CAPITALIZATION

Total Debt :

Note payable - (Demand note-Board member)

Convertible Notes ($3 conversion, 7% coupon)

Convertible Notes ($0.75 conversion, 10% coupon)

Stockholder's equity:

Common Stock, shares authorized

Shares issued and outstanding

Common stock & Additional paid-in capital
(Includes pre-bankruptcy balance)

Accumulated deficit (Includes pre-bankruptcy balance)

Net stockholder's equity (deficit)

Total Capitalization

$5,550,000

$500,000

$ 547,500

75,000,000

53,247,823

$ 375,934,256

$380,978,924

$5,044,668

$ 1,552,832

Notes: Total warrents issued and outstanding: 6,353,890

3,159,072 exercisable at $4.00

1,021,097 exercisable at $3.00

1,300,000 exercisable at $1.50

873,721 exercisable at $1.25

Total employee stock options and outstanding

5,888,500