1. The number of shares of Common Stock outstanding as of August 29, 2008, was 407,475,620

2. On August 8, 2008, 387,448,755 shares of common stock, par value $.00001 per share (the issuer’s only class of voting stock) were outstanding.

Statement 1 is from the Proxy issued on Friday. Statement 2 is from the Annual Report issued on the 14th. The difference is 20,026,865 shares. The Crosslo deal was to have $7.4M in shares, and the average price during the pricing period was about $0.24 per share so this difference doesn't account for the Crossflo shares as this amount of shares at that price is only $4.8M worth. So if this 20M shares doesn't represent the Crossflo shares, what does it represent? Also, if this is accurate, then there will be 440M shares outstanding as of the Crossflo deal closing (9/1).

I haven 't have time to dissect this so if I'm missing something obvious, my apologies, but can someone tell me why we all of a sudden have a 20M share jump in our shares outstanding. I thought we paid Avot in cash, and I didn't think we gave anything near this amount to Imperial for the new relationship with them. What am I missing? Thanks.