This financing triggers anti-dilution provisions of certain of our outstanding securities. The exercise price on warrants exercisable for 4,070,000 shares of common stock adjusts from $0.50 per share to $0.08 per share, the exercise price on warrants exercisable for 2,112,500 shares of common stock adjusts from $0.19 per share to $0.08 per share, the conversion price on $1,500,000 of our 12% subordinated promissory notes adjusts from $0.19 per share to $0.08 per share and the conversion price of the stated value and accumulated dividends on outstanding shares of Series D and Series EE convertible preferred stock adjusts from $0.19 per common share to $0.08 per common share. We have 110,000 shares (stated value of $10 per preferred share) of Series D convertible preferred stock and 4,330 shares (stated value of $100 per preferred share) of Series EE convertible preferred stock outstanding.

Because the 8K was dated Feb. 24, 2006, it appeared as they were restating the Dec 31, 2005 capitalization to include all of the anti-dilution changes up to and including the recent 1.5 million debt financing.

At least we will have the correct number when they file a new registration before the month ends.

It`s been an interesting discussion.