In September 2007, the Company issued a total of 3,170,629
shares of Common Stock (including 113,129 shares in payment of
dividends payable) to holders of 76,437 Preferred Shares
which
the Company redeemed pursuant to the Redemption Notice (See
Note 4).

In July 2007 the Company issued 1,380,167 shares of its Common
Stock to holders of $0.75 Warrants upon the exercise thereof
by
such holders. The Company received $1,035,125 from the
exercise
of such $0.75 Warrants. In July 2007, the Company issued
79,161
shares of its Common Stock to the holder of the Debenture
Warrant upon the ?cashless exercise? thereof by such holder.
(See Note 3).