2012                     |   |   | -         |   |
| 2013                     |   |   | 606,848   |   |
|  Total              |   | $      | 1,604,348 |   |

----

|                           |   | 2006 Plan                       |
|--------------------------------|--------|---------------------------------|
|                           |   | Weighted-Average Exercise Price |   | Aggregate Intrinsic Value |   | Number of Options |
| Outstanding, February 28, 2009 |   | $2.00-3.00                      |   | $0.00 |   | 1,913,000 |
| Issued                         |   | $1.50                           |   | $0.00 |   | 6,915,500 |
| Cancelled                      |   | $2.00-3.00                      |   |   |   | (1,913,000) |
|                           |   |                            |   |   |   |   |
| Outstanding, August 31, 2009   |   | $1.50                           |   | $0.00 |   | 6,915,500 |

| Options Outstanding    |   | Exercisable Options |      |
|------------------------|--------|---------------------|-----------|
| Range of ExercisePrice |   | Number              |      | Weighted Average Remaining Life |   | Weighted Average Exercise Price |   | Weighted Average Remaining Life |   | Number |   | Weighted Average Exercise Price |   |
|   $1.50           |   |                | 6,915,500 |   |   | 4.75 years |   | $ | 1.50 |   |   | 4.75 years |   |   | 4,267,038 |   | $ | 1.50 |   |

|                           | Number of Shares | Exercise Prices |
|--------------------------------|------------------|-----------------|
| Outstanding, February 28, 2009 | 3,452,511        | $2.00-4.00      |
| Issued                         | 1,930,800        | $1.25-1.50      |
| Exercised                      | (94,428)         | $1.00           |
| Outstanding, August 31, 2009   | 5,288,883        | $1.25-4.00      |

| Range of Exercise Prices |   | Stock Warrants Outstanding |   | Stock Warrants Exercisable |   | Weighted-Average Remaining Contractual Life |   | Weighted-Average Exercise Price of Warrants Outstanding |   | Weighted-Average Exercise Price of Warrants Exercisable |   |  Intrinsic Value |
|--------------------------|--------|----------------------------|--------|----------------------------|--------|---------------------------------------------|--------|---------------------------------------------------------|--------|---------------------------------------------------------|--------|-----------------------|
| $1.25                    |   | 30,800                     |   | 30,800                     |   | 56 months                                   |   | $1.25                                                   |   | $1.25                                                   |   | $0.00                 |
| $1.50                    |   | 1,900,000                  |   | 1,900,000                  |   | 58 months                                   |   | $1.50                                                   |   | $1.50                                                   |   | $0.00                 |
| $2.00-$3.00              |   | 1,934,991                  |   | 1,782,908                  |   | 18 months                                   |   | $2.44                                                   |   | $2.49                                                   |   | $0.00                 |
| $3.50                    |   | 805,589                    |   | 805,589                    |   | 28 months                                   |   | $3.50                                                   |   | $3.50                                                   |   | $0.00                 |
| $4.00                    |   | 617,503                    |   | 617,503                    |   | 17 months                                   |   | $4.00                                                   |   | $4.00                                                   |   | $0.00                 |
|                     |   |  5,288,883            |   |  5,136,800            |   |                                        |   |                                                    |   |                                                    |   |                  |

----

|          |   | 2009   |      |   | 2008   |   |
|---------------|--------|--------|-----------|--------|--------|--------|
|          |   |   |      |   |   |   |
| United States |   | $      | 1,076,346 |   |   | $      | 579,622 |   |
| Canada        |   |   | 162,293   |   |   |   | 202,804 |   |
| Asia          |   |   | 9,276     |   |   |   | 37,420 |   |
| Europe        |   |   | 16,891    |   |   |   | 6,139 |   |
|          |   |   |      |   |   |   |   |   |
| Total         |   | $      | 1,264,806 |   |   | $      | 825,985 |   |
|          |   |   |      |   |   |   |   |   |

----

| · | Our ability to generate positive cash flow from operations; |
|--------|-------------------------------------------------------------|

| · | Our ability to obtain additional financing to fund our operations; |
|--------|--------------------------------------------------------------------|

| · | Our business development and  operating development; and |
|--------|--------------------------------------------------------------------|

| · | Our expectations of growth in demand for our products. |
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