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Item 1.01 Entry into a Material Definitive Agreement.

Amendment to Purchase Order Financing
On October 10, 2007 the Company completed an amendment dated as of September 23, 2007 of a short-term purchase order and working capital financing arrangement originally funded and dated on March 23, 2007. The Company made a payment to reduce the principal amount from $750,000 to $650,000 and the lender, ASI Capital Corporation, a Nevada based mortgage broker/banker has agreed to extend the due date of the balance of the note to December 23, 2007. Security and other terms of the note and related security agreement remain unchanged.

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