Jason Konior

Income At December 31, 2003, the Company had net operating loss Taxes carryforwards of approximately $44 million and research Continued and development tax credit carryforwards of approximately $34,000. These carryforwards are available to offset future taxable income and expire in 2004 through 2020. The utilization of the net operating loss carryforwards is dependent upon the tax laws in effect at the time the net operating loss carryforwards can be utilized. The Tax Reform Act of 1986 significantly limits the annual amount that can be utilized for certain of these carryforwards as a result of the change in ownership.

Capital The Company has established a series of preferred stock Stock with a total of 5,000,000 authorized shares and a par value of $.001, and one series of common stock with a par value of $.001 and a total of 40,000,000 authorized shares.