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.

The Company paid a $6,500 finance charge by issuing 34,537 restricted shares of the Company’s common stock with no registration rights. No finders fees or other commissions or fees were incurred in connection with the financing amendment.

A complete copy of the Secured Promissory Note and the Security Agreement is filed herewith as Exhibits 99.1 and is incorporated herein by reference [except that we do not intend for any person other than ASI Capital Corporation to rely upon the representations and warranties contained in the exhibit]. The summary of the transaction set forth above does not purport to be complete and is qualified in its entirety by reference to such exhibits and the original financing documents previously filed.

The Company is obligated on a short-term promissory note, as amended, in the principal amount of $650,000 as described above. A description of the material terms of the obligation, as amended, are described above and in Form 8-K filed on March 28, 2007. The Company is obligated to make monthly interest payments of $9,750 and to pay the principal on or before December 23, 2007.