Three Months Ended Nine Months Ended

September 30, September 30,

2008 2007 2008 2007

(Unaudited) (Unaudited)

Sales $ 54,141 $ 95,001 $ 601,866 $ 138,833

Cost of sales (116,830) 59,582 389,128 85,543

Gross profit 170,971 35,419 212,738 53,290

Expenses:

Wages and consulting fees 186,214 115,883 455,912 298,297

Professional fees (52,575) 357,875 363,819 647,025

Selling, general and administrative 217,712 187,435 701,534 394,254

Stock based compensation - 517,500 - 517,500

Amortization 94,993 88,217 284,979 255,572

Interest 62,024 140,443 228,899 413,461

508,368 1,407,353 2,035,143 2,526,109

Net loss before undernoted item (337,397) (1,371,934) (1,822,405) (2,472,819)

Other income - 1,715,864 - 1,715,864

Net income (loss) $ (337,397) $ 343,930 $ (1,822,405) $ (756,955)

Earnings (loss) per common share:

Basic $0.00 $(0.00) $(0.02) $(0.01)